The potential to earn cash back is a favorite feature among those who frequently use credit cards. Today’s best credit cards let customers earn 5% cash back or more, sometimes with no annual fee. Discover customers can use this benefit, as the card issuer maintains a cash back calendar with multiple 5% categories each quarter. For the first quarter of 2025, the 5% categories are restaurants, home improvement stores and select streaming services.
[READ: Best Discover Credit Cards]
What Are Discover’s 5% Cash Back Categories?
Discover’s cash back calendar changes quarterly but generally includes common spending areas. In 2024, that included restaurants, gas stations, EV charging and purchases from Amazon and Walmart. In the first quarter of 2024, the categories were restaurants and drugstores, so there is an additional category for 2025’s first quarter.
What’s coming next? Discover doesn’t unveil cash back categories until closer to the start of each quarter. It will announce categories for the second, third and fourth quarters on March 1, June 1 and Sept. 1, respectively.
How to Earn 5% Cash Back From Discover
Earning 5% cash back from Discover is simple. First, you need an eligible Discover card, like the Discover it® Cash Back. You must activate each quarter to earn the 5% rate by logging into your account and following the activation link.
The 5% reward rate is capped at $1,500 in spending for the quarter, and the current quarter lasts from Jan. 1 to March 31. Discover notes that certain purchases may not be eligible, such as those from restaurants located within hotels or home improvement purchases through contractors.
Several streaming services are eligible for 5% cash back, including:
— Amazon Prime Video
— Apple TV
— Max
— Netflix
— Paramount Plus
— Peacock
— Sling
— Spotify
— YouTube TV
[Read: Best Rewards Credit Cards.]
Discover Cards for Earning 5% Cash Back
The easiest way to earn 5% cash back with Discover is to pick up a Discover it Cash Back card. However, other Discover rewards cards also qualify:
— Discover it® Student Cash Back
Discover’s rewards cards all offer a $0 annual fee, and Discover doesn’t charge foreign transaction fees for any of its credit cards. This means you can try Discover’s cash back program while avoiding most, if not all, fees.
Discover cards are light on premium benefits, but that’s likely no problem for most customers. They offer a simple way to earn cash back without paying excessive fees, which is often more than enough to make a credit card worth considering. Plus, Discover will match all the cash back you’ve earned at the end of your first year.
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What Are Discover’s Rewards Categories Right Now? originally appeared on usnews.com