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A great cash-back credit card is one of the best tools you can use to save money on everyday expenses.

Cash-back cards regularly offer 2% to 6% savings on groceries, gas, dining out, rideshares, streaming services, and more. With today’s best cash-back cards, we estimate that you can bank upwards of $400 to $500 per year in rewards — a solid defense against rising prices.

Best cash-back credit cards for 2025

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Why we like it: Whether it’s your first rewards card or your fifth, a Chase Freedom Unlimited card will add a ton of value to your wallet. Its hybrid rewards structure means you’ll earn more rewards in specific categories while maintaining at least 1.5% back on every purchase. That’s a great way to maximize every dollar you spend beyond bonus categories. Plus, a solid intro APR offer and valuable welcome bonus increase the card’s first-year value even further.

While you can use the Freedom Unlimited as a straightforward and lucrative cash-back card, it also works well for travelers who don’t mind strategizing redemptions a bit further. Its top reward category applies to travel spending, and you can redeem your rewards as points toward travel with Chase Travel. If you already have a travel rewards card from Chase — like the Chase Sapphire Preferred® Card or Sapphire Reserve® — you can also use the Freedom Unlimited as a supplementary rewards card and transfer Chase Freedom Unlimited rewards to your Sapphire account, which offers boosted redemption rates on travel.

Potential annual cash back: $482.15

Read our full Chase Freedom Unlimited review.

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Why we like it: You’ll be hard-pressed to find a credit card today that can beat the Blue Cash Preferred's 6% back at U.S. supermarkets. Even with the $6,000 spending cap, that’s a potential $360 back on just your grocery costs each year. Due in part to that major 6% category, this card has one of the highest potential annual rewards totals of any on our list, even after accounting for its annual fee. Don’t forget the other rewards categories, too, which also make up plenty of common budget items. Cash back is received in the form of Reward Dollars, which can be redeemed as a statement credit or at Amazon.com checkout.

The Blue Cash Preferred also has one of the most valuable welcome offers you’ll find from a cash-back card today. And unlike many cash-back credit cards, you’ll get some potentially valuable annual credits. Whether you do the monthly shopping for your family, like to cook at home, or have a busy commute, you can get a ton of value from this card — as long as you can outpace the annual fee.

Potential annual cash back: $590.65 (after annual fee)

Read our full review of the Blue Cash Preferred Card from American Express.

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Why we like it: Online shopping is one of the most common ways we spend money today, but it’s not often represented in credit card rewards. With the Blue Cash Everyday, you can earn 3% cash back on everything from huge retail sites to small online shops by your favorite sellers (up to $6,000 spent per year, then 1%) — in addition to the other 3% rewards categories. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

One thing to watch for is the Blue Cash Everyday card’s spending caps. It may not be an issue for some, but those with high monthly spending budgets could surpass the $6,000 cap on 3% rewards in each of this card’s bonus categories. Those categories are also limited to spending within America — U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases. If you often travel abroad or shop with international retailers online, you won’t get the 3% rewards on your spending, which could affect your overall annual value.

Potential annual cash back: $451.08

Read our full review of the Blue Cash Everyday Card from American Express.

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Why we like it: The Capital One Savor card is ideal for restaurant spending, thanks to its unlimited 3% rewards rate — which is unmatched among most cash-back credit cards for dining out. This card can make a great fit for your wallet whether you prefer going out or staying in, with other bonus rewards on entertainment spending, grocery stores, and streaming subscriptions.

We also think the Capital One Savor is a great choice to take with you when you travel. Its entertainment rewards category applies to everything from museum tickets and tourist attractions to amusement parks and sporting events. Combined with no foreign transaction fees and boosted rewards on dining —as well as select purchases through Capital One Travel — this card could cover a significant portion of your travel purchases.

You won’t get many added benefits with this card, but if you’re focused on straightforward rewards, there’s a lot to love.

Potential annual cash back: $513.90

Read our full Capital One Savor Cash Rewards Credit Card review.

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Why we like it: The Citi Custom Cash Card is a great choice if your regular purchases look different month-to-month. This cash-back card will automatically adjust your top 5% reward category based on where you spend the most each billing cycle. These include standard categories like restaurants, gas stations, and grocery stores, as well as a few that aren’t as common, such as home improvement stores, live entertainment, and fitness clubs.

No matter which category you use to max out your 5% rewards, you can earn up to $300 back per year ($25 per month) before rewards drop to 1% back on everything.

You should consider how much you spend each month before opening this card, though. If your purchases exceed the $500 monthly cap in the category you want to earn 5%, you may get more value from a card with no spending cap, even if it has a slightly lower rewards rate.

Potential annual cash back: $522.10

Read our full Citi Custom Cash Card review.

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Why we like it: Among rotating cash-back credit cards available today, the Discover it Cash Back is our top pick. This card’s bonus categories change quarterly, but you’ll earn 5% on up to $1,500 spent on eligible purchases (with activation). While we don’t yet know the full lineup for the months ahead, previous quarters show that there is plenty of opportunity to maximize rewards, especially if you’re flexible with where you spend.

Learn more: 2025 Discover cash-back calendar

For example, grocery stores may only show up in one quarter throughout the year. But other quarters might reward spending at specific stores like Walmart or even mobile wallet purchases. If you can shift your purchases around to make the most of each quarter’s 5% categories, you can quickly max out the quarterly spending cap and get up to $300 cashback in 5% quarterly categories alone.

In addition to rotating rewards, you can also take advantage of the Discover it Cash Back card’s great welcome bonus (which can apply to all of your first-year earnings) and long-lasting 0% intro APR.

Potential annual cash back: $476.88 (based on 2024 categories)

Read our full Discover it Cash Back review.

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Why we like it: If you use the Shopper Cash Rewards card from U.S. Bank wisely, it has the potential to offer the most value of any card on our list. In exchange, you’ll need to put in some extra work to maximize this card.

First, you must enroll in the rewards categories where you want to earn 6% and 3% rewards each quarter. Because this card’s 6% cash-back category awards spending with specific retailers (up to $1,500 spent each quarter) rather than general categories, you may need to plan where you’ll make your purchases in advance.

For example, you can earn as much as 6% back on groceries if you buy them at Target or Walmart each month (two retailers typically excluded from supermarket rewards categories), but you can also switch things up when necessary. Maybe you’re planning a home improvement project and want to buy new appliances from Home Depot or Lowe’s — you can change one of your chosen retailers for the quarter to maximize the large purchase.

The 3% rewards are more traditional: Earn that rate on up to $1,500 spent each quarter at your choice between wholesale clubs, gas and EV charging stations, or bills and utilities. Even after maxing out all the boosted rewards categories, you can still get plenty of annual value from the U.S. Bank Shopper Cash Rewards with an unlimited 1.5% back on everything else — the same rewards rate some other cash-back cards top out at.

Potential annual cash back: $634.62 (after annual fee; assuming groceries bought at retailers included in 6% category)

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How do cash-back credit cards work?

Cash-back credit cards are simple: Each time you charge a purchase to your card, you’ll get a percentage of that spending back. The amount you earn back depends on the card’s specific rewards structure.

For example, say your weekly grocery haul costs $200 and you pay using a cash-back card that earns 3% back at grocery stores. You’ll get $6 in cash back on that single purchase. As you spend in your card’s bonus categories over time, you can accumulate more cash back. If you pay $200 at the grocery store each week and earn the same 3% rewards, you'd have about $24 in cash back on your grocery spending by the end of the month.

Cash-back cards typically offer between 2% and 6% cash back across a range of bonus categories, as well as 1% on all non-bonus spending. This can vary, though, depending on the type of cash-back card you have (more on types of cash-back credit cards below).

When you’re ready to redeem your rewards, you can choose what form of cash back you prefer. Most cash-back credit cards allow you to choose between a statement credit to your account, a mailed check, or a direct deposit into a linked bank account. Some offer additional redemptions like gift cards or the option to put your rewards toward online purchases.

Read more: How to use a cash-back credit card to save on daily spending

Types of cash-back credit cards

Cash-back credit cards tend to fall into one of three categories. Review your spending habits to find the type of cash-back card best fit for you.

Flat cash back

Flat cash-back cards have a fixed earning rate (usually 1.5% or 2%), so you’ll get a standard amount of cash back on nearly everything you buy. There’s no need to track bonus categories or percentages because you’ll get the exact same amount back on every purchase.

A flat-rate cash-back card may be best for someone whose spending is spread across different categories (or uncommon categories) or someone who wants to supplement their other rewards cards with a guaranteed return on every purchase.

Tiered cash back

Tiered cash-back cards are probably what you imagine when you think of a cash-back credit card. You can use this type of card to earn different amounts across various spending categories, generally ranging anywhere from 2% to 6% cash back.

Some tiered cash-back cards — especially those with 5% or 6% rewards — have monthly, quarterly, or annual spending caps for those top rates. For example, you might earn 5% cash back on dining, but only on the first $1,500 you spend at restaurants each quarter. After you meet the cap, you’ll earn 1% in that category until the cycle renews.

Make sure you choose a tiered cash-back card with top rewards where you spend most to get the best value.

Rotating cash back

Rotating cash-back cards are unique because your top rewards categories are constantly changing. These cards earn 5% cash back each quarter in specific rotating categories, up to certain limits.

Rotating bonus categories differ year-to-year, but tend to center around everyday spending. Categories like groceries, gas, or dining are common, as well as specific retailers like Target, Walmart, or Amazon. These cards often have two or three eligible categories per quarter.

If you regularly spend much more than the quarterly cap (often around $1,500), you may not get the best value. You’ll also need to manually activate the new categories in your account each time they roll around.

Related: 2025 Chase Freedom bonus categories

What to look for in a cash-back credit card

There are plenty of good cash-back credit cards available today. Compare the card's details with your goals and budget before you apply.

1. Annual fee

Many cash-back cards charge no annual fee. However, you may earn higher rewards if you're willing to pay one.

An annual fee card may be worthwhile, depending on your budget and the value you’ll get from your rewards. When we calculated average cash-back earnings, the earnings on annual-fee cards far outpaced the added costs. But if you don’t spend as much as the average American across bonus categories like groceries, restaurants, and gas stations, that may not be true for you.

Luckily, many top cash-back cards charge no annual fee at all — making it easy to find great savings on any budget.

2. Welcome offer

Cash-back credit cards usually offer a cash bonus if you meet a spending threshold within the specified timeframe after opening your account. You'll typically see bonuses for $150 to $200 (or more) after spending a minimum of $500 to $2,000 on your card within three to six months of account opening.

As with any new card, avoid spending more than you usually would just to earn the bonus cash from a welcome offer. If you can’t pay down your balances right away, the potential interest charges you’ll accrue could quickly eliminate any rewards you earn.

In addition to cash welcome offers, many cash-back cards also have 0% introductory APR offers on new purchases. You’ll earn 0% interest for around 6 to 18 months, after which any remaining balance will accrue interest at the standard rate.

Some cash-back cards also have 0% APR offers for balance transfers, which can help you pay down existing credit card debt (just make sure you know the terms of the offer, including balance transfer fees, before you sign up).

3. Cash-back rewards categories

Perhaps the most important factor in your card choice is how you’ll earn rewards. Here are a few common bonus categories today:

• Dining

• Groceries

• Gas stations and EV charging stations

• Transit

• Streaming services/subscriptions

• Wholesale clubs

• Utilities

Review your receipts or bank statements from the past several months to get an idea of where you spend most. Do you frequently eat out or use delivery services, or do you cook most meals at home? Are you always filling up your gas tank for a daily commute, or do you rely more on public transportation or rideshares?

Make sure you look into the eligible purchases for each category, too. For example, wholesale clubs like Costco and superstores like Target and Walmart are typically excluded from grocery store rewards. If you often buy your groceries in these stores, make sure you’ll get rewarded.

The details of your routine spending habits can help you choose the best cash-back credit card. But don’t forget about flat cash-back cards and cards with rotating categories. These can sometimes be even more lucrative, especially if your spending falls outside of common categories.

4. Benefits and more

You won’t find as many added benefits from cash-back cards as you will on travel and rewards credit cards. But some cash-back cards do offer extra perks that can help you save throughout the year.

Often, cash-back credit card benefits come from brands that partner with credit card issuers. For example, you may get a small monthly credit or trial membership toward a service or subscription. If you are already a member or subscriber to the perk your card offers, this can be a great way to earn an extra savings boost over time.

Related: How to reserve a table at the hottest restaurants with your credit card

How to make the most of your cash back

Here are a few things to consider while you earn and redeem cash-back rewards:

Track your rewards

Make sure you keep regular track of the cash rewards you earn. They probably won’t expire unless you close your account, but you don’t want to leave them unused for too long, either.

Some issuers have thresholds you must meet (like a $25 minimum) before you can redeem. You may also be able to set up automatic redemptions, which will kick in once you earn a certain amount.

Consider redeeming your cash back regularly unless you’re saving for a big redemption. If you’re simply collecting cash rewards in your account, you’re not gaining any value from them. Unlike a savings account, they don’t earn any interest — so you could even lose potential value if you account for inflation.

Combine with other cards

Cash-back cards can be ideal for pairing with other credit cards to maximize your earnings.

For example, say you already have a travel card you use to earn bonus points on flights, hotels, and rental cars when you travel. Opening a cash-back card could supplement your savings with rewards on dining, monthly streaming service bills, and drugstore essentials. Now, between both cards, you can optimize most of your spending at home and on the go.

If you don’t travel — or just want to keep things simple — you can do something similar with two cash-back cards. Maybe you already have a card that earns 3% rewards at supermarkets and gas stations, but only 1% cash back elsewhere. By adding a flat cash-back card that earns 2% on every purchase to your wallet, you can increase your baseline rewards every time you swipe (while still earning the higher 3% on groceries and gas).

Strategizing credit card spending like this might take time, but it will help you earn much greater value over the long-term.

Just remember to pay your balances off in full and on time each month to get the maximum value. Otherwise, high interest rates could wipe out your savings and leave you with mounting debt balances.

Pros and cons of cash-back credit cards

Pros

• Simplicity: Cash-back cards can be some of the simplest reward cards to use. You don’t have to worry about converting points to currency or maximizing redemptions. Instead, you can simply redeem the cash back you earn for statement credits, a deposit into your bank account, or a check.

• Everyday savings: If you don’t travel much or you already have a travel credit card for flights and hotels, a cash-back card can offer plenty of savings on essentials like gas, groceries, utility bills, and more.

• Low or no annual fees: You can get hundreds of dollars in value each year with your regular, budgeted purchases by using a cash-back card. And many of these cards have no annual fee — so as long as you don’t carry a balance and accrue interest, there’s no cost to the rewards you earn. Even the cards that do have annual fees typically charge no more than $95, often in exchange for higher reward rates.

Cons

• High APRs: Like any credit card, cash-back cards have very high interest rates. You shouldn’t opt for a cash-back card if you can’t pay your monthly statement in full, since any revolving balances can quickly turn into high-interest debt. If you want to get any return on your spending with cash back, avoid taking on debt with your card.

• Potentially better rewards elsewhere: In some cases, there may be better options than cash-back cards for your spending. Spending caps for rewards can hinder cardholders with very large monthly budgets, for example. Plus, the value you get for your rewards may increase when you opt for a rewards program with multiple redemption options.

• Foreign transaction fees: You can find some cash-back credit cards with no foreign transaction fees, but this benefit is less common with cash-back cards compared to travel credit cards. If you travel abroad often and want to earn rewards on your international spending, make sure you check for foreign transaction fee costs — or you could end up paying an extra 3% on each purchase.

Should I open a cash-back credit card?

As long as you pay off your balance each month, a cash-back card can play an important role in helping every consumer save money — whether you’re looking to supplement the other cards in your wallet, maximize your everyday purchases, or begin building credit.

Just make sure you take the time to find the right cash-back credit card with rewards where you already spend. Between flat, rotating, and tiered cash rewards (or cards that offer any combination of the three), there are plenty of options that will fit your top spending categories.

Frequently asked questions about cash-back credit cards

What credit score do you need for a cash-back credit card?

Many cash-back cards require good to excellent credit, or a FICO Score of at least 670, for approval. If you don’t already have good credit or you have a limited credit history, you may want to consider a cash-back credit card designed for cardholders who are building credit, even if the rewards aren’t quite as robust.

Before you apply, consider seeing whether you’re pre-approved for a card, so you don’t undergo a hard credit inquiry only to not get approved.

Related: Prequalified vs. preapproved credit card offers

How do I get the best cash-back rewards?

The best cash-back rewards will depend on your spending habits and how you use your card. If most of your budget is focused on a few different categories (buying groceries, filling up your car’s gas tank), you’ll probably get the best value from a card with higher rates in those categories. On the other hand, if you don’t want to worry about categories, a flat cash-back card that earns 1.5% or 2% back on every purchase may be a much better value for you.

Before you apply for a cash-back card, look at your overall spending and budget — and get realistic about how much you’re willing to do to maximize different spending categories.

Does cash back expire?

In many cases, cash back will not expire until your account is closed. However, issuers may have different standards for how long your cash back lasts. Always make sure to read your card agreement for expiration dates and other details that may apply.

What doesn’t count toward cash back?

Most cash-back cards offer at least 1% back on every purchase — but there are some transactions that may not qualify. For example, issuers often exclude lottery tickets and gambling chip purchases from earning cash back, as well as items you return or unauthorized spending. You also won’t earn cash back for balance transfers, cash advances, and other types of non-purchase transactions.

You can find the full list of what counts toward your cash-back earnings and what doesn’t qualify within your card’s rewards agreement.

Which credit card gives the most cash back?

The highest cash-back rates today can reach 5% or 6% cash back in specific categories. But if those categories don’t match your most frequent purchases, they won’t be the most rewarding cards for you. Instead, you might earn more from a flat cash-back card that nets a lower 1.5% or 2% cash back on every purchase.

To find the card with the most potential cash back, always compare reward categories to your own spending.

What is the best cash-back credit card for gas?

With the top cash-back cards today, you can get upwards of 3% back when you fill up your gas tank, even from cards with no annual fee.

These are a few credit cards we like with high cash-back rewards rates for gas stations:

• Blue Cash Everyday® Card from American Express

• Citi Custom Cash® Card

• Costco Anywhere Visa® Card

Which credit card has the best cash back on everything?

If you’re looking for the credit card with the most cash back on everything, you’ll want to look for a flat-rate cash-back card. Today, these cards typically max out at 1.5% or 2% back on every purchase.

You might earn a lower rate on some purchases than cards with up to 6% back in specific categories, but you could ultimately come out ahead if your most frequent spending doesn’t fit into typical cash-back categories.

Here are a few cards that earn flat cash back on every purchase:

• Capital One Quicksilver Cash Rewards Credit Card

• Citi Double Cash® Card

• Wells Fargo Active Cash® Card

How do you get 5% cash back on everything?

Plenty of cash-back cards have 5% rewards in specific bonus categories or rotating quarterly categories, but you’re not likely to find a card with flat 5% back on everything. To earn 5% across several of your top spending categories, consider combining more than one cash-back credit card into your rewards strategy.

Are cash-back credit cards worth it?

Cash-back credit cards are often worth it for the savings they offer on everyday spending. Many have no annual fee — and even those that do typically charge no more than $100 annually — meaning more of your earnings can go straight toward maximizing your spending. Plus, you can enjoy all the other benefits of rewards credit cards, like annual discounts and credits, purchase protections, fraud prevention, and more.

Cash-back credit cards likely aren't worth it if you carry a balance since high interest charges can quickly outpace the value of any rewards. Spend only what you can afford and pay your balance off every month to get the most out of your cash-back card.

Our methodology

To choose the best cash-back credit cards, we began with a list of nearly 40 cards offering cash-back rewards today. Because we wanted to focus on general cash back for a broad range of users, we didn’t include co-branded retail cards or business cash-back cards in our analysis.

The first detail we looked at was potential cash rewards, using Consumer Expenditure data from the Bureau of Labor Statistics. The most recent data is from 2023, published in September 2024. Average spending for American households totaled $77,280 (up from $72,967 in 2022). To keep our focus on credit card spending, we removed housing costs, vehicle purchases, healthcare expenses, cash contributions, personal insurance, and pension spending from that total.

The remaining average annual expenditure, then, was $28,210 (about $2,350 per month).

We used the detailed expenditure data to find each card’s potential earnings by reward categories, including food at home, food away from home, gasoline, entertainment, and more. We also included all non-category spending at 1%, so each card’s “potential annual cash back” is based on the same overall spending total of $28,210 per year.

Potential cash-back earnings made up one data point in our overall rubric, but we also looked at card details like annual fee, introductory 0% APR, ongoing APR, welcome offer, reward structure, added benefits, and whether the card charges foreign transaction fees. For all of our credit card ratings, we also compare customer service and fraud monitoring details.

The cards that made our final list of the best cash-back credit cards are those with the highest overall scores, which we believe can offer anyone maximum return on their spending.

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Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.