November 9, 2012
One way in which banks try to differentiate their credit cards is by offering bonus awards for spend within certain categories. For example, some cards offer bonuses at grocery stores, some at office supply stores, some at gas stations, etc. Below is a roundup, by category, of the best credit card category bonuses. This is not intended to be an exhaustive list, but if you know of cards that deserve to be here, please let me know. I’ll plan to update this post as things change and as I learn more. I’ll also add this post to the Credit Cards menu at the top of my blog.
For cards that earn points instead of cash back, I’ve listed the “X” which is the number of points per dollar earned in that category. For example, “5X” means that the card earns 5 points per dollar in the given category.
Within each category, cards are sorted by the value of the rebate in descending order based on my Fair Trading Prices point valuations.
Office Supply Stores
- Chase Ink Bold: 5X, up to $50K per year in spend
- Chase Ink Plus: 5X, up to $50K per year in spend
- Chase Ink Classic: 5X, up to $25K per year in spend
- Chase Ink Cash: 5X, up to $25K per year in spend
- Lowe’s Business Rewards: 3X
- American Express SimplyCash: 5%, up to $12K per year in spend
- CitiBusiness AAdvantage World Mastercard: 2X
- Chase MileagePlus Explorer Card for Business: 2X
Drug Stores
- Citi ThankYou Preferred: 5X, limited to first 12 months after applying through this link (which is not an affiliate link)
- American Express Hilton HHonors: 6X
- American Express Hilton HHonors Surpass: 6X
- US Bank Cash+: 2%*
- Chase Amazon.com Rewards: 2X
Grocery Stores
- Citi ThankYou Preferred: 5X, limited to first 12 months after applying through this link (which is not an affiliate link)
- American Express Blue Cash Preferred: 6%, up to $6K per year in spend
- SallieMae World MasterCard: 5%, up to $250 per month in spend
- PenFed Platinum Rewards: 3X
- American Express Hilton HHonors: 6X
- American Express Hilton HHonors Surpass: 6X
- US Bank FlexPerks Travel Rewards: 2X***
- American Express Premier Rewards Gold: 2X
- US Bank Cash+: 2%*
- BOA BankAmericard Cash Rewards: 2%, up to $1500 per quarter****
- Chase Disney’s Premier: 2%
Department Stores
- US Bank Cash+: 5%*
- American Express Blue Cash Preferred: 3%
Gas Stations
- Citi ThankYou Preferred: 5X, limited to first 12 months after applying through this link (which is not an affiliate link)
- Fort Knox Federal Credit Union Visa Platinum: 5%
- PenFed Platinum Rewards: 5X
- SallieMae World MasterCard: 5%, up to $250 per month in spend
- True Earnings Business Card from Costco and American Express: 4%, up to $7K per year in spend
- Chase AARP 3%
- American Express Blue Cash Preferred: 3%
- American Express Hilton HHonors: 6X
- American Express Hilton HHonors Surpass: 6X
- BOA Bank Americard Cash Rewards: 3%, up to $1500 per quarter in spend****
- US Bank FlexPerks Travel Rewards: 2X***
- Chase Ink Bold: 2X, up to $50K per year in spend
- Chase Ink Plus: 2X, up to $50K per year in spend
- Chase Ink Classic: 2X, up to $25K per year in spend
- Chase Ink Cash: 2X, up to $25K per year in spend
- Chase MileagePlus Explorer Card for Business: 2X
- American Express Premier Rewards Gold: 2X
- American Express Business Gold Rewards: 2X
- US Bank Cash+: 2%*
- Chase Amazon.com Rewards: 2X
- Chase Disney’s Premier: 2%
Restaurants
- US Bank Cash+: 5% cash back.*
- Citi Forward: 5X
- Chase Sapphire Preferred: 2X**
- Chase AARP 3%
- Lowe’s Business Rewards: 3X
- Chase Sapphire: 2X
- Chase Ink Cash: 2X
- Chase MileagePlus Explorer Card for Business: 2X
- Chase Hyatt Visa Signature: 2X
- True Earnings Business Card from Costco and American Express: 2%
- Chase Amazon.com Rewards: 2X
- Chase Disney’s Premier: 2%
- Chase Marriott Rewards Premier: 2X
Hotels
- US Bank Cash+: 5%*
- Chase Sapphire Preferred: 2X**
- Chase Ink Bold: 2X, up to $50K per year in spend
- Chase Ink Plus: 2X, up to $50K per year in spend
- Chase Ink Classic: 2X, up to $25K per year in spend
Airlines / Travel
- US Bank Cash+: 5%*
- PenFed Premium Travel Rewards: 5X
- American Express Premier Rewards Gold: 3X
- American Express Business Gold Rewards: 3X
- Chase AARP Visa: 3%
- US Bank FlexPerks Travel Rewards: 2X***
- Chase Sapphire Preferred: 2X**
- Chase Hyatt Visa Signature: 2X
- Citi Hilton HHonors Reserve: 5X
- True Earnings Business Card from Costco and American Express: 2%
- Chase Marriott Rewards Premier: 2X
Car Rental
- US Bank Cash+: 5%*
- CitiBusiness AAdvantage World Mastercard: 2X
- Chase AARP Visa: 3%
- Chase Sapphire Preferred: 2X**
- Chase Hyatt Visa Signature: 2X
- Citi Hilton HHonors Reserve: 5X
- Chase Marriott Rewards Premier: 2X
Phone, Cellular, Internet
- Chase Ink Bold: 5X, up to $50K per year in spend
- Chase Ink Plus: 5X, up to $50K per year in spend
- Chase Ink Classic: 5X, up to $25K per year in spend
- Chase Ink Cash: 5X, up to $25K per year in spend
- US Bank Cash+: 5% cash back (bill pay category).*
- American Express Hilton HHonors: 6X
- American Express Hilton HHonors Surpass: 6X
- CitiBusiness AAdvantage World Mastercard: 2X
- Lowe’s Business Rewards: 3X
- US Bank FlexPerks Travel Rewards: 2X
Books (Including Amazon and Barnes & Noble)
- Citi Forward: 5X
- SallieMae World MasterCard: 5%, up to $750 per month in spend
- Chase Amazon.com Rewards: 3X (Amazon.com only)
Rotating Categories
- Chase Freedom: 5X, up to $1500 per quarter in spend
- Discover: 5%, up to $1500 per quarter in spend
- Citi Dividend Platinum Select: 5%, up to $300 cash back per year
American Express OPEN Savings
In addition to the bonus categories listed above, American Express small business cards are part of the OPEN Savings program in which you can automatically earn cash back (as statement credits) at various specific merchants. Be sure to read the fine print since some merchants have specific criteria requiring purchases over a certain amount, or allow online sales only, or both. Details can be found here: OPEN Savings
MasterCard Easy Savings
Similar to the American Express OPEN Savings program, MasterCard has a program for MasterCard small business cards. Unlike American Express’ program, you do need to register your MasterCard to qualify. Details can be found here: MasterCard Easy Savings.
Stackable Savings
Both Amex OPEN Savings and MasterCard Easy Savings are stackable with category bonuses. So, for example, you can use the American Express SimplyCash card to get 5% cash back at OfficeMax and, if you ordered online, get another 5% to 10% back through OPEN Savings! Similarly, you can use your Chase Ink MasterCard to pay for lodging at a Wyndham hotel in order to get 2X points and get 5% back through Easy Savings!
NOTES
Sign-up links for most of the cards listed above can be found on my Preparing for Miles page.
* US Bank Cash+ Cardholders must pick one 2% cash back category and two 5% categories each quarter. Also note that, thanks to bonus rewards, 5% cash back becomes 6.25%, and 2% cash back becomes 2.5%. For details, see “The best cash back card?“
** Chase Sapphire Preferred cardholders earn a 7% annual dividend so “2X” really becomes 2.14X at the end of the year.
*** US Bank FlexPerks Travel Rewards earns 2X at either airlines, grocery stores, or gas stations, whichever is highest in spend each month.
**** Get an extra 10% bonus when redeeming cash rewards to an eligible BOA checking or savings account. e.g. 1% rewards become 1.1%.
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The Hyatt card gives 2x on restaurants, airlines and car rentals.
DRSP: Thanks for the reminder. Updated with Hyatt and Marriott cards for 2X restaurants, airlines, and car rentals
Penfed Platinum Rewards gives 5% on gas,3% on groceries.
And PenFed Premium Rewards gives 5% on airfare.
Am Ex Gold Personal gives 2X on groceries.
One other comment…and I’m a complete point newbie…when I buy airline international air tickets, I have to double check and make sure a particular card does not carry a foreign transaction fee.
MileagePlus Explorer Biz Card get 2x on Gas, Office Supply and Restaurants.
I was just thinking about making this type of list for myself. Thanks for providing this awesome content!
Gas and grocery: don’t forget the Sallie Mae World Mastercard: https://www.salliemae.com/landing/WorldCreditCard/
It’s capped fairly low, but it’s 5% with no annual fee.
Travel: the Chase AARP card gives 3% with no annual fee, although you do have to be an AARP member (no age restriction, though–anybody can join).
Thanks for the awesome list! Any bonus category or best way to pay for medical expenses?
All AMEX Business cards offer the following rebates
Shipping
FedEx Express — 5%
FedEx Ground — 5%
FedEx Office — 5%
Transportation
AirTran Airways — 5%
Hertz — Up to 10%
Carey — 5%
Lodging
Hyatt — 3%
Courtyard by Marriott — 5%
Fairfield Inn by Marriott — 5%
SpringHill Suites by Marriott — 5%
Residence Inn by Marriott – 5%
TownePlace Suites by Marriott — 5%
Client and Employee Appreciation
Barnesandnoble.com — 5%
1-800-Flowers.com — 5%
Office Supplies and Services
OfficeMax — 5% off transactions of $100 or more HPDirect.com — 5%
Symantec — 10%
Epson — 5%
Logoworks by HP — 10%
Firedog — 10%
Great list. I’m gunna get the Amex Hilton card soon. For the books/amazon category, it’s probably better if you buy amazon gift cards at office supply stores with Ink or at grocery stores. 5x chase is much better than 5x citi thank you points.
Seems like if you spend on the US Bank Cash+ card at 5% locations and pay the bill with the Ink/Vanilla combo, the reload fee can be covered for a lot of your other spend to where you could be paying nothing for your miles.
FM, Have you ever considered writing about how to convert miles to cash? Great information. Thanks for the great work.
Very handy post. Thanks!
Wonderful list! THANK YOU!
FM:
Sometimes can get better bonuses when using a branded card at that brand. Foe ex: Amex Hilton Surpass pays 10X on Hilton stays.
Marshall: That’s true. Actually the Surpass has increased to 12X at Hilton properties!
Thanks so much for the helpful suggestions. This post is getting better and better. I’ve made the following enhancements based on reader suggestions:
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Added cards: Hyatt, Marriott, PenFed Platinum, PenFed Premium Travel, Amex PRG (missed 2x groceries before), MileagePlus Explorer for Business, Sallie Mae World Mastercard, AARP. Also added:
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American Express OPEN Savings, MasterCard Easy Savings
Sheila: I don’t think you can get a category bonus for medical expenses. You might be better off with a Health Savings Account or something similar.
Joe: Is there any particular mileage program you have in mind for converting miles to cash? I expect that the techniques will vary with the program.
FM: Thanks for the info. Opens up new thoughts. Buy VRL card with Hilton Surpass at drugstore get 6X; Use Hilton card to pay for stay, get 12X; pay bill with money loaded on BB from drugstore,VRL card. Effect: 18X on Hilton stays! Can do same thing with any card where get multiples buying VRL card, load on BB, and then use same card to purchase services. Chase Ink 5X, deposit, travel at 2X, get 7X, etc.
I have the old ink bold, so no 5x at office stores and no 2x at gas stations
I thought the Ink Cash was 5% cash back, not 5x points. Am I wrong?
Grant: The Ink Cash is advertised as 5% cash back, but I believe you get Ultimate Rewards points just like the Ink Classic. Can anyone with an Ink Cash weigh in on this?
Don’t forget the US Bank FlexPerks Rewards(I got it during the olympics promo) They have 2x points for either Grocery or Gas and I believe 2x for phone, etc.
I’m currently using it to buy non-vanilla re-loadable gift cards similar to vanilla beans at grocery stores.
$80 in fees gets me $400 plane ticket WHILE still getting miles for the flight. Works great if you know how to cash out
Citi Dividend pays out up to $300 cash back per year, not per quarter.
The Chase Amazon Rewards Visa gets 2x at gas stations, restaurants, drugstores, and office supply stores.
This can work out to 3.2%, if you spend it on a plane ticket costing $400+. It’s 25k points for a $400 domestic ticket, and if it costs more you can pay the balance on a credit card. It can be tricky though, I haven’t actually found a good use of my 75k points: domestic tickets just aren’t that expensive. There are some restrictions, as well. I believe 21 day advance purchase, Saturday night stopover, and all flights on the same airline.
Ink Cash does give UR points. I just registered my Ink Cash with Mastercard Easy Savings, but it won’t let me register my Ink Bold. Can you only register one account per user ID?
Part of the problem is that you have to then compare the value of the points. Say you get 1000 points/dollar on a particular card. If the program is 1000x more expensive, then you’ve gotten no where.
I’ve not done a lot of research, but some hotels like Marriott/Hilton are a lot of points per night (especially compared to SPG). So you have to compare it to the redemption value to get the real value – not just worry about the 5x or 2x etc.
FM: I have Ink Cash and I get 5X points at office supply stores….but I can’t transfer the points to any of their partners. I plan to transfer my Chase Reward Points to my husband’s Chase Ink Bold and then make the airline transfer from there. (I think that’s allowable.)
Advantage Miles, Delta Miles, US Airways Miles, Hawaiin Airlines Miles. We had planned on traveling but my wife is pregnant again and we had our first six months ago and she is going to nursing school so it’s just my salary we are working with. I would love to hear any suggestions anybody might have.I got a little crazy with CC’s. I should have stuck with the cashback cards but Oh well. Those bonuses were so hard to pass up.
[...] Best Category Bonuses [...]
Just out of curiosity, are none of the capital one cards worth mentioning? I vaguely remembered the venture and/or cash was decent.
bringer: Thanks for the reminder. I’ll add in FlexPerks
Alex: Thanks for the correction! Updated
alan: Thanks. Added Amazon Rewards
Preacher: I don’t know if you’re limited to just one card with Easy Savings. I’ll try adding more cards myself to see what happens.
How long does it take for the master card easy savings to credit? I’ve used my card for gas at several of the fuel an locations and have yet to see a credit. It’s been 2 or 3 statements now since I’ve registered.
Daniel G: I’ve only received the credit once, but when I did it happened on the very next statement. My guess is that it somehow failed to track for you
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BankAmericard Cash Rewards card has 3% on gas and 2% on groceries.
Makes me glad I hung onto my Mileage Plus Select cart. 3 miles (and 1 eqm) for United 2 miles for Gas/Groceries/Dinning/Home Improvement/*A
Chase Sapphire Preferred gives 3.14X (2 * 1.07 + 1) on travel booked thru UR portal. I think that’s worth noting, since it earns ‘normal’ mileage on airline like any revenue ticket. I don’t get why people use that option more often (i.e. when there is no better choice, like travelocity or 5x freedom category)
The Costco Business Amex gives 4% on gas (up to $7k per year) and 2% on restaurants and travel.
Re: my comment above wrt CSP+UR mall. It’s actually 3 x 1.07 = 3.21X, since the 7% dividend applies to all points.
At about 1.5 ct per UR point. we’re talking 5% cash back on travel all year long.
MidTierStatus: Thanks. I’ve added BankAmericard
Ced: That’s true that you can earn more with the Sapphire Preferred by booking travel through UR. You can do even better by going through the Ultimate Rewards Mall to Travelocity (2X) and booking from there (for a combined 4X or 4.28X if you want to count the annual dividend). While these extras are awesome, I don’t want to list them in this post because it is true with any card: you can always go through some portal and increase your points or cash back. I don’t consider that a category bonus.
Wayne: Thanks. I’ve added the Costco business card
Will I get a 10% statement credit with the AMEX Business Gold if I purchase a $500 OM gift card online? Has anyone received a statement credit for OM GC purchases made online?
[...] Best Spending Category Bonuses – Frequent Miler details how to maximize the your points earning by matching the right credit card with the right spending category. Good stuff at this link. [...]
This is perhaps not the correct thread in which to ask this as it is a non-category spend question and it touches on the dreaded issue of valuing HHonors points, but so be it since the comment section is currently active:
What are folks thoughts re: the value of 3 HHonors versus 1.07 UR points?
I spend a ton at a mom&pop grocery store on my block. They don’t take AMEX, so I can’t use my AMEX HHonors card or my SPG. I can, however, use my Citi HHonors card. But I usually use my CSP, figuring that 1.07 UR points probably squeaks past 3 HHonors points.
Just curious as to opinions on this tactic.
I think my Amex PRG gets 2x in restaurant spend as well
The Lowes Amex gives 3% on restaurants, office supplies and wireless.
Citi Hilton card (no fee card) gets 3X at grocery, drug, and gas.
[...] my recent post, “Best Category Bonuses,” I listed credit cards that earn the best bonuses in different popular categories such as [...]
I have the same problem that I registered my ink Cash before and I recently received my Ink bold. I am unable to add to card too.
I found that you need to register another easysaving account.. probable because you have another “company”
Kim: Yes, you’ll get a 10% statement credit if you buy a $500 OfficeMax gift card online with an Amex business card. I’ve done this several times (in my case I bought $300 worth at a time).
WhiteDesert: My Fare Trading Price of 3 HHonors vs 1.07 UR is about the same. That being said, I would prefer UR just because of the flexibility of being able to use them for flights or hotels.
JP: I don’t think that the Amex PRG gets 2X in restaurant spend. If you can find any evidence of that, please send it my way.
Wayne: Thanks. I’ll add that in.
Chris: Since other Hilton cards get 3X for base spend, I think it would be confusing to list the Citi card here under those categories.
kanshin: Strange. I added 3 cards from 3 different companies to one account.
Wayne: Thanks. I added the Lowe’s card
I’d like to see an article about recommendations for a newbie. I want to do this and do it right. I will use this article for reference, but I’d like to know what is the general recommendation for someone in my position, who is just getting started.
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Last week I applied to the Chase INK cards, the BOLD cards, an Amex and two others. I have excellent credit so I’m sure I’ll be approved for most of them.
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Also, I have a MasterCard from BofA from an extinct plan they used to have (Elite Rewards). I’d like to transfer this available balance to a card that would be more point-friendly. Any recommendations?
[...] Best Category Bonuses [...]
[...] Best Category Bonuses [...]
PeterJon: Do you subscribe to my weekly newsletter? That’s geared more towards newbies than my daily blog so you may find it more helpful. Also, feel free to email me specific questions. Unfortunately, I don’t know anything about BofA Elite Rewards so I don’t know what options there are (if any) to transfer points from that program to others.
Was trying to see if any of my cards give more than 1 percent on auto insurance, but no luck. Google search led to Discover Escape which is a good catch-all (2 percent on everything plus 25k miles — 1k per month of usage for 25 months).
WishAnand: US Bank’s Cash+ card has an option for 5% back for “bill pay” which really means “telecom, cable, internet, and insurance“
Thanks FM. Probably not going to apply for now since Ink gives me 5% back on some of those categories, but good to know.
Am waiting for you to post the next big initial spend and earn deal on Amex cards, since I only have one at the moment (Delta Skymiles).
Do you know if any of the gas station credit cards you listed will pay the bonus for in-store gas station purchases? I’ve read that Chase cards will work, but what about the others.
Kirk: that’s a good question, but I don’t know the answer.
heads up, you have BOA Bank Americard Cash Rewards: 2% it is actually 3%. (the 2% is groceries, 1% everywhere else)
And it could be called 3.1%, 2.1%, and 1.1% if you calculate for the 10% bonus for transferring the cashback to your BofA checking or savings acct.
source:
http://learn.bankofamerica.com/products/managing-credit/bankamericard-cash-rewards-credit-card.html
afterbang: Thanks. Updated. BTW, doesn’t 2% become 2.2% when transferred to BOA checking? And 3% becomes 3.3%? Or is the 10% bonus only for base rewards?
Does the BoA Cash Rewards card really give 3% back at drugstores? Their website just says 3% back on gas, and 2% back on grocery.
Uncle upChuck (nice name!): I think you’re right. I’ve updated the post.
[...] Best Category Bonuses [...]
Chase Thank you premier needs to be on this list. With flightpoints, each $ spent is worth 2.66% or 3% at grocery/drugstore/gas stores
kyunbit: Thanks for the suggestions. I think you meant Citi (not Chase) ThankYou Premier. Truthfully I find their flightpoints program so confusing that I don’t like to recommend it to people.
[...] 6x the points, depending on where you purchase vanilla reloads. Check out Frequent Miler’s post on best category [...]
[...] Best Category Bonuses [...]
[...] Best Category Bonuses [...]
Thank for the post. It is great. Just want to add something to make it even better:
1. Grocery: remove or note on AMEX HH as it was said it is going to discontinue on grocery and drugstore;
2. Grocery: Add AMEX blue cash everyday. As it is free (no AF) and 3% is higher than other no-AF cards.
[...] Best Category Bonuses [...]
FM:
Citi AA cards are now giving 3 AA miles for drugstore spend
thru 3/31. Question: Seen some chatter about Citi charging VR cards as cash advance. Do they or don’t they?
[...] Best Category Bonuses [...]
[...] Best Category Bonuses [...]
[...] Best Category Bonuses [...]
Update: I added the Citi ThankYou Preferred offer (5X grocery, drug stores, gas for 12 months)
[...] Best Category Bonuses [...]
[...] Best Category Bonuses [...]