Discover has announced the first bonus categories for its 2025 5% bonus cash-back calendar. Cards eligible for these bonuses include the Discover it® Cash Back, Discover it® Student Cash Back and more.
Below, CNBC Select reviews the Discover cash-back calendar for the first quarter of 2025, plus how you can use a 5% cash-back reward program to your advantage.
How to earn 5% cash back with Discover
To participate in Discover’s rotating 5% cash categories, you need to have an eligible Discover it® or Discover it® More card, such as the Discover it® Cash Back, Discover it® Student Cash Back or NHL® Discover it®.
You then need to log in to your Discover account and activate the 5% bonus cash-back categories each quarter. Once you activate the offer, you can earn 5% cash back on up to $1,500 in spending through the end of the quarter (then 1%).
Discover cash-back calendar for 2025
Discover has announced its 5% cash-back categories for the first quarter of 2025. The Q2 2025 category will be released in March.
January to March (activate now): Restaurants, home improvement stores (online and in-store) and select streaming services
April to June: Announcing on March 1
July to September: Announcing on June 1
October to December: Announcing on September 1
How 5% cash-back credit cards work
To earn 5% cash back, you must activate bonus categories each quarter. After you activate bonus categories, you can start earning 5% cash back on eligible spending. Discover lets you set up email alerts and add reminders to your calendar so you don’t forget to activate them.
Earning 5% cash back isn’t unlimited. Each quarter, after you spend a combined $1,500 in the bonus categories, the cash-back rate drops to 1%. This maximum spending requirement resets every quarter.
All other purchases outside the bonus categories earn unlimited 1% cash back. If you want to optimize the amount of cash back you can earn, we recommend using an alternative cash-back or rewards credit card for spending outside the bonus categories, so you earn at least 2% or 2 points per dollar spent.
Redeeming Discover cash-back rewards
Discover offers a few different ways to redeem your cash back. You can apply your cashback as a statement credit or transfer it to a bank account with no minimum redemption requirement. Starting at $5, you can redeem your rewards for gift cards, each with at least 5% added value. You can also redeem cashback directly through Amazon or PayPal or donate it to a charitable cause.
Alternative cash-back cards
The Chase Freedom Unlimited® Card ranks as one of our best cash-back cards with no annual fee. New cardholders earn 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
The Citi Double Cash® Card is another topic pick, offering an effective 2% cash back: unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
Citi also offers its own 5% cash-back card, the Citi Custom Cash® Card, but you don’t need to activate bonuses each quarter. Cardholders automatically earn 5% cash back on purchases in their top eligible spend category each billing cycle, up to the first $500 spent (then 1%).
source: cnbc.com
