Discover has published an update to their 5% Cashback Calendar for 2024! If you hold a Discover It card (or are interested in applying for one), here is everything you need to know about taking advantage of Discover’s rotating 5% cashback categories.
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What are 5% rotating categories?
Discover It cardholders receive 5% cashback on specific spending categories that rotate every quarter (you earn 1% cashback on any non-bonus spend). This quarterly bonus is capped after spending $1,500 each quarter (earning you a total of $75 in cashback). Any additional spend beyond the $1,500 limit will only earn you 1%.
Discover usually picks 2-3 separate categories per quarter to earn the 5% bonus. For the first three months of 2024, Discover It cardholders earned 5% cashback at restaurants and drug stores.
The 5% categories are generally relevant to the average spender, so you will likely find yourself earning bonus cashback every quarter.
One thing to note: cardholders must activate your bonus every quarter in order to earn your 5% cashback. You can activate your bonus via Discover’s website or directly in the Discover app.
Discover’s 5% Cashback Calendar
Unlike 2022, Discover did not publish their entire 2024 calendar of quarterly rotating categories at the very beginning of the year. Here are each of the spending categories that earn 5% cashback with Discover it cards:
- Q1 2024 (January-March): Restaurants and Drug Stores
- Q2 2024 (April-June):Gas Stations & Electric Vehicle Charging Stations, Home Improvement Stores, and Public Transit
- Q3 2024 (July-September):TBD
- Q4 2024 (October-December): TBD
Discover vs Chase: The Battle of the 5% Calendars
The Discover It card directly competes with Chase’s Freedom & Freedom Flex credit cards which follow a similar quarterly rotating category model.
As someone who holds all three of these, I find that Chase’s quarterly category can sometimes overlap with Discover’s current bonus category. For example, both Chase & Discover offered 5% cashback on grocery store spend in Q1 2024.
Maximizing 5% Rotating Categories
While the Discover It & Chase Freedom cards are solid no-annual fee credit cards, they are even better when combined with other cards (including each other).
In months when there are no overlapping categories, I keep both cards in my wallet so I can choose to swipe either card whenever I can earn 5% cashback.
However, there are times when the Chase & Discover 5% bonus categories overlap. In those quarters, you can use both a Chase Freedom card and a Discover IT card to continue earning 5% cashback on more than $1,500 in total spend (instead of only earning 1% on any extra spend beyond each card’s $1,500 cap).
In months when there are no overlapping categories, I keep both cards in my wallet so I can choose to swipe either card whenever I can earn 5% cashback.
Further Reading: Want to earn even more rewards? Check out a list of our most valuable credit cards for non-rev travelers.
