Discover has published an update to their 5% Cash Back Calendar for 2025! 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% cash back categories.
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What are 5% rotating cash back categories?
Discover It cardholders receive 5% cash back 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 cash back). 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 2025, Discover It cardholders earned 5% cash back at restaurants and drug stores.
The 5% categories are generally relevant to the average spender, so you will likely find yourself earning bonus cash back every quarter.
One thing to note: cardholders must activate your bonus every quarter in order to earn your 5% cash back. You can activate your bonus via Discover’s website or directly in the Discover app.
Discover’s 5% Cash Back Calendar
Unlike 2022, Discover did not publish their entire 2025 calendar of quarterly rotating categories at the very beginning of the year. Here are each of the spending categories that earn 5% cash back with Discover it cards:
- Q1 2025 (January-March): Restaurants, Home Improvement Stores, and Select Streaming Services
- Q2 2025 (April-June): TBD
- Q3 2025 (July-September):TBD
- Q4 2025 (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 cash back category model.
As someone who holds all three of these cash back credit cards, I find that Chase’s quarterly category can sometimes overlap with Discover’s current bonus category. For example, both Chase & Discover offered 5% returns on grocery store spend in Q1 2023.
Maximizing 5% Rotating Cash Back 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% cash back.
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% cash back on more than $1,500 in total spend (instead of only earning 1% on any extra spend beyond each card’s $1,500 cap).
Further Reading: Want to earn even more rewards from your everyday spend? Check out a list of our most valuable credit cards for non-rev travelers.
