Discover’s 5% Cashback Bonus Calendar (2023)

Discover has published an update to their 5% Cashback Calendar for 2023! 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 2023, Discover It cardholders earned 5% cashback at grocery stores, drug stores, and streaming services.

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 2023 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 (January-March): Grocery Stores, Drug Stores, and Select Streaming Services
• Q2 (April-June): Restaurants and Wholesale Clubs
• Q3 (July-September): Gas Stations and Digital Wallets (Apple Pay, Samsung Pay, Garmin Pay, and in-store with Google Pay)
• Q4 (October-December): Target and Amazon.com

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 Discover’s quarterly category can sometimes overlap with Chase’s current bonus category. For example, both Discover & Chase offered 5% cashback on grocery store spend in Q1 2023. 

Unlike Discover, Chase does not publish their entire calendar of bonuses at the same time. Cardholders must wait for upcoming bonus categories to be released every quarter.

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).

Let’s say you own both a Discover It card & a Chase Freedom Flex card. If you realize that you have already maxed out the $75 in bonus rewards on the Discover It card by spending $1,500+ at grocery stores in Q1, you could begin using your Chase Freedom Flex card to continue earning 5% cashback on another $1,500 in spend (instead of only earning 1% on the Discover It card).

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.