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Update 1/1/21: These new earning rates are live from today – Happy New Year!
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There are several credit cards that offer 5% cashback in rotating categories each quarter. All of them can now be activated for Q1 2021 (January 1 to March 31), so here are their links and how to maximize them for gift card purchases in case you wouldn’t meet their respective spending limits through organic spend.
Cards, Categories, Limits & Activation Links
Chase Freedom / Freedom Flex
- Wholesale clubs
- Internet, cable & phone services
- Select streaming services
- Disney+
- Hulu
- ESPN+
- Netflix
- Sling
- Vudu
- Fubo TV
- Apple Music
- SiriusXM
- Pandora
- Spotify
- YouTube TV
- 5% cashback on up to $1,500 spend in combined purchases of this quarter’s categories
- Eligible retailers & exclusions
- Activation link
If you don’t have a wholesale club membership, it’ll be harder to maximize Q1’s categories as I doubt many people spend an average of $500 per month in the other categories.
The good thing is that it’s often possible to get very cheap, free or even profitable memberships for Sam’s Club, Costco and BJ’s. If you don’t have any wholesale clubs near you, it might be worth getting an online-only BJ’s Wholesale Club membership for $10 to take advantage of their somewhat regular gift card deals which are available online.
Discover It
- Grocery stores
- Walgreens
- CVS
- 5% cashback on up to $1,500 in purchases
- Activation link
Many people will max out the 5% categories on the Discover It card organically from January to March seeing as many will spend an average of $500 per month at grocery stores anyway.
If not, grocery stores, Walgreens and CVS all have gift card racks, making it simple to max out these 5% categories in Q1.
Citi Dividend
- Amazon
- Select streaming services:
- Amazon Prime Video
- Amazon Music
- Apple Music
- CBS All Access
- Disney+
- AT&T TV NOW
- ESPN+
- fuboTV
- HBO Max
- NBA League Pass
- Netflix
- Pandora
- Showtime
- Sling TV
- Spotify
- Starz
- SiriusXM
- Vudu
- YouTube Red
- YouTube TV
- Tidal.
- Total annual (calendar year) cash back is limited to $300 and includes additional cash back earned in connection with this offer (i.e. $6,000 total spend).
- Activation link
The Citi Dividend card works differently to the Freedom, Freedom Flex and Discover It cards because you get a 5% allowance on up to $6,000 of spend, but that doesn’t have to be spread throughout the year. You can therefore max out that spending in one category if you like which is what I did in Q1 last year seeing as grocery stores were an eligible category back then.
Q1 2021 is different though seeing as it’s Amazon and select streaming services which are the 5% categories. I’m not aware of any streaming services selling gift cards directly where you can pay 5% in advance, so Amazon will likely be your best bet. Seeing as the $6,000 can be spent at any point, you could always wait until grocery stores become a 5% category in a future quarter (assuming that happens) if you don’t want to buy gift cards on Amazon.
US Bank Cash+
- Choose two of the following:
- Home Utilities
- Electronics Stores
- Sporting Goods Stores
- Ground Transportation
- TV, Internet & Streaming
- Department Stores
- Select Clothing Stores
- Gyms/Fitness Centers
- Furniture Stores
- Cell Phones
- Fast Food
- Movie Theaters
- 5% cashback on your first $2,000 in combined net purchases in your chosen 5% categories
- Activation link
The US Bank Cash+ categories don’t rotate each quarter, although you do get to change/maintain your selection of two categories. It’s a shame that grocery stores, drugstores, etc. aren’t eligible categories, but there are a few gift card options.
The electronics stores category presumably includes Best Buy. That means you can buy gift cards for Best Buy, Amazon and many other third party brands, plus Best Buy sometimes offers discounted gift card deals. Some department stores and clothing stores also have third party gift card racks.
ABOC Platinum Rewards
- Groceries
- Dairy product stores
- Bakeries
- Misc food/convenience
- Candy/nut
- Freezer/locker meat
- Fitness clubs
- Hospitals
- Chiropractors
- Vision services
- Beauty/health spas
- Pharmacy
- Vitamins
- Medical providers & medical supply
- Veterinary services
- Earn 5% cashback on your first $1,500 in combined purchases each quarter.
- Activation link
This is a very random collection of eligible categories. It could actually be good for a lot of people’s bills seeing as hospitals, veterinary services, etc. aren’t normally bonused spend oportunities.
The inclusion of groceries means it’ll be easy to max out the $1,500 limit by buying gift cards if necessary though.