I don’t usually get excited about cash back credit cards. I prefer to earn points and miles that can be used for first class travel around the world. No matter how much cash I earn from credit cards, I can’t imagine ever spending $10,000 or more for an international first class flight, but I’ll gladly spend 135K miles or more. That being said, cash is the right solution for most other things, so if a credit card company wants to give me lots of money, I’ll take it.
Several months ago, U.S. Bank launched their Cash+ Visa Signature Card. Let’s look at its benefits:
- Earn 5% cash back on two categories that you choose, like department stores, restaurants…plus many more.
- Earn 2% cash back on gas, groceries or drug stores – choose one.
- Earn 1% cash back on everything else.
- Get a $25 Cash+ Bonus each time you redeem $100 or more cash back in a single redemption.
- No Annual Fee
2X and 5X Categories
Similar to the Chase Freedom and Discover cards, each quarter you’re required to enroll in bonus categories. Unlike either of those cards, though, the Cash+ lets you pick your own categories! As you can see below, you are allowed to pick one 2X category, and two 5X categories. For 2X you can choose gas stations, grocery stores, or drug stores. For the 5X categories there are many more options including department stores, restaurants, charities, etc. These categories may change in the future, but I’ve been told that they have held steady for two quarters now.
Unlimited Earnings
Unlike the Freedom and Discover cards that cap 5X categories to $1500 in spend per quarter, the Cash+ has no caps or limits!
25% Bonus
For each $100 or more in points that you redeem, U.S. Bank will throw in a $25 bonus. This means that if you redeem points for cash in $100 increments (and you should!), you’ll earn 25% more cash. By doing so, 5X categories equate to 6.25% cash back, 2X categories equate to 2.5% cash back, and everything else becomes 1.25% cash back. Not bad!
No Annual Fee and Visa Acceptance
Arguably, the best rival cash back card is the American Express Blue Cash Preferred card which offers 6% cash back at supermarkets, and 3% cash back at gas stations and department stores. However, the Amex comes with a $75 annual fee and is not accepted in as many places as a Visa card. If you spend a lot at grocery stores and gas stations, I’d still recommend the Amex, but there would be no harm in getting both cards. Use the Amex for groceries and gas. Use the Cash+ elsewhere.
Taking it Further
If you’re a regular reader of this blog, then you know what I’m thinking. How can we leverage the 5X categories to earn 5X everywhere? As a start, I know that my local Sears (which is classified as a department store) sells merchant gift cards including BP cards. So, right there, that’s a quick and easy way to earn 5X (6.25% cash back) on gas! Even better, go through an online cash back or points earning portal to Sears and use the Cash+ card to buy Sears gift cards. Then, go through the portal again to use the gift cards for merchandise, or go to Sears to use the gift cards to buy BP and other merchant gift cards. The possibilities are endless. I don’t have this card yet, but once I do it will be fun to conduct experiments like these within various categories.
What’s not to like
The card offers no signup bonus. Also, I’m not thrilled that you’re required to signup for bonus categories each quarter. However, those are small nits. Overall, this card appears to be a winner.
Hat Tip to Readers
I keep receiving emails and comments from readers about this card. I’ve had this on my to-do list for quite a while, but it took two recent comments for me to finally give this card a proper look.
For example, on Wednesday, MAC wrote:
One card IMO worth getting right now is the US BANK Cash+ card. You pick categories quarterly. One 2% category and 2 5% categories. Right now, I have Hotel and Bill Pay as the 5% categories. Airlines is another 5% category. Bill Pay includes satellite/cable/phone/electric/gas but also includes insurance when paid via their cc. You need to repick categories every quarter and they are subject to change but the choices have not changed since the card came out around June 2012. They used to have a $50 signup bonus via FB but not sure if it is still available.
And, on the same day, RestlessLocationSyndrome wrote:
The US Bank Cash+ Visa card will give up to 6.25% cash back. They give purchases from their 5% cash back category but when $100 in cash back is requested, they give an additional $25 bonus in cash back.
You’re right guys, this card is worth a look!
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The 25 percent bonus is supposedly ending soon or ended already.
WishyAnand: Yes, I reported the changes coming to the Cash+ card last month: https://frequentmiler.com/2013/01/17/cash-comes-down-to-earth/
[…] The best cash back card? […]
Just took a look and they’re still only taking apps in person at their branches, which kills it for me because they don’t seem to have branches anywhere outside, like, Chicago. Anyone have luck applying over the phone? I know I’ll easily qualify for this, and I’ve been looking for a 5% bill paying card for a long time.
I have a branch about half a mile from my condo and plan on going to apply on Monday. We’ll see what happens!
Just took a look and they’re still only taking apps in person at their branches, which kills it for me because they don’t seem to have branches anywhere outside, like, Chicago. Anyone have luck applying over the phone? I know I’ll easily qualify for this, and I’ve been looking for a 5% bill paying card for a long time.
[…] mentioned before that U.S. Bank’s Cash+ card may just be the best cash back card there is. U.S. Bank allows cardholders to choose two 5% cash back categories from a long list, and one […]
[…] was interested in the US Bank Cash+ Visa Signature card, touted by Frequent Miler as perhaps the best cash back card. The 5x category for charity appealed to me at year-end, but now they are only accepting […]
Currently only accepting applications in-person at branches. Darn, wanted to get it for end-of-year charitable contributions at 5x.
[…] annual charity season is starting and FrequentMiler’s post The best cash back card has me interested in the U.S. Bank Cash+ Visa Signature card to select charity as one of my cash […]
I applied on Nov 9th and I got “Pending Review”. I immediately called the reconsideration and was told they didn’t even review my application yet and would do so on Wed Nov 14th and that I should call back then. I called back on Mon Nov 12th and was told that I had been denied based on too many recent accounts opened (7 cards in the past 6 months). I asked how many is more appropriate and he said the max should be 2-3 cards in the last 6 months. I made all the standard arguments, but to no avail. (FYI I had a 758 Experian score according to their denial letter I received the following week.)
[…] * US Bank Cash+ Cardholders must pick one 2% cash back category and two 5% categories each quarter. Also note that, thanks to bonus rewards, 5% cash back becomes 6.25%, and 2% cash back becomes 2.5%. For details, see “The best cash back card?“ […]
Bill pay is a category?! If it’s broadly defined, it seems that the rewards available for this card exceed the Bluebird–any details on their definition of bill pay?
Jenn: unfortunately, bill pay is really just a way of classifying credit card use with the following billers: phone, internet, cable/satellite TV, utilities and insurance. Useful, but not the game changer it could have been
FM- Have you gotten this card yet? I’m really intrigued by this card because the Lowe’s in my area carries SOOO many gift cards to different places, including amazon and newegg. Love to hear if there are any experiments pending.
I have the Cash Rewards Visa Signature card from B of A… but I can’t find on their website where to select your categories you want to earn the higher rates at. Can anyone point me in the right direction? Thanks.
Lanny: the card I wrote about here is a different card. The card I wrote about is the US Bank Cash+ card. Yours is the Bank of America Cash Rewards.
Thanks for the quick response. Not sure what my problem was last night to misread the great post you had! I always enjoy your postings… Thanks again for the help!
[…] restaurants, home improvement stores, electronics stores, airlines, hotels, etc. See “The best cash back card?” for […]
Can anyone confirm that the bill pay category works for car insurance? This card could be a no brainer for me then