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The Cash Rewards card provides 3% cash back in the category of your choice every month, out of six options, while the Discover it has rotating cash back categories that change throughout the year. Each card offers an introductory 0% APR for a relatively long period, and neither one has an annual fee.
The first is good for the kinds of purchases most of us typically make pretty often, while the second will be better for different kinds of purchases as the year goes on. Read on to learn if one of them might be a good card for you.
Bank of America Cash Rewards
- 3% cash back in one category of your choice:
- Online shopping
- Home improvement/furnishings stores
- 2% cash back at:
- Grocery stores
- Wholesale clubs
- 1% cash back on all other purchases
- $200 cash rewards bonus for spending $1,000 in the first 90 days
- 10% point bonus when redeeming into a Bank of America checking or savings account
- 5% cash back in categories that rotate throughout the year (see calendar below)
- 1% cash back on all other purchases
- Double the cash back you earn after one year
The 5% cash back calendar for the Discover it for 2019 is:
|Quarter||5% Cash Back Category|
|January – March||Grocery Stores|
|April – June||Gas Stations, Uber, Lyft|
|July – September||Restaurants, PayPal|
|October – December||Amazon.com, Target, Walmart.com|
You can redeem your points as a statement credit, which is the typical way, or you can use them to pay for purchases directly through Amazon.
These cards have very different reward structures: would you rather get the set 3% and 2% cash back on gas and groceries, or would you rather get 5% back (10% after it’s doubled) on different types of purchases throughout the year?
You’ll have to study the rewards they offer and your own spending habits: which card would provide you with the most discounts?
You can also consider using both cards. Use the Discover it any time you’ll be able to get 5% cash back, and then use the Cash Rewards card any other time. Using several credit cards isn’t bad for your credit – learn about the value of carrying multiple credit cards.
Each of these cards comes with several additional benefits. Here are all of the benefits for the Cash Rewards card, followed by a few of the most interesting from the Discover it.
Bank of America Cash Rewards
Get alerts about account information on your phone.
Pay your credit card bill online, transfer funds, check available credit and more.
Send a text and get important account information.
You will not be held responsible for unauthorized use of your card.
Link a Bank of America account to your card and prevent declined purchases and return checks if you take out too much money from your account.
Protection when you are shopping online.
Personalize Your Card
Choose from a number of different designs to personalize your card, including several chrome colors, a variety of designs, and a wide selection of NHL team logos.
Temporarily Freeze Your Account
Freeze your account when you lose your card, and unfreeze it when you find it. Use the Freeze button on the Discover website or mobile app, or call customer service.
Spend Analyzer Financial Tool
Use the Spend Analyzer tool to view your purchases by category and get insights into your spending habits.
Provides coverage against damage or theft, up to $500 per eligible item.
If you find an item you bought being advertised for a lesser price within 90 days of purchase, you can be reimbursed for the difference.
Extended Product Warranty
Adds up to 1 year to a manufacturer’s warranty of 3 years or less.
Items can be returned even if the manufacturer won’t take them back, up to $500 and for up to 90 days after the date of purchase.
Cash At Checkout
When shopping at participating locations, you can get cash back immediately by charging an additional amount over your purchase.
Auto Rental Insurance
Covers rented vehicles against collision damage when the car rental company’s insurance is declined.
Flight Accident Insurance
You and your family are automatically covered on airline flights, up to $500,000.
Each of these cards offers a nice set of additional benefits, but the Discover it clearly wins in this category. The shopping and travel protections could really come in handy in certain situations, and you won’t get those with the Bank of America card.
Here’s a side-by-side comparison of the benefits offered by each card:
|Bank of America Cash Rewards||Discover it|
The Costs & Fees
|Card||Intro APR for Purchases and Balance Transfers||Regular Purchase APR||Regular Balance Transfer APR||Cash Advance APR||Foreign Transaction Fee|
|Bank of America Cash Rewards||0% for 12 billing cycles||16.24%–26.24% Variable||16.24%–26.24% Variable||19.24%–27.24% Variable||3%|
|Discover it||0% for 14 months||14.24%–25.24% Variable||14.24%–25.24% Variable||27.24% Variable||None|
|Card||Penalty APR||Late Fee||Returned Payment Fee|
|Bank of America Cash Rewards||Up to 29.99% Variable||Up to $39||Up to $28|
|Discover it||None||$0 the first time; up to $37 after that||Up to $37|
As you can see, these cards have almost identical costs and fees, including the length of the introductory APR period.
The only real differences here are the fact that Discover will not charge for the first late payment, and that Discover will not apply a penalty APR for bad behavior.
Of these, only the last is a very important feature. The Cash Rewards card may apply the high penalty APR if you make a late payment, and this can last indefinitely. The Discover card can be more comfortable to carry for this reason, as it will never raise your APR.
The Bottom Line
Consider the rewards and benefits you’ll get with each card, because the interest rates and fees are about the same. Think about your personal shopping habits: would it be better for you to earn 3% back on gas and 2% back on groceries all year round, or would it be better to get 5% cash back (10% after it’s doubled) in the four Discover it categories?
Don’t forget, it’s not a bad idea to have multiple credit cards. This would let you earn 5% back in the Discover it categories whenever they’re available, and 3% on gas and 2% on groceries with the Bank of America card at other times.
The responses below are not provided or commissioned by bank advertisers. Responses have not been reviewed, approved or otherwise endorsed by bank advertisers. It is not the bank advertisers' responsibility to ensure all posts and/or questions are answered.