Cash back and everyday rewards

Compare the dollars you would keep

Cash-back cards can make routine purchases more rewarding, but the earning rules and redemption options are not always equally simple.

Consider two hypothetical cards: one earns 2% on eligible purchases and charges a $90 annual fee; the other earns 1.5% and has no annual fee. On $12,000 of the same eligible spending, the first earns $240 before the fee, leaving $150. The second earns $180. The lower reward rate leaves you $30 better off in this example.

That comparison assumes no interest, other fees, bonuses or extra benefits. Use your ordinary spending, then account for category limits and activation requirements. If a high rate applies only to part of your shopping, calculate that part separately. A bigger percentage is useful only when it produces more value after the costs you will actually pay.

Trade-offs to notice

• Rotating categories can require activation.
• Carrying a balance can outweigh the value of rewards.

A practical next step

Review the rewards structure against a normal month of spending before focusing on the headline rate.

Compare cash back after the annual fee →

Before you apply

Review the current fees, interest rates, and eligibility requirements on the provider’s website. Browsing a category here does not submit an application or predict a decision.