Guide to Discover Card Rewards

Opening a rewards credit card may save you money if you earn back a percentage of what you spend in the form of cash, points, or miles. Discover offers a number of rewards credit cards, each targeting a different style of spending. If you're interested in earning rewards with Discover, read on to understand how its rewards program works.

Discover 5% Cash-Back Bonus

Discover's 5% Cash Back bonus rewards program allows you to earn 5% cash back in select spending categories each quarter, up to a quarterly maximum. To earn the 5% cash-back bonus, you must have an eligible card and activate the bonus.

Cards that are eligible for the 5% cash-back bonus include:

• Discover it Cash Back Credit Card
• Discover it Student Cash Back Credit Card
• NHL Credit Card
  

Here's more on how the bonus works: Each quarter, Discover allows eligible cardmembers to earn 5% back in activated bonus categories for up to a spending maximum of $1,500 per quarter. When that maximum is reached, cardmembers continue to earn unlimited 1% cash back until the next quarterly bonus is activated. All purchases not included in the bonus categories also earn unlimited 1% cash back.

If you max out the bonus in a quarter, you'll receive a total of $75 in cash back rewards in addition to any rewards earned at the 1% cash back rate. The 5% Cash Back Calendar updates throughout the year.

Here's how the bonus categories shape up for 2023.

Other Ways to Earn Discover Rewards

Aside from the 5% Cash Back rewards program, Discover offers other rewards card options. You can choose between lower percentage cash-back rewards or a travel rewards card:

• Discover it Secured Credit Card. Earn 2% cash back at gas stations and restaurants, up to $1,000 in combined purchases each quarter, and unlimited 1% cash back on all other purchases.
• Discover it Chrome for Students Credit Card. Earn 2% cash back at gas stations and restaurants, up to $1,000 in combined purchases each quarter, and unlimited 1% cash back on all other purchases.
• Discover it Chrome Gas & Restaurants Credit Card. Earn 2% cash back at gas stations and restaurants, up to $1,000 in combined purchases each quarter, and unlimited cash back on all other purchases.
• Discover it Miles Travel Credit Card. Earn unlimited 1.5 miles per dollar on every purchase.
  

Double Rewards for the First Year

Many rewards credit cards offer an introductory welcome bonus to attract new customers. This bonus typically hinges on meeting a minimum spending requirement. For example, you could earn $500 cash back when you spend $3,000 in the first three months.

Discover takes a different approach. Rather than an introductory bonus up front, cardmembers can receive an unlimited rewards match after their first year of card membership. The matching program applies to both Discover cash-back credit cards as well as its travel credit card.

This is a dollar-for-dollar (or mile-for-mile) match. So, if at the end of your first year you've earned $500 in cash-back rewards with the Discover it Card, Discover will reward you with another $500 in cash-back rewards. Or, if you earn 35,000 travel miles, then Discover will match your 35,000 travel miles at the end of the year.

There's nothing you need to do to qualify for the match other than use your card to make purchases and earn rewards. The match is unlimited so the more you spend in the first year with your card, the more you could receive in matching rewards.

How to Redeem Discover Rewards

Discover makes it as easy as possible to redeem rewards. No minimum amount of cash back is required before you can redeem, for instance, and there are no blackout dates when redeeming miles for travel. Your redemption options for Discover rewards include:

• Cash deposited into your bank account
• Statement credit
• Payment at checkout when you shop through Amazon.com or PayPal
• Gift cards starting at $5
• Charitable donations

Rewards don't expire as long as your account remains open and in good standing. As for what your rewards are worth, they're valued at 1 cent each when using miles for travel. So 70,000 miles is worth $700 in travel statement credit, which you can use to pay for flights, hotels, rental cars, and other travel expenses.

Discover's 1% cash back means that every dollar you spend on your credit card is worth 1 cent in rewards, though it's possible to get an added bonus when redeeming them for gift cards. Using your cash back for gift cards is an easy way to stretch the value of your rewards.

The Bottom Line

Discover offers an attractive range of rewards credit cards, many of which are well suited to people who want to earn cash back on purchases.

When shopping around for a credit card, it's important to consider how well the rewards program matches up with your spending patterns. Also, remember to compare the APR, fees, and account terms and conditions to make sure the card you choose is a good fit.