Monday, August 21, 2006

Cashback Credit Cards

The rumor is out that Citibank will terminate the 5% cashback program of its Dividend Platinum Select Cash Back Rewards credit card (When I checked the Citi’s web site today, I couldn’t even find the Dividend card.) Currently, the card gives 5% cashback on purchases made at gas stations, grocery stores, and supermarkets. Beginning in October, you can only earn 2% with these purchases. Though 2% is still better than most other reward programs that give only 1% cashback, it won’t be as appealing as before.

So what are the alternatives?

Discover Cashback Bonus Card

  • 5% on first $1,200 in gas purchases.
  • First $1,500 in other purchases earn 0.25% and second $1,500 in other purchases earn 0.50%. Earn 1% on other purchases after $3,000.
  • Gas purchases in excess of $1,200 earn at the same rate as other purchases.
  • Rewards are redeemable in $20 increments .
  • No annual cap on rewards and rewards never expire.
  • Rewards doubles when redeems for gift cards.

Chase PerfectCard Platinum MasterCard

  • 6% Rebate on all gas at any station for the first 90 days account is open.
  • 3% Rebate on all gas afterwards.
  • 1% Rebate on all other purchases.

Citi Driver's Edge Platinum Select MasterCard

  • Earn 6% rebates on purchases at supermarkets, drugstores and gas stations for 12 months; 3% after that.
  • Earn 1% rebates on other purchases.
  • Earn rebates for mileage.
  • Redeem rebates toward the purchase or lease of any new or used vehicle, service, repairs or maintenance performed on vehicle.
  • Redeem rebates for gift card.
Citi Professional Cash Card

  • Earn 3% cash back on purchases made at restaurants, gas stations, certain office supply merchants, and for auto rental.
  • 1% on all other purchases.
  • Rewards given as ThankYou points with a limit of 100,000 during any calendar year.

American Express Blue Cash

  • 5% rebates on supermarket, gasoline and drusgstore purchases and 1.5% rebates on other purchases after $6,500 of spending.
  • Before that you earn 1% and 0.5% respectively.
  • No annual rebate cap.
  • Rebates awarded annually.

It seems that Discover Cashback Bonus Card may be a better alternative among other cashback cards out there. For me, I will continue to use my Fidelity Investments 529 College Rewards Card which gives me 2% cashback on all purchases.

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