If you want simplicity, the best rewards card for most people that pay their balance every month is the . It offers a flat 2% cash back with no points or miles to redeem, no categories to remember, and no bank affiliation required. Even the highlights are short:
- 2% cash back on purchases: 1% when you buy plus 1% as you pay.
- To earn cash back, pay at least the minimum due on time.
- 0% Intro APR on Balance Transfers for 18 months. (Balance transfers do not earn cash back.)
- No annual fee.
This all comes with no caps, no tiers, no category restrictions, no quarterly enrollment hoops, no rotating categories. The only way you don’t get your 1% + 1% total is if you default on your bill and don’t even make the minimum payments. You can redeem your cash rewards in full as soon as it totals $25 or more, via check, direct deposit, or statement credit (i.e. if you have $31.44, you can get a check for $31.44). The New York Times, CNBC, and Wirecutter have also rated this the best cash back rewards credit card.
Care about the math details? How exactly does earning cash back twice work? First, imagine you put $100 on the charge, 1% is earned so you have $1. Then you redeem that $1 (ignore minimums for this example) for a paper check or direct deposit (not statement credit). You pay the $100 bill from your bank account, and get an additional 1% or $1 back. Final tally: $2.00 back on $100 in purchases. In other words, 2% cash back.
Alternatively, imagine you charge $100 on the card and again 1% is earned so you have $1. Then you redeem that $1 (ignore minimums for this example) for a statement credit (as opposed to paper check or direct deposit) which means Citi actually “paid” for $1 of the $100. So you pay the remaining $99 and get an additional 1% or $0.99 back. Final tally: $1.99 back on $100 in purchases. 1.99/100 = 1.99%. Just pointing out a technicality here. If you charged $1,000 per month, the difference between 1.99% and 2% per month would be a whopping 10 cents per month, or $1.20 per year.
Obviously, you’ll want to pay in full every month as to not rack up interest charges which can quickly offset your cashback rewards. Note that you are only allowed to redeem cash rewards in the form of an electronic funds transfer into a linked bank account if it is a checking account from any bank from which you have paid a Citi Credit Card bill at least two times, or any Citi savings/checking account.
There have been similar cards in the past but they either closed to new applicants or require additional relationship accounts. If you have another Citi card, you can call in and try to convert to this card with varying success. Converted cards are not eligible for the 0% interest offer.
Bottom line. The Citi® Double Cash Card lets you earn 2% cash back on all purchases: 1% when you buy plus 1% as you pay. No categories to track. This is indeed double what many other cash back credit cards offer, and comes with no annual fee. Everyone should have a 2% cash back card in their purse/wallets, even if they have other cards with higher cashback in specific categories. I’ve had this card for several years now.
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