- The Discover it® Cash Back and Discover it® Student Cash Back cards earn 5% back on some purchases.
- Restaurants, home improvement, and select streaming services earn 5% cash back in Q1 2025.
- Competitor Chase Freedom's 5% bonus categories are gyms, spas, groceries, and select cruises.
Introduction to Discover 5% Cashback Bonus
The Discover it® Cash Back and Discover it® Student Cash Back are two of our favorite credit cards for everyday use especially if you're a student or recent graduate, new to credit, or a first-time credit cardholder.
Discover 5% Cashback Bonus program overview
The best cash-back credit cards earn rewards in different ways. Some cards offer a flat cash-back rate for all purchases, while others include extra rewards in specific categories. And some, like the Discover credit cards reviewed in this post, offer increased earnings in quarterly rotating bonus categories.
Discover now announces quarterly bonus categories a few weeks before they go into effect. You'll begin earning extra rewards on eligible purchases once you activate the 5% bonus through your Discover online account and the promotion begins.
Discover credit cards don't charge annual or foreign transaction fees, so they're a good choice if you want to minimize out-of-pocket costs and maximize rewards. However, most bonus categories are limited to transactions completed within the U.S., so don't count on your international trip to earn you 5% back.
Here's where you can start earning big cash rewards in 2025.
$0
0% intro APR for 15 months on purchases and balance transfers
18.24% - 27.24% Variable APR
Earn Unlimited Cashback Match®
Good to Excellent
- From January 1 to March 31, 2025, earn 5% cash back at restaurants, home improvement stores, and select streaming services on up to $1,500 in purchases after enrollment, then 1%
- Discover will match your cash back earned at the end of your first account year
- No annual fee
- Cap on how much bonus cash back you can earn each quarter
- If the quarterly categories aren't convenient for you, you can earn more cash back with a different card
The Discover it® Cash Back is one of the best credit cards that offers 5% back on popular rotating categories up to a spending limit. Your rewards are matched by Discover after the first 12 months, and the card has no annual fee.
Discover it Cash Back- Intro Offer: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- Apply and you could get a decision in as little as 60 seconds. No annual fee.
- Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. Activate by mobile app for free.
- Get a 0% intro APR for 15 months on purchases. Then 18.24% to 27.24% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
How Discover 5% Cashback Bonus works
Earning 5% back on bonus categories is incredibly easy, but you'll need to take one crucial step each quarter before you begin.
Enrollment and activation
Cardholders must activate the promotion through Discover in order to begin earning 5% bonus cash back, and all purchases must be made within the U.S. in order to qualify.
You can activate the 5% cash back by clicking through the "log in to activate" button on the Discover 5% cash back enrollment page. Once you've filled in the relevant information, you will automatically be enrolled for the quarter.
Activate ASAP: You won't earn bonus rewards on any purchases made before you activate, so make sure you enroll in the promotion as early as you can. You can enroll at any time during the quarter.
Earning cash back with Discover
Cardholders earn 5% cash back on up to $1,500 spent, then 1%, in combined bonus categories that change every three months once activated, as well as 1% back on all other purchases (from January 1 to March 31, 2025, earn 5% cash back at restaurants, home improvement stores, and select streaming services on up to $1,500 in purchases after enrollment, then 1%).
Gas station and EV charge transactions made at supermarkets or wholesale clubs such as Costco may not earn 5% cash back, depending on how the purchase is coded on the back end. Public transit purchases include local commuter buses, trains, and ferries. Taxis and rideshares, as well as long-distance travel on planes, trains, and ships do not count.
2025 Discover 5% Cashback Bonus calendar
Here's what Discover it® Cash Back and Discover it® Student Cash Back cardholders can expect to earn in 2025 once they activate the quarter's promotion.
Q1 2025: January 1 through March 31
From January 1 to March 31, 2025, earn 5% cash back at restaurants, home improvement stores, and select streaming services on up to $1,500 in purchases after enrollment, then 1%. Cardholders must enroll in the promotion before they begin earning cash back on eligible transactions.
To qualify for 5% cash back, the purchase transaction date must be March 31 or earlier. For online purchases, the transaction date from the merchant may be the date when the item ships. Rewards will be added to your account within two billing periods. Certain third-party payment accounts and digital wallet transactions may not earn 5% if the technology does not provide sufficient transaction detail.
Qualifying restaurant purchases:
- Full-service restaurants
- Cafes
- Cafeterias
- Fast-food locations
- Caterers
- Restaurant delivery services
Restaurants located inside of or affiliated with another business, such as hotels or retail stores and establishments classified as a bakery, may not qualify.
Qualifying home improvement purchases (online and in-store):
- Home improvement retail stores
- Building supply stores (e.g. lumber, paint, and hardware stores)
- Lawn, nursery, and garden supply stores
Purchases made through third parties, such as contractors, may not qualify. Purchases from home furnishings, home appliance, and floor covering stores are not included.
Qualifying streaming services:
- Amazon Music
- Amazon Prime Video
- AMC+
- Apple Music
- Apple TV+
- Audible
- DirecTV Stream
- FUBO
- Google Play Music and Video
- Max
- iHeartRadio
- MLB.TV
- Netflix
- Pandora
- Paramount+
- Peacock
- Showtime
- SiriusXM
- Sling TV
- Spotify
- Starz
- Vudu
- YouTube Music
- YouTube Premium
- YouTube TV
Other popular streaming services may be included. If your subscription is bundled with another product or service or billed by a third party (such as a digital platform, a cable or satellite provider, telecommunications, internet provider, or a car manufacturer), the purchase may not be eligible in this category.
Add-ons associated with select streaming services may not qualify for this promotion if they are not listed, billed in a bundle, billed separately, or billed through a third party. Listed merchants are in no way sponsoring or affiliated with this program.
Q4 2024: October 1 through December 31
Cardholders earned 5% cash back at Amazon and Target purchases within the U.S.
Q3 2024: July 1 through September 30
Cardholders earned 5% cash back at grocery stores and Walmart in the U.S.
Q2 2024: April 1 through June 30
Cardholders earned 5% cash back at gas stations, electric vehicle charging stations, home improvement stores, and on public transit.
Q1 2024: January 1 through March 31
Cardholders earned 5% cash back at full-service restaurants, cafes, cafeterias, fast-food locations, restaurant deliveries, and drugstores.
Q4 2023: October 1 through December 31
Target purchases earned bonus cash back in Q4 2023.
Q3 2023 Discover 5% calendar: July 1 through September 30
Gas station and digital wallet purchases earned 5% bonuses in Q3 2023.
Q2 2023 Discover 5% calendar: April 1 through June 30
Restaurants and wholesale clubs were the Discover bonus categories for Q2 2023.
Q1 2023 Discover 5% calendar: January 1 through March 31
Purchases at grocery stores, drug stores, and select streaming services earned bonus cashback in Q1 2023.
Q4 2022 Discover 5% calendar: October 1 through December 31
Amazon.com and digital wallet purchases earned bonus cash back in Q4 2022.
Q3 2022 Discover 5% calendar: July 1 through September 30
Restaurants and PayPal purchases earned 5% bonuses in Q3 2022.
Q2 2022 Discover 5% calendar: April 1 through June 30
Gas stations and Target purchases earned the Discover bonus categories in Q2 2022.
Q1 2022 Discover 5% calendar: January 1 through March 31
Grocery stores and fitness club/gym memberships were the Discover bonus categories in Q1 2022.
Maximizing your cash back
$0
0% intro APR for six months on purchases
17.24% - 26.24% Variable APR
Earn Unlimited Cashback Match®
Fair/New to Credit
- From January 1 to March 31, 2025, earn 5% cash back at restaurants, home improvement stores, and select streaming services on up to $1,500 in purchases after enrollment, then 1%
- Discover matches your cash back after the first year
- Not the most rewarding cash-back card for non-bonus purchases
The Discover it® Student Cash Back is a great choice if you're a student with limited credit history and want to earn a strong rate of cash back on your everyday spending without paying an annual fee.
Discover it Student Cash Back- Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. So you could turn $50 cash back into $100. Or turn $100 cash back into $200.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. Activate by mobile app for free.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.24% - 26.24% applies.
- Terms and conditions apply.
Planning purchases according to the calendar
The best way to maximize your 5% cash back opportunities is by planning your purchases around the Discover bonus calendar. For example, you can purchase grocery store gift cards during 5% rotations to use in later months. You can also purchase travel during promotion periods, and adjust your plans as needed if there are no associated change fees.
Tips for maximizing rewards in each category
Discover offers more redemption options than many people realize. If you have any of its cash-back credit cards, you can apply rewards to your bill as a statement credit or request a direct deposit to your bank account, redeem them toward Amazon and PayPal purchases, or cash them in for gift cards from select retailers.
Donations to select charities
You can also donate your rewards to select charities, including:
- American Cancer Society
- ASPCA
- American Red Cross
- Children's Miracle Network
- Junior Achievement
- Juvenile Diabetes Research Foundation
- Make-A-Wish
- Operation Homefront
- World Wildlife Fund
Quarterly rotating categories explained
$0
0% intro APR on purchases and balance transfers for the first 15 months
19.49% - 28.24% Variable
Earn a $200 bonus
Good to Excellent
- No annual fee
- Generous bonus cash-back categories
- Great welcome bonus
- Booking through Chase Travel℠ can restrict outside earning potential
- Varying percentages and rotating calendar categories require extra attention
- 3% foreign transaction fees
The Chase Chase Freedom Flex® is a great pick if you want one of the best no-annual-fee cards with big earning potential and impressive benefits. It's an even better choice if you already collect Ultimate Rewards points with other Chase cards, because you can combine your points and potentially get even more value.
Chase Freedom FlexIf you like the idea of earning a bonus in categories that rotate each quarter, you should consider the Chase Freedom Flex® . Like its predecessor, the Chase Freedom® (no longer open to applicants), the no-annual-fee Chase Freedom Flex® offers 5% cash back in rotating categories after activation that are often different from Discover's in the same quarter.
With the Chase Freedom Flex, you'll earn 5% back (5x Chase Ultimate Rewards® points) on up to $1,500 spent in combined quarterly bonus categories after activation (then 1%), 5% back on travel purchases made through Chase Travel℠, 3% back on drugstore and dining purchases, and 1% back on everything else.
Similar to Discover, you can redeem rewards from the Chase Freedom Flex for statement credits, cash back, gift cards, merchandise, and more.
If you also have a Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can turn your cash back into Chase Ultimate Rewards points and unlock more redemption options, including transferring points to Chase's airline and hotel partners, like United Airlines and Hyatt.
Discover 5% Cashback Bonus frequently asked questions
Discover it® Cash Back and Discover it® Student Cash Back cardholders can earn 5% back on different rotating categories after enrolling in Discover's quarterly promotion and making eligible purchases (on up to $1,500 in combined purchases each quarter, then 1%).
Discover's 5% cash back categories for Q1 2025 are dining, home improvement, and select streaming purchases.
Yes, eligible cardholders must activate the 5% cash back promotion each quarter to qualify for the 5% bonus. You do not begin earning 5% until you've enrolled for the quarter.
Our credit card experts recommend planning ahead for bonus categories and making big purchases during bonus quarters.
No, Discover 5% cash back is capped at $1,500 in combined purchases each quarter, which is worth $75 in cashback rewards.
