Best Cash Back Credit Cards to Keep More Money in Your Hands

If you asked us here at TheMilesAcademy what lights us up most when it comes to credit card perks, we’d tell you straight up: travel rewards.

We’re all in on the points and miles game, no doubt. But we get it. Not everyone’s looking to chase flight deals or hotel stays with their rewards.

Some of you barely get time off work to make those points count. Others just aren’t all that into planning trips or living out of suitcases. Maybe we’re the odd ones here.

No matter where you stand, if the whole travel-rewards thing isn’t your thing, there’s another solid path to go. Cash back cards.

So here’s what we’ll cover. What makes cash back cards different, how to spot a good one, and which ones we think are actually worth your attention.

How Cash Back Credit Cards Actually Give You Value

Before we talk favorites, let’s make sure we’re all clear on how these cards actually function.

At the core, cash back credit cards operate a lot like the travel ones. You spend money using your card, and you earn rewards in return. Simple. That said, the structure of those rewards and how they’re handed out isn’t always the same.

Some cash back cards do come with sign-up bonuses, but don’t expect the sky-high offers you’ll see with travel-focused cards. The bigger bonuses usually show up on cards that are tied to flights, hotels, or points systems. Cash back cards, on the other hand, often keep the welcome perks more modest. Not always, but that’s the usual trend.

Now once you’ve signed up, the real value kicks in as you go about your daily spending. Every time you swipe, tap, or insert your card, you’re building up cash back. You don’t need to jump through hoops or hit complicated milestones. You just shop like you normally would.

Most cash back rates land somewhere between 1% and 2%. But depending on the card, that number can shoot up to 5% or even 6% in certain categories. Think groceries, gas stations, restaurants, or online shopping. Some cards rotate their bonus categories every few months. Others let you choose where you want to earn more. Either way, that extra cash can add up fast if you match your card to your habits.

The big shift between these and travel cards? It’s all about what you can do with your rewards. With travel cards, your points usually go into booking flights or hotel stays. With cash back cards, you’re getting cold hard cash. That might land as a direct deposit, a statement credit, or even a check in the mail, depending on how your issuer handles it.

So while both card types reward your spending, cash back puts the control in your hands in a different way. No blackout dates. No reward charts. Just money you can use however you want.

Ways You Can Turn Your Cash Back Into Real Use

Once you’ve started racking up cash back through your card, the next step is figuring out how you want to use it. There isn’t just one way to cash out. In fact, most cards give you a few options, and depending on your preferences, one might work better than the others.

The most common method is using it as a statement credit. It’s straightforward. Let’s say you’ve built up $200 in rewards. You could apply that amount directly to your next credit card bill. So if your balance is $275, using that $200 credit would leave you with only $75 to pay. No extra steps, no fuss. This route is available on nearly every cash back card out there, which is probably why so many people default to it.

Another way you can redeem your rewards is through direct deposit into a bank account. Not all cards offer this option though. And some banks put restrictions in place, like requiring you to have a checking account with them before they’ll let you transfer your rewards. If your card does allow it, though, this can be a clean and flexible way to pull your cash out and move it where you need it.

A third option that’s gaining traction is redeeming cash back to erase specific purchases. So instead of knocking down your whole balance like a statement credit does, this lets you pick something you bought and use your rewards to cover just that charge. Think of it like handpicking which transactions to wipe off your history with your earned cash.

There’s one more method a lot of people overlook: gift cards. Most banks let you exchange your rewards for cards from a long list of retailers, restaurants, or online stores. Some folks love this path, especially if they’re giving them as gifts or using them at places they shop regularly. But here’s where you need to keep your eyes open. In some cases, the value isn’t one-to-one. A $25 gift card might cost you more than $25 worth of cash back, which isn’t a great deal.

If you still want that gift card, there’s a smarter way to do it. Just buy the card with your cash back credit card like you would any other purchase. Then use your rewards to cancel out that charge, either with a statement credit or by selecting that transaction directly. This way, you still get the gift card but avoid losing value in the process.

Just to give a sense of how much this adds up, a 2023 report from the Consumer Financial Protection Bureau found that the average active cash back cardholder earns around $150 to $300 in rewards annually. With higher spenders easily crossing the $500 mark, that’s real money on the table. The more you know about redeeming it wisely, the more it works in your favor.

Why Some Travel Cards Can Pull Double Duty as Cash Back Cards

Before we run through the top cash back options, we should let you in on something most people miss. You might notice a few travel credit cards showing up in the mix. And no, that’s not a mistake. A lot of traditional travel rewards cards actually work just fine as cash back cards too.

Plenty of travel-focused cards give you the option to turn your points into statement credits. That means instead of booking flights or hotel rooms, you can just use those points to reduce your bill. In most cases, one point gets you one cent. So if you’ve got 10,000 points sitting in your account, that’s $100 you can apply straight to your balance. Some cards even stretch that value a bit further, depending on how they’re set up.

So just because a card says “travel” in big bold letters doesn’t mean you’re stuck using it for flights and hotel stays. A lot of those cards still let you tap into the perks of cash back without switching to a completely different product.

There’s a kind of silent trade-off in how the industry labels these cards. If it’s branded as a cash back card, odds are it’s not going to give you much flexibility for travel redemptions. But a travel rewards card? That one often gives you both. You can stick with flights and hotels if that’s your thing, or flip it into cash back if that suits your goals better.

Yes, there are some cards that break this pattern, so it’s worth looking at the fine print before you apply. Still, when you’re hunting for the best cash back card, don’t ignore the travel ones right away. Some of them quietly carry a lot of value you can use however you like.

Using Cash Back to Fill the Gaps in Your Travel Strategy

Let’s not treat this like an all-or-nothing choice. We don’t have to pick between earning travel rewards or cash back. We can do both. And honestly, combining the two often works better than sticking with just one.

A lot of people use cash back to take the edge off the extra costs that come with travel. Flights and hotels might be covered by points and miles, but they’re only part of the picture. Once you land, you’re still spending on meals, attractions, transportation, and whatever else pops up. That stuff adds up fast.

Even if your trips are fully covered through travel rewards, cash back still pulls its weight. You might not want all your day-to-day spending going toward points you can’t use right now. That’s where cash back fits in. It gives your routine spending a real return, even when you’re not planning a getaway.

And if you’ve been stockpiling travel points you can’t use, maybe it’s time to shift gears a bit. There’s no upside in hoarding rewards you can’t redeem. By focusing on cash back, you’re making sure your spending stays productive, no matter what your travel plans look like.

How to Approach a Smart Cash Back Strategy

If your main focus is earning cash back, your approach doesn’t have to be complicated. You’ve got plenty of solid cards out there that offer decent sign-up bonuses. Grab one of those to get a head start, and then take a close look at how each card handles bonus categories.

Matching the right card to the right purchase category can make a noticeable difference. Some cards offer more when you spend on groceries, gas, dining, or online shopping. The more you align your cards with your habits, the more you squeeze out of every dollar.

Now if that sounds like too much to keep track of, we get it. Not everyone wants to juggle five different cards for five different expenses. If that’s the case, you’re not out of luck. You can still pick one or two cards that offer a strong flat-rate return across all your spending. These are the ones we’ll highlight in the “best cash back for non-bonus spend” section below.

With those kinds of cards, you’re likely earning between 1.5% and 2% on everything. That’s a massive upgrade from using a debit card, where you get nothing back at all. You’re spending anyway—might as well let your money do some of the work for you.

Our Picks for the Most Rewarding Cash Back Credit Cards

Trying to crown just one card as the king of all cash back cards doesn’t work. There isn’t one perfect option for everyone. What really matters is how you plan to use it. Your spending style decides which card will give you the most back.

If you’re aiming to get the highest return possible on all your purchases, it makes sense to carry a few cards that each cover different types of spending. One card might offer excellent rewards for groceries, but fall short when it comes to restaurants. Using a mix can easily push your cash back rate above 2%, which adds up quickly if you’re putting most of your monthly spend on credit.

Now if you’d rather skip the juggling act and just keep things simple, that works too. You can grab a solid sign-up bonus and stick to a card that delivers a flat rate on all purchases. That way, you’re still earning strong rewards without having to overthink it.

Top Cash Back Credit Cards for Grocery Spending

Groceries take a big slice out of most people’s budgets. That’s why it makes sense to use a card that rewards you heavily in this category. Here are two of the strongest options for supermarket cash back:

Top Cards for Dining Out or Ordering In

If you spend a good chunk of your budget eating out, it pays to get rewarded for it. Whether it’s a sit-down dinner, takeout, or food delivery, these cards make your meals work for you.

Top Cash Back Credit Cards for Entertainment Lovers

If you love concerts, movies, or live events, there are cards that reward you for going out and having fun.

Best Cards for Non-Bonus Spending

These are the cards you want for purchases that don’t fall into a specific reward category. They give you consistent rewards on everything, and they’re especially handy if you only want to use one or two cards.

Top Cash Back Cards for Small Business Owners

Running a business doesn’t mean you have to miss out on rewards. There are solid cash back options designed specifically for small businesses that let you earn while covering your operating costs.

Uncommon Cash Back Credit Cards That Deserve a Closer Look

Beyond the big names and common categories, there are a few cards that fly under the radar but offer serious value—if your situation lines up right. These aren’t your everyday options, but if you qualify, they can give you more flexibility and stronger returns than you might expect.

Bank of America® Premium Rewards® Credit Card

This one stands out for those of you already banking with Bank of America, especially if you’re part of their Preferred Rewards program. Depending on your tier, you can earn boosted cash back on everyday purchases. The higher your rewards status, the better your return. For regular spending, this card can quietly outperform flashier ones, but you’ll need to have money with BofA to unlock its full potential.

The Platinum Card® from American Express Exclusively for Charles Schwab

This card isn’t for everyone, but if you’re a Charles Schwab client, it opens up a unique path. Instead of using Membership Rewards for flights or hotels, you can turn your points into cash at a rate of 1.25 cents per point and have it land directly in your Schwab account. It’s a clean way to convert your rewards into long-term financial growth, especially if you’re investing for the future.

Fidelity® Rewards Visa Signature® Card

This one flips the script on how you collect your cash back. Instead of putting money toward a statement credit, you can move your rewards into a Fidelity investment account. Whether that’s a retirement fund, brokerage account, or even a 529 plan, you’re using your everyday spending to build wealth over time. It’s a low-effort way to stack up savings just by handling your usual expenses.

If any of these fit your situation, you’re in a great position to turn your spending into something bigger than just perks. And if you’re serious about dialing in your strategy and learning how to get more out of your credit card rewards, we’ve got a spot waiting for you.

Join our free Skool community where we break all of this down in real time—card setups, reward stacks, redemption hacks, and everything in between. It’s not just tips, it’s a place to actually get smarter with your money alongside people doing the same.

Come hang out with us. You’ll never look at your wallet the same way again.