The best no-annual-fee cash back cards, compared by spending pattern
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Key points
- If most of your spending doesn't fall into a bonus category, a flat 2% card usually wins.
- Category cards like Capital One Savor pull ahead once food and entertainment make up more than about half of your card spending.
- None of these cards charge an annual fee, so the only way to lose money is carrying a balance.
No-annual-fee cash back cards fall into two camps: flat-rate cards that pay the same on everything, and category cards that pay more on specific spending. Which is better depends entirely on where your money goes, so instead of a ranking we ran three realistic budgets through four widely available cards.
The four cards
- Earn rate
- 1% when you buy, 1% when you pay
- Rewards form
- ThankYou points, redeemable as cash back
- Foreign transaction fee
- 3%
- Best for
- One card for everything
- Earn rate
- Unlimited 2% cash rewards on purchases
- Extra
- Cell phone protection when you pay your bill with the card (limits apply)
- Foreign transaction fee
- 3%
- Best for
- Simple flat rate with a phone perk
- Earn rate
- 5% travel via Chase Travel, 3% dining and drugstores, 1.5% everything else
- Rewards form
- Ultimate Rewards points
- Foreign transaction fee
- 3%
- Best for
- Pairing with a Chase travel card
- Earn rate
- 3% dining, entertainment, popular streaming and grocery stores (superstores excluded); 1% elsewhere
- Foreign transaction fee
- None
- Best for
- Households that spend heavily on food
- Rewards form
- Cash back
Three budgets, run through each card
All three budgets total $2,000 a month in card spending. Points are valued at one cent each, which is what each issuer pays when you redeem for cash or statement credit.
| Budget (monthly) | Citi Double Cash / WF Active Cash | Chase Freedom Unlimited | Capital One Savor |
|---|---|---|---|
| A. $2,000 general spending | $480 / year | $360 / year | $240 / year |
| B. $500 groceries, $300 dining, $1,200 other | $480 / year | $414 / year | $432 / year |
| C. $900 groceries, $500 dining, $600 other | $480 / year | $450 / year | $576 / year |
How we got budget C for Savor: ($1,400 × 3%) + ($600 × 1%) = $48 a month, or $576 a year. For Freedom Unlimited, groceries earn 1.5% because they aren't a bonus category: ($500 × 3%) + ($1,500 × 1.5%) = $37.50 a month.
The takeaway: a flat 2% card is hard to beat unless a large share of your spending lands in bonus categories. Savor only wins in budget C, where food is 70% of spending.
Which one to choose
You want one card and never want to think about it
Citi Double Cash or Wells Fargo Active Cash. They earn the same 2%. Active Cash adds cell phone protection; Double Cash points can also move into Citi's travel program if you later get a Citi travel card.
You already have or plan to get a Chase travel card
Freedom Unlimited on its own trails the 2% cards, but its points become more valuable when combined with a Chase Sapphire card and transferred to travel partners. That's a strategy, not a default.
Food is your biggest expense
Capital One Savor, especially paired with a flat 2% card for everything else. It also has no foreign transaction fee, which makes it the best of the four abroad.
Before you apply
- Check your credit first. These cards generally target good to excellent credit; if you're still building, start with our guide to building credit from scratch.
- Welcome offers change often. Compare them on the issuer's site on the day you apply.
- Cash back is only a gain if you pay in full. At a typical APR above 20%, one month of carried balance can wipe out a year of rewards. See how credit card APR works.
Sources
Card terms from each issuer's public product page and cardholder agreement, checked on the date above: Citi, Wells Fargo, Chase and Capital One.
Frequently asked questions
Is 2% cash back good?
Yes. 2% on everything is the highest flat rate commonly available on a no-annual-fee card from a major U.S. issuer.
Can I have more than one of these cards?
Yes. A common setup is a category card for food plus a flat 2% card for everything else. Just keep track of due dates and pay both in full.
Does cash back count as taxable income?
The IRS generally treats cash back on purchases as a rebate rather than income, so it usually isn't taxed. Bonuses earned without spending can be different; ask a tax professional about your case.
