Discover it Cash Back Card — New 5% Categories for 2025 Q1 [January to March]

The Discover it^® Cash Back Card is a $0-annual-fee card that could be an interesting addition to your wallet.

That’s because it earns a whopping 5% cash-back in quarterly rotating categories. It might not be the best choice for all of your spending, but taking advantage of these 5% cash-back categories is a great way to supercharge your earnings.

The new categories for 2025 Q1 (January to March) have just been announced, and this post will show you how to make the most of them.

New 2025 Q1 Discover 5% Cash-Back Categories

The new 5% cash-back categories for the Discover Cash Back card in 2025 Q1 (January to March) are restaurants, home improvement stores, and select streaming services. From January 1 through March 31, 2025, you can earn 5% cash-back on up to $1,500 in purchases from these categories.

You earn 1% cash-back on any purchases in these categories over $1,500 and on all other purchases. Examples and limitations for the streaming merchants can be found in the footnotes on this page.

Plus, you have until December 31, 2024, to continue earning 5% cash-back at Amazon.com and Target if you haven’t already maximized the $1,500 cap for 2024 Q4.

Benefits of the Discover Cash Back Card

If you’re in the market for a cash-back card, the Discover Cash Back card is one to consider.

For starters, this card offers an unheard-of welcome offer:

• Earn an unlimited dollar-for-dollar match of all the cash back you earned at the end of your first year.

For example, if you earn $300 cash-back, you get an additional $300 cash-back at the end of the year. This cash-back match offer is unlimited.

Discover it^® Cash Back Card

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Discover it^® Cash Back Card

Annual Fee

$0

APR

0% for 15 months from date of account opening, after the intro APR expires, regular APR will be 17.74% - 27.74% variable.

Card Highlights

• Intro Offer: Get an unlimited dollar-for-dollar match of all the cash back you’ve earned at the end of your first year.
• Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
• Plus, earn unlimited 1% cash back on all other purchases – automatically.
• Redeem cash back in any amount, any time. Rewards never expire.
• Use your rewards at Amazon.com checkout.
• No annual fee.
• Discover is accepted nationwide by 99% of the places that take credit cards.

Financial Snapshot

• APR: 0% for 15 months from date of account opening, after the intro APR expires, regular APR will be 17.74% - 27.74% variable.
• Foreign Transaction Fees: None

The Discover Cash Back card earns 1% cash-back on purchases, which isn’t all that exciting, even for a card without an annual fee. However, it also offers rotating 5% cash-back categories each quarter, which is an excellent way to earn lots of cash-back.

You can redeem your cash-back in any amount at any time, and your rewards never expire.

How Your 5% Cash-Back Works

Each quarter, you can earn 5% cash-back in select categories, up to $1,500 in purchases. Any purchases over the $1,500 threshold and any purchases in nonbonus categories earn 1%. You must activate the bonus each quarter.

This card operates similarly to the Chase Freedom Flex^®, which also has rotating 5% cash-back categories.

2024 Discover Cash Back Card Bonus Categories

Q1: January to March

• Restaurants
• Drugstores

Q2: April to June

• Gas stations and electric vehicle charging stations
• Home improvement stores
• Public transit

Q3: July to September

• Walmart
• Grocery stores

Q4: October to December

• Amazon.com
• Target

2025 Discover Cash Back Card Bonus Categories

Q1: January to March

• Restaurants
• Home improvement stores
• Select streaming services

Q2: April to June

• To be determined

Q3: July to September

• To be determined

Q4: October to December

• To be determined

Final Thoughts

The Discover Cash Back card offers 5% cash-back in rotating categories each quarter. The new categories for Q1 of 2025 are restaurants, home improvement stores, and select streaming services. You earn 5% cash-back (up to $1,500 in purchases) from January through March 2025 in these categories.