Chase’s 2020 Cash Back Calendar
The opportunity to earn 5% cash back on some of your most common purchases sounds great, but if you use a credit card with revolving bonus categories, it can require a little coordination.
The Chase Freedom credit card is one of the better-known cash-back cards with changing 5% bonuses. Like cards from rival issuers Discover and U.S. Bank, it offers three-month windows when you can earn the lucrative reward rate on different types of everyday spending.
How exactly does it work? Here’s a guide and some tips to maximizing the card’s potential.
Chase’s 5% Cash-Back Calendar: Trends and Clues
- In recent years, Chase has set the Freedom card apart by offering 5% cash back on common bills that don’t usually get much attention from other issuers, including your cable TV, cellphone, and streaming service bills.
- Unlike some competitors, Chase doesn’t announce a particular quarter’s bonus category until a few weeks before the new quarter starts. But the bank tends to bring back many of the same bonus categories year after year. Since 2011, for example, Chase has added a gas bonus every single year. (In 2019 and 2018, it offered a gas bonus twice: in the winter and in the summer.) The bank has also added a grocery bonus every year since 2015. Other common bonus categories include department stores, restaurants, drugstores, movie theaters, and wholesale clubs.
How the Chase Freedom Card Calendar Works
Rewards cards tend to award 5% cash back more sparingly than 2% and 3%, sometimes offering it on the same one or two purchase categories indefinitely, other times giving cardholders a choice of two categories each quarter, and often imposing a limit on earnings.
In the case of the Chase Freedom card, cardholders earn 5% cash back on a different combination of purchase categories every quarter, up to $75 per quarter ($300 per year). All other purchases earn 1% cash back. (In other words, the 5% applies to the first $1,500 of spending in those categories each quarter, and then you’ll earn 1% back on even the bonus categories.)
You’ll need to affirmatively opt in every three months to receive the bonus, but Chase makes that easy to do by sending you reminder emails with a button you only have to press once—you won’t even need to sign in to your account. If you don’t do this, every purchase you make will earn just 1% cash back.
How to Optimize Your Freedom Card Spending
Chase typically announces upcoming bonus categories a few weeks before the start of a new period, and that’s the earliest you can activate your bonus. The bank provides reminders you can add to your favorite online calendar, or you can set a reminder on your own. Use that two- to three-week window to not only opt in, but strategize your spending.
It’s not always easy to maximize your cash back with a rotating bonus card, but you can improve your chances if you plan ahead. For example, shift the timing of planned purchases, such as holiday gifts or new clothes. Or buy gift cards during a 5% bonus period, and then use those gift cards throughout the year.
April to June: Groceries; fitness club and gym memberships
The activation period for this round lasts through June 14, so sign up and start earning 5% cash back on grocery purchases as you and your family hole up for spring. It’s important to note that grocery purchases from superstores like Target and warehouse stores like Costco will not qualify for the bonus (just the normal 1% cash back).
No matter the category, check Chase’s merchant list to see which ones are excluded from the 5% bonus.
You may not get as much opportunity to visit your local fitness club or gym as you’d like this spring, but if government stay-at-home recommendations lift sooner rather than later, you can re-start those memberships using your Chase Freedom card and earn 5% cash back. See if you can purchase multiple months to maximize your return.