The best 2 percent cash back cards offer an easy rewards rate that doesn’t involve activating categories or tracking earning caps. Many also don’t charge an annual fee and allow you to redeem rewards towards investing, savings or paying down loans with the issuer.
Some cards offer additional perks, like travel insurance and DoorDash memberships; these should be carefully evaluated against the fees.
1. Wells Fargo Active Cash Card
Wells Fargo Active Cash Card boasts a consistent, high earning rate with no confusing bonus categories or tiers, making it an attractive choice for consumers seeking an effortless rewards experience. But this card comes with some drawbacks including a 3 percent foreign transaction fee and some limitations on redemption rewards.
Primary features of the card include unlimited 2% flat cash back on all purchases – almost twice what other cards provide and without rotating categories or spending caps to worry about. Cardholders also enjoy an attractive $200 welcome bonus and rewards never expire as long as their account remains open.
Bankrate’s View: mes The Wells Fargo card may be worth considering if you’re searching for a high-value card to pair with premium cards that enable more lucrative redemption of rewards for travel or other goals. That way, you can use both cards simultaneously – one for everyday spending while earning above-average rewards with the other – without becoming overwhelmed.
Like with most cards, you should thoroughly evaluate the terms and conditions to make sure it suits you before applying. Our Card Match tool makes this easy by matching you to credit cards based on your unique preferences; applying can then take less than 60 seconds! Please remember though that too many credit cards could lead to financial disaster if they prevent you from managing debt responsibly or paying bills promptly.
2. Blue Cash Preferred Card from American Express
American Express’ Blue Cash Preferred Card offers top-rated cash back rewards with its generous rewards rate and diverse set of benefits, but with an annual fee of $95 it may make less attractive to some users.
Are You Earning in Bonus Categories with Your Card? For those earning high in its bonus categories, their rewards could offset any annual fees. American Express’ Blue Cash Preferred Card offers impressive 6% cash back on up to $6,000 spent annually at U.S. supermarkets (then 1% thereafter), along with 3% cash back for streaming services, transit & gas station purchases (terms and conditions apply).
This credit card can help families that spend heavily on groceries as well as those who subscribe to any of the card’s bonus categories, as a CNBC Select study estimated that an average household could save hundreds over two and five years when using this card for grocery, streaming and gas expenses.
American Express’ Blue Cash Preferred Card comes with many other advantages in addition to generous cash-back rewards, including strong purchase and return protections, an introductory APR period and extended warranty coverage. Furthermore, this credit card also comes with a decent welcome offer as well as extra perks such as access to Equinox+ fitness centers and the Disney Bundle streaming service.
This card does have some drawbacks, including an average APR of 16.24% and its 6% cash-back earnings on U.S. supermarket purchases that only last until spending $6,000 annually; not longer like some other cards offering higher rewards rates across all purchases. Furthermore, redemption options such as gift cards or airline miles don’t exist for this card either.
3. Fidelity Rewards Credit Card
Fidelity customers looking to make the most of their investments or savings can use this card to earn 2% cash back, with proceeds directly going back into investments or savings accounts, without incurring fees for rewards credit cards. In addition, its Visa Signature benefits offer great protection and low foreign transaction fees.
Fidelity Rewards card stands out with an outstanding flat 2% cash back earning rate on all net purchases, making it hard to beat among no-fee cards with this rate. Unfortunately, however, there are no bonus categories or an introductory 0% APR period to take advantage of this card’s rewards rate.
This card’s straightforward 2 points-per-dollar spending scheme makes it simple and straightforward for consumers. In contrast to many cards which require opting in for categories or tracking quarterly changes, this card provides easy understanding and tracking.
Another advantageous aspect of this card is its low 1% foreign transaction fee, helping you stretch your travel dollars further. Furthermore, no penalty APR is charged, making this card ideal for frugal spenders who don’t accrue enough rewards to offset an annual fee.
To maximize the value of your rewards, it is necessary to redeem them into an eligible Fidelity account – such as brokerage accounts, Fidelity-managed 529 college savings plans or retirement accounts – where you can redeem all or some of them at once or divide among up to five eligible accounts.
Though not as stringent as some other investment-focused credit cards’ minimum deposit requirements, it still means you won’t be able to maximize your reward potential with this card unless you already have an Fidelity account – this requirement being the primary reason we do not rank this card higher on our best 2% cash back cards list.
4. Wells Fargo Cash Wise Visa Card
Wells Fargo Cash Wise Visa Card offers straightforward rewards without an annual fee, offering 1.5% cash back on all purchases and an elevated 1.8% reward rate for Apple Pay and Google Pay purchases made within 12 months of becoming cardholder.
Spend $500 within three months of opening a card and you could be eligible for a $150 cash rewards bonus, making this one of the more attractive welcome bonuses available. Even though this may not be as beneficial, a quick way to maximize your initial rewards balance quickly could prove fruitful.
Though the Wells Fargo Cash Wise Visa Card provides an impressive cashback rate and rewards boost, it falls short in other key ways when compared to similar cards in terms of loyalty rewards programs and protection for cardholders.
The card does, however, offer additional features, including built-in cell phone protection. When paying your cellphone bill using this card, up to $600 in coverage against damage or theft will be provided (with a $25 deductible).
Wells Fargo Cash Wise Card is an excellent option for those who are just getting started in credit card rewards or looking for an easy way to increase cash back. Its flat, unlimited rewards rate means no juggling multiple cards or remembering which categories to enroll in each quarter; and offers an outstanding introductory APR compared to most competing cards; also reporting to all three credit bureaus so responsible use will help your score over time.
5. Ally Unlimited Cash Back Mastercard
The Ally Unlimited Cash Back Mastercard is one of the premier flat-rate cash back credit cards for those looking to save a bit of extra cash with every purchase they make, with no annual fees and great rewards rates on gas, groceries, and drugstore purchases – plus there’s no minimum spending requirement needed to earn their sign-up bonus!
Ally, an online bank renowned for offering competitive savings and checking accounts, entered the credit card market with a straightforward cash back card designed for people who prefer simpler rewards structures over more complicated rewards structures. Their card doesn’t charge any card fees either and offers free access to FICO credit scores as well as card locking features if lost or stolen.
But the Ally Credit Card lacks many additional perks that set it apart from other 2-percent cash back cards, such as an introductory APR on balance transfers or welcome bonuses for new cardholders. Furthermore, it does not permit redeeming earned rewards for gift cards or Amazon purchases – two features other 2-percent cash back cards have.
As an additional perk, Ally Credit Card does not charge over-the-limit or returned payment fees or penalty APR for late payments, making it an attractive cash back card option with low credit requirements and great approval odds for fair to good credit scores. With great approval odds for fair to good scores and no penalty APR charges for late payments, it makes this card ideal for anyone searching for one without credit card fees that punish their account usage.
The Ally card may not offer as much flexibility than other two percent cash back cards due to its lack of category bonuses or rotating categories, so if you understand your spending patterns well it may be easier for you to find more rewarding solutions with other rewards cards that provide more perks.
