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A 2% cash back credit card is one of the easiest ways to earn simple, predictable rewards for your everyday spending. If you want to earn a flat rate of return on all your spending with no bonus categories to remember – and usually no annual fee to worry about – a 2% cash back credit card could be the best credit card for you.
The right 2% cash back card is also an opportunity to build your credit, explore rewards programs if you want to, and even enjoy a bonus category or lucrative perk. Let's take a look.
Best 2% Cash Back Credit Cards
Wells Fargo Active Cash® Card - Product Name Only : Best all-around 2% cash rewards credit cardCiti® Double Cash Card - Product Name Only : Best 2% cash back card for balance transfersSoFi Credit Card - Product Name Only : Best introductory cash back rateFidelity® Rewards Visa Signature® Card - Product Name Only : Best 2% cash back credit card for investing rewardsPayPal Cashback Mastercard® - Product Name Only : Best 2% cash back credit card for online shoppingTD Double Up℠ Visa Credit Card - Product Name Only : Best 2% cash back card for TD Bank customersAmerican Express Blue Business Cash™ Card - Product Name Only : Best flat-rate 2% rewards for small business ownersCapital One Spark Miles for Business - Product Name Only : Best versatile 2x rewards card for small business owners who like to travel
In terms of versatility, cash back is the most flexible credit card reward. Most cash back credit cards allow you to redeem your rewards as cash, a statement credit, or a transfer to your bank account.
Compare 2% Cash Back Credit Cards
Methodology
We selected the best 2% cash back credit cards for this list by weighing a few important factors:
- Ease of use — How easy is it to use the rewards you earn? Can you redeem them in a variety of ways, or are there any hoops to jump through?
- Cash-back earning potential — Is the reward potential unlimited, or is there a cap to think about? Are there any extra ways to earn more cash back if you want to?
- Annual fee — Most cash back cards don't have an annual fee, but if it does, is it worth it?
- Reward flexibility — Can you redeem the cash back you earn in a variety of ways, such as statement credits or cash deposits? Is there an option to "power-up" your rewards if you want to?
Here's the full breakdown of how we rate credit cards at Insider.
2% Cash Back Credit Card FAQ
How does a 2% cash back credit card work?
Just how it sounds, you'll earn at least 2% cash back on every qualified purchase, including doctor visits, groceries, daycare payments, pet food, and most other routine expenses. Then, you can transfer the cash back you earn to your bank account, redeem it for a credit statement, or buy gifts, merchandise, or travel. The exact rewards depend on the card you get, but most offer a few ways to use your rewards.
Do 2% cash back cards really give you cash?
Yes, but it's usually not physical cash. Some do let you transfer your rewards to certain accounts which then allow you to withdraw cold, hard cash. But most give you credit card statements, gift cards, merchandise, or other "cash-like" rewards. In this way, the rewards function like cash but without having to handle real dollar bills.
Are 2% cash back cards better than rewards or travel credit cards?
It really depends on what your personal preferences are. Some people don't like navigating complex loyalty programs or points redemptions, while others love doing just that. If you like simple, flat-rate cash rewards that get you statement credits or straightforward redemption options, a 2% cash-back card is ideal. There's typically no annual fee (or a low one), and the rewards themselves are easy to earn and spend.
How can you maximize a 2% cash back credit card?
Definitely pay your balance on time and in full every month. That way, you won't pay interest changes and you'll build a positive credit history. If you think you might want to expand your rewards options in the future, consider a card that gives you even more rewards options by pairing with a "sister" card connected to the same rewards program – but this isn't a requirement.
Best All-around 2% Cash Rewards Credit Card
The
The card also comes with a
Benefits include cell phone protection, roadside dispatch, travel emergency assistance, and access to the Visa Signature Concierge, which can offer added value to a card that's free to keep.
Wells Fargo Active Cash Card Review
Best 2% Cash Back Card for Balance Transfers
Long considered the best cash back credit card, the
It also comes with a generous
What makes the
Although the
Best Introductory Cash Back Rate
If you're all-in on banking with SoFi (short for Social Finance), or willing to set up and use a SoFi account, the
For starters, the card offers a bonus of
The card also provides 3% cash back (earned as 3 points per dollar) on spending during the first 12 months of account opening. The points are capped at 36,000 rewards points, which are worth 1 cent each. That translates to a potential $360 in extra rewards on your spending. After the promotional offer expires, you'll earn 2% cash back (2 points per dollar) on purchases. If you make the most of the promotions, you can earn up to $660 – a nice bonus for a card with no annual fee.
SoFi Rewards points are worth 1 cent each when you redeem them to your
This card is definitely designed to entice you to try other SoFi accounts. The checking account is free to open and keep, and from there you can transfer your earned cash rewards to other accounts, withdraw the funds, or spend them however you like.
The
Best 2% Cash Back Credit Card for Investing Rewards
Fidelity Rewards Visa Signature Credit Card
The
Rewards are earned as points, and are worth 1 cent each when redeemed to an eligible Fidelity account, including the Fidelity Cash Management Account (Fidelity's version of a checking account), brokerage, traditional or Roth IRA, HSA, and a few other account types.
In that regard, you can easily redeem your rewards to a cash management account and pay bills, transfer the cash elsewhere, or withdraw funds from an ATM (with withdrawal fees reimbursed).
Or, you can transfer your rewards to an investment account where they can potentially grow far beyond the 2% cash back rate. This possibility is what makes the
This option is for those who prefer to self-manage their investments. If that's you, or if you don't mind opening a free cash management account to access your rewards, then the
Fidelity Rewards Visa Credit Card Review
Best 2% Cash Back Credit Card for Online Shopping
If you like shopping online, the
You can redeem the rewards you earn to your PayPal balance or as a shopping credit toward an eligible PayPal purchase. If you choose the former option, you can then transfer your cash back to a connected checking account.
Using the shopping credit is easy, too – PayPal is a checkout option at hundreds of popular merchants, both in-store and online. To apply for the card, you'll need a PayPal account.
Because PayPal is so widely accepted, you could easily earn 3% rewards for much of your online shopping, particularly if you often shop from places that accept checkout with PayPal. Plus, you'll earn 2% cash back everywhere else. That's an excellent return for a card with no annual fee.
PayPal Cashback Mastercard Review
Best 2% Cash Back Card for TD Bank Customers
TD Double Up Credit Card
The
The card also offers
There's no annual fee, and cardholders receive Visa benefits including cell phone protection, roadside dispatch, and identity theft protection. We're including this one because TD Bank has a large footprint and an excellent variety of accounts, including investment, savings, and checking accounts.
Best 2% Flat-rate Rewards for Small Business Owners
American Express Blue Business Cash Card
Small business owners can get in on the easy 2% cash back rewards, too. Our top pick ranks highly on our list of the best cash back business cards. The
There's currently a welcome bonus of a
If you make the most of the
You'll also get cell phone protection, purchase protection, extended warranty, and a
Amex Blue Business Cash Card Review
Best Versatile 2% Rewards Card for Small Business Owners Who Like to Travel
Capital One Spark Miles for Business card
If you have a small business and like to travel, the
The 2x Capital One miles you earn can "erase" a travel purchase, such as a flight, hotel stay, or other travel-related charges, which makes it a 2% cash back card if you like to travel. You'll also earn 5x miles on hotels and rental cars booked through the Capital One Travel Portal, worth 5% cash back.
While not strictly a cash back card, we chose this one for the strong welcome offer worth at least $500 toward travel and useful travel perks. You'll also have a year to assess whether you like the card's value before an annual fee is due, and can easily recoup the cost with the $100 Global Entry travel credit if that's useful to you. It might also be nice to have a dedicated card for your business purchases, to keep them separated from your other expenses.
Capital One Spark Miles for Business Card Review
Other 2% Cash Back Credit Cards We Considered
There are lots of 2% cash back cards out there. Here are some others we considered, but didn't make our list – and why:
Key Cashback® Credit Card - Product Name Only — This card, like others on the list, earns a flat 2% cash back rewards on purchases, has an intro APR period, and doesn't have an annual fee. But to earn the full 2% cash back rate, you need to have accounts with KeyBank and meet a minimum balance. The checking accounts aren't very rewarding and the bank's footprint is too limited to give this card a hearty recommendation.Apple Card - Product Name Only — While not strictly a 2% cash back card, the Apple Card does offer up to 3% cash back on purchases made using Apple Pay as a payment method, which matches the bonus rate on thePayPal Cashback Mastercard® - Product Name Only . That said, Apple Pay is nowhere near PayPal's wide acceptance rate, and the 1% cash back return on other purchases isn't as good as thePayPal Cashback Mastercard® - Product Name Only 's 2% rate, so we had to give this one a pass.Alliant Cashback Visa® Signature Credit Card - Product Name Only — You can earn a tantalizing flat 2.5% cash back rate on every purchase up to $10,000 per billing cycle (then 1.5%) withAlliant Cashback Visa® Signature Credit Card - Product Name Only — and there's no annual fee. That's better than every other card on the list, so why isn't it our top pick? Too many hoops. You need to join Alliant Credit Union, maintain an average daily balance of $1,000 or more, make one monthly deposit into your account, and opt-in to electronic statements to get the 2.5% tier. It's worthwhile for those willing to do the work, but most will do better with another card choice.Capital One Spark Cash Plus - Product Name Only — There's the potential to earn a $1,000 cash bonus with theCapital One Spark Cash Plus - Product Name Only —Capital One Spark Cash Plus - Intro Bonus . You'll earn an unlimited 2% cash back on purchases (and 5% cash back on hotels and rental cars booked through Capital One Travel). However, theCapital One Spark Cash Plus - Annual Fee annual fee and high spending threshold to earn the full bonus kept this card off the list. That said, it's worth a look for small business owners already in the Capital One ecosystem or with other Capital One credit cards.
How to Choose a 2% Cash Back Credit Card
2% cash back credit cards offer some of the simplest credit card rewards around, and they're great for people who don't want to deal with bonus categories, transferring points, or shuffling several cards to get the best return on spending.
Here's what to look for in a 2% cash back card:
- Annual fee — Is there an annual fee? Most 2% cash back cards are free to keep and use, but there are a few that come with an annual fee. If so, consider the other benefits (if any) and how you'll use them. And if there's no annual fee, a 2% cash back card is great to hold long-term to help age your overall credit accounts, which could improve your credit score. You'll also have a card for non-bonus spending if you're someone who likes to maximize your return on expenses.
- Bonus categories — All of the 2% cash back cards here earn just that, at a minimum. There are a couple that have a bonus category or the option to pair with a "sister" card to punch up the overall value. If you think you might want to build your rewards ecosystem in the future, or you spend a lot in a particular bonus category, that could sway your decision.
- Welcome offer — Typically, 2% cash back cards don't come with a welcome bonus, or if they do, it isn't as big as what you'll find on premium credit cards with bigger annual fees. But every once in a while, there's an offer that's high enough to warrant a second look. If you find a great welcome bonus, it might be prudent to take advantage while you can.
If you're trying to put money back in your wallet, our top recommendations are to transfer your cash back to a bank account or use it to reduce the amount owed on your credit card statement. In a couple of instances, you can easily transfer your rewards to an investment account. If you're interested in long-term investing, there's a chance your rewards can benefit from compound interest over time, and it's worth considering whether you want short-term rewards or if you're in it for the long haul.
No matter what you decide, earning rewards on your spending with a 2% cash back credit card is better than what you'll get with a debit card, which is nothing. You'll also have better consumer protections, more perks overall, and the opportunity to build a positive credit history, which can be extremely valuable when you start shopping for big-ticket items like houses, cars, and other financing.
Is a 2% Cash Back Card Right for You?
Keep in mind that credit cards — whether they earn cash back, points, or miles — aren't worth it if you're paying interest or late fees. When you use a credit card, be sure to pay off your balance in full and on time each month and only ever spend what you can afford to pay back.
Many cash back cards have no annual fee, so you don't have to pay for the privilege of earning rewards. You can literally earn rewards for free.
If you're new to rewards credit cards but don't want to worry about learning about complicated loyalty programs or points values, a cash back card is probably the best pick for you. With a cash back cards, 2% back always equals 2 cents back per dollar you spend. Plus, you can redeem cash back to lower your monthly balance or transfer it to your bank account, along with other options that vary by card.
The best cash back credit card for you really depends on your everyday spending habits and whether a flat rate of cash back on all spending appeals to you, versus earning bonus cash back in certain categories, like groceries, restaurants, or gas. Flat-rate cash back cards are ideal for folks who prefer a simple earning structure and don't want to juggle multiple bonus categories.
About 2% Cash Back Credit Cards
The best cash back card is different for everyone. To find the best one for you, you'll want to look for a few things:
- How you redeem your cash back: Make sure you're clear on what you're earning. Is it statement credit? Cash? Can you only redeem into an account with the same financial institution? Do you have the option to book travel or buy merchandise? If so, are your points worth the same rate as redeeming for cash?
- The annual fee: An annual fee may be a dealbreaker for some. Are you willing to pay one? And will you get enough rewards and benefits to make it worth your while each year?
- Any extra benefits: For example, some cards may come with cell phone insurance, travel perks, extended warranties, and more. Benefits are only worthwhile if you'll actually use them — will you?
If you think you might carry a balance on your credit card, you'll also want to factor in the card's APR. We don't suggest applying for a cash back credit card if you don't plan to pay off the balance in full each month. For other categories of credit cards, like intro APR credit cards, the APR might become important if you end up carrying a balance after the intro period runs out.
Pros and Cons of 2% Cash Back Credit Cards
If you're trying to decide whether to open a cash back credit card, whether as your first card or one of many, bear these pros and cons in mind:
Pros of 2% cash back credit cards:
- They seldom have annual fees
- There are few restrictions on how you can redeem your cash back rewards
- Using your cash back rewards to pay for flights and hotels can get you closer to airline and hotel status (using points won't)
Cons of 2% cash back credit cards:
- They rarely offer big sign-up or welcome bonus offers
- You can't get outsized value from cash back like you can with flexible points, airline miles, or hotel points
- Not all redemption options are a good value
Finally, make sure to actually redeem your cash back. It won't do anything for you just sitting in your account, and though it might be gratifying to watch your cash back accumulate, it's far more useful if you redeem it. Using your rewards to lower your card balance or depositing them into your checking account is like putting money straight back into your pocket.