October 18, 2017
New Capital One Savor Card Offers up to 3% Cash Back

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There’s a new Capital One credit card on the market which offers up to 3% cash back and has no annual fee. This is a great option for people who want to earn cash back on some interesting bonus categories without having to spend too much time learning how to redeem points for maximum value.

The Capital One Savor card earns 3% cash back on dining, 2% cash back on groceries, and 1% cash back on everything else. The card also comes with a $150 sign-up bonus after spending $500 in the first three months of account opening-and it has no annual fee! The reward points don’t expire and you can redeem them for cash at any time. Finally, the card has a 0% APR for the first 9 months.

If you spend a lot on dining and want cash back, this is a good way to do it. If you’re not a big dining spender, there are better cash back cards out there. For example, the Citi Double Cash card earns 2% cash back on all purchases, which would be better unless you really spend a lot on dining.

That said, I’m a points person. The Chase Sapphire Reserve ($450 annual fee) earns 3X Ultimate Rewards points per $1 on travel and dining. The Chase Sapphire Preferred ($95 annual fee) earns 2X Ultimate Rewards points per $1 on travel and dining. I can get far more value from the Ultimate Rewards points than cash back. For example, I can fly roundtrip from the West Coast to Japan in ANA First Class for 110,000 Chase points. That ticket typically retails for over $18,000.