Chase Freedom Flex vs. Discover it Cash Back

Earning 5 percent bonus cash back on featured purchases is very attractive, so it’s no surprise that two of the leading credit card issuers have cards with that offer. Both the Chase Freedom Flex℠ and the Discover it® Cash Back feature 5 percent cash back on up to $1,500 in purchases each quarter from a list of select merchant categories, which change every quarter. Both cards also have no annual fee, so let’s take a look at these competing offers and see which one may be right for your needs.

Card details

Chase Freedom Flex vs. Discover it Cash Back

Sign-up bonus

The winner: Discover it Cash Back

This is close, but most cardholders will earn a larger welcome bonus with the Discover it Cash Back.

Chase Freedom Flex cardholders start with an initial $200 bonus after spending $500 within three months of account opening. Factoring in that the card also earn 5 percent cash back at gas stations during the first year, a typical consumer might earn an extra $100 in additional cash back.

According to data collected by the U.S. Department of Transportation, the average U.S. driver drives around 13,500 miles a year, in a car that gets 25 miles to the gallon. Based on the average gas price of $3.80 (reported by AAA) at the time of writing, the average driver would spend just over $2,000 and earn about $100 in cash back with the 5 percent offer compared, instead of just $20 with the standard 1 percent cash back. This equates to a total welcome bonus of an additional $300 in cash back.

For the Discover it Cash Back, Discover’s Cashback Match offer lets you receive a match of all cash back earned during your account’s first year. If you maximize the card’s bonus categories, reaching the $1,500 spend cap every quarter and earn 1 percent cash back on all your other purchases, then you’d earn $399 cash back at the end of your first year (based on an average yearly spend of $15,900). With a match of $399, the Discover it Cash Back wins in the sign-up bonus round — just remember you have to wait a full year to receive the Cashback Match.

Earning rewards

The winner: Chase Freedom Flex

These two cards have very similar offers for 5 percent cash back in bonus categories, but the Chase Freedom Flex adds three additional rewards offers. Earning 5 percent cash back on travel purchased through the Chase Ultimate Rewards portal can be a great way to maximize the rewards you earn on flights, hotels, rental cars and other vacation activities. The 3 percent cash back earned at restaurants (including takeout and eligible delivery services) is another valuable offer, which actually matches the rewards earned by Chase’s premium travel card, the Chase Sapphire Reserve®. The card also features 3 percent cash back on all purchases at drugstores and 1 percent on all other purchases.

In contrast, the Discover it Cash Back doesn’t have any additional rewards offered beyond the 5 percent cash back on rotating quarterly categories. One thing to keep in mind is that while the Freedom Flex only releases its rotating category calendar one quarter at a time, Discover’s bonus category calendar is announced all at once. Both cards also require you to enroll in the rotating categories each quarter to start earning that 5 percent.

Redeeming cash back

The winner: Chase Freedom Flex

These cards offer similar terms for redeeming rewards, like the standard options for cash back cards like statement credit, direct deposit and Amazon.com purchases. Both cards do not require a minimum for redemption, and rewards do not expire.

However, because the Freedom Flex fulfills its cash rewards as Ultimate Rewards points (100 points for every $1), you can redeem those points for even Apple products, travel or exclusive dining experiences. Plus, Chase lets you transfer Ultimate Rewards points to other Ultimate Rewards cards, like the Chase Sapphire Preferred® Card, which enables you to transfer points to airline and hotel partners.

Which card should you get?

The Discover it Cash Back card is ideal for those who want a relatively simple cash back card and can maximize its Cashback Match program during the account’s first year. However, the Chase Freedom Flex makes more sense for those who will use the card frequently for travel, dining and at drugstore purchases.

• If you want a sizable welcome bonus: The Discover it Cash Back card’s Cash Back Match is quite lucrative, while requiring little effort. All you need to do is use the card regularly throughout the first year, and Discover will match all your cash back at the end of that year — there’s no spend goal to hit.
• If you want to earn bonus rewards on everyday purchases: The Chase Freedom Flex’s advantage over its competitor is its fixed bonus categories on dining and drugstores. Plus, the 5 percent cash back on Ultimate Rewards travel, as a technically non-travel rewards card is a great added benefit.
• If you want to combine your rewards with other Chase cards:  Many travel rewards enthusiasts use the Chase Freedom Flex to earn Ultimate Rewards points in certain bonus categories that other Chase cards. Then they can combine rewards with other Chase cards like the Sapphire Preferred, Sapphire Reserve and Ink Business Preferred® Credit Card to spend on their next vacation.
• If you love maximizing rotating categories: For the true credit card aficionado, who enjoys strategizing their purchases to maximize bonus categories, rotating or not, the Discover it Cash Back is the card for you. The main reason: The issuer releases its quarterly calendar all at once, and the Cashback Match is difficult to beat. Just remember, you must enroll each quarter to begin earning bonus rewards.

Bottom line

The Chase Freedom Flex and Discover it Cash Back compete directly with each other as they have very similar offers for 5 percent cash back on up to $1,500 spent each quarter at merchants in featured categories. But that’s where their similarities end. By having a more generous rewards offer and earning more flexible rewards points, the Chase Freedom Flex can be the best card for many people, especially frequent travelers. However, if you can really maximize the Discover it Cash Back card’s rotating calendar and Cash Back Match offer, then it could be the better option for you.