My 2013 Cash Back Rewards returned 2.3%

[dvalley]

I've been using my cash back reward credit card for everything I purchase i.e. gas, groceries, food, shopping etc and of course paying off the balance in full each month. In 2013 I charged $27k worth of stuff to it I got $646 back in rewards or 2.3% on the money that I spent anyway and it's not taxable because it's considered a discount

Also, when I shop online through FatWallet I get additional cash back from them too. Though the discounts and items offered through Fatwallet can be selective I did save 6% on camping stuff I bought at Campmor through Fat Wallet.

 

[Chuckanut]

2.3%!!!'

Beats the pants off of most short term CDs and bonds. And it beats my old 5 year CDs that earn only 2.25%.

 

[dvalley]

True, though not exactly apples to apples Savings interest rate is adding to the principal where as with the credit cards you have to spend the hard earned dollars to get the rewards - so just like IRS think of it as a 'discount'. Still fun to see it in terms of the percentage return though

 

[powerplay]

Good job!

 

[bizlady]

SO who is the carrier of your credit card! I need to get on this cash back kick!

 

[dvalley]

I've been using Chase Freedom but honestly any decent credit card (check bankrate.com for comparison) will offer the same i.e. 1point for ever dollar spent and 5 points of seasonal/special items like jan-mar they offer 5points on gas and pharmacy. 100points = 1 dollar or 1point=1cent.

I also just got the PenFed credit card because they offer 5points on gas and I drive a lot (20-30k miles per year) so would be nice to get 5points there.

 

[robnplunder]

I carry a cheat sheet and rotate among the four cards below.

Discover card: 1% - 5% cash back depending on what & when you buy; 2% on online payment for DSL, wireless, ...
B of A: 2% on groceries, 3% on gas
Chase Visa: 2% on restaurants, drugstore, office supply; 3% on Amazon purchases
Amex: 2% on travel related items

 

[Greencheese]

Building my card collection up but shooting for 3-4% this year. But at only $5,000 or so I won't quite hit that high of a cashback amount

 

[daylatedollarshort]

We mainly use a 2% back Fidelity Am Ex. Adding more cards is on my to do list this year.

The shop Discover links are also good for shopping online. I think I got ~20% back on contact lenses that were on sale at one of the discount lens places, plus the 5% for their shopping online special during the holidays.

 

[Turboslacker]

And the more you buy the more you earn!

 

[dvalley]

And the more you buy the more you earn!

Retail therapy is the second best stress reliever, besides it helps our economy

Seriously though I buy what I want to buy regardless of the reward points but if someone's giving me 2.3% cash back on my purchases I ain't saying no