Discover card is giving 5% cash back for grocery purchases for the next 3 months. I wasn't going to use Discover anymore but I think I will keep it around for certain purchases. Last month's category was gas and I earned $5 in rewards. It shouldn't take me too long to reach the $20 mark and then I will trade my rewards for a $25 Ace Hardware gift card.I'm trying to scrape up any extra cash for my Christmas fund this year. I've almost reached the $40 mark with the online surveys and then my other credit card will give me $250 cash back as soon as I reach the $200 level. That shouldn't be too hard as soon as I start charging those Christmas presents.
I'm considering buying grocery gift cards with my Discover card this year to get that 5% cash back without actually buying tons of food. I did that last year with the stimulus money and it worked out quite well. I must make sure that I have an extra $200-$400 available to pre-buy groceries though. It would be bad if I locked all my money up in gift cards and then didn't have enough to pay my property tax bill. Hmm...too bad I can't put my property taxes on my credit card. I could earn some nice cash back from that bill.
I think they let us pay property taxes with a credit card for an additional fee, but it is more than the standard cash back deals.
ReplyDeleteThe grocery gift card purchase sounds like a good idea. No need to worry about them spoiling.
Discover card caps the 5% cash back on groceries at $400 in purchases (net of $20 cash back). So don't spend more than that amount on gift cards or groceries.
ReplyDeleteI was going to point out exactly what the Executioner pointed out. Don't go crazy with the spending, there is a cap on how much you will get back. Oh well, $20 is better than nothing on things I already purchase.
ReplyDeleteBarb
Executioner and Barb, thanks for the heads up. That is very annoying that they capped it at $400 over 3 months. Most people reach $400 in less than a month. Not much of a deal I think. I'm beginning to think it's not worth bothering with discover at all.
ReplyDeleteOver the Cubicle, I read that some churches accept credit cards. And I can charge my state taxes because they let us donate them to the schools of our choice. Cash back on donations is a bit odd but I'll take it.
ReplyDeleteI am pretty sure Chase Freedom no longer offers $250 for $200 earned. Call them to make sure if you are counting on that $50 bonus.
ReplyDeleteAnonymous, it is still available if you have the premier checking account too. I bet they'll get rid of it as soon as they can think of an excuse!
ReplyDeleteI use that "buy grocery store gift cards" trick with my Discover Card, too, sometimes.
ReplyDeleteI have to confess I'm surprised that you're concerned about laying down $500 for groceries with your amount of savings. I guess you must not keep a large balance in your checking account.
If you have Discover Card, and get on the correct rewards program and just stay on it (Discover Gas Rewards/open Road or whatever) you will get a straight 2% off *all* grocery and gas purchases throughout the year. That's a better deal than their rotating category deals in my opinion. I just stick with that generally.
ReplyDeleteSchwab Visa offers 2% back on all purchases. I don't apply because I'm pretty sure they'll reject me due to my large available credit lines as compared to income so I don't bother applying, but if 2% back sounds good to you for all purchases then I'd suggest looking into it.
ReplyDeleteHello bugbear, I did have a large reserve but last month I decided to dump $5k on the mortgage. I'm building that cushion up again.
ReplyDeleteI do have Chase Freedom with my checking account and it gives me 3% on my top 5 catagories. I haven't checked my catagories lately. If gas isn't one of my top catagories then that Discover gas card would be better to use for only gas. I'll check it out.