Our research, news, ratings, and assessments are scrutinized using strict editorial integrity. Our editorial staff does not receive direction from advertisers on our website. Learn more here.
For cardholders in search of a cash-back credit card, Capital One has launched its latest Savor card, which offers cash back on dining and entertainment.
The biggest draw of the Savor card is for those who like to spend money on dining and entertainment because the card offers an unlimited 4 percent cash back on those spending categories. Whether cardholders are eating takeout, dining in a restaurant, heading to the movies, or taking in a concert, they can get cash back when they use the card.
Food shopping also benefits cardholders by giving 2 percent cash back on all purchases made at grocery stores. All other purchases will net them 1 percent cash back. The good thing about this card is that cardholders can get rewards for items they’d be buying anyway.
The Savor card also gives cardholders other perks such as ticket presales for dining, sports, and entertainment, as well as exclusive access to curated events.
If cardholders spend $3,000 on purchases in the first three months, they’ll get a $500 bonus. But people should be careful not to overspend so much that they can’t pay off the full balance. If they’re buying things they don’t need just to get the bonus, it might not be good for them financially.
How It Measures Up
Some cash back cards have category caps, which means cardholders stop accruing cash back after they reach a certain dollar amount of spending. But with this card, every dollar that’s spent – no matter how much – will earn a cash-back reward.
The cash back a cardholder has earned on this card can be redeemed at any time – they don’t have to let it accrue to a certain amount before they can cash it out.
Some cards change the categories that earn the most cash back every quarter, which can get confusing for cardholders who don’t want to spend their time memorizing which categories will benefit them the most. This card, however, doesn’t have rotating categories – instead it offers a fixed cash-back rate on fixed categories.
One aspect of this card some cardholders might not like is that it does carry a $95 annual fee. For the first year the fee is waived. But there are cash-back cards that don’t have an annual fee, including another Capital One card – the SavorOne.
The SavorOne card offers 3 percent cash back on dining and entertainment, which is 1 percentage point lower than the other Savor card. But grocery store purchases remain the same at 2 percent and all other purchases are still at 1 percent. It also gives unlimited cash back for purchases.
With the SavorOne card, cardholders will still get a sign-up bonus. If they spend $500 in purchases in the first three months, they’ll receive a $150 bonus. That card might be a better value for cardholders who don’t spend much on their cards typically – they’ll still get the bonus with a smaller amount of spending but they won’t have to pay the annual fee.
If you have a different Capital One card but think you’d like to upgrade, here’s how to do that. In any case, you’ll get the most out of your rewards card if you choose one that closely aligns with your true spending habits.
Author: Shannon Serpette
Shannon Serpette is a mother of two and an award-winning journalist and freelancer who lives in Illinois. When she’s not spending time with her children, she is often pursuing her favorite hobbies – running, metal detecting, kayaking, and reading about personal finance.