Earn 4% Cash Back on Dining With the New Capital One Savor Card
On Tuesday, Capital One announced the rebranding of their SavorOne Cash Rewards Credit Card and introduced the brand new Capital One Savor Cash Rewards Credit Card. Both of these are excellent cash back credit card products that could be very lucrative for people who spend a lot on dining and entertainment. Below I will walk through a detailed analysis of both cards.
The Capital One SavorOne Cash Rewards Credit Card
Welcome Offer: Earn a $150 cash bonus after spending $500 on purchases within the first 3 months of card membership.
Bonus Categories: Earn an unlimited 3% cash back on dining and entertainment purchases. Earn 2% cash back at grocery stores and 1% on all other purchases.
Foreign Transaction Fees: None
Annual Fee: No Annual Fee
Click Here to learn more about the Capital One SavorOne Cash Rewards Credit Card
The Capital One Savor Cash Rewards Credit Card
Welcome Offer: Earn a $500 cash bonus after spending $3,000 on purchases within the first 3 months of card membership.
Bonus Categories: Earn an unlimited 4% cash back on dining and entertainment purchases. Earn 2% cash back at grocery stores and 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through May 2020.
Foreign Transaction Fees: None
Annual Fee: $0 for the first year and then $95 each year after that.
Click Here to learn more about the Capital One Savor Cash Rewards Credit Card
Both of these cards are an excellent choice for anybody who would rather earn cash back than travel rewards from their credit card product. The biggest difference in these cards is the additional 1% cash back on dining and entertainment purchases and the $95 annual fee (after year one) offered by the Capital One Savor card. Not to mention the much larger welcome offer on the Savor Cash card.
If you spend a lot on dining and entertainment and want a no annual fee credit card, you will be hard pressed to find a better product than the Capital One SavorOne credit card. Because the annual fee is $95 after year one on the Capital One Savor card, you would need to spend an additional $9,500 on dining and entertainment just to break even on the annual fee vs. the no annual fee SavorOne card.
Even though the annual fee on the Capital One Savor card is $95, it does provide a much larger welcome bonus than the Capital One SavorOne card ($500 compared to $150). In theory, this additional $350 would cover your annual fee on the Capital One Savor card for five years when you factor in the first free year. When you look at it this way, the additional 1% on dining and entertainment could certainly be worth it.
Of course, this card won’t be for everybody. I place a high value on travel rewards and thus put all of my dining spending on the Chase Sapphire Reserve Card which earns 3x Chase Ultimate Rewards points.
Because Chase Ultimate Rewards points can be redeemed for 1.5 cents each through the Chase portal, that is essentially a return of 4.5%. You can even do better than this when transferring to one of Chase’s travel partners as well.
What Purchases Count Towards Dining & Entertainment?
As is noted by the image below, the dining category is fairly broad and includes things like restaurants, cafes, bars, lounges, and bakeries.
Further, the Entertainment category includes buying tickets to a movie, play, concert, sporting event, tourist attraction, theme park, aquarium, zoo, dance club, pool hall or bowling alley.
Cashback cards certainly have their place. Not everybody wants to earn travel rewards and that is perfectly ok. The 4% cash back offered by the Capital One Savor card is matched only by the co-branded Barclays Uber credit card.
However, the 4% cash back on entertainment is not matched by any other credit card product. If you spend a lot on these categories, these cards could be a great option for you. Click Here to learn more about the Capital One Savor Cash Rewards Credit Card.
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