Fact Checked

Capital One boosts cash back rewards for Capital One® Savor® Cash Rewards Credit Card

Written by: Tim Devaney
• •3 min read
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Capital One is supercharging its Capital One® Savor® Cash Rewards Credit Card with more rewards.

The Capital One® Savor® Cash Rewards Credit Card’s sign-up bonus is more than triple the sign-up bonus offered before, and it will now come with greater rewards for dining and entertainment. But the changes to the rewards structure also usher in a $95 annual fee, which is waived the first year.

If cardholders don’t have an interest in paying an annual fee, Capital One is also introducing a more basic credit card: the Capital One® SavorOneSM Cash Rewards Credit Card. The main trade-offs are a smaller sign-up bonus and a lower rewards rate for spending on dining and entertainment.

Why we like it

Capital One’s renewed focus on the Savor® franchise should help it compete with other popular cash back credit cards from issuers such as Chase, Discover and Citi.

Customers will now have two Savor® cards to choose from.

Let’s start with the Capital One® Savor® Cash Rewards Credit Card. Here’s what we like:

  • You’ll earn a $500 bonus after spending $3,000 on purchases within the first three months after opening the account, which is a larger sign-up bonus than many cash back cards offer. Previously the card offered $150 after spending $500 on purchases in the first three months after account opening.
  • You’ll earn 4% cash back on dining at restaurants. Previously, the Capital One® Savor® Cash Rewards Credit Card offered just 3% cash back on dining, along with 2% at grocery stores and 1% on all other purchases. This update will put the Capital One® Savor® Cash Rewards Credit Card on level ground with the Uber Visa Card, which also offers 4% cash back at restaurants.
  • You’ll earn 4% cash back on entertainment. This makes the Capital One® Savor® Cash Rewards Credit Card a great option to pay for movies, concerts and amusement parks.
  • You’ll earn 2% cash back at grocery stores.
  • You’ll earn 1% cash back on all other purchases.

Here’s what we like about the Capital One® SavorOneSM Cash Rewards Credit Card:

  • You won’t pay an annual fee.
  • You’ll earn a $150 bonus after spending $500 on purchases within the first three months after opening the account. This is similar to the sign-up bonuses from the Chase Freedom® and Chase Freedom Unlimited®.
  • You’ll earn 3% cash back on dining and entertainment.
  • You’ll earn 2% cash back at grocery stores.
  • You’ll earn 1% cash back on all other purchases.

With both Savor® cards, you can enjoy flexible redemptions. The cards have no minimums for cash back redemptions.

The Savor® cards can also be great for traveling, because neither one charges foreign transaction fees.

 What to watch out for

Capital One’s remodeling of the Savor® franchise also comes with a few drawbacks.

  • The Capital One® Savor® Cash Rewards Credit Card will charge a $95 annual fee with an intro $0 annual fee for the first year. But there is an exception. According to Capital One, if you’re an existing Capital One® Savor® Cash Rewards Credit Card cardholder, you’ll be “grandfathered in,” which is to say you won’t have to pay the annual fee. If you’re a new cardholder and you don’t want to pay an annual fee, you’ll have the option to instead apply for the Capital One® SavorOneSM Cash Rewards Credit Card, which has a $0 annual fee.
  • If you prefer to cook at home instead of eating out, you could earn more grocery rewards with a card like the Blue Cash Preferred® Card from American Express. That card offers 6% cash back at U.S. supermarkets on up to $6,000 in purchases per year, then 1%. But it also comes with a $95 annual fee.

Bottom line

If you prefer cash back, Capital One’s updated Capital One® Savor® Cash Rewards Credit Card is among the most competitive cards on the market.

You might be able to get more value out of a travel rewards card if you’re looking to redeem for travel — especially if you care about getting a heftier sign-up bonus. But there’s something to be said about having a little extra cold hard cash in your wallet.

About the author: Tim Devaney is a personal finance writer and credit card expert at Credit Karma. He’s a longtime journalist who prides himself on being a good storyteller who can explain complex information in an easily digestible wa… Read more.