Yes, you read that title correctly. Discover Card can be very generous with its Cashback rewards program but sometimes their promotions are truly eye popping…
I received a letter from Discover Card last year and the “$250 Cashback Bonus” printed on the envelope made me think I had misread the offer. As a current cardholder, it actually was promising me $250 for spending $1,500 per month over a 5 month period. That’s not exactly a difficult thing to do. There had to be a catch. Only one…
To receive an offer like this you must already be a cardmember.
With the exception of their student version, unfortunately Discover does NOT do cash back bonuses for new accounts like other credit card companies do. Why not? I guess because they know they don’t need to, because their card is that good.
So for 2014, here are the best offers currently available. Now is a really good time to apply because the last time I remember them offering a bonus on new accounts was two years ago and it was only half this amount.
Going back to what I received for my existing account, I opened the envelope and here is how the promotion worked:
- I needed to signup for the Discover card promotion before it started (Nov 1st)
- The offer was from November until the end of March (5 months long)
- During that time if I spend $1,500 or more per month on my Discover card, once the offer period ends my account will be credited with a $250.00 cashback bonus
- The $250 bonus is on top of the regular cashback my Discover card earns, which is 5% on rotating categories and up to 1% on everything else
What percentage of a rebate does that equal out to be?
Well the $1,500 per month x 5 months equals $7,500 total. Now assuming I’m in the 1% rewards tier, I would normally get $75 cash back on that amount. Then let’s say $1,000 of that was on 5% categories, that would be an extra $40 in cash back (that’s 4% since we already counted the first 1%). Finally we add the $250 onto that total and that’s $365.00 in cashback.
$365/$7,500 = 4.87% CASH BACK ON ALL THAT SPENDING!
This is by far one of the best Discover credit card promotions I have ever seen. Actually it is the best… you just can’t beat getting nearly 5% on all that spending over a period of 5 months.
How to get this promotion?
As mentioned, I am an existing Discover cardholder and they sent me this promotion a year ago. Usually about once per year I get promotions from Discover like this. So for starters, you need to have Discover card in good standing (i.e never having been late with a payment) to be eligible for existing cardholder deals like this. Another key to triggering an offer like this seems to be shifting spending over to other cards for a while. They can see your activity with other issuers at the credit bureau and they often use this type of incentive to lure you back in to using their card as your primary card in wallet. To learn about the card I have check out my Discover it card review.
As a heads up Discover does NOT offer cash bonuses for new accounts anymore, ufortunately. So if you are waiting for a $50 or $100 bonus to signup, you’re probably NOT going to get it, unless you’re a student (they do have a $20 cash bonus on one of their Discover it versions). However, they do have this nice 0% promotion running right now and this is a good quarter to have the card because of the current 5% categories.
What’s the best deal for 2014?
If you’re looking for a big fat cash bonus deal right now, you might not get it with Discover. However here are some big bonus offers from other banks.
Written or last updated August 4, 2014