As I’ve discussed several times before, when it comes to credit cards, I tend to focus on credit cards that earn rewards points. I find that I personally get better value from rewards points then I would from cash back. So, for me, I primarily open and use credit cards that earn flexible rewards points.
There is however one notable exception; the Chase Freedom card. The Chase Freedom card is only one of the only cash back credit cards that I have and the only cash back card that I actually use. That’s because the Chase Freedom card comes with a very attractive benefit that allows card holders to earn up to 5% Cash Back on certain spend each quarter.
Now, while 5% Cash Back sounds great, there are two fairly significant limitations. The first is that you only earn 5% Cash Back on up to the first $1,500 of quarterly spend. So, in total, you can only ever earn $75 of cash back each quarter. The second, is that you have to activate this benefit each quarter.
Thankfully, Chase makes activating this benefit incredibly easy and you’ll still earn the 5% bonus cash back for the whole quarter even if you activate the benefit late. However, to earn up to 5% cash back you must activate the benefit during the activation period which begins about 15 days before the start of a new quarter and ends about 15 days prior to the end of the quarter.
Activate The Chase Freedom 5% Quarterly Cash Back Benefit
One of the easiest ways to activate the Chase Freedom 5% Quarterly Cash Back Benefit is with 1-click activation links found in Chase emails. These emails typically arrive on the first day of a new quarter and again throughout the quarter if you haven’t yet activated the benefit. In fact, I received one of these activation emails yesterday from Chase.
The email began with a familiar reminder from Chase and a hint as to what categories are included in this quarters benefit. Just below the above image was the 1-click activation button in the body of the email and further detail as to what purchases qualify for the Q2’20 5% Cash Back benefit.
Often Chase releases the Quarterly Bonus categories a few days prior to the start of a new quarter, but I’ve mostly stopped paying attention to that. Instead, I just wait until the first email about the benefit arrives. This quarter I was pleasantly surprised to see Grocery Stores, Fitness Clubs, and Select Streaming Services included.
After clicking the 1-click activation link a webpage will open in which Chase confirms activation of the benefit.
A bit lower on the page is a graphic reminder of which purchase categories are eligible to earn 5% Cash Back this quarter.
I also always recommend visiting Chase.com to confirm that the benefit is active on your account homepage.
When you log in you should see the word “Activated” in the top right corner of your account page.
The Chase Freedom Q2’20 5% Quarterly Cash Back Benefit
For Q2 2020, the Chase Freedom is offering 5% Cash Back on qualifying grocery store purchases, gym membership purchases, and purchases with select streaming services. Now, it’s worth noting that grocery stores do not include Target and WalMart, but also, it’s important to know which steaming services qualify. Specifically, the following streaming services are eligible for up to 5% cash back:
Disney +, Netflix, Hulu, Sling, Vudu, Fubo TV, Apple Music, SiriusXM, Pandora, Spotify, YouTube, ESPN +, and Google Play.
So, once activated you’ll earn up to 5% cash back on the first $1,500 of eligible purchases this quarter. That comes out to $75 of total cash back or $60 more than you would typically earn.
Personally, this quarterly bonus could not have come at a better time. Since most of us are in lockdown here in the U.S. I imagine a lot of us (myself included) will be spending more at the grocery store and on streaming services. I personally have spent more in groceries in the past two weeks that I did in nearly all of Q1.
A Few Reminders
There are a few things to always keep in mind when talking about the Chase Freedom 5% Cash Back benefit. First, if you change your payment method on recurring payments (Spotify, etc.) make sure to change it back once the benefit ends. Chances are you can do better than just 1% Cash Back on future recurring payments.
Second, if you don’t think you’ll spend up to $1,500 organically, find ways to maximize this benefit. For example, your grocery store might let you buy gift cards with a credit cards (often not allowed). Likewise, now would be a great time to buy non-perishable goods at the grocery store that you would otherwise buy throughout the year. Similarly, check with your gym to see if they’ll allow you to pre-pay for future months. Perhaps by doing so you might even be able to get a discount. Simply put, if you are able, be sure to maximize this benefit each quarter.
Third, Chase Freedom card holders can actually transfer cash back ‘points’ to Chase Ultimate Rewards Points. So, that $75 of Cash Back could actually be worth 7,500 Chase Ultimate Rewards points. If you have the Chase Sapphire Reserve card, those points are then worth at least $112.5, which is obviously more than $75. As long as you maintain both a Chase Freedom and Chase Ultimate Rewards card you are able to transfer Cash Back into Ultimate Rewards points.
Final Thoughts
I’ve said it several times before, but I love my Chase Freedom card. It’s a no annual fee card that I get at least $300 of value from each year. If you don’t already have the Chase Freedom card I’d highly recommend applying as it’s an incredibly rewarding Cash Back credit card for the quarterly 5% bonus.
However, keep in mind that outside of the 5% cash back quarterly bonus categories or above the $1,500 spending cap, this card only awards 1% cash back on all purchases. So, for ongoing spend I’d recommend either the Chase Freedom Unlimited Card (1.5% cash back on all spending) or the Citi Double Cash Card (2% cash back on all spending). Both of those cards also lack an annual fee.
Finally, if you do carry the Chase Freedom card, make sure to activate the 5% Quarterly Cash Back benefit soon. You have until June 15 to activate to earn up to 5% Cash Back on qualifying purchases.
