The new Chase Freedom Flex takes the old Chase Freedom to the next level. It still has no annual fee. And, it still earns 5% cash back in rotating bonus categories each quarter on up to $1,500 spent. But, now there’s more. You’ll also earn 3% cash back on dining and at drug stores all year long. And, you’ll also earn 5% on travel you purchase through Chase (they have their own travel site).
In addition, when you sign up for the card, you get 5% cash back at grocery stores for the first year on up to $12,000 spent. You’ll also get a $200 sign up bonus for spending $500 in the first three months.
Breaking Down the Value
The sign up bonus is fantastic for a card that has no annual fee. Earning 5% at grocery stores for your first year up to $12,000 spent is potentially $600 in cash back. This is on top of the $200 sign up bonus. So, you’re potentially getting $800 in cash back on a card with no fees.
The 5% rotating bonus categories are also a great way to earn cash. 2020’s list is below and you’ll earn 5% until you’ve spent $1,500 in those categories in a quarter. This is a possible $75 earned each quarter or $300 per year.
You’ve still got the 3% on dining and at drugstores all year long. As an example, if you spent about $275 a month in these categories you’d earn another $100 a year in cash back.
Using the examples I listed above, you’d be at $1,200 cash back at the end of your first year.
Chase Ultimate Rewards
The card earns Chase Ultimate Rewards. Each one is worth one cent and redeemable as cash, which is why they promote this is a cash back card. But, you don’t have to redeem them for cash. If you have another Chase Ultimate Rewards earning card with an annual fee, you can spend those points in other ways like transferring them to travel partners like Southwest Airlines or Hyatt. You can learn more about building a Chase Ultimate Rewards Strategy HERE. Points that are worth one cent each for cash can be worth twice as much for travel.
Chase Freedom Flex
It’s likely as Disney theme parks begin to more fully open up, we will begin to see some great deals to draw people back. A strong cash back card will help you be ready to take advantage.