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. You’ll also earn 5% on travel you purchase through Chase (they have their own travel site). In addition, you earn a sign up bonus of $200 when you spend $500 in the first three months.
- 5% cash back in rotating bonus categories
- 5% cash back on travel booked through Chase
- 3% cash back on dining
- 3% cash back at drug stores
- $200 sign up bonus
- No annual fee
Breaking Down the Value
You’ll start off with $200 from your sign up bonus. This is about as good as you’ll find on a card with no annual fee.
The 5% rotating bonus categories are also a great way to earn cash. You can see 2020’s list is below for an example of what’s common. 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 $600 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.