Best 2% Cash Back Credit Cards of May 2023

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A 2% cash back credit card is one of the easiest ways to earn simple, predictable rewards for your everyday spending. If you want to earn a flat rate of return on all your spending with no bonus categories to remember – and usually no annual fee to worry about – a 2% cash back credit card could be the best credit card for you.

The right 2% cash back card is also an opportunity to build your credit, explore rewards programs if you want to, and even enjoy a bonus category or lucrative perk. Let’s take a look. 

Best 2% Cash Back Credit Cards

In terms of versatility, cash back is the most flexible credit card reward. Most cash back credit cards allow you to redeem your rewards as cash, a statement credit, or a transfer to your bank account.

Compare 2% Cash Back Credit Cards

Methodology

We selected the best 2% cash back credit cards for this list by weighing a few important factors: 

• Ease of use — How easy is it to use the rewards you earn? Can you redeem them in a variety of ways, or are there any hoops to jump through?
• Cash-back earning potential — Is the reward potential unlimited, or is there a cap to think about? Are there any extra ways to earn more cash back if you want to?
• Annual fee — Most cash back cards don’t have an annual fee, but if it does, is it worth it? 
• Reward flexibility — Can you redeem the cash back you earn in a variety of ways, such as statement credits or cash deposits? Is there an option to “power-up” your rewards if you want to? 

Here’s the full breakdown of how we rate credit cards at Insider.

2% Cash Back Credit Card FAQ

Best All-around 2% Cash Rewards Credit Card

Wells Fargo Active Cash Card

The Wells Fargo Active Cash® Card has no annual fee and earns a flat 2% cash rewards on purchases. It’s super easy to earn rewards and there are no bonus categories to remember. 

The card also comes with a $200 cash rewards bonus after spending $500 in purchases in the first three months from account opening, which is an excellent deal for a cash back card. Plus, there’s a 0% intro APR on purchases and qualifying balance transfers for 15 months from account opening (followed by a 19.99%, 24.99%, or 29.99% Variable APR). 

Benefits include cell phone protection, roadside dispatch, travel emergency assistance, and access to the Visa Signature Concierge, which can offer added value to a card that’s free to keep. 

Wells Fargo Active Cash Card Review

Best 2% Cash Back Card for Balance Transfers

Citi Double Cash Card

Long considered the best cash back credit card, the Citi® Double Cash Card still holds its own despite new offerings from other issuers. The rewards system is straightforward – you’ll earn 1 point per dollar as you spend, and 1 point per dollar when you pay your bill (worth a total of 2% cash back). 

It also comes with a generous 0% intro APR on balance transfers for 18 months (then a 18.99% – 28.99% Variable APR), which makes it one of the best balance transfer credit cards.

What makes the Citi® Double Cash Card so versatile is how it can connect to the rest of Citi’s robust ThankYou points program. You can use the Citi® Double Cash Card as a straightforward 2% cash back card, or you can pair it with other ThankYou points-earning cards, like the Citi Premier® Card to transfer your points to a Citi’s travel partners. That could increase the value of your points and unlock other rewards, such as award flights and hotel stays. 

Although the Citi® Double Cash Card has offered an intro bonus in the past, it currently doesn’t have a welcome offer.

Citi Double Cash Card Review 

Best Introductory Cash Back Rate

SoFi Credit Card

If you’re all-in on banking with SoFi (short for Social Finance), or willing to set up and use a SoFi account, the SoFi Credit Card can make a lot of sense – and provide some interesting rewards. 

For starters, the card offers a bonus of up to $300 for opening and funding a SoFi Checking and Savings account after getting approved for the SoFi Credit Card (amount varies based on the total amount of Qualifying Direct Deposits received within 30 days from first deposit, see terms). That could be a nice incentive to switch your direct deposits and see how you like banking with SoFi. 

The card also provides 3% cash back (earned as 3 points per dollar) on spending during the first 12 months of account opening. The points are capped at 36,000 rewards points, which are worth 1 cent each. That translates to a potential $360 in extra rewards on your spending. After the promotional offer expires, you’ll earn 2% cash back (2 points per dollar) on purchases. If you make the most of the promotions, you can earn up to $660 – a nice bonus for a card with no annual fee. 

SoFi Rewards points are worth 1 cent each when you redeem them to your SoFi Checking and Savings account, SoFi Active Invest account, SoFi Personal Loan, or SoFi Undergraduate Student Loans. The option to redeem to a SoFi Invest account is particularly interesting because your invested rewards can grow even more. 

This card is definitely designed to entice you to try other SoFi accounts. The checking account is free to open and keep, and from there you can transfer your earned cash rewards to other accounts, withdraw the funds, or spend them however you like. 

The SoFi Credit Card also comes with cell phone protection, World Elite MasterCard travel and shopping offers, and zero fraud liability.  

SoFi Credit Card Review

Best 2% Cash Back Credit Card for Investing Rewards

Fidelity Rewards Visa Signature Credit Card

The Fidelity® Rewards Visa Signature® Card earns a flat 2% cash back on purchases, making the simplicity hard to beat – especially if you’re already a Fidelity customer. 

Rewards are earned as points, and are worth 1 cent each when redeemed to an eligible Fidelity account, including the Fidelity Cash Management Account (Fidelity’s version of a checking account), brokerage, traditional or Roth IRA, HSA, and a few other account types. 

In that regard, you can easily redeem your rewards to a cash management account and pay bills, transfer the cash elsewhere, or withdraw funds from an ATM (with withdrawal fees reimbursed). 

Or, you can transfer your rewards to an investment account where they can potentially grow far beyond the 2% cash back rate. This possibility is what makes the Fidelity® Rewards Visa Signature® Card one of the best credit cards for investing rewards, because Fidelity has so many investment choices, including dozens of industry-leading low- or no-cost index funds where your money can grow without lots of extra fees.

This option is for those who prefer to self-manage their investments. If that’s you, or if you don’t mind opening a free cash management account to access your rewards, then the Fidelity® Rewards Visa Signature® Card is definitely worth considering for easy – and potentially profitable – rewards. 

Fidelity Rewards Visa Credit Card Review

Best 2% Cash Back Credit Card for Online Shopping

PayPal Cashback Mastercard

If you like shopping online, the PayPal Cashback Mastercard® offers 3% cash back when you check out via PayPal and apply your purchases to the card. On all other purchases, you’ll earn 2% cash back. 

You can redeem the rewards you earn to your PayPal balance or as a shopping credit toward an eligible PayPal purchase. If you choose the former option, you can then transfer your cash back to a connected checking account. 

Using the shopping credit is easy, too – PayPal is a checkout option at hundreds of popular merchants, both in-store and online. To apply for the card, you’ll need a PayPal account. 

Because PayPal is so widely accepted, you could easily earn 3% rewards for much of your online shopping, particularly if you often shop from places that accept checkout with PayPal. Plus, you’ll earn 2% cash back everywhere else. That’s an excellent return for a card with no annual fee. 

PayPal Cashback Mastercard Review

Best 2% Cash Back Card for TD Bank Customers

TD Double Up Credit Card

The TD Double Up℠ Visa Credit Card now offers 2% cash back on purchases as part of recent changes to TD Bank’s credit card lineup. Previously, you’d earn 1% cash back on purchases, and another 1% cash back when you redeemed into an eligible TD Bank deposit account for a total of 2% in cash back rewards. This new earning structure makes the card more appealing to a broader range of customers, since you don’t necessarily have to have a TD account to earn maximum cash back.

The card also offers $100 cash back as a statement credit after spending $1,000 within the first 90 days of account opening and a 0% intro APR on balance transfers for first 15 billing cycles (then a 19.74%, 24.74% or 29.74% variable APR). 

There’s no annual fee, and cardholders receive Visa benefits including cell phone protection, roadside dispatch, and identity theft protection. We’re including this one because TD Bank has a large footprint and an excellent variety of accounts, including investment, savings, and checking accounts. 

Best 2% Flat-rate Rewards for Small Business Owners

American Express Blue Business Cash Card

Small business owners can get in on the easy 2% cash back rewards, too. Our top pick ranks highly on our list of the best cash back business cards. The American Express Blue Business Cash™ Card earns 2% cash back on up to $50,000 in spending per calendar year (then 1%). 

There’s currently a welcome bonus of a $250 statement credit after you spend $3,000 in purchases on your card in your first 3 months. Cash back is received as Reward Dollars, which are statement credits that are automatically applied each month, so long as you make the minimum payment and keep your card open. 

If you make the most of the American Express Blue Business Cash™ Card’s 2% cash back tier, you’d spend $4,167 per month on purchases, and earn $1,000 cash back per calendar year. 

You’ll also get cell phone protection, purchase protection, extended warranty, and a 0% intro APR on purchases for 12 months from account opening, after which you’ll pay a 18.24% – 26.24% Variable APR. This card has a $0 annual fee, which makes these perks even more valuable. 

Amex Blue Business Cash Card Review

Best Versatile 2% Rewards Card for Small Business Owners Who Like to Travel 

Capital One Spark Miles for Business card

If you have a small business and like to travel, the Capital One Spark Miles for Business is worth a look, especially because it offers a one-time bonus of 50,000 miles once you spend $4,500 on purchases within the first 3 months from account opening, an up to $100 credit for Global Entry or TSA PreCheck every four years, and 2x unlimited rewards “miles” on every purchase. There’s also an annual fee of $95, waived the first year.

The 2x Capital One miles you earn can “erase” a travel purchase, such as a flight, hotel stay, or other travel-related charges, which makes it a 2% cash back card if you like to travel. You’ll also earn 5x miles on hotels and rental cars booked through the Capital One Travel Portal, worth 5% cash back. 

While not strictly a cash back card, we chose this one for the strong welcome offer worth at least $500 toward travel and useful travel perks. You’ll also have a year to assess whether you like the card’s value before an annual fee is due, and can easily recoup the cost with the $100 Global Entry travel credit if that’s useful to you. It might also be nice to have a dedicated card for your business purchases, to keep them separated from your other expenses. 

Capital One Spark Miles for Business Card Review

Other 2% Cash Back Credit Cards We Considered

There are lots of 2% cash back cards out there. Here are some others we considered, but didn’t make our list – and why: 

• Key Cashback® Credit Card
   — This card, like others on the list, earns a flat 2% cash back rewards on purchases, has an intro APR period, and doesn’t have an annual fee. But to earn the full 2% cash back rate, you need to have accounts with KeyBank and meet a minimum balance. The checking accounts aren’t very rewarding and the bank’s footprint is too limited to give this card a hearty recommendation. 
• Apple Card — While not strictly a 2% cash back card, the Apple Card does offer up to 3% cash back on purchases made using Apple Pay as a payment method, which matches the bonus rate on the PayPal Cashback Mastercard®. That said, Apple Pay is nowhere near PayPal’s wide acceptance rate, and the 1% cash back return on other purchases isn’t as good as the PayPal Cashback Mastercard®’s 2% rate, so we had to give this one a pass. 
• Alliant Cashback Visa® Signature Credit Card
  — You can earn a tantalizing flat 2.5% cash back rate on every purchase up to $10,000 per billing cycle (then 1.5%) with Alliant Cashback Visa® Signature Credit Card — and there’s no annual fee. That’s better than every other card on the list, so why isn’t it our top pick? Too many hoops. You need to join Alliant Credit Union, maintain an average daily balance of $1,000 or more, make one monthly deposit into your account, and opt-in to electronic statements to get the 2.5% tier. It’s worthwhile for those willing to do the work, but most will do better with another card choice. 
• Capital One Spark Cash Plus
  — There’s the potential to earn a $1,000 cash bonus with the Capital One Spark Cash Plus — $500 after spending $5,000 in the first 3 months, and $500 after spending $50,000 in the first 6 months of account opening. You’ll earn an unlimited 2% cash back on purchases (and 5% cash back on hotels and rental cars booked through Capital One Travel). However, the $150 annual fee and high spending threshold to earn the full bonus kept this card off the list. That said, it’s worth a look for small business owners already in the Capital One ecosystem or with other Capital One credit cards. 

How to Choose a 2% Cash Back Credit Card

2% cash back credit cards offer some of the simplest credit card rewards around, and they’re great for people who don’t want to deal with bonus categories, transferring points, or shuffling several cards to get the best return on spending. 

Here’s what to look for in a 2% cash back card: 

• Annual fee — Is there an annual fee? Most 2% cash back cards are free to keep and use, but there are a few that come with an annual fee. If so, consider the other benefits (if any) and how you’ll use them. And if there’s no annual fee, a 2% cash back card is great to hold long-term to help age your overall credit accounts, which could improve your credit score. You’ll also have a card for non-bonus spending if you’re someone who likes to maximize your return on expenses.
• Bonus categories — All of the 2% cash back cards here earn just that, at a minimum. There are a couple that have a bonus category or the option to pair with a “sister” card to punch up the overall value. If you think you might want to build your rewards ecosystem in the future, or you spend a lot in a particular bonus category, that could sway your decision. 
• Welcome offer — Typically, 2% cash back cards don’t come with a welcome bonus, or if they do, it isn’t as big as what you’ll find on premium credit cards with bigger annual fees. But every once in a while, there’s an offer that’s high enough to warrant a second look. If you find a great welcome bonus, it might be prudent to take advantage while you can. 

If you’re trying to put money back in your wallet, our top recommendations are to transfer your cash back to a bank account or use it to reduce the amount owed on your credit card statement. In a couple of instances, you can easily transfer your rewards to an investment account. If you’re interested in long-term investing, there’s a chance your rewards can benefit from compound interest over time, and it’s worth considering whether you want short-term rewards or if you’re in it for the long haul. 

No matter what you decide, earning rewards on your spending with a 2% cash back credit card is better than what you’ll get with a debit card, which is nothing. You’ll also have better consumer protections, more perks overall, and the opportunity to build a positive credit history, which can be extremely valuable when you start shopping for big-ticket items like houses, cars, and other financing. 

Is a 2% Cash Back Card Right for You?

Keep in mind that credit cards — whether they earn cash back, points, or miles — aren’t worth it if you’re paying interest or late fees. When you use a credit card, be sure to pay off your balance in full and on time each month and only ever spend what you can afford to pay back.

Many cash back cards have no annual fee, so you don’t have to pay for the privilege of earning rewards. You can literally earn rewards for free. 

If you’re new to rewards credit cards but don’t want to worry about learning about complicated loyalty programs or points values, a cash back card is probably the best pick for you. With a cash back cards, 2% back always equals 2 cents back per dollar you spend. Plus, you can redeem cash back to lower your monthly balance or transfer it to your bank account, along with other options that vary by card.

The best cash back credit card for you really depends on your everyday spending habits and whether a flat rate of cash back on all spending appeals to you, versus earning bonus cash back in certain categories, like groceries, restaurants, or gas. Flat-rate cash back cards are ideal for folks who prefer a simple earning structure and don’t want to juggle multiple bonus categories.

About 2% Cash Back Credit Cards

The best cash back card is different for everyone. To find the best one for you, you’ll want to look for a few things:

• How you redeem your cash back: Make sure you’re clear on what you’re earning. Is it statement credit? Cash? Can you only redeem into an account with the same financial institution? Do you have the option to book travel or buy merchandise? If so, are your points worth the same rate as redeeming for cash?
• The annual fee: An annual fee may be a dealbreaker for some. Are you willing to pay one? And will you get enough rewards and benefits to make it worth your while each year?
• Any extra benefits: For example, some cards may come with cell phone insurance, travel perks, extended warranties, and more. Benefits are only worthwhile if you’ll actually use them — will you? 

If you think you might carry a balance on your credit card, you’ll also want to factor in the card’s APR. We don’t suggest applying for a cash back credit card if you don’t plan to pay off the balance in full each month. For other categories of credit cards, like intro APR credit cards, the APR might become important if you end up carrying a balance after the intro period runs out.

Pros and Cons of 2% Cash Back Credit Cards

If you’re trying to decide whether to open a cash back credit card, whether as your first card or one of many, bear these pros and cons in mind:

Pros of 2% cash back credit cards:

• They seldom have annual fees
• There are few restrictions on how you can redeem your cash back rewards
• Using your cash back rewards to pay for flights and hotels can get you closer to airline and hotel status (using points won’t)

Cons of 2% cash back credit cards:

• They rarely offer big sign-up or welcome bonus offers
• You can’t get outsized value from cash back like you can with flexible points, airline miles, or hotel points
• Not all redemption options are a good value

Finally, make sure to actually redeem your cash back. It won’t do anything for you just sitting in your account, and though it might be gratifying to watch your cash back accumulate, it’s far more useful if you redeem it. Using your rewards to lower your card balance or depositing them into your checking account is like putting money straight back into your pocket.