NEW YORK—Credit unions offer some of the best cash-back credit cards, according to a study from Magnify Money.
Noting that the flat-rate cash back market has historically been dominated by Capital One, and now Citibank, Nick Clements, MagnifyMoney co-founder, advised that consumers can do very well by choosing cards that give money back based on spend categories, like gas and airfare.
“The results are surprising,” said Clements, following a Magnify Money study of 2,000 credit cards across all major spend categories. “There are many credit unions and smaller banks you wouldn't normally consider when looking for the best cash-back deal. Here are some of the best cards in the most popular categories,” said Clements in a report in Daily Finance.
Clements said that if cardholders buy a lot of plane tickets, they should consider Pentagon FCU’s PenFed Premium Travel Rewards credit card that delivers 4.25% cash back.
For gas, Fort Knox Credit Union Platinum Visa leads the way with 5% unlimited cash back.
Buying groceries? Clements recommends the PenFed Platinum Rewards credit card that returns 2.25% unlimited cash back on grocery spend.
Big banks win when it comes to dining—Chase’s AARP Visa offers 3% unlimited cash back on restaurants.
“Although these are the most popular categories, you can find ways to earn extra cash back in many other categories, including book stores, car rentals, furniture, gyms, hotels and more,” added Clements.