Thanks to our Federal Reserve, the average savings account yields a measly 1% annually. For example, if you have $5,000 in your savings account, it will yield you $50 after 12 months (on which you will need to pay taxes!). Chances are high that your bank provides far less than 1% return in your savings account. However, you can do 10 times better than that by being smart about how you spend your money and without having to pay any taxes on the cash back your earn!
Everybody uses credit cards for their daily needs. Assuming you spend $5,000 annually on items such as groceries, restaurants, and buying things on Amazon, etc. Normally you would spend this amount of money using a credit card that may not give you any cash back or at best gives you 1% to 2% cash back. If you have good or excellent credit (i.e. credit score of 640 or higher) then you may be missing out on earning much higher amounts of cash back. What if you had a card that earns you up to 10% cashback? The table below illustrates the amount of cash you can earn by using superior credit cards:
|Amount||Return/Cash Back||Cash Earned||Relative Return|
|Typical Savings Account||$5,000||1%||$50||1X|
|Cash Back Credit Card Spend||$5,000||10%*||$500||10X|
|*Discover it Cash Back card offers 5% cashback on rotating categories and Discover doubles the rewards earned at the end of 12th billing cycle.|
Our research team has compared hundreds of credit cards and found some cards where you can get up to 10% cashback on your purchases. That is 10X more then what you would typically get in your savings account. Check out these amazing offers:
|Discover it® Cashback MatchTM
10% Cash Back Bonus
This card has No Annual Fee. It comes with 0% Intro APR on Purchases and Balance Transfers for 12 months!
|Blue Cash Preferred® Card from American Express
10% Cash Back on Amazon.com purchases
Everyday Cash Back: Earn 10% cash back on purchases at Amazon.com in the first 6 months, up to $200. 6% at U.S. supermarkets on up to $6,000 per year in purchases (then 1%); 3% at U.S. gas stations; 1% other purchases. Terms and limitations apply. American Express is a LendingTree advertiser.
This card has $95 annual fee. It comes with 0% Intro APR on Purchases and Balance Transfers for 12 months! Then regular APR of 13.49%-23.49% variable.