The cash back rewards credit card scene has been competitive as of late, with credit card companies and banks fighting to outdo each other with rewards schemes. Now Capital One adds another cash back rewards card to its arsenal, and this time it's geared towards foodies, with bonus cash back for dining out and buying groceries.
Called Savor, this new no-annual-fee Mastercard has a tiered cash back system. Cardholders earn three percent back on dining purchases, two percent on groceries and one percent on all other purchases.
"When we asked people to share what matters most to them, we heard repeatedly that food and dining are an important part of their lives. We created the Savor card to give customers a simple way to earn more when they are doing what we know they love. Whether it's cooking a meal with family, enjoying coffee with friends, or celebrating a special occasion at a favorite restaurant, the Savor card helps make life's moments more rewarding," said Emilia Lopez, managing vice president of US Card at Capital One, in a statement.
One of the more noticeable differences in the cashback benefits on this card compared to many others that have tiered plans is that there are no limits to the amount of cash back a cardholder can earn in a year. For example, American Express' Blue Cash Everyday card offers three percent back on groceries, which is more than Savor, but that's capped at $6,000 in purchases per year--or $115 per week. After that the cashback rate is one percent. If you spend a lot on groceries, Savor could be a better option.
Other cards, like Discover, can offer five percent back on these categories, but the fiver percent is part of a special program where cardholders must register each quarter to get the benefits. Additionally, Discover's program rotates categories quarterly and has a maximum of $1,500 in spending per quarter for the special rate.
Savor's rewards do not expire, and there are no minimums for cash back rewards redemption. Cardholders can redeem rewards as a check, statement credit, credits for previous purchases, gift cards and more. Capital One also has the option for an automatic redemption, either on a set day of the year or when you reach a specific dollar amount in rewards.
Savor comes with a few introductory offers. The first is zero percent APR for the first nine months the account is open. After that, the APR will be variable with the market, but will be at least 15.49 percent, 20.49 percent or 24.49 percent based on the cardholder's creditworthiness. Balance transfers will also have zero percent APR for the first nine months, with a three percent fee per transfer. After the introductory period, the APR will match that of purchases, and the fee will be $10 or three percent of the amount being transferred, whichever is greater.
The other offer is a spending bonus for using the card during the first three months the account is open. Spend at least $500, and you'll get a $150 bonus. This amount gets applied to one's rewards balance. Unfortunately, existing or previous Capital One accountholders may not be eligible for this bonus.
The card does not have any foreign transaction fees, but it does have a late payment fee of up to $35. Savor also comes with World Elite Mastercard benefits, which include identity theft resolution services, concierge services, trip cancellation/interruption insurance, price protection, extended warranty, and travel benefits like travel assistance, travel accident insurance, baggage delay insurance, rental vehicle insurance, a private jet program and more.
