Want to optimize your cash-back rewards? Look no further than this credit card

18.08.2023 - 07:08 / thepointsguy.com

In the world of cash-back credit cards, there are two main types: those with fixed earning rates and those with variable ones. While some prefer the simplicity of a card with a flat rate on every purchase, it often isn't as lucrative.

And did you know that some variable-rate cards even allow you, the customer, to select the specific types of purchases where you can earn more cash back?

That's what makes the recently refreshed TD Cash Credit Card so appealing.

You can earn up to 3% back on purchases in a category of your choosing, as well as 2% back on a second category and 1% back on all other purchases. You can also enjoy a one-time, cash-back bonus with an easy-to-hit spending threshold as well as a variety of other perks — all for no annual fee (terms apply).

Here's why you should consider adding the TD Cash Credit Card to your wallet today.

The TD Cash Credit Card currently offers new cardholders $150 cash back when you spend $500 within the first 90 days of account opening. In addition, you'll also earn 5% cash back on gas purchases for the first six months (or up to $6,000 in spending).

You can redeem the $150 cash back to your bank account, provided you meet the eligibility requirements, to cover any upcoming expenses — including travel purchases. And for commuters or anyone taking a road trip this year or planning ahead for a driving tour of fall foliage, earning 5% back on gas is a terrific rate of return. If you max out the full $6,000 in spending, that's $300 in rewards (terms apply).

But the most appealing aspect of the card is likely the return on other spending.

Many popular, variable-rate credit cards have specific categories that offer bonuses. In some cases, these are fixed across the year, while in other instances, they change quarterly. However, they're typically picked by the issuer.

The TD Cash Credit Card is notably different.

The card offers a 3-2-1 earning scheme, with 3% cash back in one category, 2% cash back in a second category and 1% cash back everywhere else. Rewards are unlimited in each category and never expire.

But the best part? You get to pick the 3% and 2% categories — and you can change this quarterly (terms apply).

Here are the categories you can select:

By giving you the option to modify your categories, you can make the most of changing spending habits during the year — since your spending likely varies from quarter to quarter.

Here's how this earning structure allows you to maximize your spending.

For starters, you wouldn't want to select gas as one of your bonus categories for your first six months as a cardmember — since you're already earning 5% cash back on these purchases. So that leaves dining, entertainment, grocery and travel.

Many Americans are on the