I get excited at the prospect of higher returns for using credit cards on things we would normally do anyways. I particularly like Discover Card’s rotating categories each quarter that give 5% cashback bonus instead of the typical 1%. With some smart spending, our family can really maximize the returns on each dollar spent.

During April-June 2012, I recently signed up to get 5% cashback on restaurants and movies for using my Discover More card. That offer is going to be great for us as we have multiple trips planned that will maximize our returns.

Then this week, Discover Card added a new 5% category for only the month of May 2012. Earn 5% cashback bonus on grocery purchases for the entire month of May. For our family, we easily spend $300 per month on groceries, resulting in an easy $15 rebate in cashback.

Do not forget one needs to enroll in each of the 5% cashback categories.

Why would Discover card add a category to the quarterly cashback program? A quick look at the Chase Freedom® Visa shows they are running 5% cashback on Groceries and Movies during April – June 2012. Therefore, Discover Card is trying to take a piece of the pie from their competition by adding Groceries to their 5% cashback bonus list. It is smart, and I wonder if Chase will throw in restaurants somewhere during this quarter to do the same thing in reverse.

What will you do with your extra Discover Card cashback bonus?

Save Money, Travel More!

4/16/12- Removed Chase Freedom link.