A credit card with 2.5% cash back on every single purchase – not specific categories

[UncleB]

It's cool for a thread to 'wander' a bit but if we're going to shift the conversation any further to savings we really need to have that conversation over in 'Personal Finance'. 

It's fine to provide a link to a thread here if you would like, but we really need conversations on the 'Credit Card' board to remain credit card related. 

--UB

[Anonymous]

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@Anonymous wrote:

Thanks Dyna, without derailing this thread further (I already asked the question about what is the best bank to use for highest interest savings acount APY without chasing) in the "personal finance" section of this thread:

1. Is Ally a good bank

2. Do they have leading high interest savings APY's (doesnt have to be the highest/leader) but are they among the highest for a reasonable number of years (again, do not want to chase yearly incentives from bank to bank for banks who want to do a bait and switch).

You can answer in that other thread if you prefer. Thanks you everyone for your help so far.

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I don't know where the other thread is so I'll just briefly answer here.

1. In my opinion, absolutely. You have to be willing to deal with the fact that there are no brick-and-mortar buildings, but that's how they afford the rates that they offer.

2. One of the highest in the country, though not the absolute highest. My APR is currently 1.25% and it has risen a few times from the 1% that was available when I first opened my account with them back in April. I don't know about their past history but haven't heard of any previous bait-and-switch rates from them.

[happypill]

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@Anonymous wrote:

This conversation has gone a lot of places. Its hard to keep track. For someone who does not want to perpetually chase bonuses or have multiple cards for individual catagories, nor do they have $100,000, is 2.5% cash back on every single purchase the best rate?

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JCB Marukai is better if you spend more than ~$5k per year.  Geography and acceptance could be barriers.

[morgacj2004]

I am a perpetual chaser churner and yrs it is a hassle but we will always get better rates than the average Joe no matter how you try to maximize your spend. I get several thousand dollars in cash back every year not including mikes and or points on my travel cards. I put about 60-70k spend per year on my cards,

[Anonymous]

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@Anonymous wrote:

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If it's any consolation though, I agree that USAA has pretty garbage rates outside of the Limitless. All of my Limitless and Cashback rewards go into a savings account that I transfer to Ally for a significantly better interest rate. USAA isn't really a 'great' bank in any area, they simply do a lot of things for servicemembers and try to be a jack-of-all-trades.

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Disagree, highly. 

With a top of the notch app, instant pull transfers, same day ACH push to other banks, instant check clearing for large amounts, a 2.5% cash back credit card, a cash earning portal, a cash back checking account OR ATM rebates every month with interest earned, decent customer service, good insurance (plus profit sharing), and day before direct deposits, I think it's a great bank.

All doesn't have any of the above features except for ATM reimbursments and perhaps day before direct deposits. 

Let me know when Ally provides a 2.5% cash back card and I'll begin to consider them.

[Anonymous]

I agree with you mountain about USAA. I could add to your list about why USAA is wonderful and the things they do better then every single other big bank and auto insurance in the idustry. All the additional services they offer over the competition (many of them for free) and why they do things better and have the customer retention numbers to verify this. This is why I am going to keep USAA as my main bank, vehicle insurer and other things. This is why my non military friends are jealous that I have USAA and they can not.

It is a shame that most of the people in the country are not prior military so they  will not be able to use USAA. There is a reason why USAA is the industry standard and why others like Capital One, Bank of America, Allstate, Geico, JP Morgan Chase, HSBC, and many others look up to USAA. There is something to be said about having such a high customer satisfaction rate and such a high customer retention rate - 92%.

One of the things USAA can do better is the high interest savings rate. Right now, they are non competitive. To keep this thread about the best Credit card rate however, I am asking for alternative banks, not as my main bank (this will remain USAA), to park the most of my money that offers the highest high interest savings APY (and have for years) in this thread (Please offer your suggestions there - some have said Ally bank):

http://ficoforums.myfico.com/t5/Personal-Finance/Capital-One-360-Savings-Account-Annual-Percentage-Y...

So far it seems, as far as this thread is concered, for someone who does not want to perpetually chase yearly credit card bonuses (and then dump/cancel the card) or have multiple cards for individual catagories, nor do they have $100,000, the 2.5% USAA cash back on every single purchase is the best rate/card.

[simplynoir]

In your last paragraph you might as well add former or currently enlisted with family's children as a qualifier since most on here can't join USAA and that was before they seemingly pulled back who can get the card now (for good?) so it's not mentioned on here much because of its now rarity. I will say the total services they offer would make me consider banking exclusively with them so there is that.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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If it's any consolation though, I agree that USAA has pretty garbage rates outside of the Limitless. All of my Limitless and Cashback rewards go into a savings account that I transfer to Ally for a significantly better interest rate. USAA isn't really a 'great' bank in any area, they simply do a lot of things for servicemembers and try to be a jack-of-all-trades.

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Disagree, highly. 

With a top of the notch app, instant pull transfers, same day ACH push to other banks, instant check clearing for large amounts, a 2.5% cash back credit card, a cash earning portal, a cash back checking account OR ATM rebates every month with interest earned, decent customer service, good insurance (plus profit sharing), and day before direct deposits, I think it's a great bank.

All doesn't have any of the above features except for ATM reimbursments and perhaps day before direct deposits. 

Let me know when Ally provides a 2.5% cash back card and I'll begin to consider them.

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Well, Ally does offer a 2% cashback card and that's only a $5 difference per $1k spent. Some people would have you believe that that paltry difference means nothing, but that's your call. It's definitely less than 2.5%. 

Either way, I said it wasn't a great bank but never said it was the worst either. I haven't used Ally's app but they do have instant pull transfers, I never push ACH payments, I haven't used a check in two years, I get a significantly higher interest rate on my Ally checking than my USAA savings (let alone what my Ally savings gives me), ATM rebates are up to $10 a month for people that actually still use cash, and I've had great customer service with them so far. 

Before throwing the baby out with the water, pay attention to the fact that I have both as opposed to one or the other. If one were supremely better than the other then there wouldn't be a need for that, huh? I want my 2.5% card and that requires a DD, but all of my rates are better are located at the end of a quick transfer. USAA does some things good, there's no doubt about that. 

And, just like noted above, only one of these banks are available to everyone. I don't care whether you consider them or not, but not even trying to think rationally about this doesn't help you fiscally in any way. 

[Anonymous]

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@Anonymous wrote:

I agree with you mountain about USAA. I could add to your list about why USAA is wonderful and the things they do better then every single other big bank and auto insurance in the idustry. All the additional services they offer over the competition (many of them for free) and why they do things better and have the customer retention numbers to verify this. This is why I am going to keep USAA as my main bank, vehicle insurer and other things. This is why my non military friends are jealous that I have USAA and they can not.

It is a shame that most of the people in the country are not prior military so they  will not be able to use USAA. There is a reason why ....

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I think one reason why they can provide great services is because they don't have a provide services to the masses. Currently Navy FCU is my bank with DD, but I wouldn't complain at all if it were switched to USAA tomorrow. 

I think people who have the USAA Limitless (such as myself) are very lucky. Even Alliant can't compete with what the Limitless offers, and banks like Citi are simply too cheap and greedy to have offered such a product. 

[Anonymous]

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@Anonymous wrote:

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Well, Ally does offer a 2% cashback card and that's only a $5 difference per $1k spent. Some people would have you believe that that paltry difference means nothing, but that's your call. It's definitely less than 2.5%. 

Either way, I said it wasn't a great bank but never said it was the worst either. I haven't used Ally's app but they do have instant pull transfers, I never push ACH payments, I haven't used a check in two years, I get a significantly higher interest rate on my Ally checking than my USAA savings (let alone what my Ally savings gives me), ATM rebates are up to $10 a month for people that actually still use cash, and I've had great customer service with them so far. 

Before throwing the baby out with the water, pay attention to the fact that I have both as opposed to one or the other. If one were supremely better than the other then there wouldn't be a need for that, huh? I want my 2.5% card and that requires a DD, but all of my rates are better are located at the end of a quick transfer. USAA does some things good, there's no doubt about that. 

And, just like noted above, only one of these banks are available to everyone. I don't care whether you consider them or not, but not even trying to think rationally about this doesn't help you fiscally in any way. 

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Ally has a 2% cash back category on gas stations and grocery stores, and 1% on everything else. Ally's cards stink, especially compared to the Limitless. Savings rates are so miniscule that I don't even use a savings account... I put it in the stock market where I can make $20+ a week on $1,500. Combining the 2.5% back Limitless with the 5% groceries/military base purchases card is way, way better than anything Ally gives you,.