Discover cash back calendar 2021: Earn cash back in rotating bonus categories like Amazon, dining, and Walmart.com

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• Some Discover credit cards offer cash back bonus categories that change every three months.
• These include the Discover it® Cash Back and Discover it® Student Cash Back.
• You can earn 5% back on up to $1,500 in combined spending in these categories each quarter (then 1%) after you activate Discover It Cashback rotation.
• Read Insider's guide to the best rewards credit cards.

If you want to make the most of cash-back credit cards, there are different earning structures to be aware of. Some cards offer a flat cash-back rate for all purchases, others include extra rewards in specific categories, and a few offer increased earnings in bonus categories that rotate every quarter.

The Discover it® Cash Back and Discover it® Student Cash Back fall into the last category. Both earn 5% cash back on up to $1,500 spent in combined bonus categories (then 1%) that change every three months, and 1% back on all other purchases. To earn 5% cash back, you'll first need to activate the bonus through your Discover online account, and if you enroll after the start of the quarter, the bonus will be in effect from the day you activate Discover It Cashback rotation.

Read more: Discover it Cash Back credit card review

New cardholders will also have all of their rewards matched after their first 12 months through the Discover cash back match program, which can add up quickly if you spend a lot on your card throughout the year.

Discover it cash back calendar for 2021

Discover's bonus categories for the entire year are released well in advance, so you can plan your credit card strategy and maximize rewards each quarter. Right now you can activate the bonus for the remainder of Q3 (July to September) and for Q4 (October to December).

Q1: January - March

• Grocery stores, Walgreens, and CVS

Q2: April - June

• Gas stations, wholesale clubs, and select streaming services

Q3: July - September

• Restaurants and PayPal

Q4: October - December

• Amazon.com, Walmart.com, and Target.com

We've seen most of these Discover cash-back categories before, but there is one entirely new option for 2021. From April to June 2021, cardholders can earn 5% back on select streaming services Discover It Cashback rotation. The list of eligible merchants is quite broad, especially compared to some cards which only include a handful of popular services.

Read more: Discover it Student Cash Back credit card review

How to redeem Discover cashback rewards

Discover offers more redemption options than many people realize. If you have any of its cash-back credit cards, you can apply rewards to your bill as a statement credit or request a direct deposit to your bank account, redeem them toward Amazon and PayPal purchases, or cash them in for gift cards from select retailers.

Read more: The best Discover credit cards of 2021

You can also donate your rewards to select charities, and Discover will contribute an extra $25,000 to the organization that receives the most donations from cardholders each year. Discover's charity partners include:

• American Cancer Society
• ASPCA
• American Red Cross
• Carbonfund.org
• Children's Miracle Network
• Junior Achievement
• Juvenile Diabetes Research Foundation
• Make-A-Wish
• Operation Homefront
• World Wildlife Fund

Other cards with rotating categories to consider

If you like the idea of earning a bonus in categories that rotate each quarter, you should consider the Chase Freedom Flex card. Like its predecessor, the Chase Freedom® (no longer open to applicants), the no-annual-fee Chase Freedom Flex℠ offers 5% cash back in rotating categories after activation that are often different from Discover's in the same quarter.

Read more: Chase Freedom Flex review

With the Chase Freedom Flex, you'll earn 5% back (5x Chase Ultimate Rewards points) on up to $1,500 spent in combined quarterly bonus categories after activation (then 1%), 5% back on travel purchases made through Chase Ultimate Rewards, 3% back on drugstore and dining purchases, and 1% back on everything else. Similar to Discover, you can redeem rewards from the Chase Freedom Flex for statement credits, cash back, gift cards, merchandise, and more.

If you also have a Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, or Ink Business Preferred® Credit Card, you can turn your cash back into Chase Ultimate Rewards points and unlock more redemption options, including transferring points to Chase's airline and hotel partners, like United Airlines and Hyatt.