2% cash rewards card with welcome bonus
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New Wells Fargo Active TreasurySM Menu, a 2% unlimited cash rewards card with no annual fee, is certainly one of the most popular options among flat rate cash rewards cards on the market.
Unlike other 2% cash back cards like CitiÂ® Double Cash Card (you earn 1% when you buy and 1% when you pay) and the PayPal Cashback MastercardÂ®, the Active Cash card comes with a welcome bonus of $ 200 if you spend $ 1,000 within three months of opening the card.
While travel credit cards give you the chance to get perks like hotel credits or free flights, refund cards are great because of their simplicity. You don’t need to understand the redemption values ââfor points or miles, and many cash back cards come with no annual fee. Flat rate cash back cards require little effort because no matter what you buy, you will get a fixed percentage of your money.
When Select analyzed the numbers and analyzed over 200 credit cards, we found that consumers can earn substantial rewards with the Active payment card over a period of five years. (See our methodology for more information on how we choose the best cards.)
Below, we break down the rewards, benefits, and fees associated with the Active payment card to help you decide if this is the right card for you.
2% unlimited cash rewards on purchases
$ 200 cash rewards bonus after spending $ 1000 on purchases in the first 3 months of account opening
0% APR on qualifying purchases and balance transfers during the first 15 months from account opening
14.99% to 24.99% variable on purchases and balance transfers
Balance transfer fees
3% launch fee ($ 5 minimum) for 120 days from account opening, then up to 5% ($ 5 minimum)
Foreign transaction fees
the Active payment card has a simple rewards program: Cardholders earn 2% cash rewards on all qualifying purchases and there is no bonus category to follow. Before subscribing to this card, you must take your consumption habits into account. Are your expenses spread over several categories or are they concentrated in certain areas such as catering or travel? If you don’t tend to spend more in one category over another, the Wells Fargo Active Cash Card might be a good choice for your wallet.
You can pair the Active payment card with a 5% discount card like the Chase Freedom Flexâ or Discover itÂ® Cash Back. To get the most out of the cards, you can use the Freedom Flex or Discover card whenever you can take advantage of the 5% cash back categories and use the Active Cash card for all other purchases.
For the Active Cash card, your cash rewards can be redeemed as statement credit, through a Wells Fargo ATM using a Debit card or Wells Fargo ATM, as direct deposit to a savings account or Wells Fargo check or in the form of a paper check.
Select calculated how many cash rewards the average American can earn in a year using their Wells Fargo Active Cash card. We worked with the geolocation firm Esri, which provided us with a sample annual expenditure budget of $ 22,126.
The budget includes six main categories: groceries ($ 5,174), gasoline ($ 2,218), restaurants ($ 3,675), travel ($ 2,244), utilities ($ 4,862) and general purchases ($ 3,953) .
Here’s a breakdown of the approximate amount of cash rewards you can earn in each category, each year (dollar amount is rounded):
- Races: $ 104
- Gas: $ 44
- Dining out: $ 74
- Trip: $ 45
- Utilities: $ 97
- General purchases: $ 79
- Total: $ 443
We found that in the first year of card membership, the Active Cash card brought in around $ 643 in cash rewards, including the $ 200 welcome bonus. Over a five-year period, cardholders could earn $ 2,415. Cardholders could earn more or less cash back based on their annual spending habits.
This Active payment card is best for cardholders who want a flat rate cash rewards program and aren’t looking for a lot of extra perks for their credit card. The card offers minimal benefits. Here is the breakdown:
Cell Phone Protection
the Active payment card provides cardholders with cell phone protection if you use the card to pay your cell phone bill. If your phone is damaged or stolen, Wells Fargo will reimburse your cell phone replacement or repair up to $ 600 (with a $ 25 deductible). (If your phone is lost, your phone is not covered by this protection plan.)
Active Cash cardholders will have access to Visa Signature Concierge, a free 24/7 personal assistance service that provides information and referrals on travel, dining, entertainment and personal services. Cardholders also have access to the Visa Signature Luxury Hotel Collection. When cardholders book through the collection, you get perks like food and drink credit and a daily continental breakfast.
The Active Cash card has no annual fee and has an introductory period of 15 months at 0% APR on new purchases and qualifying balance transfers (then, a variable APR of 14.99% at 19, 99% or 24.99%), which makes it a good option for cardholders looking to do a balance transfer.
Balance transfers must be made within 120 days of account opening to qualify for the introductory APR rate. There is a balance transfer fee of $ 5 or 3%, whichever is greater. After 120 days, the balance transfer fee is 5% or a minimum of $ 5.
The Active Cash card charges an overseas transaction fee of 3% when you use the card overseas. You may want to consider the Chase Sapphire PreferredÂ® or the American ExpressÂ® Gold if you have plans overseas, as neither card charges overseas transaction fees.
If you’re looking for a card that doesn’t take a lot of effort and gives you 2% cash rewards on all your purchases, look no further than the Active payment card. With no annual fee, a low spending requirement to earn the $ 200 cash reward (spend $ 1,000 within three months) and unlimited 2% cash rewards on purchases, the Active Cash card is a great choice for people who want cash back but don’t. want to change their spending habits each quarter to maximize their rewards in rotating spending categories.
To determine which credit cards offer the best value for money, Select analyzed 234 of the most popular credit cards available in the United States. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fees, and overseas transaction fees, as well as factors such as the credit required. and customer feedback when available. We also took into account the additional benefits, the application process and the ease with which the consumer can redeem points.
CNBC Select has partnered with location intelligence firm Esri. The company’s data development team has provided the most recent and comprehensive data on consumer spending based on the 2019 Bureau of Labor Statistics Consumer Spending Surveys. You can learn more about their methodology here.
Esri’s data team created a sample annual budget of roughly $ 22,126 in retail spending. The budget includes six main categories: groceries ($ 5,174), gasoline ($ 2,218), restaurants ($ 3,675), travel ($ 2,244), utilities ($ 4,862) and general purchases ($ 3,953) . General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, as well as other vehicle expenses.
Select used this budget to estimate how much the average consumer would save over one year, two years and five years, assuming they would try to maximize their rewards potential by earning all the welcome bonuses offered and using the card for all. applicable purchases. All total reward estimates are net of annual fees.
While the five-year estimates we’ve included are derived from a budget similar to the average American’s spending, you can earn higher or lower returns depending on your buying habits.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.