I’ve already outlined how you can get 10% cash back at Starbucks through June 2018 and I have also already shown how I get an effective 19.1% cash back on all my Starbucks spend year round without any special promotions. But, now I have realized I am doing even better with a guaranteed 19.6% back for every dollar spent at Starbucks until July 2018!
Thanks to Discover Card and its cash back match whereby at the end of the first year of card membership Discover will double all the cash back earned on that card during the first year. This double cash back definitely applies to the rotating quarterly 5% bonus categories, which include Target in 2017 Q4, Gas Stations in 2018 Q1, and grocery stores in 2018 Q2. The key thing here is that all of those places sell Starbucks gift cards so by purchasing Starbucks gift cards with my first-year Discover card at one of the bonus category merchants for that quarter, loading it onto my Starbucks rewards account, and getting Starbucks rewards stars for my purchase I effectively get 10% cash back from Discover for purchasing the gift cards (5% now and 5% later) then another 9.6% in value back from the stars, which gives me 19.6 cents back for every dollar spent on Starbucks from now until the end of July. #Winning
Of course this isn’t even accounting for any rewards earned from gas station rewards programs (i.e. Plenti points for purchases at Exxon-Mobil) or from grocery store fuel credits. Once factoring the bonuses earned via those programs for purchasing the Starbucks gift cards the effective rate of return could get even more supercharged! My quick back of the napkin calculations indicate that I would probably get another 1 cent per dollar in value so that could up this whole thing to 20.6% back. Not too shabby for such minimal work of buying a gift card while at the gas station or grocery store anyways and loading it onto my Starbucks phone app.
If you don’t yet have a Discover card or have only one and haven’t gotten one in over a year then go ahead and apply for a new Discover card now so that you can grab 10% cash back at Amazon & Target and even Starbucks before the year is over and be prepared for next year’s great line-up of 5% categories (doubled to an effective rate of 10% via the end of first year cash back match).
It’s a no annual fee card and Discover has the best customer service of any of my many credit cards. Best of all, I’ll get about $1,000 of benefit from the sign-up bonus doubling all cash back earned in the first year of card membership. That’s simply unbeatable for a no annual fee card!
Of course, if you have fewer than 5 new card approvals in the past 24 months you probably want to read through my post on The First Cards to Get before jumping on this great Discover opportunity.
If you choose to apply for this card then I’d be super appreciative if you used my direct link to the offer where you’ll get a $50 sign-up bonus and all cash back from the first year doubled after your first card anniversary. In the interest of full disclosure, like all current cardholders, I’m eligible to earn $50 for each (up to 10) of my referrals that get approved after using my link. We’d both get a $50 bonus! Like I said, I’d certainly be appreciative if you click through using my link for the Discover Card that’ll get you a $50 bonus and a year of cash back doubled.