What These Two Cards Offer
Two widely used cash back cards are the Chase Freedom Unlimited and the Capital One SavorOne. Both return a percentage of what you spend as cash back, but they work differently and suit different spending patterns. The Chase card gives a flat rate on all purchases plus bonus categories that rotate quarterly. The Capital One card gives a flat rate on all purchases with no rotating categories, but adds extra cash back on dining and entertainment.
Neither card charges an annual fee, which means you can hold one without paying to use it. Both deposit cash back into your account as a statement credit or direct deposit, depending on the card issuer's rules. The main trade-off is simplicity versus earning potential: one card is easier to track, the other pays more if you spend heavily in certain categories.
Key Takeaways
- Chase Freedom Unlimited returns 1.5% cash back on all purchases, plus 5% on rotating categories that change each quarter, requiring you to set up them to earn the higher rate.
- Capital One SavorOne returns 3% cash back on dining and entertainment, 1% on everything else, with no categories to track or set up.
- Both cards have no annual fee and no foreign transaction fees, making them usable for everyday spending and travel.
- Cash back from either card appears as a statement credit or can be deposited directly to your bank account, depending on the issuer's process.
- Your actual cash back rate depends on your spending mix — the Chase card pays more if you spend heavily in rotating categories, while the Capital One card pays more if you dine out frequently.
Chase Freedom Unlimited: Flat Rate Plus Rotating Bonuses
The Chase Freedom Unlimited returns 1.5% cash back on every purchase you make with the card. On top of that, it offers 5% cash back on rotating categories that change every three months. Past categories have included groceries, gas stations, restaurants, and streaming services. The catch is that you must set up each quarter's category through the Chase website or mobile app to earn the 5% rate — if you do not set up, you earn only 1.5% on those purchases.
This card works best if you spend a lot in the rotating categories and remember to set up them each quarter. If you forget to set up or do not spend much in those categories, you are earning 1.5% on everything, which is still solid but not the card's full potential. Chase caps the 5% cash back at $25 per quarter (meaning $1,500 in may be able to access purchases), so the bonus is useful but not unlimited.
The card has no annual fee and no foreign transaction fees, so you can use it abroad without extra charges. Cash back can be redeemed as a statement credit, transferred to a Chase checking or savings account, or moved to other Chase rewards programs if you have them.
Capital One SavorOne: Flat Rate on Dining and Entertainment
The Capital One SavorOne returns 3% cash back on dining and entertainment purchases, and 1% cash back on everything else. Unlike the Chase card, there are no rotating categories and nothing to set up each quarter — the rates stay the same year-round. This makes the card simpler to track: you know exactly what you earn on every purchase without checking for quarterly updates.
The 3% rate applies to restaurants, bars, movie theaters, concerts, and streaming services. The 1% rate covers groceries, gas, utilities, and all other spending. If you eat out frequently or subscribe to multiple streaming services, this card's structure rewards that spending pattern directly. If you rarely dine out, you are earning 1% on most purchases, which is lower than the Chase card's base rate.
This card also has no annual fee and no foreign transaction fees. Cash back is redeemed as a statement credit or deposited to a linked bank account. Capital One typically processes redemptions within one to two business days.
Comparing Earnings Across Different Spending Patterns
The card that earns you more cash back depends on where you spend your money. If you spend $3,000 per month ($36,000 per year), here is how the two cards compare under different scenarios:
| Spending Pattern | Chase Freedom Unlimited | Capital One SavorOne |
|---|---|---|
| $1,500 in rotating categories, $1,500 other | $45 (5% on $1,500) + $22.50 (1.5% on $1,500) = $67.50 | $15 (1% on $1,500) + $15 (1% on $1,500) = $30 |
| $500 dining, $2,500 other | $37.50 (1.5% on $3,000) | $15 (3% on $500) + $25 (1% on $2,500) = $40 |
| $1,500 dining, $1,500 other | $37.50 (1.5% on $3,000) | $45 (3% on $1,500) + $15 (1% on $1,500) = $60 |
The Chase card wins if you spend heavily in rotating categories and remember to set up them. The Capital One card wins if you spend heavily on dining and entertainment. If your spending is spread evenly across categories with little dining, both cards earn roughly the same amount.
How to Redeem Cash Back From Either Card
Cash back from the Chase Freedom Unlimited can be redeemed in several ways. You can explore it as a statement credit to pay down your balance, transfer it to a linked Chase bank account, or move it to other Chase rewards programs like the Ultimate Rewards portal if you have a premium Chase card. Redemptions typically process within one to two business days. There is no minimum cash back amount to redeem, so you can cash out even small balances.
Capital One SavorOne cash back is redeemed through your Capital One online account or mobile app. You can explore it as a statement credit or request a direct deposit to your bank account. Capital One processes most redemptions within one to two business days. Like Chase, there is no minimum redemption amount.
Both cards let you set up automatic redemptions, meaning your cash back can be deposited to your bank account on a schedule you choose — monthly, quarterly, or annually. This removes the need to remember to redeem manually.
Annual Fees, Interest Rates, and Other Costs
Neither the Chase Freedom Unlimited nor the Capital One SavorOne charges an annual fee. This means you can keep the card open indefinitely without paying to hold it, even if you do not use it regularly. Both cards also waive foreign transaction fees, so you can use them internationally without extra charges on top of the purchase price.
Both cards charge interest on unpaid balances, just like any credit card. The interest rate (called the APR, or annual percentage rate) varies based on your credit history and current market rates. Neither card offers a 0% introductory APR period, so interest starts accruing when ready on any balance you do not pay in full by the due date. To avoid interest charges, pay your full statement balance each month.
If you carry a balance, the cash back you earn will be less valuable than the interest you pay. For example, earning 1.5% cash back while paying 18% APR on a $5,000 balance means you are losing money overall. Both cards are designed for people who pay their balance in full each month.
Which Card Might Work Better for Your Situation
Choose the Chase Freedom Unlimited if you spend across many categories and are willing to set up rotating bonuses each quarter. This card rewards variety and higher spending in bonus categories. It also works well if you want to combine cash back with other Chase rewards programs later.
Choose the Capital One SavorOne if you eat out or stream entertainment regularly and want a card with no quarterly set up required. This card is simpler to manage and rewards a specific spending pattern without extra steps. It also works well if you prefer a straightforward, unchanging rewards structure.
You can also hold both cards if your spending supports it. Use the Chase card for rotating categories and the Capital One card for dining and entertainment, then pay both in full each month. This approach maximizes cash back across your entire spending, though it requires managing two accounts.
Frequently Asked Questions
Do I have to set up the Chase Freedom Unlimited's rotating categories?
Yes. You earn only 1.5% cash back on rotating categories unless you set up them through the Chase website or app. set up is free and takes less than a minute. Chase sends reminders when new categories begin each quarter, but you can also check the app anytime to see what the current categories are and set up them.
What counts as dining and entertainment on the Capital One SavorOne?
Dining includes restaurants, bars, and food delivery services. Entertainment includes movie theaters, concert venues, streaming services, and similar merchants. If you are unsure whether a specific merchant qualifies, Capital One's website lists the merchant category codes that earn 3% cash back. You can also contact Capital One customer service to ask about a specific purchase.
Can I transfer cash back between these two cards?
No. Cash back earned on the Chase card stays in your Chase account, and cash back earned on the Capital One card stays in your Capital One account. You can redeem each card's cash back separately to your bank account, but you cannot combine them into a single pool.
What happens to my cash back if I close the card?
Any cash back you have already earned remains in your account and can be redeemed. You do not lose it by closing the card. However, you cannot earn new cash back once the card is closed. If you have unredeemed cash back, redeem it before closing the account to make sure you receive it.
Do these cards report to credit bureaus?
Yes. Both the Chase Freedom Unlimited and Capital One SavorOne report your payment history and credit usage to the three major credit bureaus (Equifax, Experian, and TransUnion). This means your activity on these cards affects your credit score. Paying on time and keeping your balance low relative to your credit limit helps your score; missing payments or carrying high balances hurts it.