Discover 5% Bonus Categories for Q1
Discover has revealed the 5% Cashback Bonus categories for the first quarter of 2025. Beginning January 1st, Discover it and Discover More (no longer available) cardmembers can earn 5% Cashback Bonus at Restaurants, Home Improvement Stores, and Select Streaming Services. The offer runs from January 1 through March 31, 2025, for up to $1,500 in purchases. That’s up to $75 cash back for the quarter.
In addition to 5% Cashback Bonus on these categories, Discover it and Discover More cardmembers will earn 1% cash back on all other purchases as well. And first year cardmembers get an unlimited dollar-for-dollar match of all the cash back they earn at the end of their first year, automatically. All with no annual fee. Check out more details below.
1st Quarter of 2025: 5% Categories
Earn 5% Cashback Bonus at Amazon.com and Target from 1/1/25 (or the date on which you activate 5%, whichever is later) through 3/31/25, on up to $1,500 in purchases.
- Restaurant purchases include those made at merchants classified as full-service restaurants, cafes, cafeterias, fast-food locations, caterers, and restaurant delivery services. Restaurants located inside of or affiliated with another business, such as hotels or retail stores and establishments classified as a bakery, may not qualify.
- Home Improvement Store purchases include online and in store purchases at home improvement retail stores, building supply stores (e.g. lumber, paint, and hardware stores), as well as lawn, nursery, and garden supply stores. Purchases made through third parties, such as contractors, may not qualify. Purchases from home furnishings, home appliance, and floor covering stores are not included.
- Select Streaming Service purchases include Amazon Music, Amazon Prime Video, AMC+, Apple Music, Apple TV, Audible, DirecTV Stream, FUBO, Google Play Music and Video, Max, iHeartRadio, MLB.TV, Netflix, Pandora, Paramount Plus, Peacock, Showtime, SiriusXM, Sling TV, Spotify, Starz, Vudu, YouTube Music, YouTube Premium, and YouTube TV. Other popular streaming services may be included. If your subscription is bundled with another product or service or billed by a third party (such as a digital platform, a cable or satellite provider, telecommunications, internet provider, or a car manufacturer), the purchase may not be eligible in this category. Add-ons associated with Select Streaming Services may not qualify for this promotion if they are not listed, billed in a bundle, billed separately, or billed through a third party. Listed merchants are in no way sponsoring or affiliated with this program.
Important Terms
- To qualify for 5%, the purchase transaction date must be before or on the last day of the offer or promotion.
- For online purchases, the transaction date from the merchant may be the date when the item ships.
- Rewards are added to your account within two billing periods.
- Even if a purchase appears to fit in a 5% category, the merchant may not have a merchant category code (MCC) in that category.
- Merchants and payment processors are assigned an MCC based on their typical products and services.
Activate 5% Categories
In order to earn 5% cash back, you have to activate the bonus before making your purchases. The 1st quarter bonus categories can be activated now by visiting this page and logging into your account. You can also activate with one click through emails sent out by Discover.
Apply for Discover it Card
If you don’t have the Discover it card currently, you can currently apply and get a $100 bonus. You also earn double cashback during your first cardmember year. That means you earn 2% cashback on all purchases and 10% cashback on bonus category purchases.
You can have up to two Discover cards, but you need to wait at least a year to apply for the second one.
If you want to have your Discover it referrals shared on the site, you can add it in this thread in our Facebook Group.
Guru’s Wrap-up
Discover card’s 1st quarter bonus categories for 2025 are not the best, but I guess they can be useful for some for restaurant and home improvement purchases. It’s also worth checking for targeted offers that give you an extra 3% on all spend.
This is also a good time to make sure you have maximized spending for the current quarter. Discover is giving 5% back at Amazon and Target. If you have not maximized those categories yet, check out this 10% discount on Target gift cards (ends Dec 8).