During the coronavirus pandemic, Capital One added a limited-time bonus category on popular streaming services to its Savor credit cards. On Tuesday, the issuer made those changes permanent, and at the same time increased the bonus cash back rates when using the cards at grocery stores as well.
Starting Tuesday, May 18, the Capital One® Savor® Cash Rewards Credit Card earns 4% cash back on eligible music and video streaming services on an ongoing basis, while the Capital One® SavorOne® Cash Rewards Credit Card now earns 3% cash back on those same streaming services.
In addition, both cards now earn 3% cash back at grocery stores, a 50% improvement over the previous 2% in that category.
Popular streaming services that officially earn bonus cash back on the Savor cards include Netflix, Hulu and Disney+, but other streaming services that have been reported to earn bonus cash back as well include Spotify, Sling, Kindle Unlimited, Paramount+ and HBO Max, among others. (HBO Max is owned by WarnerMedia, which is also the parent company of CNN.)
This is Capital One’s first permanent extension of a feature originally introduced as a limited-time enhancement during the pandemic. Previously, the issuer added redemption options for streaming services and food delivery to its Capital One® Venture® Rewards Credit Card and Capital One® VentureOne® Rewards Credit Card, but that enhancement is currently scheduled to end on June 30.
The additional bonus cash back on streaming services and at grocery stores comes on top of the existing Savor and SavorOne bonus categories, which include 4% cash back on entertainment and dining on the Savor card (including restaurant takeout and delivery) and 3% cash back in those categories on the SavorOne. Both cards also earn 1% back on all other purchases.
How do these new bonus categories stack up against other credit cards?
While the new permanent 4% cash back streaming bonus category on the Capital One Savor (which has a $95 annual fee) doesn’t quite beat the market-leading 6% cash back offered on select US streaming subscriptions by the Blue Cash Preferred® Card from American Express, it’s still a strong addition to the card and enhances an already impressive overall set of useful bonus categories.
Meanwhile, the 3% earned on streaming services with the Capital One SavorOne card essentially leads the pack when it comes to credit cards with no annual fee. The one exception is the U.S. Bank Cash+™ Visa Signature® Card, which earns 5% cash back on two categories of your choice from a list of 12 options, one of which is TV, internet and streaming providers.
Earning 3% on groceries without any cap on the Capital One SavorOne card is also an exceptional return on a credit card that charges no annual fee. The only other comparable card is the Blue Cash Everyday® Card from American Express, which has no annual fee and earns 3% at US supermarkets, but only on up to $6,000 in purchases each year, after which it earns 1%.
Even though the Capital One SavorOne card earns cash back at a lower rate than the Savor, in addition to not having an annual fee, the SavorOne also offers a 0% introductory APR on purchases for the first 15 months you have the card. However, it’s important to pay off your debt before that introductory rate ends, because once the 15 months are up, the rate increases to a variable 15.49% to 25.49%.
Both cards also currently offer sign-up bonuses for new customers. With the Capital One Savor, you can earn a $300 cash bonus after you spend $3,000 on purchases within three months after opening the account. On the Capital One SavorOne, right now you’ll earn a $200 cash bonus once you spend $500 on purchases within the first three months after opening the account.
Should you get a Capital One Savor or SavorOne card?
If you’re looking to earn cash back from your credit card, either the Capital One Savor or the Capital One SavorOne card can be a solid choice, as long as you normally spend a significant portion of your household budget on purchases in the bonus categories. You might also consider pairing either card with a strong flat-rate cash back card, such as the no-annual-fee Citi® Double Cash Card, which earns 2% cash back on all purchases — 1% when you make a purchase, and another 1% when you pay it off.
With streaming services growing as an expense for many people over the last few years, it’s great to see Capital One permanently offering bonus cash back on it. So if you already have a Capital One Savor or Capital One SavorOne credit card, make sure to use it to pay for your streaming services, and if you don’t, take a look to see if it makes sense to add one of the two cards to your purse or wallet.
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