Discover it® vs. Bank of America® Customized Cash Rewards: Which Cashback Card Wins in 2025?
When choosing a cashback credit card, two standout options in 2025 are the Discover it® Cash Back and the Bank of America® Customized Cash Rewards. Both offer strong value, no annual fees, and generous reward structures — but which one fits your financial profile best? Here’s a side-by-side comparison to help you decide.
1. Overview of Each Card
Discover it®
- Rotating 5% cashback categories (gas, groceries, restaurants, etc.).
- Requires quarterly activation.
- 1% cashback on all other purchases.
- Cashback Match: All cashback earned in the first year is automatically doubled.
Bank of America® Customized Cash Rewards
- Choose your 3% category (gas, online shopping, travel, etc.).
- 2% cashback at grocery stores and wholesale clubs.
- 1% cashback on all other purchases.
- $2,500 quarterly cap on combined 3% and 2% categories.
- Preferred Rewards clients can earn 25%–75% more cashback.
2. Welcome Bonus
Discover it®
No traditional bonus. Instead, all cashback earned in the first 12 months is matched automatically — no cap.
Bank of America®
Offers a $200 cash rewards bonus after spending $1,000 in the first 90 days.
3. Fees and Interest Rates
| Feature | Discover it® | Bank of America® Customized |
|---|---|---|
| Annual Fee | $0 | $0 |
| Intro APR | 0% for 15 months | 0% for 15 billing cycles |
| Regular APR | 17.24% – 28.24% (variable) | 18.24% – 28.24% (variable) |
| Foreign Transaction Fee | None | 3% |
4. Rewards and Redemption
Discover it®
- 5% cashback on rotating categories (up to $1,500 per quarter).
- 1% cashback on all other purchases.
- Redeem via statement credit, direct deposit, gift cards, or Amazon.
- Cashback never expires.
Bank of America®
- 3% cashback in your chosen category (changeable monthly).
- 2% at grocery stores and wholesale clubs.
- 1% on all other purchases.
- 3% and 2% rates apply to the first $2,500 in combined quarterly spending.
- Redeem via statement credit, direct deposit, or Merrill investment accounts.
5. Ease of Approval and Accessibility
- Discover it®: Available to users with good to excellent credit. Offers student versions, ideal for beginners.
- Bank of America®: Also for good to excellent credit. Easier approval if you already bank with BofA.
6. Conclusion: Which Cashback Card Is Best for You?
Choose Discover it® if:
- You want the most value in the first year through Cashback Match.
- You’re building credit or prefer no foreign transaction fees.
- You enjoy tracking and activating rotating bonus categories.
Choose Bank of America® Customized Cash Rewards if:
- You prefer setting your own rewards category based on your spending.
- You bank with Bank of America (especially with Preferred Rewards status).
- You want a sign-up bonus and fixed cashback options.
🔍 Final Verdict: Which Card Is Right for You?
Both the Discover it® Cash Back and the Bank of America® Customized Cash Rewards are excellent no-annual-fee cards with generous cashback programs—but they cater to different spending styles.
If you’re someone who enjoys optimizing rewards and staying on top of rotating categories, the Discover it® is a powerhouse. Its unique Cashback Match offer essentially doubles your first year of earnings, which can be incredibly valuable. For users who plan their purchases strategically and don’t mind activating new categories quarterly, Discover’s 5% rotating cashback—paired with 1% on everything else—can generate serious rewards over time. Plus, the automatic first-year match gives you a strong head start.
On the other hand, the Bank of America® Customized Cash Rewards card offers more flexibility and convenience. You can choose your 3% cashback category—which is perfect if you consistently spend more in one area, like gas, online shopping, or dining. It also rewards 2% at grocery stores and wholesale clubs, making it ideal for families or everyday purchases. If you’re a Bank of America banking customer, especially a Preferred Rewards member, your cashback potential grows even further with bonuses of up to 75%—something Discover can’t compete with.
👉 So which card should you pick?
– Choose Discover it® if you want to maximize your first-year rewards and don’t mind managing rotating categories.
– Choose Bank of America® Customized if you prefer consistent cashback, especially if you’re already a Bank of America customer or want to personalize your rewards with less hassle.
Ultimately, there’s no one-size-fits-all answer—but understanding your spending habits is the key. Both cards shine in their own ways, and either one can be a smart addition to your wallet.
