One card lets you set your bonus category and forget it. The other rotates categories and matches a full year of cash back. Here’s how they compare.
October 25, 2026
Bank of America Customized Cash Rewards and Discover it Cash Back both build their rewards around bonus categories rather than a single flat rate, but they work very differently. With Customized Cash Rewards, you choose your own category and keep it until you decide to change it. Discover sets a new group of categories each quarter, and you have to activate them to earn the bonus rate.
These types of rewards credit cards have gained widespread adoption among consumers. A 2025 American Bankers Association survey found that 82% of consumers had at least one rewards credit card that offered cash back or miles.
If you're looking to add a new credit card to your wallet, here's how the two cards stack up on rewards, welcome offers, and everyday terms.
Feature | BofA Customized Cash Rewards | Discover it Cash Back |
|---|---|---|
Annual Fee | $0 | $0 |
Welcome Offer | $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. | Unlimited Cashback Match: all cashback earned is automatically matched at the end of the first year, no spending cap |
Top Bonus Rate | Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category. Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum. | 5% cash back in Discover's rotating quarterly categories, on up to $1,500 in purchases per quarter, then 1% |
Category Control | Cardholder picks one category and keeps it; changeable once per calendar month, no activation needed | Discover sets the categories each quarter; cardholder must activate before spending to earn the bonus rate |
Automatic Secondary Rate | 2% cash back at grocery stores and wholesale clubs, shares the same $2,500 quarterly spending cap | None; all non-bonus-category purchases earn 1% |
Baseline Rate | Unlimited 1% on all other purchases | Unlimited 1% on all other purchases |
Intro APR | 0% for 15 billing cycles on purchases and balance transfers made within 60 days; then 17.74% - 27.74% | 0% for 15 months on purchases and balance transfers; 17.74% to 26.74% variable after |
Credit Score Needed | 670-850 (Good to Excellent) credit generally recommended | Good to excellent credit generally recommended |
Customized Cash Rewards puts the choice in your hands. You pick one of six categories and earn 6% cash back there for the first year, then 3% after:
Gas and EV charging stations
Dining
Travel
Drug stores
Home improvement and furnishings
An automatic 2% at grocery stores and wholesale clubs stacks on top. The category and grocery rates share a single $2,500 combined quarterly spending cap before dropping to 1%. Bank of America checking customers enrolled in the BofA Rewards program can boost that cash back by 10% to 75%, depending on their tier (the boost applies to the card's standard rates, not the extra 3% first-year bonus).
Discover it Cash Back works differently. Discover sets the categories each quarter and pays 5% cash back on up to $1,500 in purchases across them, a maximum of $75 a quarter. Here's the 2026 lineup:
January to March: Grocery stores, wholesale clubs, and select streaming services.
April to June: Restaurants and home improvement stores.
July to September: Gas stations, transportation, and drug stores.
October to December: Restaurants, entertainment, and utilities.
You have to activate each quarter's categories to earn that rate. Miss the activation, and those purchases earn just 1%.
For context, the CFPB's 2025 Consumer Credit Card Market Report found that cardholders nationally earned an average of just 1.6 cents in rewards per dollar spent. Both cards' bonus rates clear that benchmark comfortably, at least within their spending caps.
The real difference between these cards is how much upkeep they ask of you. With Customized Cash Rewards, you make one decision, matching a category to spending you already do consistently, like dining or gas. After that, you only check in when your habits change.
Discover it Cash Back asks for a recurring commitment. You re-check the calendar every three months, and your spending has to follow categories you don't control. Some quarters line up with a big expense, like home improvement stores from April to June. Others may not match your budget at all.
Troy Johnston, founder and CEO of StackEasy.ai, a credit card management app for people who carry several cards, manages 28 credit cards himself. He has a system for staying on top of category activations:
Treat it as a calendar event, not a memory task. Two recurring reminders per quarter, one when the categories are announced and one on the 1st. Activate from the app, then rename the card in your phone wallet to the live category so the card itself tells you when to use it at checkout. Rotating categories only pay if the card is both activated and top of mind, and the label solves the second half. Across my own wallet, that label trick is the difference between a rotating card that earns its keep and one that quietly earns 1%.
The two offers work differently, so which is worth more depends on how much you plan to spend.
Bank of America: A fixed $200 cash rewards bonus offer.
Discover: Unlimited Cashback Match, which matches all the cash back you earn in your first year, with no spending cap. For a cardholder who puts substantial spending on the card, that can be worth well over $200 cash rewards bonus offer.
If you expect to spend heavily in your first year, Discover's match is hard to beat. If you'd rather have a predictable, guaranteed amount, Bank of America's bonus is the better fit.
“Look at [your] habits, not the year-one total,” says Johnston. “Is the qualifying spend something you would do anyway in the window, or would you pull purchases forward to hit it? Is your spend recurring, so the ongoing rate compounds for years, or variable in that a one-time bonus captures most of the value? And will you keep the card past 12 months? A bonus rewards a moment; a rate rewards a habit.”
Neither card charges an annual fee, so nothing offsets your cash back. Both also offer a 0% introductory APR on purchases and balance transfers for roughly the first year:
Customized Cash Rewards: 0% for 15 billing cycles.
Discover it Cash Back: 0% for 15 months.
After that, both switch to a variable APR in a similar range.
The choice comes down to how concentrated your spending is and how much upkeep you're willing to do.
Choose Customized Cash Rewards if:
You have one or two spending categories, like gas, dining, or online shopping, that consistently make up a big share of your budget.
You'd rather set your bonus category once than manage anything quarterly.
You want a fixed, guaranteed welcome bonus you can count on.
Choose Discover it Cash Back if:
You don't mind checking in every few months to activate that quarter's bonus categories.
Your spending naturally lines up with the categories Discover rotates in, like restaurants or grocery stores.
You plan to spend enough in your first year that an uncapped dollar-for-dollar match beats a flat $200 cash rewards bonus offer.
Johnston says it comes down to concentration and temperament: "If your spending is concentrated in two or three categories and you are willing to spend five minutes per quarter, tiered cards win clearly. If your spending is spread thin, or you know you will not do the quarterly task, a flat-rate card earns more in practice because the best rate you actually collect is the one you remember to use."
Which card has the higher bonus-category rate?
In the first year, Customized Cash Rewards, at 6% in a category you choose. After that, its rate is 3%, while Discover it Cash Back earns 5%, but only after you activate each quarter's categories, and only in categories Discover picks, not you.
Do I have to do anything to keep earning the bonus rate on Customized Cash Rewards?
No. Once you select a category, it stays active with no quarterly activation. You can change it once per calendar month if your spending shifts.
Is Discover's cash back bonus better than Bank of America's $200 offer?
It depends on how much you spend. Discover matches all the cash back you earn in the first year with no spending cap, which can exceed $200 cash rewards bonus offer for heavy spenders. Lighter spenders may prefer Bank of America's guaranteed $200 cash rewards bonus offer bonus.
Do both cards charge an annual fee?
No. Neither Customized Cash Rewards nor Discover it Cash Back charges an annual fee.
Our mission at BestMoney is to make financial decisions less overwhelming. This article was produced by the BestMoney credit cards editorial team, which reviews and compares financial products to help readers make informed decisions.
Jennifer Calonia, founder of Blue Poppy Media LLC and a personal finance writer and editor with more than a decade of experience, and reviewed by the BestMoney credit cards editorial team. Card terms were checked against each issuer's published disclosures, with expert insight from Troy Johnston, founder and CEO of StackEasy.ai.
Bank of America: Customized Cash Rewards credit card product page, rewards structure, quarterly maximum, welcome offer, and terms
Bank of America: Customized Cash Rewards category choices and exclusions
Discover: Discover it Cash Back credit card product page, rewards structure, Cashback Match terms, and rates
Discover: 5% Cashback Bonus calendar, 2026 rotating categories
Consumer Financial Protection Bureau: The Consumer Credit Card Market report (2025), national average rewards earned per dollar spent
American Bankers Association: 2025 consumer survey, share of consumers with a rewards credit card
Jennifer Calonia writes for BestMoney.com and has years of experience as a personal finance writer, editor, and founder of Blue Poppy Media LLC. She specializes in transforming complex money topics into accessible, educational content that helps readers confidently navigate their financial decisions.
