Flat 2% cashback vs travel points for a $1,500/month spender who never flies?
I spend about $1,500 a month across cards. Groceries. Gas. The normal stuff. I never fly. Last flight was 2019. Every points guy online says I'm leaving money on the table. But every premium card has a $95+ fee and the 'amazing' redemptions need travel. For someone who never boards a plane, is there anything that actually beats a flat 2% cashback card? Or is the points game just a fee on people who don't travel?
2 answers
- Flat 2% cashback, no annual fee
I did this exact math last year. $1,500/mo is $18,000/yr. Flat 2% = $360 back, zero fee. The popular $95-fee points card earns 2x on the same spend = 36,000 points. Redeemed for travel at ~1.5 cents each, that's $540 minus $95 = $445. Better! But you never fly, so you redeem for cash at 1 cent = $360 minus $95 = $265. You literally pay $95 for the privilege of earning less. Non-travelers: the fee is the whole game. Skip it.
- Cashback — the break-even is 3+ flights a year
Agreeing with the math above, with the actual threshold. Points cards win when your redemption value clears the annual fee. At $1.5k/mo: - Flat 2% cashback: $360/yr, no fee, no thinking. - 2x points card at 1.5¢ redemption: $540 − $95 fee = $445. Wins by $85 — IF every point goes to travel. - Same card redeemed as cash (1¢): $360 − $95 = $265. Loses by $95. Unless you're booking 3+ trips a year through the portal, cashback wins on autopilot. The points game is a part-time job with a travel requirement.