Amazon Prime Day is scheduled for Oct. 13-14 this year. These are the best credit cards to use to boost your savings even further.
This event typically takes place in mid-July, but the company decided to push it during the coronavirus pandemic. The mid-October timing should fuel an early start to the holiday shopping season.
Here are my top credit card recommendations to help you maximize rewards for Prime Day.
Where better to start than Amazon’s own co-branded card? It gives an unlimited 5% cash back at Amazon.com and Whole Foods Market. Cardholders get 2% cash back at restaurants, gas stations and drugstores and 1% everywhere else. You have to be an Amazon Prime member to get this card (and to access Prime Day deals).
The company also offers the Amazon Prime Store Card, which gives prime members 5% cash back, but it can only be used for purchases at Amazon.com. There’s also a secured version of this card, the Amazon Prime Store Card Credit Builder, which also offers 5% cash back for Prime members.
All three of these cards have versions for non-Prime members as well, but since this is Prime Day, we’ll leave them for another time.
See related: Best cards for Amazon.com purchases
This rotating-category card couldn’t have drawn up its Q4 calendar any better for Prime Day devotees and holiday shoppers. After activation, cardholders earn 5% cash back on up to $1,500 (then 1%) in purchases at Amazon.com, Target.com and Walmart.com from Oct. 1 through Dec. 31. Target and Walmart have both announced special sales to rival Amazon Prime Day: Target Deal Days is also slated for Oct. 13-14 ,and Walmart’s “Big Save” online event is scheduled for Oct. 11-15.
And even if you don’t partake in the mid-October frenzy, there’s still plenty of time to get 5% cash back on your holiday shopping later in the season. Note that Discover’s 5% payout only pertains to online Target and Walmart purchases – although ordering online and picking up in store should qualify.
This is another rotating category 5% cash back card that’s well-suited for certain Prime Day customers. The Freedom Flex’s Q4 categories are PayPal and Walmart (in-store and online). The 5% rate applies after activation on up to $1,500 in spending, after which you’ll earn 1% cash back. You can’t use PayPal directly at Amazon.com, but with PayPal Key, you’ll still be able to score the 5% back on Prime day purchases.
PayPal Key is a virtual card number associated with your PayPal account that can draw funds from a credit card of your choice. It’s not yet available to all PayPal users, so check the PayPal Key setup page to see if you’re eligible. I am, and I’m planning to enter my PayPal Key number into Amazon.com with the Freedom Flex as the underlying source of funds to take advantage of this rotating category.
High rollers have an ace up their sleeve that could make this the most lucrative Prime Day card of all. If you have at least $100,000 in eligible deposits or investments with Bank of America or Merrill, you can earn 5.25% cash back with this card (the base rate is 3%). That’s because of the 75% rewards bonus for Platinum Honors customers.
Some additional considerations: You need to set your monthly 3% category to online shopping, and you should note there’s a $2,500 combined quarterly spending limit on the 3% and 2% categories (the 2% offering is grocery stores and wholesale clubs). Cardholders get 1% cash back after that.
At the highest Preferred Rewards tier, the 3% category becomes 5.25%. At the Platinum level ($50,000 to $99,999 in deposits or investments), it’s 4.5%. And at the Gold threshold ($20,000 to $49,999 in deposits or investments), it’s 3.75%.
By combining store promotions like Amazon Prime Day with the right rewards credit card, you can stack your savings even higher.
Have a question about credit cards? E-mail me at email@example.com and I’d be happy to help.