Penfed Visa Platinum Cashback Rewards Card – 5% Cash Back on Gas
There used to be a bunch of great cashback cards for gas, but now the only one that still offers 5% back to consumers is the PenFed Platinum Cashback Rewards card (bottom card on page). It offers:
- 5% cash back on gas purchases (must pay at pump)
- 2% cash back on supermarket purchases
- 1% cash back on everything else.
No annual fee. The rewards are credited on each monthly statement, so that you don’t have to wait to meet any $50 thresholds or remember to call in. If your family spends $200 on gas per month, that alone will have this card paying you $120 per year in rewards.
The catch? You must also be a member of the Pentagon Federal Credit Union (you can apply for both at the same time). In general, membership is open to the military, US government employees, or the family or household of existing members. However, anyone can become eligible by joining the National Military Family Association (NMFA) for a $20 one-time fee (and it goes to a good cause). PenFed also offers other competitive financial products, including low-rate mortgages and long-term CD rates.
Find more in Credit Cards, Deals & Offers | 6/10/10, 3:46am | Trackback
June 10th, 2010 at 5:23 am
also the Exxon Mobil platinum MC is good, 15 cents off per gallon in rebates towards Exxon/Mobil gas. Get a Speedpass from them too (on the card application check yes). Depending on the cost of gas, this is better or the same as 5% rebate. ($2.99 x .05 = 14.95 cents off)
Apply for it on Exxonmobilcard.com
In my area (San Diego) many Exxons are closing because Exxon doesn’t want to franchise anymore, so check your area first to see if there are any stations left. Mobil seems to be holding steady though. Still, it’s a pain in the butt to have to plan out my route so I can get gas at the nearest Mobil (about 5 miles out)
June 10th, 2010 at 6:13 am
The relative value of all these different rewards cards depend on how much you spend in each of the various categories the cards feature. For me, the trifecta is: Citi Forward VISA for 5% back at restaurants, fast food, entertainment and Amazon.com; Chase Freedom VISA for ~5% back on all small purchases (< $10) regardless of category; and (for everything else) Fidelity Rewards AMEX offering 2% on everything.
I’ve fined-tuned this to match my personal spending habits, so the three above are not applicable to everyone. For example, my biggest spending category is by far food+drink so I went for Citi Forward; I don’t own a car so I’ve eschewed cards that perhaps offer more than 2% back in gas, etc, etc.
But for what it’s worth, I really reccommend Citi Forward – not only is its cash back % generous but it also provides even more points for good credit activity like paying your bill on time. Chase Freedom is good ONLY if you have a Chase checking account to have their “Ultimate Rewards” point system which works out to 5% back for small purchases (it’s stated value is 1% but you get bonus points or whatever they call their gimmick if you have the checking acct with them so the return on small purchases is high). And the Fidelity card requires a Fidelity acct to deposit the rewards into. (I believe Schwab offers something similar.)
So there are caveats but if you do your research – all these cards have been written up here in My Money Blog – you can do well esp if you charge a lot.
June 10th, 2010 at 6:42 am
AMEX Blue Cash still pays 5% on gas – and on groceries and pharmacy, while still paying 1.25% on everything else. You do need to spend $6500 to reach that level and the rewards are paid out on your anniversary date – so some different hurdles that might not make it seem as shiny. But this remains a great card – and getting 5% back on groceries (our personal biggest expense) is really a boon!
June 10th, 2010 at 7:02 am
Don’t forget about the Fort Knox Federal Credit Union Visa Platinum.
http://www.fkfcu.org/visa.html
It’s similar to the PenFed card, but it’s 5% gas and 1.25% on everything else. Membership is open to everyone – they will automatically sign you up for the “American Consumer Council”, which is free.
June 10th, 2010 at 8:14 am
This card is the reason I joined PenFed many years ago. Their interest rates are great and I have since financed 2 cars through them and will continue to give them first crack at any financial needs I may have.
An important note to add is that the NMFA membership does NOT need to be maintained from year to year. The NMFA will send renewal information, but once you are a member of PenFed, you’re in.
June 10th, 2010 at 8:36 am
I clicked on the link, and i didnt see 5% back for gas, i saw it back for air travel.
is the link correct?
edit: never mind, i found it, its the second credit card listed, and its not bullet-ed as obviously as the first CC
June 10th, 2010 at 10:12 am
Do you signup for NMFA first separately then PenFed or does the PenFed application go through the process of NMFA?
June 10th, 2010 at 12:02 pm
Informer, for the AMEX Blue Cash, if I spent $6500.01 in gas & groceries a year, do I get 5% rebate of the $6500.01? Or is just the $0.01 qualified for the 5% rebate?
June 10th, 2010 at 1:10 pm
@Adam – Nice find. Do you have this card? What do you think? I wish their website was better, but it does appear that you can join for only $10 and a $5 share savings deposit.
@Nuri – Yep, it’s the 2nd card on the bottom. Added some clarification to the post.
@Ryan – If you click on the application link for the card, they will guide you through membership process. It’s integrated.
@TL – Only the 0.01 will qualify for in your example for 5%. Here’s a pretty chart I put together that shows how the average gas cashback changes with Blue Cash depending on your charge amounts.
http://www.mymoneyblog.com/arc.....-back.html
June 10th, 2010 at 1:24 pm
@Jonathan
Funny thing… their website is brand new, actually. They just updated it a couple weeks ago.
I have a share account and was approved for the card. I’m just waiting to receive it in the mail.
It’s definitely a “mom & pop” type of credit union. Opening an account and applying for the card involved sending in paper forms and a couple of phone calls. But the customer service is very friendly. There’s a good thread on FatWallet about this card if you’re looking for more info.
June 10th, 2010 at 3:24 pm
It says before starting the application that you must “Open a Regular Share Account with at least $5″. Do i have to leave that money with them for as long as I use the card, or can I withdraw it after I get accepted?
June 10th, 2010 at 4:15 pm
@SteveW – You have to leave the $5 in the share account as long as you are a credit union member. In theory, you are keeping money in some sort of pool that “credit union” members can borrow from. It can be withdrawn later if you decide to leave later on.
June 10th, 2010 at 4:28 pm
It says it’s a $20 ANNUAL feel, didn’t say ONE time…
June 10th, 2010 at 4:31 pm
It’s a $20 annual fee to stay a member of the NMFA. You just have to be a member of the NMFA *when* you join Penfed. Your future Penfed membership is then independent of whether you renew your NMFA membership.
I’ve been a PenFed member for a few years now, with no need to renew. NMFA does offer GEICO discounts that can be worth the $20 if you use them.
June 10th, 2010 at 8:57 pm
Doesnt PenFed have its own Geico discounts? (as well as Liberty Mutual)
June 10th, 2010 at 8:57 pm
Also, many are reporting that PenFed has a “Summer Bonus” on their June statements which is 3% back on Electronics and Home Improvement…
June 11th, 2010 at 8:43 am
Do you if non US citizens can apply for this card ? I am a US resident.
June 11th, 2010 at 8:55 am
Do credit card paper statements cost $0.50/statement?
June 12th, 2010 at 6:32 pm
I love this credit card. The customer service at PenFed is the best I have received. They often tell me that its fine if I am a few days late in making my payment. The website now lets you schedule payments (before it only allowed immediate payments) and they can link quickly to any US checking or savings account.
Also PenFed does not charge any foreign transaction fees, but Visa does slap a 1% free on there, but hey, when you get 1.25% back then you are still making money by buying abroad.
This card keeps me from gassing up at Costco because after the 5% discount gas is cheaper elsewhere. But I do wonder if gassing up at Safeway gas station counts for the full 5%?
June 17th, 2010 at 10:57 am
Once in awhile I respond to the latest offer for a particular card that might help out my finances. Lately they are all turning me down. I know my credit score and have gotten the complete record. Funny, but they are good, but the turndown that upset me was one from Fidelity AMEX saying that I sufficient credit from others and I was late one time. Now, with all the confusion of electronic payment, user names, passwords, URLs, and the rest of the electronic world, I am hoping that eventually I will need nothing except a credit card for those that won’t take cash and the cash that otherwise would be tied up in e- this and that. My final credit card payment will be for prepaid funeral expenses and then I will be happy. No more credit cards or other accounts to get me into dept! Hurrah!
PS: If I ever tried to figure out what credit card was better for what spending, I would truly go berserk. Sometimes simplifying life is a better route to take, but I have not quite reached nirvana.
June 18th, 2010 at 6:56 am
I got this card back February and really like the rewards. I see the rebate credited to my account each period.
There are two ways to pay for the card. You can either pay the card directly by linking it to your external checking, or you can transfer money to your PenFed checking and then pay the card (which I prefer, more of a money trail).
The only problem I have with this is that since I only use PenFed for the card and not a bank (no local branches), I have to resort to depositing via ACH. And, for some reason, my daily limit for ACH transactions is $50.
June 19th, 2010 at 3:15 am
I just checked the Pen Fed disclosures on their Visa Platinum Cash rewards card, and it says there is a 2% foreign transaction fee.
June 22nd, 2010 at 12:59 pm
Amex Blue offers 5% back on gas and 1.25% on other items. Not all places take Amex, but most gas stations do.