The New Chase Freedom Flex Card Could Save You $1,004 in the First Year

Freedom Flex credit card

Image source: Chase

It's obvious at a glance that the Chase Freedom FlexSM, Chase's newest rewards card, has quite a few perks. But it's not always clear how much money you might save with a credit card when you simply read through its features.

We've done the math to give you a realistic idea of how much value the Chase Freedom Flex℠ will give. We used a sample budget with reasonable spending figures. As you're about to see, it's possible to save big bucks if you use this no-annual-fee card for all your expenses.

How the Chase Freedom Flex℠ can save you $1,004

If you combine the Chase Freedom Flex℠ sign-up bonus and purchase rewards, you can earn quite a bit of cash back. Here's how this card's sign-up bonus and rewards rates break down in each spending category, along with how much value you could get from each benefit in your first year.

Sign-up bonus -- $200

The Chase Freedom Flex℠ starts you off with a $200 bonus after you spend $500 on purchases in the first three months after you open the card. Considering the low spending minimum, most cardholders will earn the bonus within a month.

5% on groceries -- $300

The Chase Freedom Flex℠ will earn 5% back on grocery store purchases in your first year, one of the highest rates you can find from cash back credit cards. Note that Target and Walmart purchases won't qualify. The bonus rate applies on up to $12,000 in grocery spending.

If your household averages $500 each month ($6,000 per year) on grocery spending, you'd earn $300 cash back in that year. You could earn up to double that, but $500 per month is more reasonable for the typical consumer.

5% on rotating bonus categories -- $150

This card offers 5% back on up to $1,500 of purchases in rotating bonus categories you activate every quarter. Chase has a variety of spending categories in its rotation, and examples of previous bonus categories include Amazon, Walmart, PayPal, gas stations, fitness clubs, and streaming services. It generally offers at least two bonus categories per quarter, but sometimes there are more.

With the quarterly spending cap and rewards rate of 5%, these rotating bonus categories could be worth up to $300 per year. But it isn't always easy to maximize rotating credit card rewards. For example, you probably aren't going to suddenly start spending $500 per month on streaming services. So we went with a monthly average of $250 ($3,000 per year) in rotating bonus categories, which will get you $150 cash back.

5% on travel purchased through Chase Ultimate Rewards -- $150

Travel budgets obviously vary quite a bit depending on the person and the type of trip. It costs a lot more to stay at a luxurious resort than to rent a bed in a hostel or stay with family.

This category's rewards total is based on an estimated $3,000 in annual travel spending booked using Chase Ultimate Rewards. That's enough for two mid-range vacations per year or one costlier trip and one where you stick to a stricter budget.

3% on dining at restaurants -- $108

Chase Freedom Flex℠ 3% cash back on restaurant spending isn't just for sit-down dining. It also applies to takeout food and orders placed through eligible delivery services.

The average monthly expenses on dining are nearly $300. We rounded up to that number, and at 3% back on $3,600 in annual dining expenses, you'd score $108.

3% on drugstore purchases -- $18

Drugstores won't be a huge source of bonus cash back for most consumers. We went with $50 of monthly drugstore purchases, $600 per year, good for $18 back.

1% on all other purchases -- $78

So far, we're at $1,350 of monthly spending in bonus categories alone. You're obviously also going to have plenty of purchases where bonus rates don't apply. We brought the monthly spending total up to an even $2,000, with $650 on non-bonus purchases. That's $7,800 per year, which will get you $78 back.

Impressive value for every consumer

These spending figures are examples, so as the saying goes, your mileage may vary. But the breakdown does demonstrate why the Chase Freedom Flex℠ is one of the best credit cards available for earning rewards. It can save you over $1,000 on $24,000 in annual spending. That's over 4% back on every dollar you spend -- a fantastic rate you won't get from many other cards.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)

As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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