What the 5% categories are and how they rotate
Chase Freedom rotates which everyday purchases earn 5% cash back every three months. The categories change on a set schedule, and you need to set up each quarter's categories to earn the higher rate — if you don't set up, you earn 1% instead.
The four rotating categories typically include groceries, gas stations, restaurants, and drugstores, but the exact lineup and the months they're active change each year. Chase publishes the full year's schedule on their website and in your account dashboard, so you can see which categories are coming up and plan your spending.
The 5% rate has an annual cap: once you've earned $300 in cash back from the rotating categories in a calendar year, the rate drops to 1% for the rest of that year. That means the maximum you can earn from rotating categories is $300 per year, which requires $6,000 in may have access to purchases at the 5% rate.
Key Takeaways
- Chase Freedom's 5% cash back categories change every three months, and you must set up each quarter's categories in your Chase account to earn the higher rate.
- The rotating categories typically include groceries, gas, restaurants, and drugstores, but the specific lineup and timing vary by year — check your account or Chase's website for the current schedule.
- Once you've earned $300 in cash back from rotating categories in a calendar year, the rate drops to 1% for the remainder of that year.
- You earn 1% cash back on all other purchases, and there is no annual fee, so the card remains useful even in months when the rotating categories don't match your spending.
How to set up the quarterly categories
set up is required and takes less than a minute. Log into your Chase account online or through the mobile app, find the Freedom card, and look for a section labeled "set up" or "set up Categories" — it's usually on the card's main page or under a rewards tab.
Click the button to set up the current quarter's categories. Chase will show you which categories are active and when they expire. You only need to set up once per quarter; after that, any purchase in those categories automatically earns 5% cash back as long as you haven't hit the $300 annual cap.
If you forget to set up, you won't earn the 5% rate for that quarter — Chase does not set up categories automatically. Many cardholders set a phone reminder for the first day of each quarter (January 1, April 1, July 1, October 1) to make sure they don't miss it.
The annual $300 cash back cap explained
The 5% rate applies only to the first $6,000 you spend in rotating categories each calendar year. Once you've earned $300 in cash back from those categories, every additional purchase in those categories earns 1% instead, even if the quarter is still active.
This cap resets on January 1 each year. If you hit $300 in cash back by September, you'll earn 1% on rotating categories for the rest of the year, but on January 1 the counter resets and you can earn 5% again on the next $6,000 in rotating purchases.
The cap applies only to the rotating categories. Your 1% cash back on all other purchases has no limit, and you can earn that rate indefinitely.
Which purchases count toward the 5% categories
The categories are broad, but some purchases don't count. Groceries earned at warehouse clubs like Costco or Sam's Club typically don't may have access to — only purchases at traditional grocery stores count. Gas purchased at Costco gas stations also usually doesn't earn the 5% rate.
Restaurants include both sit-down dining and fast food, and the category usually covers food delivery services as well. Drugstores include pharmacies like CVS, Walgreens, and Rite Aid, but not big-box retailers like Target or Walmart even if they have a pharmacy inside.
If you're unsure whether a specific merchant counts, check your transaction history after you make the purchase — Chase will show you the cash back earned. If it shows 1% instead of 5%, that merchant didn't may have access to for that quarter's category.
Planning your spending around the schedule
Because the categories rotate and the cap is $300 per year, the card works best if you concentrate your rotating-category spending in the months when those categories are active. If restaurants are active in Q2 but not Q3, you might use a different card for dining in Q3 to save your $6,000 annual limit for months when restaurants are earning 5%.
Check the full-year schedule at the start of January so you know which categories are coming. If you know you'll spend heavily on groceries in March, and groceries are active in Q1, you can plan to make those purchases before the quarter ends.
For purchases that don't fit the rotating categories — online shopping, travel, utilities — the 1% cash back is lower than many other cards offer. If you spend heavily outside the rotating categories, you might use Freedom for the rotating categories and a different card for everything else.
How to find the current and upcoming schedule
Log into your Chase account and navigate to the Freedom card page. The current quarter's active categories and the next quarter's categories are usually displayed prominently. You can also scroll down to see the full year's schedule.
If you don't have online access yet, call the number on the back of your card and ask a representative to read you the schedule. Chase also publishes the schedule on their website under the Freedom card product page, where you can see the full year laid out in a table.
The schedule is set by Chase and doesn't change mid-quarter, so once you see which categories are active, you can count on them staying active through the end of that three-month period.
What happens if you don't set up
If you forget to set up a quarter's categories, you earn 1% cash back on those categories instead of 5%. There is no penalty or fee — you straightforward earn less cash back for that quarter.
You can still set up the categories after the quarter has started, and any new purchases in those categories will earn 5% from that point forward. However, purchases you made before you activated won't earn the higher rate retroactively.
Chase does not send automatic reminders, so it's on you to remember. Many cardholders set a calendar alert or check their account on the first day of each quarter to make sure they set up before spending.
Frequently Asked Questions
Can I set up categories on the mobile app or only online?
You can set up on either the Chase mobile app or the website. Open the app, go to your Freedom card, and look for the set up button. The process is the same on both platforms and takes about one minute.
What if I spend more than $6,000 in a rotating category in one year?
Once you've earned $300 in cash back from rotating categories in a calendar year, the rate drops to 1% for the rest of that year, even if you're still in the same quarter. You can't earn 5% on more than $6,000 of rotating-category purchases per year. The cap resets on January 1.
Do I earn 5% on online purchases in the rotating categories?
It depends on the category and the merchant. Online grocery orders from stores like Amazon Fresh or Instacart may earn 5%, but online orders from restaurants might not. Check your transaction history after a purchase to see what rate you earned, or contact Chase to confirm before you spend.
Can I use the same card for rotating categories and other purchases?
Yes. You earn 1% cash back on all purchases that aren't in the active rotating categories, so you can use the Freedom card for everything. However, if you spend heavily outside the rotating categories, you might earn more cash back overall by using a different card for non-rotating purchases.
What if a category I need isn't on the schedule?
Chase's rotating categories don't cover every type of purchase. If you spend heavily on categories that never rotate — like travel, online shopping, or utilities — the Freedom card's 1% rate on those purchases is lower than some competing cards. You might use Freedom for the rotating categories and a different card for everything else.