Chase Announces 5% Bonus Categories for Q1 2023

What happened: Chase announced next quarter's rotating bonus categories for the Chase Freedom and Chase Freedom Flex® on Thursday. From Jan. 1 through March 31, 2023, the categories are grocery stores (excluding Walmart), fitness club and gym memberships, and Target. Cardmembers can earn 5% cash back on up to $1,500 in combined purchases in these categories. Bonus categories must be activated by the cardmember to earn the bonus rate.

So what: Rotating bonus categories are a popular perk on the Chase Freedom and Chase Freedom Flex®. For the next quarter, Chase is introducing Target as a new category and bringing back previous favorites in grocery stores, fitness clubs, and gyms. These categories were chosen "to help cardmembers kickstart 2023 on the right foot," according to Brent Reinhard, General Manager of Chase Freedom, in the press announcement.

Cardmembers have until March 14, 2023 to activate the rotating bonus categories and earn 5% cash back. If the categories aren't activated, purchases earn the standard rate of 1%, so it's important to remember to activate. Fortunately, the bonus rate applies retroactively once activated. Even if a cardmember activates in March, all eligible purchases made that quarter will earn 5% back.

Now what: If you have the Chase Freedom or the Chase Freedom Flex®, you can now activate bonus categories for next quarter. It's recommended to do this ASAP, just so you don't forget and miss out. There are six ways to activate:

• Online at chase.com/ultimaterewards or chase.com/freedomflex
• Email by signing up for email alerts
• Chase mobile app
• Phone by calling the number on the back of your card
• Chase locations
• ATMs if you're a Chase checking customer

Overall, Chase has put together a nice combination of categories to start 2023. Groceries are a big, regular expense for most consumers. Gyms and fitness clubs are extra popular after New Year's. And lots of people love shopping at Target. It's a great opportunity to max out those bonus categories by spending $1,500 and getting $75 cash back.

For those who don't have either of these credit cards, only the Chase Freedom Flex® is open for applications; the Chase Freedom isn't available to new applicants. That's not a big deal, as the Chase Freedom Flex® has all the same features and adds more bonus categories. If you're searching for a valuable and versatile rewards card, it's well worth a look. It has several fixed bonus categories, introductory offers, and there's no annual fee. And with the rotating bonus categories it has coming up, now is a good time to apply.