The Cash Rewards Visa from NIH Federal Credit Union is a no-fee card aimed at covering everyday home expenses. It has fair cash back rates for groceries, gas, streaming, and more. It isn’t a go-to option for some people, but it’s definitely worth a look. It covers multiple useful categories.
FEATURES AT A GLANCE
- No annual fee
- 1% foreign transaction fee
- 3% cash back for groceries and wholesale clubs
- 3% cash back on utilities and streaming
- 3% cash back on gas ($6,000 annual spending limit), EV charging, and rideshare/taxis
- 1% cash back on everything else
SIGN UP BONUS
For the first 12 months, you’ll get 4% cash back in each of the 3% categories (an extra 1%). Unlimited 4% back on groceries sounds good, but the exact value depends on your spending habits. For many people, a cash sign-up bonus (like on the NIH Travel Rewards card) would be more worthwhile.
An average American family spends about $7,500 annually on groceries and gas, according to a 2021 CNBC article. Most households seem to spend under $400 annually on streaming and video. The cost of utilities varies widely by state, and Nationwide estimates that the average cost is $2,060 annually. All combined, this is about $10,000 per year in spending, which yields $400 cash back at a 4% rate. So if this is you, the NIH Cash Rewards card basically has a $100 sign-up bonus compared to the normal 3% rate. Not a good deal.
The card also has 0% APR for 15 months. This is best for purchases, since balance transfers incur a 2% fee (or $10, whichever is greater).
OTHER BENEFITS OF THE CASH REWARDS CARD
Visa Signature benefits, including:
- Travel accident insurance
- Lost luggage insurance
- Extended warranty protection
- 24/7 Visa Concierge
We weren’t able to immediately find out the details of this card’s full Visa Signature benefits.
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
Membership to this DC-based credit union is required to apply for their cards. Anyone can join, however, with a small donation of $1 to $15 (depending on the route you take). Their website states “Membership is now available nationwide and beyond just those in the healthcare/biomedical industries.”
It isn’t worthwhile to use their savings account, given the low rates. 0.01% APY (as of November 2022) is terrible, especially considering how many institutions offer close to 3% APY now.
The credit union also has some poor consumer reviews.
MAXIMIZING REWARDS WITH THE CASH REWARDS CARD
Points are unlimited and worth $0.01 each. We aren’t aware at this time of any particular strategy to maximize points for higher redemption options. There are multiple options though: cash, travel, gift cards, etc.
Restrictions when redeeming points for travel: “Unless otherwise noted, airline reservations must originate from the contiguous 48 United States, must be made 21 days in advance of travel, require a Saturday night stay and may have restrictions, blackout dates and exclusions.”
Unused points expire after 4 years.
Utilities/streaming is a fairly broad category. It includes “Cable, Satellite and Other Pay Television/Radio/Streaming Services” and “Electric, Gas, Water, and Sanitary.”
ALTERNATIVES TO THE CASH REWARDS
For gas expenses, a few cards get above 3-4% back, including the Abound Credit Union Visa Platinum and Citi Custom Cash. If EV charging matters to you, then PenFed Platinum Rewards is likely best. Rideshare and taxis are usually a “travel” category.
Citi Custom Cash is generally the best option for groceries. For wholesale clubs, the best cards include NIH Cash Rewards and the Venmo Visa.
The best cards for streaming include the U.S. Bank Altitude Go, U.S. Bank Cash+, and Max Cash Preferred. The latter two are also good for bills and utilities.
Some people might like the American Express Blue Cash Preferred. Despite the annual fee (usually waived the first year) it earns 6% back for groceries and streaming, plus 3% on gas and transit.
With all other purchases, you’ll want to get at least 2% cash back. There are dozens of cards which do this now, so NIH getting 1% back for “other” transactions isn’t a good deal. Our top picks include the Alliant Cashback Visa, Penfed Power Rewards, and SoFi Mastercard. If you spend at least $300-400 annually on travel, the Capital One Venture X is effectively a no-fee card for travel expenses and “other” purchases.
CONCLUSION
The NIH Federal Credit Union Cash Rewards Visa Signature is best for expenditures at wholesale clubs and on utilities. Other cards can outperform in its other categories. However, NIH does have a lot of useful categories on a single card. This lightens wallets and a 3% cash rate is standard. An unlimited earn rate helps. Most comparable cards have spending limits.
The main downside is that the sign-up bonus is poor. Short-term earnings with this card are questionable, especially for churning-minded people. Long-term, this card is decent.
We rate the NIH Cash Rewards card 4 out of 5 stars. ⭐⭐⭐⭐
Note: This review was last updated in November 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!