Cashback vs. Travel Rewards: Which Strategy Wins?

The eternal debate: simple cash back or complex travel rewards? Here’s the real comparison.

Cash Back: The Math

2% on $24,000/year = $480 guaranteed, no effort

Travel Rewards: The Math

3X points on $24,000 (mixed earning) = 72,000 points

• At 1¢: $720
• At 1.5¢: $1,080
• At 2¢: $1,440

Travel wins on potential, cash wins on simplicity.

Who Wins

Cash back wins if: You value simplicity, won’t optimize redemptions, or don’t travel much

Travel wins if: You’ll actually transfer points strategically, travel 2+ times per year, enjoy the optimization game

The Bottom Line

Travel rewards have a higher ceiling, cash back has a higher floor. Choose based on your personality, not just the math.