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Capital One Launches New Dining Rewards Card

Update: Barclaycard has announced a partnership with Uber. Starting 11/2/2017, Barclaycard will be offering a card that provides 4% cash back on dining rewards.

Capital One has launched the Savor card in an attempt to attract the hearts of foodies everywhere. Offering an unlimited 3% cash back on dining out and 2% cash back on groceries, this card is all about the eats. With no annual fee, the card is uniquely positioned to be a millennial favorite. But, like mermaid frappuccino, it may just be a flash in the pan. 

Even a contestant on Hell's Kitchen could figure out how to master this card's rewards technique. You'll earn 3% cash back on all dining purchases, 2% on groceries, and 1% on everything else. There is also a welcome bonus for new customers. You'll receive a $150 bonus after spending $500 in the first 3 months of account opening. Rewards can be redeemed at any time. There is no minimum to redeem, which is a nice plus. .99 cents in rewards? Go get yourself some spicy chicken nuggs from Wendy's!  

Savor does have some unique options to help you save some additional cash. For example, it doesn't charge a foreign transaction fee, which will save you some fees when you take your next trip to France to perfect your palate. It's somewhat rare for a no annual fee card to offer no foreign transaction fees, but common practice for Capital One. The card also comes with Capital One Second Look, a free alert service that will notify you of unusual spending patterns. This could include a repeating charge that goes up from one month to the next, a duplicate charge in close proximity, or a high dollar charge outside of your normal spending habits. If you forgot to cancel your Blue Apron subscription after you realized you can't cook regardless of the instruction level, Capital One would let you know the price went up after the intro rates expired as a reminder.

This card is a solid option for those that dine out frequently, but also want to avoid an annual fee. There are some better options out there otherwise. We'd recommend that you have a flat rate 2% earning card in your wallet if you're going to carry this card in order to maximize your non-food spend. The extra 1% on dining might not seem like a ton, but according to Eater, Millennials are spending $174 a month on dining out. That's an additional $20.88 a year in rewards. The fact that you're not paying an annual fee makes this $20 a no brainer. It won't buy you this $295 burger, but it'll make your wallet a bit happier. You'll also start building a relationship with Capital One, which could come in handy later if you decide to purchase a home or a new car. Capital One is a major player in the financial lending space and it never hurts to have an existing relationship.

A Penny for Our Thoughts: The Savor card is kind of interesting for those that do a fair amount of dining out and are looking for a no annual fee card. We probably wouldn't recommend this as a standalone product, but when coupled with a 2% flat rate card you'll help make your penny jar a bit tastier.