Wells Fargo rolls out no-annual-fee Active Cash Credit Card with 2% cash rewards and $200 welcome bonus

The offer mentioned below for the for the Citi® Double Cash Card is no longer available.

Wells Fargo launched the Wells Fargo Active Cash® Card in July 2021, which has no-annual fee and earns a flat 2% cash rewards across the board. This card comes with a generous welcome bonus of $200 cash rewards after spending $500 in purchases within the first three months of card opening.

The Active Cash is a good option for individuals interested in a cash-back card with no annual fee and no rotating bonus spending categories that require activation. The Wells Fargo Active Cash^® Card offers also offers a 0% APR introductory period for 12-months from account opening on purchases and qualifying balance transfers (then, a 18.49%, 24.49%, or 28.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5).

With the launch of the Active Cash Card, Wells Fargo is making a renewed push into the credit card space. While Wells Fargo is the number 2 issuer of debit cards in the U.S., it has long lagged behind in number of credit card accounts compared to other large retail banks like, JPMorgan Chase and Citigroup.

The Active Cash Card competes directly against the Citi® Double Cash Card, which offers 2% cash back (1% when you purchase and 1% when you pay) and a 0% introductory APR period for 18 months on balance transfers (after, variable 17.74% - 27.74%).

The biggest difference between the two products is that that Citi Double Cash does not offer a welcome bonus, while the Active Cash Card has launched with a $200 cash rewards for new applicants. The Active Cash also offers perks like cell phone protection if you use the card to pay your cell phone bill.

The Active Cash Card may be a good fit for you if you don't want to keep track of certain bonus categories that other cards may offer (i.e. dining, groceries or gas) since it offers 2% cash rewards on all eligible purchases. It's also good for those who prefer cash back instead of airline miles and/or hotel points or people not interested in learning a different rewards program.

The cash rewards can be redeemed as a statement credit, through a Wells Fargo ATM by using a Wells Fargo debit or ATM card, as a direct deposit into a Wells Fargo savings or checking account or as a paper check. If you travel a lot internationally, this card might not be your best option because of the 3% foreign transaction fee.

Select calculated how many rewards the average American can earn in a year when using their Wells Fargo Active Cash Card. We worked with the location intelligence firm Esri, who provided us with a sample annual spending budget of $22,126. We found that, in the first year of card membership, the Active Cash Card earned $643 in cash back, including the cash reward welcome bonus. When subtracting the cash reward, the card would earn $443 on average based on the sample budget from Esri.

If you're interested in other cash-back cards, you may consider the Fidelity® Rewards Visa Signature® Card or PayPal Cashback Mastercard®. However, these cards don't come with some of the benefits offered by the Active Cash Card: neither card offers a welcome bonus or a 0% introductory APR period on qualifying balance transfers or purchases. They also both require that cash-back rewards be deposited into accounts associated with their respective companies.

To determine which credit cards offer the best value, Select analyzed popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.

Information about the Fidelity® Rewards Visa Signature® Card and PayPal Cashback Mastercard® has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.