Navy Federal ups rewards on cash back credit card

Editor’s note: This article was written by Nick Cole and originally appeared on Clark.com.

One of Navy Federal Credit Union’s most popular credit cards is getting a new rewards system.

Effective this week, the Navy Federal cashrewards credit card is offering more everyday cash back rewards. This card is one of the five in Clark Howard’s wallet, so we wanted to make sure you knew the details.

The standard cash back rate on everyday purchases has increased from 1.5% to 1.75%.

You will need an active Navy Federal checking account (with direct deposit) to get this enhanced cash back rate.

According to a Navy Federal representative, this increase will affect both new applicants and select existing cardholders: “Members who already have the card and have direct deposit set up with Navy Federal will be automatically upgraded to the new rate, and new card holders who already have direct deposit will qualify for 1.75% cash back.”

This increase moves the cash back returns from this card ahead of other popular offerings such as the Capital One Quicksilver and the Chase Freedom Unlimited; they both offer 1.5% back on everyday purchases. However, it still falls short of the everyday 2% you can earn with the Citi Double Cash, Fidelity Rewards Visa and several other credit cards.

As part of this card rewards refresh, the Navy Federal cashrewards card also will see an increase in its welcome bonus offer for new applicants.

New users will be eligible for $250 in bonus cash back if they spend at least $2,500 within 90 days of opening an account.

That’s a $100 increase for this card’s welcome bonus. The previous welcome bonus offer was for $150 bonus cash back when you spend $2,000 within 90 days of account opening.