Will I earn more rewards if I pay an annual fee?
It depends, but generally the answer is yes. Here’s a breakdown of how a few annual fee and no-annual fee Capital One cards compare when it comes to rewards.
| Capital One VentureOne Rewards Credit Card | Capital One Venture Rewards Credit Card | |
|---|---|---|
| Annual fee | $0 | $95 |
| Miles | 1.25x miles on all purchases. | 2x miles on all purchases. |
| Signup bonus | 20,000 bonus miles after spending $500 in the first 3 months | 60,000 bonus miles after you spend $3,000 in your first 3 months of account opening. |
| Intro APR period | 0% intro APR period on purchases for the first 15 months, a variable APR of 14.99% to 24.99% thereafter | N/A |
| Miles earned with a $2,000 monthly spending | 30,000 miles annually | 48,000 miles annually |
| Total miles for the first year if you clear the signup bonus | 50,000 miles (around $500 value when redeemed for travel) | 98,000 miles (around $980 value when redeemed for travel) |
| Total cash back for the first year if you clear the signup bonus | $726 | $972 |
| Capital One SavorOne Cash Rewards Credit Card | Capital One Savor Cash Rewards Credit Card | |
|---|---|---|
| Annual fee | $0 | $95 |
| Cash back | 3% cash back on dining and entertainment, 3% at grocery stores and 1% on everything else you buy | 4% cash back on dining and entertainment, 2% at grocery stores and 1% on everything else you buy |
| Signup bonus | $200 cash bonus after spending $500 in your first 3 months | $300 cash bonus after spending $3,000 in your first 3 months |
| Intro APR period | 0% intro APR period on purchases for the first 15 months, a variable APR of 14.99% to 24.99% thereafter | N/A |
| Cash back earned with monthly spending of $800 on dining $800 on groceries $800 on all other purchases | $576 annually | $672 annually |
| Capital One Quicksilver Cash Rewards Credit Card | Capital One QuicksilverOne Cash Rewards Credit Card | |
|---|---|---|
| Annual fee | $0 | $39 |
| Cash back | 1.5% cash back on all purchases | 1.5% cash back on all purchases |
| Signup bonus | $200 cash bonus after spending $500 in your first 3 months | N/A |
| Intro APR period | 0% intro APR period on purchases for the first 15 months, a variable APR of 14.99% to 24.99% thereafter | N/A |
| Cash back earned with a $2,000 monthly spending | $360 annually | $360 annually |
| Total cash back for the first year if you clear the signup bonus | $510 | $360 |
In the case of the Venture and Savor cards, paying an annual fee nets you a higher rewards rate on eligible categories. But as you can see in the Quicksilver comparison, paying an annual fee has no bearing on your annual cash back earned after the first year. Instead, the annual fee is something of a “penalty” or buy-in for those who have fair credit.
