A poster on FW has spotted what appears to be a credit card offered by his local credit union that effectively gives 1.66% cash back. He describes it in this thread.

The noteworthy feature of the credit card is that it earns points in the credit union’s reward program at the rate of 1 point per $1 spent. The points can be redeemed at the rate of 6000 points for a $100 gift certificate–essentially, a 1 2/3% return. There are gift cards available from numerous merchants, but the most flexible redemption option is where 6000 points can be redeemed for a “$100 Visa Dreamfunds Gift Card.” As described:

The Visa prepaid gift card can be used virtually anywhere. There are no limits on what you can do with your DreamMiles Funds card. Please note that the card will have the name of the person who orders it embossed on the card. All cards will be sent to the address on the order. Accepted wherever Visa cards are accepted. Delivered as 2 x $50.00 cards. Cards expire 6 months from date of issue. Valid for use in the United States only, cannot be shipped outside of the U.S.

The membership requirements for the credit union are lax, as one option to assure eligibility is to pay a one-time fee of $10 to join a local co-op. Kinecta only has locations in southern California, however, and if you aren’t local, it may be too much hassle to join solely for a rewards program, the longevity of which is not guaranteed. In addition, the gift certificate redemption options, while flexible, are not as convenient as a statement credit or a check.

Still, some may want to consider this option, as it does offer one of the highest rates of cash back available.

More details on Kinecta’s credit cards can be found here.