Updated April 13, 2016.

The Facts

• Annual Fee: $25 with the first year waiver for Standard; $0 for Plus which requires one of the following relations: Active checking account with direct deposit ($250 min.), Equity Loan or Equity Line of Credit, Money Market Certificate or IRA Certificate, Thrifty Credit Service, Mortgage, Personal Line of Credit, Installment loan, or Money Market Savings Accounts.

• Signup Bonus: $100 after spending $1,500 within 3 months of new account opening.

• Application Landing Page

• Rewards: 3% (for Standard) or 5% (for Plus) on gas, and 0% everywhere else

• Other Benefits: waived foreign transaction fees with an embedded EMV chip for foreign travel.

• Other Facts: There are a couple of ways of joining PenFed (Pentagon Federal Credit Union) - even if you don't qualify for most options, you can still pay $20 to join National Military Family Association which is open to everyone. This card is issued as a regular Visa (Visa Platinum), and there is another similar product called "PenFed Platinum Rewards Visa Signature" which is generally a better card.

• History: After the card was introduced, 5% on gas without an annual fee made quite a few non-members joined PenFed just to have this card. PenFed dropped the cashback rate on general spending from 1% to 0.25% in February 2012, and finally to 0% in 2013. Also in 2013, PenFed started requiring additional banking relation to maintain 5% on gas and the annual fee waiver. This move made the card unattractive to most consumers.

The Math
PenFed Platinum Cash Rewards Visa vs. PenFed Platinum Rewards Visa Signature: When you qualify for Plus level by having the required banking relation with PenFed, Cash Rewards Visa returns 5% on gas and 0% on other purchases, without an annual fee. On the other hand, the Visa Signature doesn't require banking relation and is also annual fee free. The Visa Signature returns 4.25% on gas, 2.55% on groceries, and 0.85% on other purchases, and offers better travel perks and coverage as being a higher level of Visa card. Thus in general, the Visa Signature is a better card.

The Conclusion
​While unlimited 5% on gas is still attractive, the required banking relation makes this card not an easy choice. We recommend checking out PenFed Platinum Rewards Visa Signature for better rewards, perks, and coverage.