You get the promo 5% up to the maximum spend. Then the regular rate after. I think you have to spend $3,000 before the regular rate hits 1%.

I have held a Discover since it was a Sears card. Their rewards used to be more generous. Then it was my primary card. Now, I only get it out for the 5% promo, and put it away as soon as I hit the spend max.

You can redeem Discover dollars at a 1.2 to 2.0 to 1 ratio for gift cards at partner sites. This used to have better partners. The only one I currently care about is Crutchfield.