In addition to the 1% cash back, you can earn an extra 25% on the cash you've earned at the end of the year. So this can make it into a 1.25% cash back. Few other nice features of the cash back include: no limit on the cash back, it won't expire for the life of your account, and you can request the cash-back reward whenever you want. The one downside is that CapOne does a hard credit pull from all three credit bureaus (according to a few people in this FW thread).
For those in Central Texas, Capital One still has a good deal on a free checking account with a guaranteed 5% APY for 1 year (see post).