While I’m a big proponent of using cash as much as you possibly can, if you’re going to use a debit card for online purchases, to pay bills or to buy gas, you might as well earn rewards, right? Lori has some helpful information in her post below on how to get the best bang for your buck when it comes to debit card rewards programs. As always, though, remember that you’re not saving money if you spend extra just to get the rewards! -Crystal
Guest Post by Lori at Moms by Heart.
Looking for another way to stretch your dollars? Put your checking account to work for you! Here are a few banks that offer special rewards programs for debit cardholders. Each program is different, so be sure to factor in fees, minimum balance requirements (where applicable) along with ATM locations if this will be a primary account for you. Stop over here for a printable spreadsheet summary.
Chase — Ultimate Rewards Debit Card
How It Works:
Earn 4 points for every $5 in signature purchases (aka: non-PIN purchases). 2,500 points = $25 gift card to various retailers like: Amazon, Bath & Body Works, Kohl’s and more. Check them out here.
What You Need:
Chase Ultimate Rewards Checking Account — details here.
What’s It Worth To Me: $75 per year
If I spend $1,000 a month in signature purchases, I’ll earn 800 points per month or 9,600 per year. That’s nearly enough for $100 in free gift cards. Since there is a $25 annual fee, my net will be $75 per year. Doing my online shopping through the Chase Ultimate Rewards Mall will earn me up to 10 bonus points per dollar spent. Cha-ching.
Other Chase Rewards Programs:
::Chase Debit with FREE rewards (no annual fee, but only 1 point per $5 spent)
::Continental Airlines Debit
::United Mileage Plus Debit
Wells Fargo — Check Card Rewards
How It Works:
Earn 1 point for every $4 in Signature purchases. 650 points equals $5 account credit or $5 gift card to various retailers including Amazon. Earn up to 16 points per dollar for shopping at the Wells Fargo Earn More Mall.
What You Need:
Wells Fargo Checking Account and Check Card. Looks like fees may vary by state. In Texas, they offer a free checking with no minimum balance and no monthly fees.
What It’s Worth To Me: $18 per year
If I spend $1,000 a month in signature purchases, I’ll earn 250 points per month or 3,000 points per year. $25 cash or $25 gift cards run 2,500 points. So, the approximate yearly value is around $30. Since there is a $12 annual fee, my net will be $18 per year.
Bank of America — Keep the Change
How It Works:
Your debit card purchases are rounded up to the next dollar amount and the difference is deposited into your savings. The best part? They match your savings 100% for the first three months, and 5% for the next nine months (maximum of $250 per year).
What You Need:
::Bank of America checking account with debit card — details here.
::Bank of America savings account — details here.
What’s It Worth To Me: $69 per year for the first year, $12 per year thereafter
This will vary. Check out this page to input your info. I assumed 40 debits per month of $50 each ($1,000) with average “change” of $0.50. That gave me $69 per year in bank savings matches. Since Bank of America matches your savings 100% for the first three months, this amount is not typical. No annual fee.
Other Bank of America Rewards Programs:
::US Airways Debit
::Nascar Racepoints Debit
Citi — Thank You Rewards
How It Works:
Earn 1 point for every $2 qualifying signature purchases and 1 point for every $3 PIN purchases. You’ll also earn bonus points based on the type of checking account you have along with other Citi services you’re enrolled in. 8,000 points = $50 cash or $50 Citi Gift Card.
What You Need:
::Citibank Checking Account — There are no monthly fees as long as you keep an average balance of $1,500 (EZ account). Details here.
What It’s Worth To Me: $37.50 per year
If I spend $1,000 a month in signature purchases, I’ll earn 500 points. In one year, that adds up to 6,000 points. There are various $25 gift cards available for 4,000 points, so the approximate value is $37.50. There are no annual fees. However, the deal is killed by the possibility of monthly fees if I go below $1,500 average balance.
Stack Your Savings
Once you’ve selected the best program for you, you can stack your savings by:
- Linking your debit card to other rewards programs like the Target Red Check Card, Upromise, gas or grocery rewards programs
- Using your debit card to make online purchases through cash-back sites like ShopAtHome and Rakuten (formerly Ebates).
- Purchasing rebate items!
Lori is a nurse and mom to five who shares all her frugal finds over at Moms by Heart!