Best Debit Card Rewards Programs | Banking Advice 2022

Choosing debit over credit is easy for some people. With a debit card tied to your checking account, you’re using your own money, so you don’t pay interest or run the risk of carrying a balance that could develop into debt. But a key feature that many debit card users overlook is the chance to earn rewards.

Now, some banks offer debit cards to earn rewards, making debit cards more attractive to consumers who want to avoid using credit cards. Top rewards debit card choices include:

Debit cards can be an easy way to earn rewards, but think twice before you sign up for an account: Fees and limits can reduce the value of rewards.

Credit card issuers offer substantial rewards for signing up and high reward rates for daily spending to incentivize people to sign up and use their cards regularly. With debit cards, however, finding a bank or credit union willing to give you cash back, points or miles every time you swipe your card can be difficult.

Debit cards that offer rewards will often not offer the same value as a credit card. However, getting up to 1% cash back on every purchase could be a sign of cake if you already plan on using your debit card.

“Debit cards offer valuable rewards programs because they don’t come with the debt-related downsides of credit cards,” said Jackie Beck, creator of the Pay Off Debt app. “If you use debit cards regularly for purchases, they can be a great way to get some extra benefits.”

Steven Donovan, a financial coach and founder of Even Steven Money, added: “For consumers, it’s a simple way to use the money in your checking account and still earn rewards without losing money. no need to add another account to the mix.”

However, not all debit card rewards programs are created equal, so review the terms and conditions as you compare your options. For example, some cards may limit how much you can earn each month, and others may only offer rewards for certain types of transactions.

Some cards may charge a monthly or yearly fee for the rewards program or the account, which means you have to spend a certain amount just to break even. In general, the simpler and more inclusive the rewards program, the better.

Also, remember to see what else your bank or credit union has to offer that can add value to your banking experience. That could include an extensive branch network with convenient locations and multiple ATMs.

There is no best debit card for everyone, so knowing what you want out of a debit card and your overall spending habits is important. And while debit card rewards programs typically don’t charge fees, the checking accounts attached to them may.

“Consider the possible fees associated with having a checking account,” says Beck. “Make sure it’s worth the cost and that you’ll actually take advantage of the benefits the rewards program has to offer.”

If you’re looking for a debit card with a rewards program, US News recommends the following options:

Discover Cashback Debit

Discover offers 1% cashback on the first $3,000 you spend each month with your debit card. Some limitations apply. For example, you don’t get cash back for ATM transactions, money orders or other cash equivalents, cash for point-of-sale transactions, peer-to-peer payments, loan payments or funding accounts. another check with your debit card.

You can redeem your cash as a credit to your checking, savings, or money market account. Or, if you have a Discover credit card, you can transfer your debit card earnings back to your credit card’s rewards account, giving you access to more redemption options.

Discover debit accounts don’t charge fees, so you don’t have to worry about earning enough rewards to cover the cost of your card.

Discover’s biggest drawback is the lack of bank branches. Free withdrawals from over 60,000 ATMs nationwide. But unless you live near Greenwood, Delaware, where the bank’s only branch is located, your questions and concerns should be handled by phone.

Axos Bank Cash Refund Check

Formerly Internet Banking, USA, Axos offers up to $2,000 per month with up to 1% cashback on qualified signature-based transactions. In other words, you will need to choose credit instead of debit on the vending machines to earn rewards for trading.

Here’s why: Supermarket, supermarket, grocery, wholesale, discount stores, U.S. Postal, and other financial institutions purchases or money transfers are not eligible for refunds. money. The same goes for any purchase using a virtual wallet, remittance service, or similar technology.

To qualify for the 1% bonus rate, you must maintain an average daily balance of at least $1,500 in your checking account. If the average falls below that threshold, you’ll only earn 0.5% cash that month.

All rewards you earn with your cashback debit card will be paid as a deposit to your Axos Bank CashBack Check account. Axos Bank is also a digital bank and has no physical branches.

American Express Offers Refunds

This card is a prepaid debit card rather than a traditional debit card, so it is not tied directly to a checking account. Instead, you top up the card through direct deposit, wire transfer, and other ways, and you can spend it until it runs out.

American Express Serve Cash Back offers unlimited 1% cashback, with no restrictions on the type of purchase or the merchant. But a $7.95 monthly fee applies — except in New York, Texas, and Vermont — so most users will need to charge at least $795 per month to break even.

Since the card isn’t tied to a traditional checking account, it may not be a good choice for people who want to have all of their banking under one roof. There are also no bank branches where you can get help if you need it.

SunTrust Bank SkyMiles World Debit Card

If you’re looking for travel rewards, this card is deliverable. It offers 5,000 bonus miles after your first signature or PIN-based purchase, plus up to 1 mile per dollar on PIN or signature-based purchases. You’ll earn extra miles when you buy Delta.

The percentage of rewards you receive depends on the type of checking account you have with SunTrust Bank. If you have a SunTrust Advantage Czech account, you’ll earn 1 mile for every $2 you spend on qualifying purchases. If you have a SunTrust Exclusive checking account or a Signature Advantage checking account, you will earn 1 mile for every dollar.

The card has a earning limit of 4,000 miles a month and an annual fee of up to $95, net worth limit. But you can get quality at a discounted rate based on your balance and relationship with SunTrust.

The SkyMiles World Debit Card is only available to residents of Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and Washington, DC New cardholders can access brick-and-mortar branches .

PayPal Business Debit Card

If you’re a business owner, the PayPal Business Debit Card might be worth considering. The card offers unlimited 1% cashback on signature-based, online and phone transactions processed by Mastercard. You will not earn rewards for purchases processed over the debit network – whether they are PIN based or not – cash withdrawals and cash advances.

One downside to the card is that it’s tied to your PayPal account instead of a traditional business checking account, so you’ll need a balance there to use a cashback debit card. In addition, PayPal is an online service with no physical branches.

Your local credit union

In addition to debit card reward programs from major financial institutions, some credit unions offer rewards when eligible members use their debit cards.

If you want a checking account with a local branch or prefer a credit union to a bank, check your area to see if there is a debit card rewards program that offers it. If you find more than one bonus, compare reward rates, limits, and other terms and conditions before you settle.

Unless you’ve had a bad experience using a credit card or have trouble with overspending, opting for a credit card over a debit card may still be worth it. Many credit cards not only offer better rewards programs, but also come with other benefits, including better fraud resistance.

“They are governed by the Fair Credit Payments Act, which limits your liability for unauthorized charges to $50,” says Beck.

And often credit card issuers do not provide fraud liability to users. Otherwise, your liability for debit card fraud may be unlimited depending on when you report it.

Other benefits of a credit card may include:

Credit cards are not for everyone. But if you’re a disciplined spender and want to get more value out of your daily spending, take the time to compare all your options to find the one that works best.

If you prefer a debit card, be aware of switching from a current checking account if you’re switching to an account that earns rewards. “Not only recurring payments like a cell phone, but also installment loans like a car or mortgage need to be carried over to your new account,” says Donovan. “Keep in mind that this will also happen with direct deposits from your employer.”

Many banks offer conversion kits that can help you convert.