3 Best Debit Card Perks Available

When most people think of spending perks, they assume the only way to get them is with a credit card. However, that's not true! While rare, some debit cards offer impressive rewards.

Modern banking has stiff competition, and many financial institutions provide perks to lure customers in. They get your business, and you reap the rewards of everyday spending.

So, what types of debit card perks are available?

Automatic Discounts

Here's a reward type you're most likely to see offered with a debit card for college students. However, many banks are also offering discounts to standard account holders.

The perk is simple. Your bank strikes a deal with a specific retailer, allowing you to claim an automatic discount whenever you shop there. Discounts typically last for a particular period, such as a month or quarter. You get a deal if you use the debit card for that purchase.

You usually pay the full price upfront before receiving the discount as cash-back. However, it all depends on the bank and card. For student cards, you may get this perk when shopping from your school's bookstore, local coffee shops, etc.

Cashback Rewards

Cashback is a sought-after perk that can add up for long-term savings. Generally, the cashback percentage isn't as high as you would get from a credit card company. But the perk is valuable nonetheless.

Sometimes, banks offer cashback rewards on every purchase. But the most common scenario is getting a percentage with specific spending categories or retailers. What qualifies may change throughout the year, so check out your card's rewards center to see what's available.

Fee-Free Banking

Many people overlook this perk, but it makes a big difference. Most banks charge monthly maintenance fees. With this reward, those fees are non-existent.

This reward is most common when you get a debit card for college students. In addition to waiving monthly maintenance costs, these cards may waive overdraft fees or the cost of using ATMs.

It doesn't seem like much, but freeing yourself from fees can lead to big long-term savings.

Read a similar article about resources for student loans here at this page.

How Does Cashback Rewards Work?

Cashback is one of the most sought-after perks for credit and debit cards. Many banks and lenders offer cashback rewards in some form. It's becoming so popular that many use these rewards to gain a competitive edge. As a result, you can easily shop around and find the best program for you.

But how does cashback work?

Cashback 101

The best way to look at cashback rewards is to think of them as a more modern version of old-school rebate programs. You pay full price for your items using your cashback debit card or credit card as you normally would. But for every qualifying purchase, you receive a small percentage of the purchase price as a refund.

It's a simple concept, and you can usually earn cashback quickly. Banks and card providers reward them at the end of every statement cycle. Some even provide cashback on qualified purchases weekly or daily!

Qualified Purchases and Spending Categories

So, what purchases are eligible for cashback rewards? Well, that depends on your bank. Here's where cashback programs can vary.

Generally, your provider will restrict what types of purchases count towards the rewards program. For example, some banks limit cashback to dining or entertainment expenses. Others provide it for fuel or groceries. Some provide cashback for multiple spending categories, but how much you can earn varies.

You may also see rewards programs that offer extra cashback for purchases with specific partners. Many providers have rolling spending categories and extra-earning opportunities, giving you new ways to earn every few weeks.

How Much Cashback Can You Earn?

There are many different types of cashback debit card and credit card options. More exclusive cards typically provide higher cashback rates. Some of the best offer up to 5 percent on qualifying purchases!

You can also find cards that offer cashback on every purchase. However, the rate is often lower when there are no specific spending categories to worry about.

Providers can reward cashback in a couple of different ways. They may come as points that you can redeem for travel or prizes. Others treat cashback as refunds that go back into your account.

Read a similar article about debit card for building credit here at this page.

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Guide to the Different Types of Rewards a Debit Card Can Offer

Looking for a debit card with rewards? You have several unique options! In the past, debit cards were nothing more than a way to spend what money you had in your checking account. But with so many banks vying for your business, rewards are how providers stand out.

Here's a guide on the types of debit card rewards you can get.

Cashback Rewards

Who doesn't love cashback? You may already know how this works if you have a credit card. The debit card provider gives you a small portion of your spending as a cash reward.

Cashback rewards may only be available for specific types of purchases depending on the bank. For example, you may get a percentage back for groceries or fuel. Whatever the case, the rewards aren't as big as what you get with a credit card. But these perks can add up over time.

Points

Point reward systems are an alternative to cashback. Instead of getting a percentage as a cash reward, you accumulate points with your spending. Like before, banks might have limitations on what spending categories qualify. Point values can also vary. For example, some cards have one point for every dollar you spend, while others offer one point for every five bucks.

Those points accumulate over time, and you can use them on various prizes. They could be gift cards to stores you love or miles when booking your next vacation.

Miles

Here's a common reward you see with credit cards, but some banks offer it for debit cards, too. Earning miles is similar to earning points. You may get a set number of points per dollar you spend. Some banks also apply spending categories on top of that, so there are limits to how you can earn these perks.

These debit cards are usually best for frequent travelers. You can earn discounts on travel bookings, gain entrance into lounges and more.

Discounts

Finally, we have relationship discounts. This debit card with rewards is one of the most common. Banks forge relationships with specific companies and retailers. Because you have a debit card with the bank, you can get great discounts whenever you spend at those selected stores or online shops.

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