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.
