You don’t have to use a credit card to earn rewards on your daily purchases. Some banks reward debit card users with cash back, miles or points.
Online banks such as Bank of Internet USA offer debit card rewards programs. Brick-and-mortar banks such as SunTrust and Bank of America offer them, too.
Discover recently beefed up its debit card rewards and expanded its program so any customer could participate. Customers who open a cash-back checking account can earn 1 percent cash back on up to $3,000 in qualifying debit card purchases every month. Previously, customers earned 10 cents for every debit card purchase, online bill payment and written check, up to $10 per month.
Few people would complain about making extra money just for using a debit card. Despite the allure of debit card rewards, however, they may not be as valuable as you think they are.
Debit card rewards often pale in comparison to what consumers can gain from using a rewards credit card. Customers typically earn 1 percent cash back on debit card purchases. With some of the best rewards credit cards, cardholders can potentially earn as much as 6 percent cash back.
Similarly, it’s possible to earn two points or miles for every dollar spent with a rewards credit card. In a number of debit card rewards programs offered by banks, you might have to spend several dollars in order to earn a single point or mile. At Key Bank, for example, customers earn 1 point for every $6 spent on qualifying debit card purchases.
