Editor’s Note: This post was updated Oct5th, 2010 at 7:00 p.m. EST to clarify some details I misunderstood about the PerkStreet Financial holiday promotion.
For the last several months I’ve been hearing about PerkStreet Financial and their cash back debit card.
My first reaction – what?! A bank that encourages you to spend, not save! Then I realized that we spend money all the time, and so if we can get a sweet added bonus of cash back, then that’s cool too. This is an especially good opportunity for you non credit card users. I’ve been a proponent of credit card rewards, so the fact that debit card users have a reasonable rewards program is good news.
Still, even though I thought that PerkStreet has some cool features, I figured I wouldn’t bother posting about it because you can read about them on thousands of other blogs. I was happy to get my 1% debit card cash back from ING.
Then I got an email.
The email introduced the PerkStreet Holiday campaign.
PerkStreet Customers: Additional 5% Cash Back Debit Card Purchases
As a part of this promotion, PerkStreet customers will earn an additional 5% cash back when they use their debit card for all non-PIN debit card purchases at select retailers.
So where can you get an extra 5% cash back debit card use?
You must sign up for an account by 11/15/2010 and make purchases by 12/31/2010.
So here’s the deal. Shop at Best Buy (or any of the stores listed above) for your Christmas presents. Spend $100, and you’ll get $5 cash back for using your debit card for all non-PIN purchases. Pretty sweet, eh?
Here’s what the folks at PerkStreet say:
Please be sure to keep in mind that this holiday bonus offer is ON TOP OF the standard PerkStreet product, which is:
- 2% cash back for 3 months
- Earn 2% cash back on every non-PIN purchase when your balance is $5,000 or more or earn 1% cash back for balances below $5,000. Either way, you won’t find another bank in America that gives you more rewards on debit.
- We’ll be announcing other special opportunities to earn up to 5% throughout the year.
And PerkStreet’s cash back is definitely better than most debit cards. The average debit card offers .04% rewards vs. PerkStreet at 1%. 17% of debit cards offer rewards (Source: BAI/HItachi 2008 Study of Consumer Payment Preferences).
If the average reward offers .04% in rewards then this cash back debit card rewards bonus is a very, very good deal for customers.
What you need to know about PerkStreet:
- They are an online bank.
- They are FDIC insured.
- The do not offer any interest, but cash back instead.
- They have a good list of free services – free PerkStreet Financial Visa debit card, free checkbooks, free online banking and bill pay. PerkStreet even claims that “no other bank gives you more free ATMs than we do – 37,000 nationwide”.
- There is a $4.50 account inactivity fee if you don’t use it within a month, but most people will use their cash back debit card at least once a month.
Notes: I do not currently have a PerkStreet account so I have no personal experience with them. This post does contain affiliate links for PerkStreet Financial.
Anyone already using PerkStreet? Reactions?