While using a debit card occasionally rather than a credit card can be convenient, especially if you’re concerned about accruing debt, you’ll miss out on valuable credit card benefits if you do so.
You can receive rewards points without worrying about paying interest by using a debit card to make purchases and then earning cash back on them. However, there aren’t many and most debit card rewards programs aren’t very generous.
Before there were fewer regulations and banks could charge businesses more fees for debit card purchases, debit card rewards programs used to be considerably more common and offered better value. However those fees were limited by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and many of the best banks responded by ending their programs or reducing the benefits they offered after the reforms took effect in 2010.
You can still find rewards debit cards that give points or cash back, but if you can manage your spending and make sure to pay your bills on time, you’re probably better off with a rewards credit card.
Using the Discover Cashback Debit Card
Anyone can use Discover’s cashback debit card. It is possible to use a Discover card, which offers 1% cash back on up to $3,000 in monthly expenditures.
This equates to rewards that are automatically placed into Discover’s savings account each month up to a maximum of $30.
With no ATM withdrawal fees, you can use your debit card to access more than 60,000 ATMs nationwide. But, there is no cashback offered for money withdrawn from an ATM.
You must first register for a Discover online banking account before you can start using your Discover debit card to earn cash back. This is something you can do right now on Discover.com.
With no monthly maintenance costs, no fees for regular checks, free online bill payment, and no fees for stop payment orders, insufficient funds, or canceling your account, the account seeks to offer fee-free banking. Discover even offers you a free new debit card with expedited delivery if you lose your original.
Discover’s debit card cash back program is among the best accessible thanks to a fee-free bank account and the opportunity to earn cash back with a high spending cap.
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Card from Bank of America No.
Other cash-back rewards programs on this list operate differently than Bank of America’s debit card rewards. Only purchases made with your Bank of America debit card or credit card qualify for cash-back rewards when using the BoA card.
You must log in to your online bank account or use your mobile app to be eligible to receive cash back with BankAmeriDeals. Check out the available deals after logging in (with in mind that the cashback amounts may vary) and activate the ones you’re interested in. Next, use your debit card to pay for qualifying purchases to earn cash back, which will be automatically credited back to your account.
Simply sign into your account and select “See all Cash Back Offers” to access AmeriDeals, which are available to anybody with a Bank of America checking account. Depending on which BOA account you select, other terms and conditions of your account, like monthly charges and ATM access, may change.
The opportunity to take advantage of these programs that offer cash back can be appealing for current BOA users, even though you can’t earn cash back on every transaction as you do with the other cards on this list.’
Axos Cashback Checking
On all signature debit card transactions, Axos offers up to 1% cashback. But, you must keep an average daily balance of at least $1,500 to receive 1% back. If you are unable to keep this average balance, you will only receive 0.50% in cash back for the month.
You are only eligible for a maximum of $2,000 in cash back every month with the Axos debit card. If you have a debit card connected to a bank account that is FDIC-insured, you can get this cashback.
Axos Cashback Checking, one of the best checking accounts, also offers limitless reimbursements for ATM costs at any domestic ATM and has no monthly maintenance fees. Also, once your account is open, there is no minimum monthly balance requirement even though you must deposit at least $50 to open one. But, this account is the best option only for people who like to retain a substantial amount of cash in their account, as you need a high balance to get the maximum 1% cash back for debit card purchases.
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American Express Serve Prepaid Debit Card Cash Return
Instead of being a conventional debit card, American Express Serve Cash Back is a prepaid debit card that offers unlimited 1% cash back on all purchases.
The Amex card differs in that you are only able to spend up to the amount that is loaded onto your Serve card. But, there are a lot of cost-free methods available, such as direct deposit and transfers from a bank account.
Yet this card isn’t flawless. Depending on the store you select, adding cash to your card can cost you up to $3.95 for each transaction. Moreover, the Serve Cash Back card carries a $6.95 monthly fee in the majority of states.
The Amex Serve Cash Back can be a smart choice for you if you are unable to or do not wish to open a standard bank account. But, depositing money to your account can have high monthly fees and costs, so some people might prefer the other options on our list.
Four credit cards you can use to earn cash back. While it is possible to receive cash back using a debit card, you are typically only able to do so on a certain amount of purchases per month and at a very low percentage.
You’re probably much better off with a cashback credit card instead if you want to maximize the benefits you earn for spending. Many of these cards don’t restrict your rewards to just a few thousand dollars in monthly spending and offer more than 1% back, at least on some purchase categories. Also, there will be a lot more options available for cashback credit cards, so you should be able to pick one that fits your spending habits.
Further benefits that credit cards often offer over debit cards include enhanced fraud protection, travel or shopping privileges, sign-up bonuses for new cardholders, and the opportunity to raise your credit score through timely repayment.
The following credit cards provide comparable rewards with no annual fee if you’re willing to use a credit card to obtain additional cash back.
