Up to 2% Cash Back With PerkStreet Financial Debit MasterCard
Update: PerkStreet Financial will be closing permanently and ceasing all business operations on September 26, 2013.
While 2011 has been an unprecedented year for credit card sign-up bonuses, the exact opposite has been happening with debit cards. In July we saw Continental discontinue all mileage earning on their Chase debit cards and most other mileage debit card programs are rumored to be ending soon. New financial regulations make debit card purchases not lucrative enough for the banks to make it worthwhile to give out points.
So what about all the people who can't get in on the lucrative credit card deals but still want to maximize their spend?
Most non-points debit cards give lousy rewards that usually amount to .5 cents to 1 cent in value back (usually via gift cards) for non-pin purchases. Red Lobster gift card anyone? However, I recently stumbled across the PerkStreet FinancialSM Debit MasterCard®, which gives a whopping 2% Cash Back when you have a balance of $5,000 or more in your free checking account, or 1% cashback if you have less than $5,000. Cash back is in the form of a MasterCard gift card, which isn't exactly cash, is pretty close and much better than a specific airline/restaurant/store gift card.
2% back is pretty incredible - even for a credit card. There used to be a Charles Schwab 2% cash back credit card that was hugely popular - even within the hardcore frequent flyer community, but it was eventually discontinued.
Beyond the 2% cash back, there is no annual fee, no monthly fees, a huge network of free ATMs and all money held is insured with FDIC (up to $250,000). They even have rotating categories/stores that offer 5% cash back, for example from August 1 to August 31, you'll earn 5% cash back on all non-PIN purchases at Textbooks.comSM, Chegg.com®, Half.com®, and the Apple® store (online and in-store; does not apply to iTunes purchases), as well as at Amusement Parks (purchases with MCC code 7996).
This card could be great for a college bound child who may not have the credit for a good rewards card (nor want to pay an annual fee), yet wants to get cash back. I can also see this being good for people with credit issues, because there is no hard inquiry on your credit when you open up a checking account/debit card. So while you get your credit rehabilitated, you might as well be earning valuable cash back.
Honestly, I can see people with excellent credit and even business owners getting this card and maxing out on the cash back. There are no limits on the amount of cash back you can earn, so if you've got a spend of $20,000 monthly (not uncommon for a business), you'd get you $4,800 cash back every year as long as your balance is over $5,000 a month. Not an insignificant amount of money!
Overall, I think this is a great option for people from all sides of the financial spectrum. While I found out about PerkStreet through my affiliate network, I did some research and they have a pretty impressive track record and seem to be gaining market share in the debit card space, while most other companies are losing. Check out articles like this NY Times piece or this Boston Globe interview with PerkStreet CEO Dan O'Malley.
Even if you can't afford the $5,000 minimum required to get 2% cash back, getting 1% cash back is much more valuable than getting 1% (or less) back in travel rewards/gift cards like most other debit card reward programs. Even the American Airlines Bank Direct account requires huge capital investments to earn any miles after the initial sign-up bonus.
[card card-name='Chase Sapphire Preferred® Card' card-id='22125056' type='javascript' bullet-id='1']
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.