By the Numbers: Perks of Cash Back Checking
One of the ways to make the most of your financial goals is to look for ways to earn cash back on your purchases. A good cash back checking account can help you better manage your money while you earn perks.
Let’s take a look at rewards checking accounts and consider some of their benefits.
4 perks of cash back checking accounts
When you use cash back checking, you gain access to certain benefits that you won’t always enjoy with a rewards credit card. While rewards credit cards can be a great fit in some cases, if you have a tendency to overspend, the interest you accrue may overshadow your credit card perks.
Rewards checking accounts, on the other hand, can offer cashback perks without the danger of racking up debt. Here are some of the benefits of cash back checking accounts.
1. Earn cash back with ease
Depending on the program, you could earn cash back quickly and easily. For example, SouthEast Bank’s Rewards Checking account offers $0.10 cash back for each qualifying debit card transaction of $1 or more.1
Additionally, with cash back checking accounts, you don’t have to worry about whether you qualify for top-tier rewards credit cards. With a credit card, you might not be able to earn rewards at the rate you’d like due to your credit history.
This is especially true for students who haven’t had the chance to build a credit history. SouthEast Bank’s EDU Checking account is a great rewards checking option for students, giving them the chance to earn cash back without carrying a credit card balance.2
2. Stick to your budget
When you use rewards checking accounts, you’re more likely to stick to a budget. Because credit cards are a form of revolving debt, it’s easy to spend beyond your means and rack up a balance. Debit cards, on the other hand, are connected directly to your bank account, making it difficult to overspend.
SouthEast Bank’s digital budgeting and spending tools are designed to help you create and stick to a budget. They can automatically track and categorize your debit card purchases, showing you where your money is going and helping you stay on track.
3. Reduce the chances of overspending
If you notice that your budget isn’t working, it could be because you’re overspending. Using a debit card can help you cut back, since it’s connected directly to your bank account. If you try to spend more than is in your account, your purchase will likely be declined.
With a rewards checking account, there’s an element of financial accountability that isn’t always there with a credit card. When you make use of a checking account, you can manage your money more effectively and reduce the risk that you’ll get in over your head with purchases.
4. Lower fees
Depending on the rewards credit card you choose, you could end up paying an annual fee of hundreds of dollars. Additionally, in order to get a rewards bonus with a credit card, you might have to meet a minimum spending amount, which can lead to overspending.
On the other hand, cash back checking accounts often offer ways to avoid paying such fees and you don’t usually need to meet minimum spending accounts.
SouthEast Bank’s Rewards Checking account includes perks like no minimum balance and no monthly service fee.3 Plus, if you’re enrolled in paperless billing, you don’t have to worry about a fee for paper statements.
How to maximize your cash back checking account
There are many rewards checking accounts out there, so it’s important to carefully think about what’s likely to work best for you and consider how you can maximize your cash back. Here are some tips for increasing your ability to get more out of your rewards checking.
- Use with your budget. Once you have a budget in place, use your debit card to make planned purchases. This can include everyday purchases like gas and groceries, as well as entertainment purchases like going to the movies.
- Sign up for autopay. Many utilities and memberships allow you to use autopay for bills. Use your digital banking and your debit card to schedule these payments. With this setup, you can receive rewards each time your card is used — and you don’t even have to think about it.
- Make use of mobile banking toolkits. Your bank might offer additional tools to help you better manage your money. If you can use bill pay to set up automatic payments, make use of a digital wallet connected to your debit card and keep track with budgeting tools, it’s easier to integrate your cash back rewards into your daily spending and budget. Look for a rewards checking account that includes budgeting tools and alerts that can help you analyze your spending and make sure you’re on track.
There are many ways to earn rewards for regular purchases and everyday spending. However, if you aren’t careful, you could end up overspending and wind up in debt.
One way to reduce the chances of this is to use cash back checking as part of your money management strategy. You can earn rewards for your purchases while reducing the chances that you will end up spending more than you planned.
1Enrollment in monthly eStatements is required to earn the $.10 cashback rewards. Qualifying transactions include point of sale or online purchases of $1 or more using the SouthEast Bank debit card. ATM and cash-only transactions do not qualify for cashback rewards. The Rewards Period begins on the first calendar day after the last business day of the prior month and ends on the last business day of the current calendar month. Regardless of the Statement Cycle, cashback rewards will be paid (credited to the account) on the 1st business day of each month. Unlimited check writing is subject to available funds. $3 paper statement fee is waived with a daily average account balance of $1200 or a daily average relationship balance of $10,000. A Non-Activity Fee of $2.95 will be charged for any statement cycle during which the average daily balance is $300 or less and there is no consumer initiated credit or debit activity. Fees may reduce earnings. Some fees and restrictions apply.
2Enrollment in monthly eStatements is required to earn the $.10 debit card rewards. Qualifying transactions include point of sale or online purchases of $1 or more using the SouthEast Bank debit card. ATM and cash-only transactions do not qualify for cash back rewards. The Rewards Period begins on the first calendar day after the last business day of the prior month and ends on the last business day of the current calendar month. Regardless of the Statement Cycle, Cash Back Rewards will be paid (credited to the account) on the 1st business day of each month. The primary account holder must be between the ages of 13-24. Customers over age 25 will be notified and moved into a Rewards Checking product. No monthly service fee will be assessed for account holders (e-statement required). Overdraft/Returned item fees may apply. Please see the full Fee Schedule for any other fees that may be imposed in connection with this account.
3A $2.95 non-activity fee will apply to accounts with balances less than $300 each month in which no credit or debit transactions occur.
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Information contained in this blog is for educational and informational purposes only. Nothing contained in this blog should be construed as legal or tax advice. An attorney or tax advisor should be consulted for advice on specific issues.