A number of companies are offering interest bearing checking accounts, but the PerkStreet Interest Rate, which is 0%, may actually earn you more money than any rewards program. Instead of offering you an interest rate on the amount of money you keep in your account, PerkStreet Financial will reward you with 2% cash back on any purchases that you make with your debit card.
Although, debit cards have historically not offered great rewards programmed compared to their competitors in the credit card industry. With the recent implementation of the Credit CARD act and an anti-trust suit from the DOJ against Visa, MasterCard and American Express relating to the merchant fees they can charge, there’s a lot of reason to believe that debit card rewards programs will be much more in-line with what credit card rewards program offers.
If you’re not familiar with the PerkStreet Card, it’s a company that’s partnered with The Bancorp Bank to offer consumers a checking account and a rewards debit card that offers 2% cash back for all signature transactions. The company also periodically offers higher rewards rates on certain types of purchases. For example, PerkStreet is currently offering 5% cash back on purchases at certain retailers through the holiday season.
The major “gotcha” of the account is that you’ll also need to have $5,000 in your account to qualify to get the 2% cash back, otherwise you’ll receive a lower 1% cash back. Either way, you’re still getting a great deal since most debit rewards programs offer the equivalent of 0.04% cash back.
The account also has a number of other benefits, in that there are no account fees and that the company has a network of 37,000 fee-free ATMs. The account is FDIC insured, offers free online banking and bill pay. There are also account minimums.
PerkStreet frequently offers promotions in which they offer up to 5% on certain types of purchases. For the holidays, PerkStreet is offering a 5% cash back promotion on certain stores such as Macy’s.
PerkStreet Financial is itself not a bank, but has partnered with The Bancorp bank for its banking services to provide FDIC insurance and to comply with industry regulations. This is comparable to the arrangement that SmartyPig has with BBVA to serve as the banking back-end to its savings accounts. The Bancorp Bank has been FDIC insured since 2000 and is rated on Bankrate.com
There isn’t really a PerkStreet Interest Rate, but you do get a great 2% cash back on the money you have in your account.
Sign up today for one of the most rewarding checking accounts and get the PerkStreet Financial Debit MasterCard – the debit card that helps you get debt free. It gives you 5% cash back on certain categories and 2% on everything else. Now that’s Super Smart.