Editor's Note: Perkstreet Financial is now defunct and the product described here is no longer available.
PerkStreet Financial is offering a rewards debit card that gives consumers their choice of rewards: cash back, coffee or music. It's a fun program that seems targeted towards the younger consumer but, as always, there is some fine print to be aware of.
BestCashCow.com first introduced readers to PerkStreet Financial in late 2009. At that time, they were offering 1% cash back rewards on their debit card, and a $100 bonus for opening an account. Since then, PerkStreet developed some more innovative promotions targeted to the younger consumer and it started heavily promoting itself to reach tech-savvy (often younger) consumers on social media sites like Twitter and Facebook.
You can still get 1% cash back, but now you can choose the type of rewards you want: cash, coffee, or music. If you choose cash, you can get 1% cash back for every $100 spent on days when your account balance is $5,000 or less, or 2% on days your account balance is $5,000 or more. If you choose the coffee rewards, you can get a free cup of coffee at places like Starbucks and Dunkin’ Donuts for every $200 spent (2 cups if your balance is over $5,000). If music is your reward of choice, you can get a song from places like ITunes and Rhapsody for every $100 spent (two songs if your account balance is over $5,000). You can change perks programs at any time. Additionally, you can earn up to 5% cash back instead of the regular 1% when you shop at certain retailers that change periodically. The retailers are announced via Twitter (@perkstreet), on their Facebook page, or via other PerkStreet corporate communication outlets. All purchases must be made as non-PIN transactions in order to qualify.
Since PerkStreet is an online-only organization, it gives customers free ATM transactions at any STAR ATM. PerkStreet also advertises a free checking account with free checks, free online bill pay, and free debit card rewards with no annual fee. Upon closer inspection, however, the fees page states that only the first book of checks is free and customers will be charged for each additional book of checks ordered. Additionally, if the account isn’t used at all in a month (based on a rolling 30-day period, not a calendar month), there will be a $4.50 inactivity fee. “Overdraft protection” comes at a price of $25 per item. The site states consumers will be given the option to opt-in or opt-out. If you opt-out, if you try to make a transaction that exceeds the funds in your account, the transaction will simply be rejected. If you opt-in, you could be charged $29.50 for a $4.50 cup of coffee.
A previous BestCashCow.com reader posted a response to the 2009 article indicating that there may be some further restrictions not disclosed on the website, such as limits on daily spending or incoming transfers. There are no such restrictions listed in the terms and conditions on the website, however.
The PerkStreet Financial Visa Debit Card is issued by The Bancorp Bank. Amounts deposited are FDIC insured up to $250,000. This PerkStreet account appears primarily geared towards younger customers, particularly college students, because of the types of rewards offered and the possible restriction on spending/incoming transfers. If you fit this bank’s consumer profile, however, a PerkStreet account could be a fun way to earn something back for using your debit card.
For the best information on debit card rewards, click here.
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