Here's a handy infographic from PerkStreet Financial about how their rewards checking account and debit card stack up compared to checking account promotions & high-interest accounts at other popular online banks.
How did the bank come up with this rather flattering comparison? Funny you should ask! PerkStreet has provided the following in-depth explanation of how all the math adds up:
"If you spend $12,000 a year, you will earn $180* with PerkStreet.
That’s only $1,000 per month or $231 per week. If you think about it, you probably spend more than that each week. And with the 2% bonus, you earn even more than the standard product, $51 more to be exact.
But with the checking accounts that pay you interest on your balance, it’s a totally different game. Your checking account balance goes up and down as you spend, so the interest you’re earning on your account is on a smaller balance than you might think. To compare, you’d have to have an average daily balance of $12,000 to earn $60** with Ally & $30*** with ING.
On top of that, $12,000 is a large average balance to have in your checking account. This pretty much amounts to having a $12,000 minimum balance requirement. Compare that with PerkStreet, where there are no minimum balance requirements. More importantly, you get a lot more with PerkStreet all for doing what you normally do, buying things with your debit card.
*PerkStreet: $12,000*1.5% = $180 The spend earn rate is calculated using 2% cash back for 6 months and 1% thereafter in the first year.
**Ally: Balances up to $15,000 earn only 0.50%
***ING: Balances up to $50,000 earn only 0.25%"
If you want to get a PerkStreet rewards account (I recommend them), click on the promotion below.
Full disclosure: Credit Card Outlaw receives financial compensation for new accounts signed up as we have recently joined their affiliate program. Of course, there are many products we do not recommend, even though we could make lots of money doing so. PerkStreet is a product we were recommending to readers long BEFORE we joined their affiliate program, so if we can make money suggesting a service we believe in anyway, why not? Also, that bar tab and trip to Cancun won't pay for themselves.
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