I’m a Banking Expert: 5 Ways To Take Advantage of Your Bank’s Loyalty Programs
Written by
Andrew Lisa
Edited by
Gary Dudak
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Because your bank doesn’t sell traditional products, its loyalty program might be different than the kind you’re used to from your favorite retailers or supermarkets.
If you want to get the most out of the benefits that your bank offers its most faithful followers, you have to understand how they work and what you have to do to maximize them — but the first step is knowing where to find the best of the bunch.
GOBankingRates spoke with two financial industry loyalty and rewards experts about which banks offer the best perks and programs, and how to use them to their full potential.
Stay Local: Nearby Banks Often Reward Loyalty More Than Big Banks
As the CEO of Kasasa, Gabriel Krajicek empowers local, branch-based community financial institutions to offer checking and savings account rewards that outcompete even global corporate megabanks and fintech-based online alternatives. To him, the ultimate loyalty program is what you get if you stick with your local neighborhood bank.
“Many community financial institutions offer extremely attractive rewards on checking and savings accounts,” he said.
The trick is picking an account with reward-earning terms that match your monetary lifestyle.
“They pay some of the highest interest rates in the nation or cash back on debit purchases for maintaining certain behaviors, such as using online banking or direct deposit,” said Krajicek. “Consumers should familiarize themselves with these requirements, tailor their financial habits to meet the eligibility criteria and explore the long-term savings these perks can generate.”
Bank in the Pursuit of Points
Kelli Hobbs, a loyalty and rewards industry expert, is the vice president and head of U.S. business development for Valuedynamx, which creates commercial loyalty programs.
Her top tip is to pursue points over most other types of rewards.
“Loyalty points can be earned by spending with a specific credit or debit card through your bank or by engaging in specific activities outlined by your bank’s rewards program,” she said. “They are a form of currency that can be redeemed in a variety of ways, including miles, redemption at stores, special offers, and cash back.”
Keep Tabs and Tune In
Hobbs also recommends periodically checking in and taking inventory of your rewards.
“Many people overlook their credit and debit card rewards, but if you haven’t tapped into them recently, or do so infrequently, consider doing so now,” she said. “Most of us have credit or debit cards that offer various rewards, be it cash back, points, or miles. Now is an excellent time to check what you’ve accrued. These rewards can help you save on different types of expenses.”
Krajicek takes the concept a step further.
“Additionally, keeping an eye on periodic promotions or reward upgrades ensures they stay informed on how to maximize their earning potential,” he said.
Look for Third-Party Linked Offers
Many cards offer the equivalent of exclusive sales on brands, products or services you’re shopping for anyway by providing rotating card-linked offers.
“These are card- and potentially even cardholder-specific offers that give people the ability to earn more rewards when shopping with select retailers in-store or online using a preferred credit card,” said Hobbs. “By using such cards, you can accumulate points that can be redeemed for other everyday purchases or treats for yourself like travel, dining out, etc.”
Seek Out Affiliate Offers
Affiliate partnerships are another way to squeeze more out of your bank’s loyalty program. “Affiliate deals are from third parties as opposed to the financial institution where you can earn rewards,” said Hobbs.
She offered the following two hypothetical examples:
- “Consumer A proactively visits Browser B hosted by Travel Company C to book a flight that earns special rewards through their debit card company,” said Hobbs.
- “Consumer A proactively visits Browser B hosted by Company C to select an offer from Retailer D, and is directed to Retailer D’s site to earn special rewards for purchases associated with that offer,” said Hobbs.
Either way, you’re getting a little bit more for your money.
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