For years, we haven’t seen any major US airlines introduce co-branded debit cards, due to lack of ability to make money there. Fortunately that’s a trend that’s now changing. Recently we saw Southwest Airlines introduce a debit card, and now United Airlines has introduced a debit card as well.
Continue reading: New United MileagePlus Debit Rewards Card, With Bonus Miles For Saving
Share your questions, experiences, and thoughts below.
I mean...it is functionally a competitor to the Bask Bank AA miles program. Not quite as lucrative, but there are a lot of people with savings rates of 0.25% or worse out there. I would take one United mile for that.
The Debit card market is big, and some people don't want credit products. There's probably a decent market for stuff like this.
If you consider 1 UA point is worth 1.8 cents, letting this bank hold $50k would get you about $1.26k in "interest" per 12 months, which equals to about 2.5% in interest. Right now a mmkt is producing about 3.7%. Unless you're redeeming for 80k tatl or 100k tpac route, def not worth the deposit.
How feasible would it be to make estimated tax payments using this? Are there more stringent limits on amounts that can be charged in a single transaction for debit cards, vs credit cards?
What a joke. Only 2.5k miles after $10k spending and the miles earned (the cash value) is about half of that for just holding a balance at a normal bank's HYSA
My internet and utilities providers charge 3% on credit card billing but $0 on debit card use.
Wouldn't this be a no brainer for me to earn a bit.
$4800/yr in spend = 2400 miles + 10k sign up bonus = $124
Considering loss of $48 in annual fees or 80 in lost interest on $2000/yr = $60-80 positive benefit.
Stay away from debit cards... and protect your bank accounts while you're at it. Debit cards offer much weaker protection against fraud and when money's taken out of your account, it's on you pretty much to get it back. And watch out for POS card skimmers stealing your info/money.
I did a quick read of terms. I was curious if it paid interest (no). You can do a one time deposit to the card with another debit card ($500 max) and you can have direct deposits made with no limits to the card. However, your ability to transfer money from another account into this one is limited to $500 per rolling 30 days. So, for many here, it is impractical. It seems designed for an audience not found here. They suggest you might be able to get the limit raised. And, it sounds like they do this because they fear this would be used for fraudulent transfer from others accounts.
Each bank will have different transaction limits in addition to any operational limits like lower limits for the initial x days after opening an account.
Wait, so after the first funding, the only way I can put more than $500/mo onto this card is via direct deposit from my employer?
Yep, If I read it correctly. The Southwest equivalent has the same. But, again, it sounds like a security concern is to prevent it being used as a clearing house for fraud. The suggest that limit could be raised if there concerns can be assuaged.
As Brent mentioned, the Bask Bank savings account that earns AA miles is similar and much more lucrative (that is, until their recent "interest rate" cut/devaluation)
I would like to know this as well. I would consider getting the debit card if it provides access to expanded award inventory without having to use a 5/24 slot.