When I first noticed the Capital One Rewards Checking Account, I thought it is like all other rewards checking products: Use the check card to make 10 purchases a month in order to get 3 or 4% APY for the money in the account. When interest rates of most online savings accounts are in the middle to high 2% range, what rewards checking accounts offer are indeed quite attractive, as long as you can swipe the card 10 times a month and maintain a nice balance at the same time.
This Capital One Rewards Checking Account, however, is a little different. First of all, it doesn’t pay any interest for the money you have in your account; Secondly, you don’t have to charge with the card; Finally, there is no minimum balance requirement and no monthly fee.
So what rewards are you exactly getting from this account?
Frequent flyer miles! That’s the rewards you will receive from this account when swiping the card to make a purchase, writing a check, or using online bill pay to make a payment:
- 10 miles for every debit card purchase
- 10 miles for every electronic bill payment transaction via Online Bill Pay and recurring pre-authorized payment (up to 10 transactions per month)
- 5 miles for all other customer initiated withdrawal transactions (up to 10 transactions per month)
Basically, the miles you earn are based on the transactions you conduct, instead of the amount of money involved. So that’s different than miles you earn from credit cards which usually give you a number of miles for each dollar spent. In addition to these rewards miles you earn with every day activities, you will also earn bonus miles such as:
- Anniversary bonus: 1000 miles each year the checking account is open and has had at least one debit card purchase transaction in the previous year;
- New account bonus: 1000 miles when a new account is opened and the first transaction posts to the checking account;
- Direct Deposit Bonus: 4000 miles when the first direct deposit transaction posts to a new checking account.
These High-Yield Savings Accounts let you earn more with your money:
And the miles you earn can be redeemed for airline tickets with the following mileage requirements:
- Tickets up to $150: 15,000 miles
- Tickets from $150.01 to $350: 35,000 miles
- Tickets from $350.01 up to $600: 60,000 miles
- Tickets over $600.00: 100 times of the ticket price in miles (ex. $768 ticket requires 76,800 miles)
Does this sound like a good deal? Well, I think it’s better than a checking account that doesn’t earn me anything, might that be interests or rewards.
The account requires only $50 to open a new account and you will also get free online banking, free bill pay, and a Platinum debit card (no ATM fee reimbursement unfortunately).
Though the account can be opened online, you will have to make a trip to the local branch office in order to complete the process. That means if you don’t have Captial One Bank in your neighbourhood, you are out of luck with this product. Check their wiebsite to find a branch near you before you apply for it.