Best Cash Back Debit Cards of 2024

What if you’re not able to open a rewards credit card? Or perhaps you want to ensure that you’re not running up credit-card debt every time you buy something. That’s where debit cards come in. Debit cards are connected to your bank account and act just like writing a check. Except that they are as convenient to use as a credit card.

Some debit card issuers have gotten smart and are offering cash back rewards for debit card purchases—something these cards haven’t typically offered. Let’s take a look at the best options.

Our recommendations

Best debit cards for that pay cash back rewards compared

Our Methodology

In choosing the best cash back debit cards, we pinpointed the cards that’ll provide you with the highest earning rates and lowest fees. We considered a variety of pain points and chose cards that best mitigated those issues.

We also considered the minimum deposit of each issuing bank. Cards that required a prohibitive minimum deposit weren’t included.

How to select the best cash back debit card for you

Return rate

Perhaps the most obvious factor when choosing a cash back debit card is the return rate you’ll receive when you make purchases. Some cards offer a flat rate on all spending; others cap your earning rates or restrict your earnings to relatively obscure spending categories.

Find a card that offers cash back in categories you already use, or the card likely won’t profit you much.

Fees

Some debit cards are linked to bank accounts that incur fees for account maintenance, various money transfers, etc. While you can sometimes get these fees waived, make sure you’re not opening a debit card that will result in fees that offset any cash back you earn.

Card-specific perks

Try to find additional card features that can make your life easier. Can you add authorized users? Are ATM fees waived? Can you receive your paycheck in advance? Does a business debit card have tools to help you manage your business?

Even if earning cash back is your primary motivation, it shouldn’t be your debit card’s only redeeming characteristic.

Bank-specific perks

Remember that when you open a debit card, you’ll need an associated bank account to go with it. You should investigate the pros and cons of the banks issuing the debit cards you’re most interested in. Do they offer high APYs for checking and savings accounts? What about welcome bonuses for new customers?

Alternatives to debit cards to earn cash back rewards

Credit cards

Credit cards are the preferred payment method over debit cards for several reasons, including the following:

• Credit cards are considerably more secure than debit cards. A lost or stolen credit card is far less dire than a lost or stolen debit card.
• Credit cards are the most convenient way to borrow money.
• And if you have a rewards credit card, you often have access to superior benefits compared to those offered by debit cards, including generous rewards, complimentary insurance coverage, and 0% intro APR offers.

The best cash back credit cards are on an entirely different level than even the best cash back debit cards. From 5% cash back (or more) on common expenses to valuable statement credits to welcome bonuses worth hundreds of dollars, credit cards should be the first choice for most people.

That said, you may not be interested in opening another credit card—or perhaps you’ve got a spotted or thin credit history that prevents you from being eligible for the best credit cards. There’s nothing wrong with using a debit card until you’ve cultivated your credit score to a respectable number.

Cash back apps

Using a credit or debit card isn’t the only way to earn cash back. Many cash back apps track your purchases and reward you for them.

One of the top ones is Rakuten, which gives you cash back at thousands of stores. In some cases, you could earn as much as 15% back. Just begin your shopping trip from the Rakuten website, navigate to your favorite stores through its links, and make your purchases as normal. Once you pay for your items, Rakuten will let you know how much cash you’ve earned.

Upside is another popular money-making app.It rewards you for spending at restaurants, grocery stores, and gas stations. After you download the Upside app, you can see the various cash back offers near you. Link your credit or debit card to the account, and Upside will know when you made a cash back-eligible purchase and reward you automatically.

Here’s the best part about using cash back apps: You can stack your rewards earnings by making your purchases with a rewards debit or credit card. Doing so will allow you to “double dip” by earning cash back from both your card and the apps.

High APY accounts

Several banks offer high-interest savings and high-interest checking accounts that will earn you money simply for parking your money with them. It’s not uncommon to see an APY of 4% or more, meaning that a few thousand dollars could easily bring you over $100 annually.

It’s not cash back, but a generous return on your savings nonetheless.

More on debit cards with cash back rewards

What is cash back on a debit card?

Cash back on a debit card is effectively a rebate for your purchases. It’s not income, so there’s no need to report it to the IRS.

How does cash back work on debit cards?

When you funnel your purchases through a cash back debit card, you’ll earn a predetermined percentage of each transaction in the form of cash. The money will generally be deposited back into your account within a month—but you may also have the option to redeem your rewards for things like gift cards or investments.

TIME Stamp: Cash back debit cards are a must for those ineligible for credit cards

If you’re making purchases and not earning rewards, you’re leaving money on the table. If you can’t qualify for a cash back credit card, you should open a cash back debit card to get the most value from everyday expenses. It may not sound like much, but even a 1% return can add up over time.

Frequently asked questions (FAQs)

Are cashback debit cards worth it?

Cashback debit cards are absolutely worth it for anyone who can’t qualify for a cash back credit card. It’s wise to receive at least something when spending your money.

Which bank gives reward points on debit cards?

Several banks give you cash back when using a debit card—but these are not the same as rewards points. One financial institution offering actual “points” is American Express with its Rewards Checking. The debit card associated with this account earns 1 American Express Membership Rewards® point for every $2 spent.

Which stores do cash back on debit cards?

If you’ve got a cash back debit card, any store that accepts payment will allow you to earn cash back unless otherwise specified.