Looking for a way to make some extra money while you shop? Cash-back debit cards can be a lucrative option. These cards earn cash rewards on eligible purchases, so you can pay yourself back when you spend. There are several important factors to think about when choosing a cash-back debit card, including rewards rates, spending categories, other benefits and fees.
Here are some of the best cash-back debit cards and what sets them apart.
Best Debit Cards That Offer Cash Back May 2024
We’ve compared 337 accounts at 144 financial institutions to find some of the best options available. See below to learn more about why we picked each cash-back debit card, the pros and cons and to access individual reviews.
Annual percentage yields (APYs) and account details are accurate as of April 1, 2024.
Summary of the Best Cash-Back Debit Cards
Company | Forbes Advisor Rating | Monthly Maintenance Fee | Minimum Deposit Requirement | Rewards | Learn More | ||||
---|---|---|---|---|---|---|---|---|---|
Axos Bank Cashback Checking | 5.0 | $0 | $50 | 0.50% to 1% cash back | Learn More | On Axos Bank's Website | |||
Bank5 Connect High-Interest Checking | 4.0 | $0 | $10 | Varies by retailer | Learn More | Read Our Full Review | Learn More | ||
NASA Federal Credit Union Checking Accounts | 3.6 | $7 to $9 | $0 | $0.02 to $0.05 per transaction (up to $250 annually) | Learn More | On NASA Federal Credit Union's Website | |||
Empower Debit Card | 3.0 | $8 | $0 | Up to 10% cash back | Learn More | Read Our Full Review | |||
Bank of America Debit Card | 2.8 | $4.95 to $25 | $25 to $100 | Varies by retailer | Learn More |
Methodology
To create our cash-back debit cards list, Forbes Advisor analyzed 337 accounts at 144 financial institutions. This includes a mix of traditional brick-and-mortar banks, online banks, neobanks and credit unions. We ranked each account on 10 data points within the categories of cash-back percentages, minimum requirements, fees, access, digital experience, customer experience and APY.
These are the weights we assigned to each category:
- Percentage cash back: 20%
- Maximum cash back per year: 10%
- Minimum balance requirement to earn cash back: 10%
- Monthly fee to earn cash back: 10%
- Other fees: 10%
- Access: 10%
- Digital experience: 10%
- Customer experience: 10%
- APY: 5%
- Minimum deposit requirement: 5%
The highest cash-back debit cards with the lowest fees had the best scores, as did those with relatively low minimum requirements.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
What Is Cash Back on a Debit Card?
A cash-back debit card gives you a small amount of money back when you use it to make purchases. Cash back is usually calculated as a percentage of the purchase total, such as 1% or 2%, and credited to your account after eligible transactions.
Unlike a cash-back credit card, which is used to borrow money and pay off the balance later, cash-back debit cards draw funds directly from your checking account. When you spend, you earn cash back that is usually deposited right back into your account to increase your available balance. With a credit card, you might use cash back to decrease or pay off your card’s balance.
How Does Cash Back Work on Debit Cards?
The process for earning cash back on your debit card is similar for most cards. You earn cash-back rewards when you use your debit card to pay for qualifying transactions, such as in-store purchases or subscription payments. Cash back is calculated as a percentage of spending—for example, 1% or 2% per transaction—and deposited into your linked checking account. Rewards may be deposited within a few days or on a predetermined schedule.
Similar to cash-back credit cards, you might be subject to maximum earning limits or other restrictions for cash-back debit cards. There might also be requirements you have to meet to earn cash-back rewards, such as direct deposit minimums or minimum balance requirements.
How To Get Cash Back From Debit Cards
The process of earning cash back on debit cards usually looks like this:
- Find a debit card that offers cash-back rewards. Look for banks or financial institutions that offer cash-back programs for debit cards. This list is a great place to start.
- Open an account. If you don’t already have an account with the bank, open a new account and wait on your debit card to arrive in the mail. Be sure to meet minimum deposit requirements, if there are any.
- Activate your debit card. Once you receive your debit card, follow the instructions to activate it.
- Make purchases with your debit card. Use your debit card to make purchases at eligible retailers or online. Familiarize yourself with which transactions earn cash back. Some cash-back offers may require activation.
- Check for cash-back offers. Banks may offer specific cash-back deals or promotions. Keep an eye out for these offers to maximize your cash-back earnings.
- Monitor your cash-back earnings. Keep track of the cash back you earn with each purchase. It may accumulate as a separate balance or be credited to your account periodically.
- Redeem your cash back. In most cases, your cash back will be deposited into your checking account automatically. But other redemption methods may be available.
How To Choose Cash-Back Debit Cards
Wondering which cash-back debit card is right for you? Follow these steps to choose a card that matches your spending patterns and earns the most rewards.
- Research different banks. Look into different banks or financial institutions that offer cash-back debit cards.
- Compare cash-back percentages. Check the cash-back percentages with different banks. Some may offer higher percentages for certain categories like groceries or gas.
- Consider your spending habits. Think about your own spending and identify categories where you spend the most. Look for a cash-back debit card that offers the highest rewards in your top categories and avoid cards that would require you to change your habits. If you have to shop at stores you don’t typically visit just to earn cash back, that card isn’t a good fit.
- Assess any fees. Determine if there are any common bank fees associated with any given cash-back debit card, including monthly fees, overdraft fees or transaction fees. Look for cards with minimal or no fees so you can keep more of your cash back.
- Evaluate other banking benefits. You usually can’t get a debit card without a checking account, so you’ll want to consider more than just the card itself. Think about the bank account you’re opening and checking perks you may need such as early direct deposit, ATM reimbursements and waived fees.
- Check for sign-up bonuses. Some banks offer sign-up bonuses or introductory cash-back offers to new customers. Consider these rewards when making your decision but don’t give them priority over the other items in this list.
Bottom Line
The best debit cards that pay cash back don’t saddle you with strict requirements or monthly fees that eat into your earnings. Instead, they provide an enticing and rewarding option for those who prefer using a debit card for their everyday spending over credit cards or cash.
However, many cash-back debit cards do have limitations. Cash-back caps may apply and certain transactions will be ineligible to earn rewards. Always read the terms and conditions before opening an account so you’re aware of what you’ll need to do to earn cash back.
Frequently Asked Questions (FAQs)
How do you use your debit card for cash back?
First, you need a cash-back debit card, and you need to make purchases with it that qualify for cash back. Once you earn debit card cash back, your cash rewards may be deposited directly into your linked checking account on a regular basis or you may need to redeem it before you can spend it. Read your card’s terms and conditions for details on how you can use your debit card cash back and when you’ll earn it.
Where do you get cash back with a debit card?
Some cash-back debit cards offer cash back on any purchase, while others offer it only for eligible spending at specific stores. For instance, the Axos Bank Debit Card earns 1% cash back on in-person transactions that require a signature, excluding grocery store and virtual wallet purchases. The Bank5Connect debit card, on the other hand, earns cash back on qualifying purchases with certain retailers, and you must activate offers from the bank’s app or online platform to start earning.