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- Solid choice for those who want to earn rewards for spending but don’t want a credit card
- Ability to manage spending, savings, and budgeting in one place
- Customize your debit card
- No fees at 30,000 ATMs
- No overdraft fees
- You only earn rewards for spending on dining and travel expenses
- You’re required to get on a waitlist before you can get this card
- Won’t help you build your credit score
- Customizations are limited
Is the Point Card the Best Debit Card on the Market?
Debit card reward programs are few and far between and the Point card is one of a limited number of offerings in this market. If you’re interested in earning rewards for your spending without worrying about going into debt, this debit card provides you with a way to get cash back without the need to get a credit card.
The Point debit card offerss both style and rewards, as you have the ability to choose from one of three beautiful card designs by artist Laura Berger. This card is aimed at a younger audience who isn’t interested (or experienced) in credit but who is still interested in earning rewards.
In this review:
Benefits of the Point Debit Card
With the Point debit card, you get access to a rewards program without the need to sign up for a credit card and risk the interest charges. Additionally, you don’t have to worry about paying fees. Here are some of the advantages of getting a Point debit card.
You receive two points every time you spend a dollar on dining or travel at qualified merchants.. These points can be redeemed for cash back later. Your best results will come from putting the cash back into the Point savings account that offers a high yield to allow you to continue to grow your cash.
Most brick and mortar banks offer an APY of around 0.01% on savings accounts. You can get a higher rate — around1% APY and up — with online bank accounts. The fact that Point offers a 2% APY on your savings is a big deal. This is one the highest yields available on an FDIC-insured savings account.
Point won’t charge you the fees commonly assessed by many major banks.
Point also offers budgeting tools to help you learn to better manage your money. These tools help you track your spending by category and allow you to spot trends. It’s also possible for you to set up different savings goals so you can better direct your financial resources.
Choose Your Card Design
Point partnered with artist Laura Berger to create three different card designs that you can choose from. Plus, you can also select a color for your card. Customizable design is a cool perk that can set your Point card apart.
Downsides of the Point Card
While there are definite advantages to the Point debit card, there are also some downsides to be aware of.
Get in Line
You can’t just sign up for a card. Instead, you have to join the waiting list. You can get moved up the waiting list by sharing the Point debit card on your social networks, though.
As a new banking product, there’s no telling how long this will last. The model hasn’t been tested yet, so you’d be a Guinea pig. However, Point is FDIC insured so your money is protected.
It Won’t Help Build Your Credit
This is a debit card. As a result, if you hope to build credit, using the Point card won’t help you. You need to get a credit card to improve your credit score. Consider using one of the best no-fee credit cards to earn rewards and boost your score — as long as you use your card responsibly.
Additionally, you only earn points on dining and travel purchases. Every day purchases such as groceries and gas won’t earn you any cash back rewards. This somewhat limits the attractiveness of the card since you can’t even earn one point per dollar on other spending.
How it Compares to Similar Cards
Because the Point debit card is really the only one of its kind, it’s hard to compare it to other debit cards. Some banks offer debit rewards programs but they often come with annual fees and other restrictions that make them difficult to use.
>> Read More: Best Prepaid Debit Cards
Instead, you might be able to do just as well — or better — using a basic cash back credit rewards card. Many cards offer you the chance to earn cash back rewards on all purchases and they might not even have annual fees. Plus, with a credit card, you’re building your credit history and preparing for further steps to improve your finances.
The Point debit card is a solid choice if you want an all-in-one debit card that provides competitive rewards and a suite of budgeting and savings tools. This card is designed for those who aren’t interested in using credit and can make a good alternative to other debit products out there.
However, if you want better rewards and you hope to build your credit, a cash back rewards card with no annual fee is probably a better choice.
Author: Miranda Marquit