Money Monday
Free Money Update. It’s been just over a year since I signed up for the PayPal debit card, and thus far I have earned $628.46 by using this card to buy my groceries. I really recommend this card for anyone who likes free money, and is willing to put a little bit of effort into it. If this is not your jam, I get it, just move on. It is my jam. I am the only one around here who enjoys this stuff. It’s a little different from the standard points credit card, because it’s a debit card and you have to have money there first before you spend it. Here are the details on how this particular card works.
- Open a PayPal account.
- Sign up for the PayPal debit card.
- Select your 5% category on the 1st of each month. I set an alarm on my phone for this, and I always choose groceries.
- Fund your card. Every payday, I transfer $500 from my checking account to my PayPal debit.
- Pay with the PayPal debit at the grocery store.
- Every once in a while, transfer your points to your PayPal account. You could spend it from there, or do as I do, and transfer it to a High Interest Savings Account.
You can earn up to $50 a month in your 5% category, plus of course you can use it for other spending as well if you want to. I have other cards that I use for all non-grocery items, including when I pass the $50 earned each month. But if you don’t want to play that game, but would still like to earn some easy cash, this is a good way to do it.
Have you heard of this cash back debit card? Do your eyes glaze over when people bring this sort of topic up?
16 Comments
AC
I remember this.
J
It didn’t feel like a year already, but when I saw the amount was over $600, I knew it must be…because that’s the amount one could earn in a year.
Birchie
No glazed over eyes here! Anytime that there is free money, take the money!!! If I wasn’t traveling then I would definitely get a card with bigger grocery rewards. For most of us, that’s a pretty large chunk of our spedning.
J
Definitely! I have this one, and when I max out the monthly benefit, I switch to my BMO credit card, which gives me 3% at grocery stores.
Michelle G.
I had not heard of this card – and it sounds like a good one! I always appreciate this kind of information, so thank you!
J
I hadn’t heard of it either. I use a reverse vending machine to recycle my aluminum cans, and when I cashed out the first time, it gave me the option to apply for the PayPal debit card. “What?” I said, “5% on groceries ALL YEAR? Sign me up!”
Daria
Hi Julie, this is amazing- I remember this! What a great opportunity to get some cash back! Especially that now things are SO expensive.
J
Yes, it makes me happy!
Lisa's Yarns
I love that these perks exist for those who are willing to put the time and energy into doing them! I leave that to Phil. He mostly seeks out rewards for moving a certain amount of money to a new savings account. So last month I opened an American Express savings account. I have to keep the money there for 3 or 6 months and then I get $500, I think. And then there is another deal with Goldman Sachs. He alerts me to these deals, I follow the steps, and then we close the accounts after we get the reward. Anything more complex and I’m a hard pass! But maybe when I retire I will pick that up as a hobby. For now I’m hitting the easy button as much as I can. I know Phil uses a particular credit card for grocery shopping because of an X% cash back sort of set up, though!
J
You definitely have to have the mind to want to play these games. Ted and Maya do not. Well, they both get points on their credit cards, but they don’t have different cards for different things, and they don’t open savings accounts for bonuses (I do this too, thanks to Birchie).
Margaret
I’d never heard of this! It sounds amazing and not too hard. What a way to make money by spending it!
J
Yes, it’s very similar to a cash back credit card (or a points card) but this is the best one I have found for groceries. I always spend at least $1,000 a month on groceries, so it’s a no-brainer for me. No fees, no hassles. (Except that I have to remember to select my category once a month, and I have to remember to transfer the money over, and of course, I have to remember to use it when I’m buying groceries.)
ernie
I’m in awe and feeling like a dope. Why don’t I do this? I’m trying not to think of ALL the money I could’ve saved over the years on my groceries over the years. I use a citicard that gets me miles on American Airlines, but I feel like grocery money back might be more bang for my buck. Hmmm.
J
5% back is pretty awesome. I used to have an airline card, and it worked well, but I’m not convinced it was better than cash back…
Allison McCaskill
This sounds excellent. I don’t think I’d be organized enough to do it. Our credit card rewards are mainly air miles. Anything you can leverage for free money with a minimum of effort is definitely worth it.
J
Agreed! Whatever works for a person is great.