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Credit Card Points vs. Stash Stock-Back

March 22, 2019

2 min read

U.S. consumers can often choose from a variety of rewards credit cards or cash-back programs, which can earn you free flights, trips, rentals, or even get you a check in the mail. But there’s a new program in town—Stash Stock-Back™ Rewards, which now allows you to invest where and whenever you shop.

But how does Stock-Back stack up to a rewards credit card? Let’s compare.

Stock-Back in a nutshell

Here’s how it works: Make a purchase with your Stash Debit card1, at more than 11 million businesses in the U.S, and get rewarded in the form of a fractional share of stock. Pretty simple. You will get a small percentage of stock for every dollar you spend—and it works everywhere.

Note: You’ll need a Stock Invest and debit account to earn Stock-Back rewards.

What about rewards credit cards?

Rewards credit cards are cards that earn users—you guessed it—rewards. Those rewards are typically doled out in the form of proprietary “points” or “miles,” which can be redeemed for cash, prizes, airfare, etc.

In practice, earning credit card rewards is similar to earning Stock-Back—you swipe your card, and watch the rewards points pile up.

Stock-Back Rewards vs. credit card rewards

You can earn Stock-Back and credit card rewards in virtually the same way. So, when it comes down to it, consumers are choosing between what they’d rather accumulate: stock, or points/miles.

Here are a few things to consider, and or ways to compare them:

1. Stock-Back Rewards are fractional shares.

It’s important to remember that Stock-Back rewards are fractional shares of ownership in a company, and they can fluctuate in value. Remember, that there is an inherent risk when owning stock—but with Stock-Back, you can truly own what you buy and build a portfolio that reflects your individual spending habits.

2. Expiration dates

One big drawback to rewards points or miles is that they often have expiration dates—if you don’t use or redeem them within a certain time period, you lose them.

Stock, on the other hand, is an asset. It doesn’t expire, and you own it until you sell it. Studies show that there are approximately $100 billion of loyalty points that sit unused. Further, 30% of credit card users never redeem their points—so, for many, rewards points are ultimately wasted.

Unused loyalty points
Credit card users that never redeem points

3. Appreciation

Another thing to consider is whether or not your rewards, stock or otherwise, will appreciate with time. In the case of rewards points or miles, the answer is no; they will not gain value over time, and will likely depreciate as rewards systems evolve.

And again, stock won’t expire—so, buy (or earn) and hold it!

4. Rewards that reward

Finally, think about what your rewards are doing for you. Are airline miles or reward points earning you dividends or interest payments?

Probably not. Stock will and does, though. That’s effectively using wealth to build more wealth.

And it’s smart.

You can start building your investment portfolio whenever you spend. Sign up for Stash to kick things off.

By Stash Team

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*Source: Nielsen Report, 2019

1 Opt in required. In order to earn stock, the Stash Debit card must be used to make a qualifying purchase. See Terms and Conditions for more details.

Additional Disclosures: Stash Stock-Back™ is not sponsored or endorsed by Green Dot Bank, Green Dot Corporation, Visa U.S.A., or any of their respective affiliates, and none of the foregoing has any responsibility to fulfill any stock rewards earned through this program. In order to earn stock through this program, the Stash Debit card must be used to make a qualifying purchase. See Terms and Conditions for more details. Debit Account Services are provided by Green Dot Bank, Member FDIC.  Stock-Back Rewards are deposited into a participating customer’s personal brokerage account via the Stash Stock-Back Program, are not FDIC Insured, Not Bank Guaranteed and May Lose Value. Investment products and services are offered by Stash Investments LLC, not Green Dot Bank, and are Not FDIC Insured, Not Bank Guaranteed and May Lose Value. In order for a user to be eligible for a Stash debit account, they must also have opened a taxable brokerage account on Stash.

Debit Account Services provided by Green Dot Bank and Stash Visa Debit card issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa International Service Association. Green Dot Bank operates under the following registered trade names: GoBank, Green Dot Bank and Bonneville Bank. All of the registered trade names are used by and refer to a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage. Green Dot is a registered trademark of Green Dot Corporation. ©2019 Green Dot Bank. All rights reserved.

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