Regular readers will know that I like using credit cards for the cashback or travel rewards, even though I never carry a balance from month to month or pay any interest. However, I also accept that many people prefer debit cards as they suck money straight out of your checking account. If that sounds like like you, you’re not alone – when it comes to a charge card purchase, nationally it’s just as likely to be a debit card as a credit card. I get it – debit cards more psychologically similar to spending cash and there is no change of racking up a balance (although there are overdraft fees).

The best way to describe Perkstreet Financial is that it’s the best checking account if you don’t like using credit cards. They offer the best cashback rewards on debit cards by far:

• 1% cash back on all non-PIN debit card purchases. The cash back you can earn on these purchases is unlimited.
• 2% cash back at popular retail stores. On online purchases at: Amazon.com^®, iTunes^®, Target.com, Apple.com, Walmart.com and Bestbuy.com, on in-store purchases, when you have a Current Account Balance of $5,000 or more at: Walmart, Target^®, Best Buy^® & Apple^® stores, and when you and a friend use your cards at the same restaurant, bar or coffee shop within 60 minutes of each other.
• 5% cash back at a rotating set of retailers. For October 2012, they are The Cheesecake Factory®, Pottery Barn®, Pottery Barn Kids®, PotteryBarn.com, Ace Hardware®, AceHardware.com.
• PowerPerks 2.0 with deals updated every week. With no yearly limits.

As long as you have some sort of activity each month (billpay, deposit, withdrawal, cleared check, debit card purchase) then there is no monthly fee. Some other improvements they’ve made are that you can deposit checks sent overnight for free at UPS Stores or Mailbox Etc. (or via free prepaid envelopes). They don’t offer ATM rebates like some other places like my account at Ally Checking, but they do offer 42,000 free ATMs across the country; use their ATM locator to see if there are convenient ones to you.

Right now, you can get an extra $25 bonus cash back when you apply for an account online by December 25th, fund with $25 or more, and use your card at least 3 times in the first month. (Ironically, last time I started an application they let me fund with with a credit card up to $500 and promised it would go through as a purchase and not a cash advance.) – This promo is now expired.

Citizens Bank and Charter One bank have an interesting CollegeSaver bank account for those with children. However, it is only open to residents of certain states in the Eastern and Northeastern US (CT, DE, IL, IN, KY, MA, MI, NH, NJ, NY, OH, PA, RI, VT; enter zip code to verify). Thanks to reader Justin for the tip.

You must open a bank account before the child’s 12th birthday with a minimum amount, and then save a minimum amount every month until the child is 18. (You’re allowed to miss one payment per year.) If you satisfy the requirements, you’ll get a $1000 bonus on the 18th birthday. Here are the details:

The best case scenario would be if your kid is just under 12 years old right now. That’s still a 6-year commitment, but if you contribute the minimums then with the bonus that’s a 6.40% annual rate of return on your money (per savings calculator). Since the bonus is constant, the rate of return drops the younger your kid is (longer contribution period). At just over 6 years old, you’d be locked in for 12 years and your annualized return would be 1.9%.

I would say if your child is 10-12 years old and you have patience, this is not a bad deal. But as this is not a 529, you will owe taxes on the interest. However, the upside is that you don’t have to use the funds to pay for college. The account is opened as a custodial account (UTMA), and thus the account can be opened for the child by anyone. However, depending on the state, the child will get control of the account at 18 or 21.

Citibank is offering new checking account customers a bonus of either a 20,000 or 40,000 ThankYou points, worth $200 or $400 in gift cards. You must:

• Open a new Citibank checking account in the Citigold or Citibank Account Package by 10/31/2011.
• Enroll the new checking account in Citi ThankYou Rewards.
• Within 45 days after account opening, initiate one direct deposit AND complete one electronic bill payment for two consecutive months.

ThankYou Point Value Recap
There are a decent number of options for these poitns. 10,000 ThankYou points = $100 Wal-mart Gift card, which you can sell for a $95.55 Amazon.com gift certificate or $91 cash at PlasticJungle.com. Alternatively, can be worth $100 towards Expedia travel, a student loan, or paying down your mortgage. More details in the Citi $500 ThankYou card post.

Citibank Account: 20,000 ThankYou Point Bonus (Easier)

• $100 minimum opening deposit
• $6,000 minimum balance in linked accounts (checking, savings, personal, credit card balances) to avoid $20 monthly fee.

Citigold Account: 40,000 ThankYou Point Bonus (Harder)

• $500 minimum opening deposit
• There’s no monthly service fee for the first 2 statement cycles. After that, in order to waive the $30 monthly service fee you need the combined average balance of your eligible linked accounts to be:
  • $50,000 or more for all linked deposit and retirement accounts OR
  • $100,000 or more across all your eligible linked Citi accounts, excluding a first mortgage with Citibank OR
  • $250,000 or more if your Citibank first mortgage is included in the total relationship.

For most people, I think the 20,000 ThankYou point offer will be the easier one to qualify for if you have $6,000 to move over there instead of an online savings account earning only 1% APY. $6,000 would only earn $60 over an entire year, at that rate. Even it takes 6 months to get your $200 bonus, that’s a 6.67% annualized return.

I thought that the Citigold might be doable since the monthly fees are waived for the first two months, but I saw in the fine print that the points might take another 90 days to post and your account must be open until then. This option would only work well if you have a mortgage with Citi.

The bonus ThankYou Points will be credited to your ThankYou Member Account within 90 days from the end of the statement period in which you satisfy all offer requirements. New checking account must be open and in good standing at the time the bonus ThankYou Points are posted to your ThankYou Member Account.

Afterwards, if you wish, you can downgrade to the Basic Account which offers a way to avoid monthly fees with no minimum balance, if you make 5 “qualified transaction” activities per month (direct deposits, debit card purchase, bill payment, ACH payments, checks paid, ATM withdrawals).

Update: Citibank has updated their checking account to have different restrictions starting with statements ending on 12/9/2011.

Chase Bank is offering a $125 bonus for new customers if you open a new Total Checking account with $100 and set up direct deposit within 60 days of account opening. They state that the direct deposit must be “an electronic deposit from your employer or the government of your paycheck, pension or government benefits (such as Social Security)”, but I’m not sure if they manually check. You must keep the account open for 6 months. To avoid a monthly fee, you must do one of the following each statement period:

1. have at least one direct deposit of $500 or more post to your account (two or more direct deposits that add up to $500 or more do not qualify), or
2. keep a minimum daily balance of $1,500 or more in your checking account, or
3. keep an average balance of $5,000 or more in qualifying accounts with Chase.

Otherwise, a $12 monthly Service Fee will apply ($10 monthly Service Fee in CA, OR and WA). Per the fine print, if are not a current customer and you’ve closed an account more than 90 days ago, you count as a “new” customer again. However, you can only receive one checking account-related bonus per calendar year. Thanks to reader Andy for the tip. Offer expires 10/7/11.

Reader Alison shares a unique savings account program for residents of Ohio. The SaveNOW program is a higher interest savings account supported by the state in order to encourage savings. The maximum balance on this account is $5,000 and pays 3.25% APY. The fine print regarding deposit limits is a bit confusing. It says:

Limits single deposits to $500 at a time with the exception of lump sum payments such as; a tax return, insurance settlement or inheritance payment

If I read this to mean that each resident to deposit a maximum of $500, every other year, then it would take nearly 20 years to reach the maximum? Otherwise, you might overpay taxes to max out the benefit. In any case, this is not going to make anyone rich, but can be a nice incentive given the program’s goals. A couple could deposit $1,000 every other year up to $10,000 combined.

Does anyone know of similar programs for other states?

Capital One 360 is running their usual “Financial” Independence Day promotion. Valid only July 1st & 2nd, 2011 (why not until the 4th? who knows).

• New 360 checking account customers will receive an opening bonus of $50 when they make three purchases within 45 days of account opening. Those that then set up and make at least two direct deposits of $250 by August 31st will receive an additional $76 bonus for a total savings of $126.
• Investors who open a new ShareBuilder account will receive a $76 account bonus after their first investment.