You may have seen some retail stores advertising bonus money or services when you purchase a store gift card using your tax rebate or stimulus rebate check. Is it worth it to take advantage of these offers? Let’s take a look.
How do these deals work? It can vary according to the store, or it really helps to know upfront what exactly each deal is all about. The basic premise is that if you use your tax rebate or stimulus rebate money to buy a gift card or if you spend that money in the store, you will be given something extra, from an extra 10 percent of value to extra services.
Two types of stores that are offering these deals include grocery stores and department stores. And they want all of your money. Most of the time, although not all of the time, with these deals, you are required to purchase a gift card for the entire amount of your rebate. An extra 10 percent of value will be added on. For example, at Kroger, a grocery store, your gift card would be in increments of $330 ($300 stimulus payment plus $30 bonus). At Sears and Kmart, you must bring in a paper check and purchase the gift card for that entire amount.
If you do purchase one of these gift cards, make sure that they don’t expire or have any fees for non use. Make sure that you keep the card in a safe place, as you would a credit card.
Local businesses are also taking advantage of the rebate checks being on people’s minds. I have seen a flooring place saying that they would throw in free instillation and labor if a customer uses their check to purchase flooring.
For us, we have chosen not to take advantage of these offerings. They just don’t make sense to us. Although food is a big expense, we tend to shop at different stores to take full advantage of deals, so that stimulus check could last for years. As for the other deals, there is nothing worth the money in spite of the 10 percent bonus. I can usually get more than a 10 percent return at Sears, for example, just by haggling. In my opinion, a higher yield on your money might be found through paying off credit card debt, improving your home, using the money as an emergency fund or investing it.
What do you think?
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. Starting June 1st, don’t miss her articles in the Baby Blog. You can read more of her articles by clicking here.
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