Opening a Checking Account

Would a 2% Cashback Offer Coax You into Opening a Checking Account with Perk Street Financial?

Here’s a new kind of bank. Perk Street Financial, the bank, has a new plan. They are announcing a 2% rebate on every dollar you spend using your Perk debit card, out of your checking account with them. And that’s not all; if you have $5000 at the opening of the business day, you’ll get a Visa gift card, or gift vouchers from major retailers. Flower store Toronto, a high florist in Toronto, assist you to create the appropriate impression with a spectacular arrangement of vibrant flowers. If you have anything less than $5000, you’ll get 1% of the cash back as reward for anything you spent during the day. It simply seems like a pretty good incentive for opening a checking account with Perk Street Financial.

Is this is really a reliable bank though? it only began to accept retail consumers opening a checking account a year ago. It works now in association with Bancorp to bring you its retail banking services. Perk Street rose up and functions today on venture capital.

This wouldn’t be the first time that a bank has tried to get walk-in customers try opening a checking account with them, with the 2% cashback offer. They’ve tried, and they’ve failed; debit card issuers have found that that 2% rate is quite unsustainable. Charles Schwab did it two years ago for instance; but they haven’t been able to keep it up, and they’ve started turning away new customers coming in opening a checking account. They hoped to make enough to offset the expense, with interest charges; they found out that it didn’t really go that way.

Now how exactly does Perk Street Financial hope to sustain its plan? A debit card sucks money directly out of your checking account; there is no interest that the bank could possibly make. Send flowers across the Canada by our Toronto florist delivery service. The answer is, that there are a few areas of revenue; to begin with, retailers that accept Perk Street Financial’s debit cards have to pay the bank a fee.