Frugal Facts: Many Banks GIVE You Money Whenever You SPEND Your Money

Money doesn't grow on trees, but if you rattle your computer keyboard around a little, you're bound to shake some extra cash loose. You won't even break a sweat. Start by searching for deals at your local bank. You can earn cash and gift cards by paying your bills and buying things.

It's true that a fool and his money are soon parted, but in the case of bank "rewards" programs your money acts like a boomerang. You spend it just as you normally do and you'll get a percentage of your money back without filling out rebate forms or putting up with sales pitches when you call a customer service line.

Sounds like a bit of a scam, right? Nope, it's the real deal, not a hollow promise nor a gimmick to lure you into buying something you don't want. I'm going to use one bank, Wells Fargo, as an example. Bank of America and Citizens Bank give cash and goods rewards to customers as well. If you check business listings in your city or town, you'll find many banks offering similar deals.

Wells Fargo features an "exclusive" rewards program whereby you can earn cash, gift cards (i.e. Panera Bread or Amazon) or goods for shopping with your debit or Visa credit card AND for paying your bills each month. That the bank calls it "exclusive" overstates it given many banks have similar programs. Still, you can't get a better deal than getting money back for merely doing what you were going to do anyway.

Getting Started
If you're like most people, before you open a checking or savings account, you shop for a great deal, get all the paperwork together, then drop the ball somewhere along the line. That will be a major mistake with a bank-oriented rewards offer. If you have an account with Wells Fargo (formerly Wachovia) you are not automatically getting points toward your reward even if you are using your account-related Visa for your regular spending and bills. You will not earn one point toward getting a rebate until you formally register for the individual rewards program. It's not enough to sign up for your checking account. To avoid missing out on earnings, sign up for the program as soon as you open your bank account.

Most programs will ask you to sign up online. For the Wells Fargo rewards program (www.wellsfargo.com/checkcard/rewards/index) you'll choose a User ID as well as a password. It costs $12 annually to be part of the program which can come directly out of your checking account. Not all rewards programs include a fee. With Wells Fargo, the $12 annual fee can be earned back quickly.

The bank will mail you information on the program including participating vendors, details on how to get the most bang for your buck and information on redeeming your points. Make up a file folder or use some other organizational tool so you can keep track of your earnings. Keep a copy of your User ID and password with the information from the bank so you can keep track of your earnings easily. Many people lose track of the many clubs and bonus programs they join so they never get the money due them. Get organized and get what's coming to you.

How it Works
The gist of these bank rewards programs is that you get "x" points for every one dollar you spend. Ultimately, you will trade in these points for cash back, gift cards or consumer goods. For example, when you earn 650 points (for paying bills and using your credit/ATM card) through Wells Fargo, you can choose a $5 Amazon card (or other similar accounts) or a cash rebate.

Earning Points
With most bank rewards programs, you earn points to redeem on gifts by shopping, paying your regular bills or signing up for other services with the bank. It can't be stressed enough that someone is going to give you free money for paying your bills.

What a concept. Bill paying may not be a novel concept but add the idea of making money by paying your monthly bills with your bank card and you've just added one heck of a twist.

Gifts
When banks started offering rewards programs the gifts always seemed unattainable, sort of like the cruise miles programs. You would always fall short of the prize, and when you reached one, it was something you couldn't really use such as a $50 discount for purchasing two around-the-world cruise tickets.

Nowadays, it's very different. The gift cards Wells Fargo feature include the likes of Sears, Lowe's, Amazon and Office Depot. The rewards are things people really want and need. If by some odd chance you don't find something you want, you can opt for cash. A $10 Best Buy gift card costs 1,250 points, and a gift card for Office Depot runs 2,500 points. Items you can buy with your points include a Bluetooth headset and a desktop shredder.

Extra Incentives
An interesting aspect of the Wells Fargo rewards program is that you can maximize your point earning power by using your credit card to shop with preferred vendors. For example, where you normally might get one point for every $4 you spend, if you shop with a vendor being featured by the bank that week, you can do better. Think of it as being like the many weekly sales circulars you get in the mail each week. One week you may get double points or better for shopping at Sears and the next you'll get double for spending your money at Office Depot. Time your purchases right (like waiting for your favorite products to go on sale), and you can more than double and triple the amount of money you earn. Win, win and more win!

If your bank doesn't offer a rewards program, let your fingers walk across your keyboard looking for another bank. If your bank charges you a service fee and/or for checks each month, take those typing fingers for a walk again. If your bank charges you a monthly fee or per check fee AND it doesn't offer a rewards or rebate program, get your fingers running as fast as you can.

Pay Your Bills
Now there's a concept! Bill paying may not be a novel concept but add the idea of making money by paying your monthly bills and you've just added a bit of a twist to the norm.

If your bank doesn't offer a rewards program, let your fingers walk across your keyboard looking for another bank. If your bank charges you a service fee and/or for checks each month, take those typing fingers for a walk again. If your bank charges you a monthly fee or per check fee AND it doesn't offer a rewards or rebate program, get your fingers running as fast as you can.

The beauty of a down economy is that competition rules. Everyone wants your business and they're willing to offer incentives to get it. Most banks offer some sort of rewards or rebate program, and an Internet search or phone call to your bank is all it takes to get started.