What's the highest cashback debit card?

Varo's 6% cashback rate is one the highest we've seen among cashback debit cards. If you're a business owner, there's also Bluevine Business Checking, which offers up to 4% cash back and high rates on checking balances, and landlords can check out Baselane, which offers up to 5% cash back on debit card purchases with eligible home improvement hardware purchases.

Is cash back free money?

Cashback rewards can be "free" if the account has no monthly or annual fees — but to earn the cash back, you have to spend money. Don't get caught up in the allure of an account's ability to earn points or cash back through spending. It's easy to get carried away and overspend under the idea that you're earning that spending back. Think of the rewards account as a long-term investment rather than a quick way to get easy cash.

Is there a downside to cashback debit cards?

Cashback debit cards usually require a certain balance or direct deposit to earn the rewards. If you can't meet those requirements, you won't earn cash back, which can be a waste of time and energy. Also, if you're prone to overspending and are tempted by cashback offers, a rewards debit card could tempt you to overspend for the sake of earning cash back.

Cassidy Horton, Writer at Finder

Cassidy Horton

Writer

Cassidy Horton is a freelance personal finance copywriter and past contributing writer for Finder. Her writing and banking expertise have been featured in Forbes Advisor, Money, The Balance, Money Under 30, Insure.com, and other top digital publishers. She holds a BS in public relations and an MBA from Georgia Southern University.