Kasasa Accounts - And Their Benefits - Explained
Credit cards are often associated with rewards, but some checking accounts offer them, too. Some 300 U.S. financial institutions offer Kasasa accounts, which provide returns above the national rate along with various perks.
Here's an overview of how they work and what to know about getting one.
What is Kasasa?
Kasasa, a technology services and marketing company based in Austin, Texas, introduced its branded bank accounts to help community banks and credit unions attract more members and build loyalty.
These financial institutions can adopt the nationally recognized Kasasa accounts and promote them as high-yield checking and savings alternatives to services from big national banks. In this way, the smaller institutions can compete against bigger rivals for deposit accounts, which help keep them healthy. This is especially important when you consider that 60% of all small business loans come from community banks or those with less than $10 billion in assets, according to the Independent Community Bankers of America.
What types of accounts are available?
There are three Kasasa brand checking accounts, and all are free: Kasasa Cash, Kasasa Cash Back and Kasasa Tunes. Free checking means that these don't have a monthly service fee, and you don't need a minimum balance to qualify for rewards. Each account also offers its own perk:
- Kasasa Cash: This has a high rate of return on balances up to a certain amount, such as $7,500 or $20,000. The rate and maximum amount varies by financial institution.
- Kasasa Cash Back: You can earn a percentage of debit-card purchases back as cash.
- Kasasa Tunes: This account offers monthly refunds on iTunes and Amazon purchases up to a specified amount, such as $5 or $10.
You can link any of these checking accounts to a Kasasa Saver account, which can offer a yield that rivals some online-only checking accounts. The exact rates and rewards for each can vary by the financial institution that offers them.
Who should consider a Kasasa account?
To open an account, you have to be a customer of a financial institution that offers Kasasa brand accounts. However, these products may not be a good fit for everyone. Consider the following advantages and disadvantages as you decide:
- No monthly maintenance fees.
- Refunds for ATM fees nationwide.
- Various rewards depending on account.
- Qualifications must be met to earn rewards, including making a minimum number of debit card transactions a month, opting for e-statements and setting up digital transfers.
If you're not comfortable with receiving electronic bank statements or setting up at least one automatic transfer, this type of account may not be for you. But for those who are tech-savvy and use a debit card frequently, a Kasasa account can give you some rewarding perks.
Knowing the ins and outs of Kasasa brand products can help you decide whether to take advantage of rewards that big national banks don't offer. As long as you meet the monthly requirements, you can enjoy a free account with perks that stand out.
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