As customers, we’re all becoming more conscious of service quality, and we want services and products that cater to our own particular needs. This is why organizations that provide personalized services are more likely to nab a significantly higher proportion of customers than those who don’t.
Which of the Financial Services Loyalty Programs is for you?
When choosing financial services loyalty programs, you should think about things like:
- the types of rewards given
- how flexible the redemption options are
- if the credit card has an annual fee
- how high the interest rate is
- how well the program fits with your spending habits and way of life
Keep in mind that loyalty programs and what they offer can change over time. Before making a choice, you should check the most recent terms and conditions and compare the benefits.
Our 4 Best Banking Rewards Loyalty Programs
#1. Chase Ultimate Rewards
With 4 different Chase credit cards to choose from, you can rack up points through the Chase Ultimate Rewards program.
You can use these points to buy:
- trips
- cash back
- gift cards
- goods
- statement credit
- restaurant and takeout credit
Depending on your lifestyle and what’s more valuable to you – earning points or getting cash back, each of their program’s cards will offer something.
2 Chase Ultimate Rewards Cards We Like and Why
Chase Sapphire Reserve – for frequent spenders who can pay their balances down
- $795 annual fee
- 19.74% – 28.24% APR
Current Welcome Bonus – 125,000 points (10,000 Chase points are typically worth $100, so $1,250) after you spend $6,000 in the first 3 months
- Could be a smart one to get if you’re looking at a big bill – you can hit that $6,000 balance to get the welcome bonus and redeem the $1,250 bonus as cash back or toward your balance to essentially save 21% on a $6,000 purchase.
Chase Freedom Unlimited – For the more frugal budget (You should still pay off your balance though)
- No annual fee
- 0% intro APR on purchases and balance transfers for first 15 months, then 18.49% – 27.99%
Current Welcome Bonus – Earn a $200 bonus after you spend $500 in the first 3 months
- If you pay for a big project on this card, you can pay it back over the first 15 months since you won’t accrue interest on your balance. Just make sure you don’t get hit with a big vendor fee for using a credit card for payment. (Although, if it works out to less than $200, you’re still ahead, since you get that welcome bonus after 3 months.)
Chase also often gives bonus points for certain types of purchases, which makes it a popular choice for travelers and people who want a lot of opportunities to use their points.
Cardholders can get the most out of their rewards by using the Chase Ultimate Rewards portal, which has deals and savings on travel, shopping, and dining that only cardholders can get. You can also combine your points with points from other qualified Chase cards, making it easier to earn and use rewards.
#2. Citi ThankYou Rewards
Citi’s ThankYou Rewards program lets users earn points when they use their Citi credit cards to buy things that qualify for rewards.
You can use your points to:
- pay for trips
- get gift cards
- buy products
- pay off your credit card bill
You get points for every dollar spent, which makes it easy to get rewards quickly. There are a lot of ways to spend your points, like booking trips, buying products, getting cash back, or giving money to charity.
The Citi Thank You Reward Card We Like and Why
Citi Double Cash Card
- No annual fee
- 0% Intro APR on balance transfers only for 18 months, then 17.74% – 27.74% variable APR
Current Welcome Bonus – Get $200 cash back when you spend $1,500 in the first 6 months after you open a new account.
We really like how the double cash back works: you earn 1% unlimited cash back on all of your purchases. Then, you earn an additional 1% cash back on what you pay off. So you spend that $1,500 to qualify for the $200 bonus. You’ll earn $15 in cash back plus another $15 when you pay off your balance.
- You do have to pay at least the minimum balance due, but really, this is pretty motivating to pay your card off, which you’ll do anyway.
You also get access to special deals, discounts, and events, as well as special deals and discounts that are only available to members when they sign up for this loyalty program.
#3. Discover Cashback Bonus
Discover’s Cashback Bonus program gives cash back to people who use their Discover credit cards to buy things. This loyalty program lets you get cash back on the things you buy every day, so it’s easy to get rewards on things like food, gas, restaurants, and more.
The program also has categories that change every three months and give higher cashback rates. This lets users get the most out of their rewards during certain times. (But you have to actively pay attention.)
One of the best things about the program is that you can use cashback in different ways. Cardholders can use the cashback:
- as a statement credit to pay down your balance
- to deposit it straight into your bank accounts
- to use it to buy things online
- to trade it in for gift cards from popular stores
The Discover Card We Like and Why
Discover it® Cash Back Credit Card
- No annual fee
- 0% intro APR for 15 months on purchases and balance transfers, then 17.74% – 26.74% Standard Variable Purchase APR
Earn 5% cash back on everyday purchases for each quarter for the designated category (There is a quarterly limit – once you hit that, you earn 1% cash back.). For January to March 2026, this would be on any purchases at grocery stores, wholesale clubs and selected streaming services, up to $1,500.
- No Welcome Bonus, but we like that they have an Unlimited Cashback Match, where they’ll do a dollar-for-dollar match for the cash back you earn at the end of the year.
Say you hit that $1,500 limit each quarter for the whole year. At 5% cash back on $6,000, that’s $300, plus they’ll add another $300 on top of that.
#4. Capital One Venture Rewards
Capital One’s Venture Rewards offer is popular with travelers.
It gives you miles for every dollar you spend on shopping with your credit card. You can use these points to pay for flights, hotels, and rental cars.
The card’s main feature is how easy it is to earn points with it. Cardholders get two miles for every dollar they spend, no matter what they buy. This lets them quickly rack up rewards without having to worry about areas that change or spending limits.
You can use these miles to pay for travel costs like flights, hotels, and car rentals. This makes it easy to save money on travel and go on unforgettable adventures.
The Capital One Venture Rewards card also has important travel perks, such as fee credits for TSA PreCheck or Global Entry.
These extras can make flying more enjoyable and give you peace of mind as you go around the world.
Venture Rewards from Capital One
- $95 annual fee
- 19.99% – 28.99% variable APR
We like that you earn 2X the travel miles for any purchase – and 5X the miles on hotels, vacation rentals and rental cars booked through Capital One Travel.
Current Welcome Bonus – 75,000 bonus miles when you spend $4,000 in the first 3 months.
Kind of random, but still awesome: Capital One cardholders get 50% off handcrafted beverages at Capital One Cafes across the US. It doesn’t claim a limit, so even though the average price range for Chai Lattes, Macchiatos and Cafe au Laits is $3.60-6, if you go once a week, that’s a savings of $156.
What are loyalty programs for banks?
Financial services loyalty programs are rewards plans that banks (and credit card companies) offer to keep customers loyal and encourage them to use their products and services. These programs are meant to draw and keep customers by giving them different benefits, rewards, or incentives based on how much they use the bank.
Because customers don’t buy goods in the traditional sense, banks use loyalty programs to encourage members to use their services, like loans or mortgages. By giving rewards, discounts, and other special perks to loyal customers, banks try to keep them from switching to rivals.
As such, financial services loyalty programs can simply be thought of as marketing tools used to attract and retain customers.
Why do banks offer loyalty programs?
Banks offer loyalty programs mainly for customer acquisition and retention. However, there are still a couple of benefits that banks get from offering loyalty programs. Here is a rundown of some of them.
Increased usage
Bank services can be used more often if there are loyalty programs.
Customers may be more likely to use their credit or bank cards, make purchases, or do other things if they know they will get rewards or points for doing so.
Data collection
Banks can learn a lot about their customers’ habits and preferences through loyalty programs. This information can be analyzed to learn more about customer habits and needs. This information can then be used to make marketing plans and products that are more relevant to customers.
Brand loyalty
Banks can build brand loyalty and trust with their customers by giving them useful rewards and perks. Customers who are happy and feel valued are more likely to keep doing business with the bank and may even tell their friends and family about it.
Customer differentiation
Loyalty programs can help banks stand out in a business where there is a lot of competition. Banks can step up from their rivals by making their loyalty programs stand out with unique rewards or benefits that appeal to their target market.
Cross-selling opportunities
Loyalty programs can be integrated into different product offerings to encourage customers to try out and use more of the bank’s services. This can raise the average customer’s value to the bank over the course of their lifetime.
Relationship building
Banks interact with their customers more often through loyalty programs. Banks can get closer to their customers by keeping them up-to-date on changes to their programs, letting them know about rewards, and giving them personalized offers.
Are banks loyalty reward programs worth it?
Whether or not bank loyalty rewards are worth it depends on a number of things, such as the type of reward, any fees or requirements, how you spend your money, and other personal preferences.
In the end, it can be worth it to join financial services loyalty programs if they fit your spending habits, give you good choices for cashing in your points, and provide other useful benefits.
Banks vs. Credit Unions: Which is Better? Differences, Pros & Cons→
How to Pick the Right Financial Services Loyalty Programs for Your Lifestyle
For banks, the emergence of fintech and alternative systems like cryptocurrencies has only increased the competition in an already oversaturated space. It’s increasingly difficult to attract and retain customers as competitors churn out new products and features to attract them.
One strategy that banks use to attract and retain the patronage of their customers is financial services loyalty programs.
Overall, you should know that financial services loyalty programs are a way for banks to sell to you and keep you as a customer. So, it’s important to keep an eye out for one that fits your own tastes.
Editor’s note: This article was originally published Jul 26, 2023 and has been updated to improve reader experience.
