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Trade Your Tax Rebate for a Giftcard
By JLP | April 28, 2008
Did you know that many retailers are offering 10% bonuses to people who use their tax rebates to purchase store giftcards? So if you give Sears your $600 refund, for instance, they’ll hand you a $660 Sears gift card to spend.
Some of the retailers offering these offers include Kroger, Sears, K-Mart, and Lands End. Wal-Mart is expected to announce a similar plan within days. Some stores (Kroger) will give you change if you only want to use part of your rebate, while others (Sears) require your whole rebate to qualify for the deal.
Liz Pulliam Westin’s Yahoo! Finance article on the subject urges consumers to say “no” to these offers, but it has convinced me to consider the offers instead.
Even if you are planning to save your rebate, you can still take advantage of these offers. You have to buy groceries anyway, for instance, so let’s say your grocery budget is $150 per month (as mine is). I could use my $600 rebate to buy a Kroger gift card, use the gift card for groceries for the next 4.4 months, and put the $150/mo I would be spending on groceries during that time into my savings account.
So I can get a 10% return on my rebate and effectively save it anyway!
Note: Liz does make some good points in her article about the importance of buying American. If you want to do the patriotic thing and spend your stimulus check, then consider the following:
- Buying American-made products (including groceries grown in the US) from local, American businesses (such as the mom and pop grocer in your town) is the most effective thing you can do.
- Buying American made products from a non-local American company (like Kroger) is also great.
- Buying imported products (such as a Japanese-made plasma TV) from an American company is OK too. At least you can feel semi-good for buying it from an American company and supporting our consumer-driven economy during these rocky times.
What are you doing with your rebate check (if you are getting one)?
More from Meg at The World of Wealth
Topics: Miscellaneous | 15 Comments »
April 28th, 2008 at 2:10 pm
Paying off my credit card bill.
April 28th, 2008 at 2:35 pm
Do you REALLY eat on $5/day???
April 28th, 2008 at 2:38 pm
Do you REALLY eat on $5/day??
April 28th, 2008 at 2:54 pm
We just got basic cable, and will consider the rebate check as paying for it for awhile.
April 28th, 2008 at 4:20 pm
I actually eat out a lot, which is why my grocery budget is so low. Also, I have work related (and paid for) lunches and dinners regularly.
But actually when I do subsist on groceries I CAN pretty much make it on $5/day. Cheap meals like red beans and rice or spaghetti cost mere dollars for a week’s worth of servings (tuna salad is another cheap staple).
Throw in a bag of mixed veggies, a tub of hummus, and a few pieces of fruit and I can definitely eat for a week on $40 or less – if I really want to, of course.
April 28th, 2008 at 4:31 pm
My rebate check is going towards a plane ticket for one of my best friend’s wedding in June. Airline ticket prices are downright scary right now!!
Per the groceries, I think that’s a great use for the rebate check. With food prices increasing month to month, its a good time to stock up on dried goods or groceries you were planning on buying anyways. Its a small way of hedging against inflation and rising food prices.
April 28th, 2008 at 7:41 pm
Wow, talk about some creative marketers out there eh?! Def. an interesting concept though… great post, thx
April 28th, 2008 at 8:58 pm
wow, $150 a month for food, I’m amazed. What is your monthly budget for restaurants? (noted that you said you have a lot of company paid meals)
I like that you say you eat fruit. I was wondering what you ate, I was picturing you eating Kraft Mac-N-Cheese daily, bought for 5-for-$1 or something. Good nutrition today in the form of good food choices can help prevent future health problems, which will save money in the long run
April 28th, 2008 at 9:52 pm
Good post. I think the retailers that are giving a 10% return on the rebate money is smart marketing. One way to get the bonus and still put your money into a savings account is to get the Kroger gift card then buy your groceries with the gift card while putting your food budget money into savings. Everybody wins.
April 29th, 2008 at 8:33 am
I read that article by Liz Pulliman this morning before I read your site, I was annoyed with her suggestions that it was such a bad idea. I was planning on about the exact same thing that you are, get it at the grocery store, get 10% plus credit card bonus, then not have to spend other money on groceries.
My thoughts are that since Kroger does not require the actual rebate check, how much is worth putting on gift cards? you can do $330 increments up to $1320. I will probably get the $660 myself.
April 29th, 2008 at 10:34 am
Wow – I didn’t realize this was an option. I guess if you have plans to make a big purhcase, this is perfect.
April 29th, 2008 at 10:36 am
In a way I already spent it, I bought a new refrigerator early in the year, so when I get the actual rebate I will use it to pay back my savings account.
April 29th, 2008 at 1:42 pm
Thanks for the info. I’ll surely use it @ Kroger or Walmart. I hope both allow the partial use.
Is the rebate check required? What’s the minimum purchase/Gift Card @ Kroger or Walmart? Hoping we can use credit card to buy one.
April 30th, 2008 at 8:44 am
I got my $900 on Monday direct deposited. My partner is getting around $700 because she didn’t make enough to get the full $900. We’re considering doing some ecology/heating/cooling work around the house. We got an estimate yesterday and insullating the attic more fully and sealing the ducts would be $1600. Well, there it goes…
May 14th, 2008 at 11:09 am
My stimulus check (which I got on Monday) went straight into my savings account, so I’m not sure it will participate in the stimulation of the economy right way. However, I’m saving because I think my laptop is about to die, so it’ll help eventually…