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Retailers offer bonuses for your rebate check

Posted Apr 18 2008, 06:47 PM by Karen Datko
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The scramble is on by major retailers to get you to spend your tax refund or tax rebate check with them. (By the way, contrary to what many people believe, you don't have to pay that rebate back.)

Cathy at Chief Family Officer informs readers that Kroger Co., which owns Kroger stores and a boatload of other chains -- will give you a 10% bonus if you turn that refund or rebate into a gift card at one of its many stores. (For a complete list of stores and a detailed description of the offer, read the press release here.) Sears Holding Co. has announced a similar bonus for Sears, Kmart and Lands' End stores. But are these really good deals?

In both programs, the gift cards have no fees or expiration dates.

"My Good Cents" expects a $1,200 rebate check, which would translate into $1,320 at Kroger. "I will have to figure how long it would take us to spend $1,320 at the grocery store and then compare it to how much interest we would earn if $1,200 was just sitting in a bank account to decide," she writes.

Cathy raises some additional points. Is it likely that you'll forget about the gift card after a while and not use the full amount? That is, after all, the fate of many gift cards and one reason why retailers love them.

Would you be tempted to spend more than you normally would? "The Kroger gift card won't help your finances if you use it to buy frivolous items instead of sticking to your grocery budget," Cathy says.

Comments

 

Thanks so much for highlighting my post! I would add that consumers might want to keep an eye and ear out for more retailers offering these kinds of bonuses in the next 2 weeks, before the first rebates are issued.

Do you have to cash in your entire check?   I'd hate to lose a $1,320 gift card!

Jonathan : Losing a $1,320 gift card would be bad! :) ... My understanding is they split it up into several gift cards.... you could then split those gift cards up into smaller gift cards if you wanted ....

I think you do have to cash the whole check but you can also use a personal check if yours is being direct deposited... so you could maybe only get the deal for $300 of it and receive $330.

Anyway, :) I really just came to say Thanks for the mention...

I don't want to tie up my money all in one place.  Put it  in an interest bearing  checking account, or savings account and wait for some others to follow suit and they will.  The competition will increase.

Carol

I think buying gift cards could be dangerous. That works like coupons.  Coupons that look so desirable, sometimes force you to buy something that you normally wouldn't.  You never see coupons for healthy foods, just prepackaged foods with tons of additives.  To mentally feel you've "saved" money, I go and buy the crackers on the coupon.  It was unhealthy and had less in the package..but "I have saved money."  I've learned not to go to the store with $300 dollars on me.  If I have a big amount, I will spend it.  Thus the gift card will prompt many to spend more than they need. I very seldom use coupons, I do look to see when milk, butter and eggs are on sale.  I buy those anyway every week and I put butter in the freezer.  I've also eliminated things that can easily be made from main staples, like tarter sauce, salad dressings and cocktail sauce.  You can make the amounts you need using ketchup, mayo and pickles etc.  No extra overpriced jar that will get waisted and tossed.

The point is to put just the smaller amount--say, $300--on a card and use some normal restraint in using it.  Why pass up the free $30 in groceries??  We shop the perimeter, anyway, don't you?  And Kroger has the BEST natural peanut butter in the country!  If they were demanding the whole amount, I'd pass on this, but they aren't. Why flush free money?

I tried to spend my 300. in Lowes and Home Depot and they knew nothing about the extra 10%,,Lowes in Dover Delaware at least asked one of the female supervisors and she knew nothing...Home Depot on the other hand forced the girl to tell her party on the phone she had hanging out of her ear ....and nope never heard of such a thing....never offered to contact anyone...this is Customer Service in Dover De.  Now I am going to Lewes Delaware where Home Depot and Lowes are side and see what they have to say...I always get super servine at Home Depot in Lewes...help is always ready to help...I can not say the same for Lewes anywhere. /would you post any other commpanys giving the 10% card out.

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