Retailers offer bonuses for your rebate check
Posted
Apr 18 2008, 06:47 PM
by
Karen Datko
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.