Will you get to keep any of it?
It's been a lot in the news lately: grocery stores offering incentives to get you to convert your rebate check into a gift card to use at their store. Sears/Kmart, even Expedia seem to be following on this trend. I tried looking up statistics on the percentage of gift cards that go without being redeemed. I could not get a specific number but found this article instead. Basically, it is widely known that gift cards are a revenue generator for retailers, either because they don't get redeemed or because they get to put the money you paid to work during the period the gift card goes without being redeemed.
Read Cathy's at Chief Family Officer's things to consider before taking advantage of these offers.
I was also reading an article about where most of this check is expected to go. The graph below is shared in the article and it compares expenditures on these categories between the year 2006 and 2008.
So it seems that if you are going to use your tax rebate to buy a gift card, you are better of buying a gas card. I bet gas stations won't be offering any incentives since they know you will probably end up spending your money there anyways.
Source: "Where Will All The Rebates Go? By KELLY EVANS and SUDEEP REDDY, April 30, 2008
Wednesday, April 30, 2008
Everyone Wants a Piece of your Rebate Check
Stumble it!
Subscribe to:
Post Comments (Atom)
4 comments:
The problem with a gas card is that you can't exactly use it to go out and purchase a few hundred gallons of gas to store in your back shed.
So I would say the best return on investment would actually be a gift card to a grocery store. Assuming you turned right around and used it to stockpile non-perishable groceries that are expected to rise in prices.
- Diane
But you're not prepaying for GALLONS of gas, you're just reserving your money to pay for gas at the going rate when you fill up. I don't see the logic in buying a gas card in advance. You're MUCH better off using a credit card that gives you a rebate on purchases.
Well, we are getting the direct deposit, which I think many people are and you can't take the direct deposit down to take advantage of this. the stores are marketing this now and checks won't actually be sent for a couple more months or longer.
Great points about the gas card. It's true it would be better if you could pre-purchase gallons of gas. I also had in mind my local grocery store where the deals are few and far between. It would take me six months to spend $300 in there.
Jennifer, I didn't know about the direct deposit/check different. I wonder the percentage of people who still get their refunds in the form of a check.
Post a Comment