Cashback on subscriptions? Yes, it’s real! In today’s world of streaming services, software, and recurring deliveries, subscription costs can quickly add up. But what if you could recoup some of that money? Enter the world of cashback on subscriptions – a smart way to save money on the services you already use and love. This guide will explore how you can earn cashback on your subscriptions and make the most of your recurring expenses.
Why Seek Cashback on Subscriptions?
The Rising Tide of Subscription Costs
The subscription economy is booming. From Netflix and Spotify to cloud storage and productivity tools, many aspects of modern life are now accessed through subscription models. While these services offer convenience and value, the cumulative cost can be substantial. Studies show that the average person spends hundreds of dollars each month on subscriptions, making any opportunity for savings highly valuable.
The Benefits of Cashback
Earning cashback on subscriptions provides several key benefits:
- Reduces Overall Expenses: Every dollar earned back directly lowers your monthly spending.
- Maximizes Subscription Value: It allows you to enjoy your subscriptions with a little less financial burden.
- Simple and Convenient: Most cashback programs are easy to set up and require minimal effort to maintain.
- Potential for Significant Savings: Over time, the savings from cashback can add up significantly.
Ways to Earn Cashback on Subscriptions
Credit Cards with Subscription Cashback Rewards
Many credit cards offer specific cashback or rewards programs tailored to subscription services. These cards typically provide a higher percentage of cashback on eligible subscriptions than on general purchases.
- Example: The American Express Blue Cash Preferred® Card offers 6% cashback on select U.S. streaming subscriptions and at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
- Tip: Research and compare credit cards to find one that aligns with your most frequent subscription purchases.
- Considerations: Evaluate annual fees, interest rates, and other card benefits to ensure the card is a good fit for your overall financial situation.
Cashback Apps and Websites
Several apps and websites partner with merchants to offer cashback rewards on a wide range of purchases, including subscriptions. These platforms often provide special promotions and higher cashback rates for limited periods.
- Popular Examples: Rakuten, Swagbucks, and Ibotta offer cashback on various subscription services. Simply click through their links before subscribing or paying for a service to activate the cashback.
- Browser Extensions: Many cashback apps offer browser extensions that automatically detect when you’re on a website offering cashback and prompt you to activate the reward.
- Varying Rates: Cashback rates can vary widely depending on the platform, merchant, and promotion, so it’s wise to compare offers before making a purchase.
Bank Rewards Programs
Some banks offer rewards programs that provide cashback or points on various types of spending, including subscriptions. These programs can be a convenient way to earn rewards without needing a separate credit card.
- Examples: Some banks offer debit card rewards or credit card rewards tied to your checking account.
- Benefits: May offer tiered rewards or bonus points for maintaining a certain account balance.
- Check with Your Bank: Contact your bank or review your account terms to see if they offer any relevant rewards programs.
Subscription Management Services with Cashback
Certain subscription management services offer cashback or discounts as an incentive to use their platform. These services help you track, manage, and sometimes even cancel your subscriptions, while also offering cashback on eligible purchases.
- Example: Trim and Truebill (now Rocket Money) are subscription management services that help you find and cancel unwanted subscriptions. They may also offer cashback or negotiate lower rates on your behalf.
- All-in-One Solution: Combine subscription tracking with potential cashback rewards.
- Caution: Review the terms and conditions of these services to understand their fees and privacy policies.
Maximizing Your Cashback on Subscriptions
Strategic Payment Methods
Always use the payment method that offers the highest cashback or rewards for your subscription purchases. This may involve using a specific credit card, paying through a cashback app, or taking advantage of a bank rewards program.
- Prioritize Rewards: Identify which payment method offers the best return for each specific subscription.
- Set Reminders: Use calendar reminders or budgeting apps to track when subscriptions are due and ensure you’re using the correct payment method.
Subscription Bundling
Many companies offer bundled subscription packages that combine multiple services at a discounted rate. While these bundles may not directly offer cashback, they can indirectly save you money by reducing your overall subscription costs, freeing up funds that could be used for other cashback-earning purchases.
- Examples: Disney+, Hulu, and ESPN+ are often available in a bundle. Similarly, many internet and cable providers offer bundled packages with streaming services.
- Evaluate Value: Ensure that you will actually use all the services included in the bundle before subscribing.
Negotiating Subscription Rates
Sometimes, simply asking for a lower rate can result in significant savings. Many companies are willing to negotiate subscription fees, especially for long-term customers or those considering canceling their service. This can be even more impactful than cashback since it reduces the original expense.
- Contact Customer Service: Reach out to the customer service department of your subscription provider and inquire about available discounts or promotions.
- Be Polite and Persistent: Explain that you are a loyal customer and are looking for ways to reduce your monthly expenses.
- Mention Competitor Offers: If you are aware of similar services offered at a lower price, mention this to the customer service representative.
Tracking and Managing Your Subscriptions
Staying organized and tracking your subscriptions is essential for maximizing cashback opportunities and avoiding unnecessary expenses. This involves creating a system for tracking your subscriptions, their renewal dates, and the payment methods used.
- Spreadsheet or App: Use a spreadsheet or subscription management app to track all your subscriptions, renewal dates, and payment methods.
- Review Regularly: Periodically review your subscriptions to identify any services you no longer need or use.
- Cancel Unused Subscriptions: Cancel any subscriptions that are no longer providing value to avoid wasting money.
Conclusion
Earning cashback on subscriptions is a smart and easy way to save money on the services you already use. By leveraging credit card rewards, cashback apps, bank programs, and subscription management services, you can significantly reduce your monthly expenses and make the most of your recurring payments. By staying organized, strategically choosing payment methods, and being proactive about negotiating subscription rates, you can maximize your cashback earnings and enjoy the benefits of a well-managed subscription portfolio. Start exploring these strategies today and watch your savings grow!