NEW YORK—Are debit card rewards programs, which had all but disappeared at the biggest U.S. banks, making a comeback?
Citigroup is considering the idea, as well as other types of rewards for checking and savings accounts, to entice customers to sign up for its fledgling online bank, which it began to roll out nationwide earlier this year, Bloomberg reported.
Instead of offering higher rates to attract deposits, Citigroup will work with retailers it already partners with—such as American Airlines—to tailor rewards to existing credit card customers, encouraging them to open new accounts, Bloomberg said.
“They are self-selected members of the American Airlines club and they love miles,” said Stephen Bird, chief executive officer of Citigroup’s global consumer bank. “Until now, nobody has said to them, ‘Why don’t you earn those same miles on your checking and savings accounts?’ You’re going to be able to do that.”