Want to earn airline miles but hate credit cards? I have some great news for you. In just the past couple of weeks, two major airlines have unveiled co-branded rewards debit cards. In fact, both Southwest and United have teamed up with the same company to make these cards a reality: Galileo.
Given this emerging trend, let’s take a quick look at these two new cards, what they have in common, and where they differ. Plus, is this concept really as novel as it may seem?
Southwest Airlines Rapid Rewards Debit Card
- Monthly fee: $6.99
- How to waive the fee: Average monthly balance of $2,500+
- Rewards: 1x points on dining, Internet, phone, streaming service, and utilities purchases + 1 point per $2 spent on all other purchases
- Intro bonus: 2,500 points when they make at least two recurring deposits and spend a minimum of $100 on the card during their first 90 days
The Southwest Rapid Rewards Debit Card obviously comes along as the airline is undergoing a major overhaul of its identity. But, while the days of free checked bags and open seating may be gone, one aspect of the airline that’s sticking around for now is the Companion Pass. On that note, all points earned with this debit card count toward Companion Pass eligibility. That includes the welcome bonus as well as the 7,500 Companion Pass bonus points that cardholders can earn each year.
Another perk of this card is that, at the start of each calendar year, customers will receive a 20% off promotional code for a Southwest booking. Plus, cardholders enjoy a $35 per year credit on Southwest purchases.
Alas, those perks can easily be offset by the card’s $6.99 monthly fee. The good news is that those who maintain an average monthly balance of at least $2,500 can have that fee waived.
Honestly, I feel as though this product would have been a better fit for the previous version of Southwest. Yet, for those willing to make this their primary debit product (and maintain a high enough balance to avoid that monthly fee), there may be some value here. That’s especially true if you can spend your way to a Companion Pass with the card.
United MileagePlus Debit Rewards Card
- Monthly fee: $4
- How to waive the fee: Average balance of $2,000+
- Rewards: 1x miles on United purchases + 1 mile per $2 spent on all other eligible purchases
- Intro bonus: 10,000 bonus miles when you open an account and spend $500 within the first four months of card membership
Considering that the Southwest and United debit cards are powered by the same company and issued by the same bank (Sunrise Banks), I’m surprised by how many differences there actually are. First, while the rewards structure is fairly similar, the United MileagePlus Debit Rewards Card’s only “enhanced” category is United purchases. However, the United card also carries a lower monthly fee at $4 — and the average monthly balance threshold for waiving that fee is $2,000 versus $2,500 with the Southwest card.
Another unique aspect of the United MileagePlus Debit Rewards card is that customers can increase their rewards by maintaining a larger balance. Specifically, those with balances between $2,500 and $50,000 can earn annualized bonus miles. Here’s how that breaks down:
| Average Daily Balance | Annualized Bonus Miles |
| $2,500 to $4,999.99 | 2,500 |
| $5,000 to $9,999.99 | 5,000 |
| $10,000 to $24,999.99 | 15,000 |
| $25,000 to $49,999.99 | 30,000 |
| $50,000+ | 70,000 |
Since these bonuses are annualized, qualifying cardholders will earn 1/12th of these bonus miles each month.
Speaking of bonus miles, customers can also earn 2,500 bonus miles each calendar year when they spend at least $10,000 on the card. Ahead of that, the United card’s 10,000-mile welcome offer is fairly generous.
Although I think the idea of offering bonus miles for larger balances is interesting (and kind of reminds me of Bask Bank Mileage Savings), I’d really like to meet the person who keeps $50,000 in a checking account. It’s also disappointing that this card doesn’t even offer any practical spending categories for the 1x rate. Therefore, even though it costs less, I think this is the weaker product of the two.
A New Idea?
As I recently discovered, Southwest and United aren’t the first domestic carriers to offer rewards debit cards. What’s truly ironic is that Delta actually had a debit card that it just discontinued. This card was issued by Truist Bank — and, from what I can tell, the product was fairly complicated.
While I’m not 100% sure, it seems that the business version of the Delta SkyMiles debit card is still available even as the consumer edition is phased out. Either way, though, it’s fascinating to know that this “new” trend isn’t quite as new as I thought.
There’s no question that, given the choice between these debit cards and credit cards from these airlines, the latter options are far more lucrative. Still, I realize that there are those who either don’t like credit cards or can’t get them. For them, it is nice that they can also participate in some points and miles fun — and maybe even earn themselves a Companion Pass. As for me, I’m just interested to see if more co-brand rewards debit cards emerge in the months ahead and continue this growing trend.