News

PerkStreet Financial is Shutting Down

Perkstreet FinancialThat’s right.  You read the title correctly.  Perkstreet Financial is closing it’s doors.  After being successful for a couple of years when the big banks were charging us crazy fees for using our debit cards and just keeping money in the bank, Perkstreet can no longer remain open.

I heard the news on Daily Finance and I was a little astonished.  Perkstreet has been a banking program that rewarded you for using their debit card.  You earned some good rewards and their program was liked by many people.  I even told quite a few people to switch over to them and they were very happy with the product and service.  You can see that their customers are not happy with all the questions on Twitter.

Goodbye PerkStreet!

I think it is sad to see an organization that tried to change the way people bank go under.  They didn’t do anything bad to their customers and they tried to offer a different approach to the way that we bank.  Unfortunately, that model was just not sustainable.  They were unable to get the funding that they needed to keep going.  All customers rewards have been vanquished and will not be rewarded. They just don’t have the funds to do it.

It is funny that when the big banks were struggling, they were bailed out by the American consumers, but when a bank that doesn’t cause the mortgage crisis is having trouble, they get to fall by the way side.  Sorry Perkstreet!

If you are a Perkstreet customer, know that your account will be transitioned to Bancorp and Provident.  There will be no rewards program, though.  Perkstreet will officially shut down on September, 26, 2013.

Here is the explanation that they put on their website:

Perkstreet Financial Shutdown Explanation

Goodbye Sweet Rewards!

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Grayson Bell

Grayson Bell

I'm a business owner, blogger, father, and husband. I used credit cards too much and found myself in over $50,000 in debt. I paid it off, started this blog, and my financial life has changed. I now talk about fighting debt and growing wealth here. I run a Wordpress management company, along with another blog. It is Empowered Shopper, which helps people get information about products they want to buy.

14 Comments

  1. August 13, 2013 at 1:09 pm — Reply

    Wow! It sounds like Perkstreet was a great idea. I hadn’t heard of them but I’m not sure they were available up in Canada anyway. That sucks that a program that benefitted customers so much couldn’t sustain itself to continue on into the future. Maybe somebody else will be able to pick up the model and run with it in a more sustainable way! Goodbye Perkstreet!

    • August 15, 2013 at 10:05 am — Reply

      They had a good idea and wanted to provide perks to those that were getting charged by the big banks. Having said that, they apparently didn’t come up with a better funding plan and that is what happened.

  2. August 13, 2013 at 1:13 pm — Reply

    I am so bummed out about this. I use my Perkstreet Debit Card on almost everything. Have you heard of any other companies offering Cash Back Debit Cards?

    • August 15, 2013 at 10:06 am — Reply

      Sorry to hear that Deacon. I don’t know of any other banks offering cash back debit cards. I do know that quite a few credit unions offer something. My credit union provides 3% cash back if you use your debit card a certain amount of times a month.

  3. August 13, 2013 at 1:37 pm — Reply

    That is so sad =( I hate seeing businesses fail!

    • August 15, 2013 at 10:06 am — Reply

      I agree Holly.

  4. August 13, 2013 at 11:12 pm — Reply

    That sucks, why is it the businesses that are actually trying to make a difference close while crap banks like BOA are still here. Hopefully another option will pop up soon and great replacement.

    • August 15, 2013 at 10:07 am — Reply

      It is because they are not big enough to get bailed out. They also don’t pay people under the table for things that they normally wouldn’t receive. It is called corruption.

  5. August 14, 2013 at 9:38 am — Reply

    I was a PerkStreet customer for 4 years and have enjoyed raking in the perks. I’ll be sad to see them go.

    • August 15, 2013 at 10:07 am — Reply

      Glad you were able to use them for that many years. It is sad to see them go, but it happens.

  6. Jake @ Common Cents Wealth
    August 14, 2013 at 1:35 pm — Reply

    Wow, this is pretty big news. It sucks to see a company like this fail because all they were trying to do was help people. Hopefully something similar pops up soon, but is able to survive long-term.

    • August 15, 2013 at 10:10 am — Reply

      Something similar might pop up, but they will have to figure out how to keep the money flowing. If you aren’t charging people or are not getting fees, then you have to figure out a way to make money.

  7. August 14, 2013 at 11:29 pm — Reply

    That is really sad for all the customers who were trying to find a different way of banking. I never used them because I’m happy with my small town local bank. I hate the big banks, and this somehow seems like a victory for them.

    • August 15, 2013 at 10:11 am — Reply

      It is a small victory for them. Though, it is funny that Perkstreet was using a big bank to hold their customers’ funds in. They were just a middleman, but at least they gave you perks and didn’t charge you fees.

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