A new way to earn airline miles has emerged, but it’s unlike anything seen in years. United Airlines has launched a debit card that rewards spending with MileagePlus miles, a throwback to a time before travel rewards were dominated by credit cards.
This isn’t a card overflowing with perks; the financial realities of debit cards mean it won’t compete with United’s premium credit card offerings. The airline remains tight-lipped about the exact economics, but the core idea is simple: earn miles on everyday purchases without the complexities of credit.
The United MileagePlus Debit Rewards card offers one mile for every dollar spent on United purchases and one mile for every two dollars spent elsewhere. A $4 monthly fee applies, but is waived with an average daily account balance of $2,000 or more.
New cardholders can receive a 10,000-mile bonus after spending $500 within the first four months. Beyond that, bonus miles are awarded based on average daily account balances, potentially reaching a substantial 70,000 miles annually for those maintaining a $50,000+ balance.
However, the value proposition is debatable. While the bonus tiers are intriguing, current high-yield savings accounts offer a more predictable and potentially greater return on investment. The inherent risk of mileage devaluation also casts a shadow over the long-term benefits.
United envisions this card appealing to a younger demographic seeking the simplicity of a debit card combined with the allure of travel rewards. It mirrors a similar strategy recently adopted by Southwest Airlines, signaling a potential shift in how airlines approach customer loyalty programs.
For seasoned travelers already maximizing credit card rewards, this debit card likely won’t be a game-changer. But for those who prefer the control of a debit card or struggle with credit card management, it presents a unique opportunity to accumulate miles on everyday spending.
The re-emergence of mileage-earning debit cards marks a fascinating development in the travel rewards landscape, offering a different path to reaching dream destinations.
