MIDVALE, Utah, Sept. 15, 2016 /PRNewswire/ -- Cash is king when it comes to credit card rewards according to a recent study conducted by Ally Bank, the direct banking subsidiary of Ally Financial Inc.
More than half (58 percent) of survey respondents who have a credit card said they preferred cash back rewards, topping interest in travel rewards, store promotions and introductory interest rates or bonus rewards. Furthermore, the study found that two thirds of those respondents (66 percent) would be interested in a credit card that would give an additional bonus on cash back rewards if those rewards were placed into a bank account.
Ally conducted its credit card study to understand consumer preferences when it comes to credit card rewards prior to the recent introduction of its Ally CashBack Credit Card.
"Our promise at Ally is to 'do it right' when it comes to all our financial product offerings," said Diane Morais, chief executive officer and president of the Ally Bank subsidiary. "Consumers value convenience and flexibility when it comes to the products they choose for their personal finance needs. By offering customers a simple and straightforward cash rewards program, the Ally CashBack Credit Card provides value and ease of use for all consumers as opposed to limiting rewards to specific uses."
In addition, the survey found 80 percent of consumers with credit cards said they would prefer to have multiple financial products, (such as a bank account, loan or credit card) with the same bank if they earned rewards for doing so.
The Ally survey also asked respondents about missing out on rewards offered by their credit card company. Interestingly, only 36 percent of consumers with credit cards use their card for daily purchases, often missing out on rewards on purchases like gas and groceries. Another 28 percent of respondents admitted to losing out on rewards because they expired or were too difficult to cash in.
Additional survey information
Across all age groups, millennials who do use credit cards (78 percent) were least likely to have lost out on credit card rewards because they expired or it was too difficult to use them. But millennials may be missing out on rewards by simply not using credit cards. Of those millennials surveyed by Ally, 58 percent said they don't even own a credit card, compared with 44 percent of Gen X and 43 percent of Baby Boomers.
"Our goal at Ally is to build loyalty with our new and existing customers by providing a customer-centric experience and product," Morais added. "Ally CashBack Credit Card customers will get an additional ten percent bonus if cash back rewards are redeemed into an eligible Ally Bank account and rewards never expire, as long as the account is open and in good standing."
The Ally CashBack Credit Card is issued by TD Bank N.A. To learn more about the Ally CashBack Credit Card Program, visit www.ally.com/cashback.
A telephone survey was conducted by ORC International among a national probability sample of 1,005 adults 18 years of age and older, living in the continental U.S. Interviewing was completed during the period of May 19-22, 2016. Of the 1,005 respondents, 589 had a major credit card in their name and therefore qualified for the survey.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company and a top 25 U.S. financial holding company offering financial products for consumers, businesses, automotive dealers and corporate clients. Ally's legacy dates back to 1919, and the company was redesigned in 2009 with a distinctive brand, innovative approach and relentless focus on its customers. Ally has an award-winning online bank (Ally Bank Member FDIC), one of the largest full service auto finance operations in the country, a complementary auto-focused insurance business, a growing digital wealth management and online brokerage platform, and a trusted corporate finance business offering capital for equity sponsors and middle-market companies.
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SOURCE Ally Financial