I already know about Compubank and the Chase/Continental card. Are there any other debit cards that earn points/miles/etc?

Well, there's the First Indiana Bank "Low Minimum Frequent Flyer Checking Account" that earns you miles for debit card purchases. I believe they are in partnership with VacationMiles. Rewards are airline discounts ($150 off $299 min airfare) for 7,500 points (American) to 10,000 (Your choice), free roundtrip tickets (25,000 AA coach, 27,000 Continental, 30,000 Delta, 35,000 your choice), car rentals (3,000 one weekend day wth Hertz), Hotel / Resort Awards (Hyatt / Marriott brands), and some cruise awards.

They require you to maintain $200 min balance and account does not earn interest. I am fairly sure you can open an account via their web site.

Direct link to account description is http://www.firstindiana.com/personal/pch_freqfly.html

Not much, but...

Looks interesting. They say you must be a resident of Central Indiana (not just Indiana). Were you able to open the account from MA?

And for those in Canada:

The Bank of Montreal has a new Air Miles chequing account that allows you to earn Air Miles on transaction in your account as well as for transactions using your debit card.

Merrill Lynch has an online service - MLDirect.com - which offers a CMA debit card that accrues points good for various rewards including air tickets and cruises.

The best part of the card is that account withdrawal settlement occurs only once a month, I think on the 20th.

I am not sure how any of these debit cards have greater value than standard mileage-based visa/amex cards. Since you have to use them at visa/mastercard vendors, you might as well use a regular visa card, get one mile per dollar (vs 1/2 mile per dollar on chase) and get an average 45 extra days to pay the bill.

freakflyer, your point is a con as well as pro (depending what your prefer).

For less financially discpline folks, check card is BIG plus. BTW except for Diners Club card, most of charge/credit cards have 25 or less grace period. But of couse, if you can time your purchase, you can extend it.

Please check out ValueConsumer's Credit Card Page and ValueConsumer's Finance Page for cash bonus and FF miles incentives available.

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"It is not doing the things we like to do, but liking the things we have to do, that makes life blessed." - Goethe

My wife and I made the decision 5 years ago to incur NO consumer debt. We cut up all credit cards - VISA, MC, all store cards - paid off and closed all accounts, and opened two checking accounts (one for her, one for me) which came with debit cards. Our only monthly payment is our vehicle - 18 more payments and that's it.

For us, it's the best move we ever made. Once we got the hang of dealing with debit cards - keep $1000 in the checking account for emergencies (quick plane ticket, car rental, appliance breakdown) - it has led to real peace of mind for us.

We have acquaintances who slam us for not being able to deal with credit. Admittedly, it can be difficult, but for us the payoff of not having to worry about bills greatly outweighs instant access to goods and services, much of which we wouldn't buy on second thought anyway. I'd love to be able to charge 4 or 5 tickets for mileage runs when fares drop for a short period. Still, with a debit card you buy what you can afford, because once the money in the account goes to $0, the card no longer works.

Thanks for all your replies. While everyone has a valid point in the debate about the pros and cons of debit cards vs. credit cards, that's not really what I intended to start. I was just trying to get leads on some good debit card programs or experience with those specific programs. I just don't want those things to get lost in the avalanche of of philosophical opinions. Maybe that can be a different topic.

Maybe I should have been more clear in the original post. The MLDirect debit card works exactly the same way as a credit card, except there is no credit extended beyond the cash balance in the account minus all outstanding charges to be settled on the 20th.

In other words, ML takes the money from your account on the 20th of the month when the bill for the previous 30 days (16th to 15th, I believe) expenditures is presented, just as you pay your credit card bill when presented.

UserMark -

I was First Indiana's customer sometime ago, and apparently, they allow anyone who banked with them before to open an account regardless of their current residence.

You could try calling them (perhaps if you tell them you plan to move to Indy sometime in the future...)

Already tried that. They want you to be an Indiana resident with an Indiana driver's license.