Capital One’s Million Mile Giveaway!

Capital One announced that it will giveaway one million rewards miles away to 26 consumers this June.  Every consumer who opens a new personal or small business checking account during the month of June will be entered into a daily drawing for the grand sum of one million miles. Drawings will occur every daily every Monday through Saturday in the month of June.

Capital One announced that the giveaway is to promote their Capital One Rewards Checking, a free checking account that offers miles earned for standard frequent banking tasks: writing checks, paying bills online, using a debit card, and paying ATM fees.

What are Capital One miles worth you ask? Well Capital One offers consumers the choice to take their rewards in cash, merchandise, or travel.  Account holders can begin exchanging rewards miles for cash as soon as they accrue 5,000 miles.  Merchandise redemption begins at 10,000 miles, and travel at 15,000. Merchandise rewards include products available at Target, on Amazon and for sporting goods, kitchen appliances, electronics, and gift cards specific to dining out. 15,000 miles is worth a ticket of up to $150 in price.  A ticket up to $350 will cost 35,000 miles. 60,000 miles can be redeemed for a ticket worth up to $600, and tickets valued above $600 can be had for 100 miles times the dollar value of the ticket.  For every lucky sweepstakes winner, the prize is worth up to $10,000 in airfare.

To enter the sweepstakes, all consumers and small business owners need only open a new personal or small business checking account during the month of June. Opening a new account with Capital One comes with a bonus of 1,000 miles for joining Capital One, and an additional 1,000 bonus miles on the account’s first anniversary. Both accounts come with no monthly service fee and no minimum balance requirement.

Is the giveaway a good reason to switch to Capital One?

Many banks offer reward options on credit cards, checking accounts, and other services.  Should consumers take the chance at the massive giveaway as an impetus to switch? While the giveaway is enticing, most consumers will not take home the prize. It’s a little wiser to take a look at the rewards offered by Capital One compared to your current account, or other accounts you’re considering.  You’ll want an account that will earn you the most rewards and provide you the highest quality of service.  Let’s take a look at the miles you’ll earn with Capital One.

Every non-PIN-based transaction at a Capital One personal rewards checking account will earn you 10 miles. Every pin-based transaction is worth 5. If you use direct deposit, you’ll earn a bonus of 4,000 miles the first time a deposit posts to your account. All this comes in addition to the bonus 1,000 miles for signing up, and the second bonus 1,000 miles on the account’s first anniversary. As a guide, every 1,000 points is worth about $10 in travel rewards.

Compare this rewards earning and redemption structure with your current account, or others you’re considering.  See which will help you earn the most rewards points, and make the most of those you earn. If the two accounts have comparable rewards, you might want to consider opening an account with Capital One before the end of June. Who knows, you could be flying across the world as a result.