Is there a debit card that earns miles (1 mile per $1 spent) and doesn't have an annual fee?

Question

I use Bank of America and they offer debit cards on US Airways and Alaska Airlines, but I earn 1 mile for every $2. Plus, I pay an annual fee. I would love to switch banks and use a bank that offers a debit card that accrues 1 mile per $1 spent and no annual fee. I do use my debit card as a credit card for these miles, but the $$ comes right out of my account instead of racking up a credit card debt.

Answer 1

I don't know of any that are comparable to credit cards.

There's a reason for that. Debit cards, being newer, have a much lower interchange rate. Since collecting on debt is risky and less predictable, rewards / miles are paid from those interchange fees. This means with a debit card there's less money to pay you with.

So what can you do? Assuming your credit isn't terrible, you can just open a credit card account and pay in full for purchases by the grace period. I don't know how all cards work, but my grace period allows me to pay in full by the billing date (roughly a month from purchase) and incur no finance charges. In effect, I get a small 30 day loan with no interest, and a cash back incentive (I dislike miles). You're also less liable for fraud via CC than debit.

Answer 2

I have an American Airlines VISA with miles that has no annual fee, but only because I request that they waive the fee each year. Word to the wise - they've never refused.