Cashback offered by banks is often perceived by consumers as a beneficial offer. However, it turns out that this is not entirely true. According to experts, cashback of 1-2% is not a charity from banks but rather a marketing tactic embedded in product prices.
How Does Cashback Work?
The cashback you receive is actually part of the amount you have already overpaid for the product. Stores embed this percentage into the price, so when you receive cashback, you are essentially getting back a portion of your expenses that were already included in the price. This means that:
- Cashback is paid not by the bank, but by the store.
- The cost of the product already includes this cashback.
- You only receive a small portion of your money back.
Financial Gain for Banks
While your money sits on the card, banks use it to provide loans at high interest rates, which can exceed 30%. This means that financial institutions profit from your funds, while you earn no interest on your account balance. Thus, banks always remain in the black.
What Should Consumers Do?
Consumers should think about how to effectively use their funds. Instead of relying on cashback, they can consider alternative investment methods that can yield real returns. For example:
- Investing in government bonds (OVDP).
- Utilizing stocks and other investment instruments.
- Exploring financial strategies that help preserve and grow capital.
In conclusion, while cashback may seem attractive, it is important to realize that it is just part of a larger financial game where the benefits go not to consumers, but to banks and stores.