Rakuten vs. Honey: Which Cash Back Tool Is Right for You?

If you love saving money while shopping online, you’ve probably heard of Rakuten and Honey. Both tools help you save, but they do it in different ways. Let’s break down the differences to help you decide which one might be better for you or both!

What is Rakuten?

Rakuten is primarily a cash back service. When you shop through Rakuten, you earn a percentage of your purchase back as cash. Here’s how it works:

Cash Back Offers: Rakuten partners with thousands of retailers. When you click through their site to shop, you earn cash back on eligible purchases.
Payouts: You can get paid via check or PayPal once you reach a certain payout threshold, typically every few months.
Bonus Offers: Rakuten often has bonus cash back percentages during special promotions or for specific stores.

 What is Honey?

Honey, on the other hand, focuses on finding and applying coupon codes to help you save at checkout. Here’s what you need to know:

Coupon Finder: Honey automatically searches for discount codes when you’re shopping online. If there’s a code available, it applies it for you, often saving you money instantly.
Honey Gold: Honey also has a rewards program called Honey Gold. You earn points (which can be redeemed for gift cards) when you shop at partner stores.
Price Tracking: Honey offers a price tracking feature, letting you know if a product’s price drops.

 Key Differences

1. Core Functionality
Rakuten: Primarily cash back on purchases.
Honey: Focuses on finding coupon codes and discounts.

 2. Earnings
Rakuten: You earn a percentage of your total purchase back as cash.
Honey: You earn points (Honey Gold) which can be redeemed for gift cards, along with potential savings from coupon codes.

 3. User Experience
Rakuten: You need to visit the Rakuten website or use their app to activate cash back before shopping.
Honey: It works seamlessly in the background while you shop, automatically applying discounts at checkout.

 4. Payment Method
Rakuten: Cash back is paid out via check or PayPal.
Honey: Points are accrued and can be redeemed for gift cards, not cash.

 Which One Should You Choose?

Choosing between Rakuten and Honey depends on your shopping habits:

If You Prefer Cash Back: If you love the idea of getting cash back on your purchases and don’t mind waiting for payouts, Rakuten is a solid choice.

If You Want Instant Savings: If you want to save money right at checkout and appreciate the convenience of automatic coupon applications, Honey might be the better option for you.

 Conclusion

Both Rakuten and Honey have their unique advantages, and many savvy shoppers use both to maximize their savings. Whichever you choose, you’ll be on your way to spending less while enjoying your online shopping! Sign up for both.