Honey vs. Rakuten: Which Cashback and Discount Tool is Right for You?

If you're like most people, you probably love saving money when shopping online. After all, who doesn’t want to get the best deal possible without having to hunt it down? Luckily, tools like Honey and Rakuten make it easier to save money with minimal effort. Both have their perks, but how do they compare? Let’s dive into the details and see which one fits your shopping habits best.

What is Honey?

Honey is a browser extension that’s all about finding the best deals for you. It automatically applies coupon codes at checkout, helping you get discounts without the need to search for them yourself. Beyond that, Honey also has a rewards program called Honey Gold, where you can earn points for purchases at certain stores and redeem them for gift cards.

Key Features of Honey:

  • Automatic Coupon Application: Honey searches the web for any available coupon codes and applies the best one to your cart.
  • Honey Gold Rewards: For certain purchases, you earn Honey Gold points, which can be redeemed for gift cards.
  • Price History Tracker: You can track the price history of products to see if you're getting a good deal or if you should wait for a better price.
  • Works at a Wide Range of Stores: Honey works with thousands of online stores, including Amazon, Walmart, and Target.

What is Rakuten?

Rakuten (formerly known as Ebates) is a cashback service that lets you earn money back for shopping at participating online retailers. Instead of just offering discounts, Rakuten gives you a percentage of your purchase back as cash. It’s a super simple way to get paid for buying stuff you were already planning to purchase.

Key Features of Rakuten:

  • Cashback: Rakuten gives you cashback on qualifying purchases from hundreds of retailers, like Macy’s, Best Buy, and even Amazon.
  • Sign-Up Bonuses: New users can earn significant sign-up bonuses (like $40) after making their first purchase.
  • Payment Options: You can cash out your earnings via PayPal or check, making it super convenient.
  • Wide Range of Stores: Rakuten partners with tons of popular retailers and often offers increased cashback deals, especially during sales events.
  • Rakuten Button: The Rakuten browser extension adds a button to your browser, alerting you when cashback is available for a retailer you're shopping at.

So, What’s the Big Difference?

At first glance, Honey and Rakuten seem pretty similar—they both help you save money when shopping online. But they operate a bit differently and focus on different aspects of saving:

  1. Discounts vs. Cash Back:

    • Honey is mainly about finding discounts through coupon codes and applying them automatically at checkout. It’s great if you’re looking for an instant price drop without doing the legwork.
    • Rakuten, on the other hand, focuses on cashback. If you’re willing to go through Rakuten’s portal or use its extension, you can earn money back on purchases, which is paid out later. It's like getting a little bonus for shopping.

  2. The Earning Potential:

    • Honey doesn’t give you cashback but instead rewards you with Honey Gold, which can be redeemed for gift cards. The number of stores that offer Honey Gold isn’t as extensive as Rakuten’s cashback deals, so the earning potential can be more limited.
    • Rakuten offers actual cash back, which can add up over time. Some users report getting hundreds of dollars in cashback, especially during big shopping seasons. You can also get higher cashback percentages during special promotions, which is a huge perk.

  3. Ease of Use:

    • Honey is all about simplicity. Once you add the extension, it automatically looks for coupon codes when you're checking out at supported stores. You don't need to do anything extra to use it—just shop as usual, and let Honey do the rest.
    • Rakuten requires a little more effort to get started. You need to log into the site or use the extension to activate cashback for each store. However, the cash you earn is pretty rewarding once it starts piling up.

  4. Payment Method:

    • Honey rewards you with gift cards, which can be a bit limiting since you're locked into using them at specific stores.
    • Rakuten gives you cash back, which can be paid out to PayPal or by check, and that cash is completely yours to spend however you want. For some, this is a bigger incentive than gift cards.

Which One Should You Choose?

Ultimately, the right tool for you depends on how you like to shop and what you want to get out of it.

  • Go with Honey if: You love the idea of finding instant discounts without thinking about it too much. If you’re a casual online shopper who wants coupon codes automatically applied at checkout, Honey is a great option. The Honey Gold rewards are nice, but they’re not as tangible as cashback. Click here if you want to start saving money online with Honey.

  • Go with Rakuten if: You prefer cashback rewards and don’t mind a little extra step to activate them. Rakuten’s cashback system is more beneficial for serious shoppers who want to earn cash back on larger or more frequent purchases. Plus, Rakuten’s sign-up bonuses and increased cashback opportunities can give you an instant head start. Click here if you want to start earning cash back with Rakuten.

Final Thoughts

Both Honey and Rakuten are excellent tools for saving money online, but they cater to slightly different needs. Honey is perfect for effortless savings with coupon codes, while Rakuten rewards you with cash for your purchases. If you really want to maximize your savings, you could even use both tools at the same time—Rakuten for cashback and Honey for discounts. Happy shopping, and happy saving!

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