Southwest's Debit Card: The $84 Annual Fee Nobody's Talking About

What the Earning Rates Really Mean (In Dollars)

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Let's translate Southwest's "points" into actual cash value to understand what you're really getting:

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Southwest Debit Card Earning:

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• Southwest flights/dining/subscriptions: 1 point per $1 = 1.3% return

• Everything else: 1 point per $2 = 0.65% return

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Compare to alternatives:

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Southwest Rapid Rewards® Plus Credit Card

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[[ SINGLE_CARD * {"id": "2159", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Additional Travel Benefits" } ]]

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Citi Double Cash® Card

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[[ SINGLE_CARD * {"id": "580", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Everyday Spenders", "headerHint": "No Annual Fee"} ]]

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Capital One Quicksilver Secured Cash Rewards Credit Card

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[[ SINGLE_CARD * {"id": "3058", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Credit Builders", "headerHint": "1.5% Flat Cash Back"} ]]

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The brutal truth: You earn LESS on the Southwest debit card than free no-fee credit cards on everyday spending. And you earn half as much on Southwest flights compared to their cheapest credit card.

Who Should (and Shouldn't) Get This Card

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✅ Get the Southwest Debit Card if you:

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1. Cannot qualify for any credit card

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• No credit history (international students, recent immigrants)

• Bankruptcy recovery (credit cards denied)

• Frozen credit reports

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2. Are philosophically opposed to credit cards

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• Dave Ramsey followers committed to debt-free living

• Past credit card debt trauma

• Prefer cash-like spending control

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3. Need a checking account anyway + fly Southwest occasionally

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• Would keep $2,500 at Sunrise Banks regardless

• Make 2+ Southwest trips annually

• Want some rewards on debit spending

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4. Are working toward Southwest Companion Pass

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• Need every point to count toward 135,000 threshold

• Willing to sacrifice better earning for Companion Pass progress

• Already maxing out credit card spending

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❌ Skip this card if you:

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1. Can qualify for any credit card (even a secured card)

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• Southwest's credit cards earn 2x more

• Secured cards help build credit + earn rewards

• $200 secured deposit beats $2,500 checking requirement

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2. Don't fly Southwest regularly (fewer than 2 trips yearly)

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• The $35 credit goes unused

• Companion Pass bonus loses value

• Better debit cards exist (none beat credit, though)

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3. Keep less than $2,500 in checking accounts

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• The $6.99 monthly fee ($84/year) eats all rewards

• You'd lose money compared to any no-fee option

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4. Want to maximize rewards

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• 0.65% base earning is objectively weak

• Free credit cards earn 1.5-2% with $0 fees

• Southwest's own credit cards earn 2x more points

Southwest Debit vs. Southwest Credit Cards: The Definitive Comparison

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Before choosing the debit card, understand exactly what you're giving up by not getting one of Southwest's credit cards.

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Southwest Rapid Rewards® Plus Credit Card

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Why it's better:

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• Much larger welcome bonus

• Builds credit score while earning

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Southwest Rapid Rewards® Premier Credit Card

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Why it's better:

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• Bigger welcome bonus

• EarlyBird Check-Ins save time + stress

• Better perks more than the Plus card

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Southwest Rapid Rewards® Priority Credit Card

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Why it's better:

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• Effectively a cheaper annual fee after credits

• Upgraded boarding saves time

• Earns more points on Southwest than debit

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[[ COMPARE_CARD * {"ids": ["2159", "2161", "2162"], "bestCategoryIds":["17", "18", "19"], "bestForTexts":["Additional Travel Benefits", "Fantastic Travel Perks", "Generous Benefits and Perks"]} ]]

The Companion Pass Strategy: Does the Debit Card Help?

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Southwest's Companion Pass is one of the best travel perks in existence: earn 135,000 qualifying points in a calendar year, and a companion flies free with you for the rest of that year + the entire next year.

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Does the debit card help you get there faster?

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Debit card contribution:

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• 2,500 welcome bonus = qualifying points

• 7,500 anniversary bonus = qualifying points

• All earned points count toward Companion Pass

• Total: 10,000 points in year one

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Credit card contribution:

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• Welcome bonus = qualifying points

• Anniversary bonus = qualifying points

• Points from spending (double the debit rate)

• Total: ~72,500+ points in year one

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Verdict: If you're chasing Companion Pass, start with a credit card. You'll get there 7x faster. Only add the debit card as a supplemental tool if you're within 10,000-20,000 points of the threshold and need every purchase to count.

Alternative Strategy: What If You Can't Get a Credit Card?

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If you genuinely cannot qualify for any credit card, here's the honest comparison of your debit card options:

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Southwest Rapid Rewards® Debit Card

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Pros:

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• Earn on Southwest flights (1x)

• Companion Pass qualifying points

• Southwest credit

• No credit check

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Cons:

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• 0.65% earning on most purchases (weak)

• $6.99 monthly fee OR $2,500 balance requirement

• Doesn't build credit

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No-Rewards Debit Card + Save the Difference

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Earning: 0%

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Cost: $0 monthly fee, no balance requirement

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Strategy: Keep $2,500 in a 4.5% high-yield savings account instead

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• Earn $112.50 annually in interest

• Save the $84 annual fee Southwest charges

• Total savings: $196+ annually

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Use savings to buy Southwest flights with cash when needed

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Verdict: Financially, you're better off with a no-rewards debit card + high-yield savings unless you fly Southwest 3+ times yearly and value the Companion Pass points.

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Secured Credit Card (Build Credit + Earn Rewards)

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Best option: Discover it® Secured Credit Card or Capital One Platinum Secured

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[[ COMPARE_CARD * {"ids": ["827", "431"], "bestCategoryIds":["17", "18", "19"], "bestForTexts":["No Annual Fee", "No Fee"]} ]]

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Why it's better:

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• Builds credit so you can get Southwest credit cards later

• Earns more than Southwest debit on everyday spending

• Deposit is cheaper than $2,500 checking balance

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Verdict: If you can afford $200-300 for a secured card deposit, that's a smarter path than the Southwest debit card. Build credit for 6-12 months, then apply for Southwest Plus Credit Card and earn 2x more points forever.

How to Apply (If You Still Want This Card)

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Despite the weak ROI, if the Southwest debit card fits your specific situation (no credit access + frequent Southwest flyer), here's how to get it:

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Step 1: Check Your Eligibility

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Requirements:

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• No credit check (anyone can apply)

• Must be 18+ years old

• Valid U.S. address

• Social Security number

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Step 2: Choose Your Fee Strategy

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Option A: Pay the monthly fee ($6.99/month)

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• Best if you can't maintain $2,500 balance

• Evaluate if $84/year fee is worth 9,000-15,000 points

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Option B: Maintain $2,500 minimum balance

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• Fee waived with average monthly balance

• Consider opportunity cost (4.5% = $112 annually elsewhere)

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Step 3: Apply Online

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Visit southwestdebit.com or southwest.com/debit-card

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Application takes 5-10 minutes

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Step 4: Meet Welcome Bonus Requirements

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• Set up two recurring deposits (payroll, transfers)

• Spend $100 in first 90 days

• Earn 2,500 bonus points (~$33 value)

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Step 5: Maximize the Card's Limited Benefits

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Use the card for:

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• Southwest flight purchases (1x)

• Dining and subscriptions (1x)

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Don't use the card for:

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• Everyday purchases (use a 2% credit card instead if possible)

• Large purchases (credit cards offer purchase protection)

Frequently Asked Questions

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Does the Southwest debit card help build credit?

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No. Debit cards don't report to credit bureaus because they're not credit products. If building credit is a goal, consider a secured credit card instead—Discover it® Secured and Capital One Platinum Secured both earn rewards AND build credit with $0 annual fees.

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Can I have both the Southwest debit card and a Southwest credit card?

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Yes! There's nothing preventing you from holding both. If you already have a Southwest credit card and want additional Companion Pass qualifying points from debit spending, adding the debit card can help. However, the earning rates are much weaker, so prioritize credit card spending.

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What happens if my balance drops below $2,500?

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You'll be charged the $6.99 monthly fee for any month where your average daily balance falls below $2,500. The fee is assessed monthly, so one low month costs you $6.99.

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How do Southwest points earned on the debit card compare to credit card points?

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They're identical. 1 Southwest point = 1 Southwest point regardless of how you earned it. The difference is the earning rate: credit cards give you 2x points on Southwest purchases vs. the debit card's 1x.

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Is the $35 Southwest credit worth it?

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Only if you actually fly Southwest and spend at least $35 on flights annually. The credit applies to flight purchases only (not upgraded boarding or in-flight purchases). For anyone flying Southwest 1-2 times yearly, you'll easily use this credit.

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What if I'm trying to earn Southwest Companion Pass—should I get this card?

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The debit card can contribute 10,000 qualifying points annually (2,500 welcome + 7,500 anniversary max), but Southwest credit cards are far more effective. A single credit card welcome bonus (50,000-75,000 points) gets you 37-56% of the way to Companion Pass immediately. Use the debit card only as a supplemental tool if you're close to the 135,000-point threshold.

Bottom Line: Run Your Personal Math

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The Southwest Rapid Rewards® Debit Card serves an incredibly narrow audience: people who cannot access credit cards but fly Southwest regularly enough to justify the costs.

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The brutal truth:

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• Earning rates are half what credit cards offer

• Hidden costs ($84 fee or $112 opportunity cost) eat most rewards

• Even Southwest's cheapest credit card ($69) earns $400-600 MORE in year one

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Get this card immediately if:

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• You're legally unable to get credit cards (bankruptcy, frozen credit)

• You fly Southwest 3+ times yearly

• You're within 20,000 points of Companion Pass and need every debit purchase to count

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Seriously consider alternatives if:

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• You can qualify for a secured credit card ($200 deposit builds credit + earns 2x more)

• You fly Southwest fewer than 2 times yearly (the perks go unused)

• You don't want $2,500 tied up in a checking account earning 0% interest

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Skip this card entirely if:

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• You can qualify for ANY Southwest credit card (they earn 2x more + massive welcome bonuses)

• You don't fly Southwest (no airline loyalty = no value)

• You want to maximize rewards (0.65% base earning is objectively terrible)

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Your honest next steps:

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Action 1: If you have fair credit or better (640+ score), apply for Southwest Rapid Rewards® Plus Credit Card instead. You'll earn $770+ MORE in year one.

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Action 2: If you have no credit or poor credit, apply for a secured credit card (Discover it® Secured or Capital One Platinum Secured). Build credit for 6 months, then apply for Southwest credit cards.

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Action 3: If you're philosophically opposed to credit and would keep $2,500 at Sunrise Banks anyway, then—and only then—does the Southwest debit card make any sense.

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Action 4: Track your card benefits with Kudos to ensure you're actually using that $35 Southwest credit and 7,500 anniversary bonus before they expire.

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The Southwest debit card isn't a "game-changer" as some marketing suggests—it's a last-resort option for a specific subset of travelers who lack credit access. For 95% of people reading this, you'll earn hundreds more dollars annually by getting one of Southwest's credit cards instead.