By Brian O’Connell
Banks are forever talking about “free” this and “free” that.

Free online bill paying, free account transfers, and even free checking accounts have all replaced the fee-based services we were once accustom to.

But what about a first-of-its kind program that gives bank customers real, genuine, “free money” if they make frequent check card purchases with the bank’s respective credit card?

That’s what Raleigh, North Carolina-based First Citizens Bank is rolling out to customers in the form of its “Free Money Bonus Program”. Launched on March 30, 2009, the First Citizen bonus program gives bank customers personal Visa Check Cards that they use to make a minimum amount of purchases on a monthly basis. Once the bank customer meets the allotted card purchase minimums, the bank begins adding a $1 bonus for every $25 that is placed directly into their bank savings accounts.

The “free money” is only allotted to customers who use their Visa Check Cards to make what the bank calls “non-PIN transactions”, meaning any purchases that require a credit card and signature to seal the deal.

First Citizens’s chief selling point is that by using their bank cards, customers are using the banks money, and not their own in accumulating bank account assets. That’s a pretty strong pitch to financial consumers in a down economy.

So who’s a good candidate for a “free money” program? For starters, anyone who uses a bank check card of a frequent basis will likely meet the program’s “minimum use” provision. Of course, frequent card users also run the risk of piling up unnecessary, and potentially dangerous, levels of debt. For instance, if you run up a monthly check card bill of $1,000 after the minimum use requirement is satisfied, you’ll earn $40 from the bank’s free cash program. But you also have an additional $1,000 in card debt that maybe you didn’t need.

Therefore, First Citizen’s argument that it’s free money program “builds savings” runs the risk of becoming contradictory. After all, how much savings can you accumulate when you’re potentially abusing your bank credit card?

But if you’re operating within the constraints of your household budget, and use the First Citizen check card to pay for things you’d normally pay for by cash or a major credit card, then the program might just make sense.

No question, the First Citizen free money program is a creative one, but this program and others that will surely follow can only be accurately assessed by one question.

Is it right for you?

—For more ways to save, spend, invest and borrow, visit MainStreet.com.