2% cash back on a credit card is worth twenty five times more than 2% interest on checking (assuming you can even get that). If you spend $2000 every month, an

2% cash back on a credit card is worth twenty five times more than 2% interest on checking (assuming you can even get that). If you spend $2000 every month, and you get 2% back, then that is $40/month or $480 per year. You also get from $0 to $40 interest per year on the money you haven't used to pay your balance yet, depending on the timing of your income and payment date. If you don't have a credit card but only a checking account paying 2%, and you spend $2000 perfectly uniformly over the course of each month, then you are getting $20 per year interest on an average balance of $1000. You have a choice of either $500 with a credit card or $20 without. So 2% <> 2%.