Rakuten vs. Honey: What’s the Difference and How Can They Both Save You Money?

Hey y'all, Biz here and if you are like me, you love saving money, especially when shopping online. But with so many cash-back and coupon tools out there, it can get a little confusing. Two of the biggest names that come up all the time are Rakuten and Honey. Both promise to save you money, but they do it in different ways. So, let’s break down the differences between Rakuten and Honey, and why using them together could be the ultimate hack for keeping more cash in your pocket.

What Is Rakuten?

Rakuten is a cash-back platform that partners with thousands of retailers. When you shop through Rakuten, you earn a percentage of your purchase back in cash. It’s super simple—you just have to start your shopping trip on Rakuten’s website or use their browser extension.

Here’s how it works:

  • You sign up for a free Rakuten account.
  • Search for your favorite store on Rakuten's site or activate the cash-back offer with the Rakuten browser extension.
  • After you shop, Rakuten tracks your purchase and gives you cash back.

You’ll get paid every three months either by PayPal or check once you’ve accumulated at least $5.01 in cash back. The percentages vary by store, but some offer up to 10% cash back or more.

What Is Honey?

Honey is a browser extension that automatically finds and applies coupon codes when you're about to check out online. It’s a massive time-saver because, instead of manually searching for discount codes, Honey does the work for you.

Here’s what it does:

  • After you install the Honey browser extension, it’ll notify you if it finds any working coupon codes when you're checking out.
  • Honey automatically tests these codes to find the one that gives you the best discount.
  • They also have a rewards program called Honey Gold, where you can earn points (Gold) on some purchases. You can redeem those points for gift cards.

Unlike Rakuten, Honey is mainly about finding coupons, but it does offer cash-back-like rewards through Honey Gold at certain retailers.

How Rakuten Saves You Money

Rakuten’s strength is in its cash-back offers. If you’re someone who makes frequent purchases at major online retailers like Macy’s, Walmart, or even Amazon, using Rakuten can add up to some serious savings over time. The percentages might seem small—like 2% here or 5% there—but if you're spending $100, getting $5 back feels pretty good.

One great thing about Rakuten is that it offers in-store cash back as well. You just link your credit or debit card to your Rakuten account and activate offers before heading to the store. You can also use Rakuten when booking travel or buying services, so it’s not just about clothes or gadgets—it can help with big-ticket purchases too.

How Honey Saves You Money

Honey’s sweet spot is its coupon-finding feature. We've all been there—about to check out and wondering if there’s a promo code somewhere on the internet. Instead of Googling “X store coupon code,” Honey automatically tests codes for you. It’s the quickest way to shave a few bucks off your purchase price without any effort.

On top of that, Honey’s Honey Gold rewards give you a little something extra. While not every store offers Honey Gold, it’s like a mini cash-back program where you earn points that you can trade in for gift cards. It’s not as extensive as Rakuten’s cash-back network, but it’s a nice perk when you come across it.

The Key Differences Between Rakuten and Honey

  1. Cash Back vs. Coupons

    • Rakuten is all about earning cash back after you make a purchase.
    • Honey focuses on applying coupon codes to reduce the cost at checkout.

  2. Payout Method

    • With Rakuten, you get actual cash paid out to your PayPal or in the form of a check.
    • With Honey, you save immediately via coupons or earn Honey Gold, which you can redeem for gift cards.

  3. Where You Can Use Them

    • Rakuten works with thousands of retailers, including in-store options and travel services.
    • Honey shines mainly when you're online shopping and can help anywhere coupons are available.

  4. Ease of Use

    • Both have browser extensions, but Honey’s coupon-finding process happens automatically when you're at checkout, whereas Rakuten requires you to activate the cash-back offer beforehand.

Can You Use Rakuten and Honey Together?

Absolutely! This is where it gets fun. Rakuten and Honey don’t cancel each other out. You can use Rakuten to earn cash back and Honey to apply coupons in the same purchase. Here’s how it works:

  1. Start your shopping trip on Rakuten and click through to the retailer's site to earn cash back.
  2. Once you're ready to check out, Honey will pop up and scan for coupon codes.
  3. Apply the best discount from Honey and complete your purchase.
  4. You'll still earn your cash back from Rakuten (since they track your purchase through their link), and you'll save with the coupons Honey found.

This is a simple way to double up on savings—you get the instant discount from Honey and the longer-term benefit of cash back from Rakuten.

Final Thoughts

So, which one should you use? Honestly, both! Rakuten is perfect for earning cash back over time, especially if you're making regular purchases online. Honey is fantastic for getting instant savings through coupon codes. Together, they’re a powerful combo for saving money without having to do much work.

If you love to shop online and want to maximize your savings, get both extensions running. Rakuten gives you that nice cash-back payout every few months, while Honey helps cut the total cost right when you’re buying. It’s a no-brainer to use both to make sure you’re saving the most money possible.

Happy shopping, and happy saving!

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