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Scott Terrell

Economic stimulus payments meant to trigger spending among cash-strapped consumers are arriving in bank accounts, and so are the promotions aimed at reeling those dollars in at local businesses.

So far, a handful of Skagit County retailers have begun offering direct promotions tied to the stimulus payments, which the Internal Revenue Service began distributing Friday. Most rebates will be distributed by July.

The stimulus payments — up to $600 for individuals, $1,200 for couples and an additional $300 per eligible child — are the key component of the federal government’s $168 billion stimulus package, which was enacted in February to help boost the nation’s ailing economy. About 130 million households will receive the rebates.

But even with the extra cash, recession-wary consumers might not provide the boost retailers are hoping to see.

A nationwide Harris Interactive Poll released Monday showed that a good chunk of the rebate money could end up deposited in savings accounts or mailed to credit card companies.

According to the poll, 38 percent of U.S. adults surveyed will use a portion of their rebate checks to pay bills and reduce their nonmortgage debt. Another 35 percent will add some of the rebate to their cash savings.

Just 10 percent said they would use a portion of the money to buy electronic gadgets. The same percentage said they would spend some of it on entertainment.

Of course, people’s good intentions can change quickly once they have their checks — and the money starts burning a hole in their pockets.

“As much as the man on the street will tell you that they will pay off their debt with it, in my experience, that’s not what they do,” said Larry Clark, a certified financial planner with Ameriprise Financial Services in downtown Mount Vernon. “The government knows this. You give people money, and they spend it.”

Either way, with retail spending sluggish, businesses aren’t staying passive as consumers receive the extra cash.

Haggen grocery stores are offering to exchange either all or a portion of its customers’ rebate checks — in increments of $100 — for gift cards worth an additional 15 percent. For example, a $600 check will be converted into a $690 gift card usable at the store.

The grocery chain believes the offer will be mutually beneficial with consumers.

“Certainly everyone out there is looking for an additional return on their money, and what we hope is that it brings folks in that don’t shop with us all the time,” said Becky Skaggs, a Haggen spokeswoman.

Sears is offering a similar deal to convert customers’ rebate checks into gift cards worth an additional 10 percent.

Meanwhile, Safeway is cashing customers’ checks in exchange for a 10 percent storewide coupon.

Other major retailers haven’t yet announced any promotions tied to the rebates, though Wal-Mart has said it will cash the checks for free.

Ultimately, if there is a larger economic impact from the stimulus checks, it probably won’t be visible until later this year.

“I think it will show up in the third or fourth quarter,” Clark said. “I don’t know what the magnitude will be, but I think it will have the desired effect.”

* Josh Lintereur can be reached at 360-416-2141 or at jlintereur@skagitvalleyherald.com.