I want to thank past FF contributors as to advice on buying savings bonds. I took the process a step further by buying the bonds on my dividend earning cards then immediately transferring the purchase balance onto a "0" interest credit card with no balance transfer fees and "0" interest for the next year. Cash in the bonds in 6 months, earn 3 months interest and pay off the "0" interest card with the bond proceeds. You only have to meet minimun monthly payments on the "0" card during this period and you receive this back when cashing in the bonds. Some of the "0" periods are long enough out into the future that you can cycle the bond purchase ( 6 months) twice therby doubling your miles.

Interesting, but I didn't think there would be a bank that would allow free balance transfers any time you wish, along with no interest for a whole year. What would they gain? Which bank is this?

Best I could do (just using one bank), is buy lets say $5,000 bonds near the end of the month, so you get interest from the first of the month. My Citibank AAdvantage MasterCard billing date is in the middle of the month. I could hold off in paying until the first part of next month. Citibank allows me to make up to four online payments per month. But realistically, I can pay the bill a little more than a month after my purchase, and not have to worry about paying the bill late. That along with getting interest based on the first of the month, based on my purchase in the fourth week of the month, should allow me to get nearly five months interest after the three month penalty on owning the bond only six months.

I am continously receiving "0" interest card offers in the mail from various banks for Visa, MC & Discover. You have to read the offers carefully to be sure the "0" interest applies to balance transfers not just to purchases and that there are no transfer fees. I have not solicited any of these cards. You cannot transfer balances from the same type of card (i.e. MC, etc.) If you receive such a "pre-approved" offer the safe way to proceed is to fill out the information requested (minimual) by the offer including your balance transfer request(s). If approved and they make the balance transfer from one of your dividend miles cards then at that time make your bond purchase which is essentially now pre-paid.

The 0% balance transfer offers usually do not waive the balance transfer fee, which is usually exorbitant, but sometimes is capped at an ammount small enought to make a large transfer worthwhile.

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The Personal Travel Experience of Gary Steiger - including how to get free frequent flyer miles on the web.