FlyerTalk Forums - View Single Post - 20,000 American Airlines miles for a Citibank checking account
Old Mar 21, 2009 | 3:07 am
  #113  
forextrader
 
Join Date: Jun 2006
Location: Manchester,UK and NYC
Programs: One Pass, BAEC, AA
Posts: 708
If you fund this account say with $6400 from a Citi AA card - yes it will count as a Purchase, and yes it will earn 6400 AA miles.

But if you are using these newly deposited funds to pay off the minimum amount on the credit card (say its 2% around $130), you will be charged interest on the credit card purchase (around 14% I think on Citi AA)

So roughly speaking, $6000 at 14% = $840 per year/ 12 months = $70 of interest per month.

So the only way this "funding with a credit card" make sense is if you have another $6400 to pay off the credit card when its due - avoiding any interest charges. OR you have a credit card that has a 0% purchase rate (which wont be an AA card)

Back in November I funded an USA with $27K off a Citi AA - but paid the $27K off before the statement due date - I left I think $1000 in the USA from another funding source. This earned 27K AA miles - very nice and smooth.

I will read more details on the promo discussed here, but sounds like too many hoops to earn miles
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