Originally Posted by
NWAOldtimer
Do you earn enough AA miles to make it worth forgoing the 2.2%-2.25% interest that is widely available from banks and credit unions?
It all depends on how much a mile is worth to
you, and your marginal tax bracket.
Assuming a 33% tax bracket, and an alternative account that could pay you 2.25%, you'd have to value a mile at 1.85¢ or higher for the BankDirect account to be the better investment.
Remember that the miles earned represent a tax-free return.
Some formulae worked out to analyze these accounts were previously discussed in
this thread.