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Thread: Miles for Large Bank Balances
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Old May 30, 2010 | 10:45 pm
  #101  
ExitRowAisle
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Join Date: May 2003
Programs: AA (1MM), Marriott (LT Gold)
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Originally Posted by byb310
I have $$ at Emigrant.com earning a measily 1% on an annual basis. Let's say I have $100k, this would give me $1000 in interest earned per year. If I switch to Bankdirect AA money market (greater than 10k), i would get .10% interest, which at $100k will give me $100 of interest earned for the year. However, it would get me 2000 miles per month or 24,000 points per year. For the miles though, I lose $900 in interest earned... with this example $900 for 24,000 points does not seem worth it to me. THe cheapest ticket with points on AA is 25,000 points, which would not be worth $900.

Am I thinking about this right?
Your mileage per month is also off. You'd earn 5,000 miles per month on a money market account, but I don't know why you would go with that option. You could earn another 5,000 miles per month by using the checking account option instead and giving up $3 of after-tax interest income.
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