Originally Posted by
josephstern
...at $250,000, the numbers are pretty different.
I think BankDirect would look at the
average account balances and trends, not focus on the largest accounts. If it weren't profitable I expect they would reduce the amount of miles per dollar. I would be surprised if BankDirect's contract with AA specifies the rate at which they must award miles
Originally Posted by
hejustlaughs
...still profitable for them to pay out the equivalent of 1.5%...
Agreed. Ally Bank is paying 2.99% on 60 month CD with a
very small penalty for early withdrawl...
http://bucks.blogs.nytimes.com/2010/...-more-interest
I realize that a time deposit is more valauble to a bank than a demand deposit, but I think the BankDirect program works for all parties primarily because the miles are more valuable to the consumer than they are to the Bank or the airline, while cash is (nearly) the same value to everyone.