Originally Posted by
freezone
Just got a letter from Bank Direct.
Starting in January B.D. will start charging for checking accts regardless whether it is linked to airline miles or not or whatever the balance on the account as it seems nothing will be exempt from this. The charge or monthly fee will start in Jan 2012 so I guess no more free checking with B.D.
With the monthly fee and the almost non-existant interest amount earned but just getting some airmiles out of B.D.
Still worth hanging on to B.D.?
Your thoughts on this.
I think this deal is dead.
Suppose you kept $10,000 in the account. Assuming you have already picked up the sign-up bonuses (including DD and BP) and you were just accruing interest. Your $10,000 balance earns 1,000 miles/month or 12,000 miles/year. At a cost of $12/month or $144/year, you are paying $.012 per mile. This isn't terrible, but it isn't good. Of course, the numbers get better as your balance increases. However, at some point, you should be putting that amount of cash to work in a more productive venture.