Originally Posted by
Caspavio
my internet provider gives a $10 discount every month for using autopay debit/bank transfer
im not sure. it seems there is no interest for the account. they do give you bonus miles, but the rates are poor, and you dont earn anything on a $2k balance anyway. so you lose out on about $4 a month after taxes compared to high yield savings. if you value UA miles at 1.3cpm, you need more than $600 monthly spend (excluding UA) on this debit card to make it worth it
As does mine, AT&T fiber.
I'm not defending this product, as I really don't have much interest in it other than its novelty. But I really don't know what you are going with taxes and your math. More simply, I think you are looking at this the wrong way. Money in->money spent->miles earned on money spent in debit transactions that wouldn't have otherwise earned miles. This is clearly not a place a park a sum of money, its not a worthwhile investment vehicle whatsoever. I mean really: a "savings account" that pays in depreciating miles that the bank bought in bulk for pennies? That in itself is almost joke worthy. But for some of the more hardcore miles collectors that like to squeeze a reward of some type out of every dollar they spend, or the people who may be able to convert larger or significant recurring ACH transactions to debit this may be worthwhile even if they have to eat some fees for a low balance. Some people may make it work, and others will sign up because they don't know better. I think UA and this issuing bank are hoping for the latter.