Originally Posted by
gmt4
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.
you have to keep min $2k in the bank account to avoid a $4 monthly fee. so you either dont put $2k in the account and pay $4 a month or you put $2k in the account and lose out on $4 interest from a high yields saving account. either way, you are exchanging $4 for whatever miles you will get. i will leave it to you if the miles you get are worth the $4 or not
im not saying this is a good or bad product. the math is as such, and you need to have a certain spend every month to make the product worth it. i cant control what people do, i just post in hopes that someone read it and it helps them to decide if it is worth it or not