Originally Posted by Ken in Phx
Can someone tell me the benfit of using BankDirect? If I have 10k to invest in a MMA Bank Direct shows that their rate is .75%. INGDirect has a 3.0% rate.
Bank Direct
I would get (10k x .75% ) or $6.25/ month + 1,000 AA miles/mo
INGDirect
I would get (10k x 3%) or $25/ month + no miles
So the miles cost me .01875/mile? Is that a deal for AA miles?
Thx
Ken in Phx
You did not take taxes into account. Interest is taxed, miles are not. So the cost of miles will depend on how much federal, state and local taxes you have to pay. Assuming a 33% rate, miles would cost about 1.25 cents/mile.