Depending on what State you live in, the taxes could be a lot higher than 33%. Also depends on how you use the miles. Two first class tickets to Europe is a lot of interest, especially tax free. I have been with Bank Direct for a couple of years and combined with my Citibank M/C am about to make the million mile life time deal with American. How much is that worth? Don't know, but I am sure it is worth more than a couple of bucks I have to pay taxes on instead?