Originally Posted by AK01
1. Pay $5,000 tax due using Starwood Amex and pay $124.50 in fees.
2. Pocket 10,000 Starpoints.
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee.
4. Put $5,000 in an HSBC savings account (4.80% APY) or get a 12 month CD. Total return after 12 months = $240
5. Net: $240 (interest earned) - $124.50 (fee) = $115.50
6. Total: $115.50 + $125 (assuming 10,000 Starpoints worth $125) = $240.50
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee. Have I been missing out on a good thing, that is free money? I have always ignored come-ons to transfer balances from one card to another because I try never to carry balances and because I have always assumed it would not be a good deal. Don't they treat transfers something like cash advances, imposing an upfront 2% or 3% fee? There are cards that would invite you to transfer $5K in debt over to them and let you have the use of that money for up to 12 months with no interest or other charges for the privilege? Which cards are that generous/stupid?