Originally Posted by
tubman
I don't have my own money in SunTrust, but I do business there. While visiting yesterday, a promotional brochure for the AirTran ticket was put in my hands.
Read the fine print...you're putting $10K into an account that's yielding an insulting 0.45% interest, and you have to tie your money up for 90 days. Then it could be another three months before you actually get your credits. So in six months, you'll have $22.50 in cash interest on your $10K plus your flight credits.
Or, you could put the same $10K into a competitive money market account paying 5.25%. In six months, you'll have $262.50 in interest--most likely enough cash to buy you a less-restrictive ticket on AirTran or some other airline that goes to an AirTran destination. Or to do whatever else you feel like doing with the cash if you don't feel like traveling.
Yours is the math that needs checking.
1st of all according to the promo page the APY on $10,000 is 2.25%.
2nd of all you only need to have the money there for 90 days, it never says anything about having your money there while they process your free ticket.
So in 3 months they will give you $56 and a free ticket, or you can get $130 from a 5.25% MMA.
I'll take the $56 interest and a free ticket any day, thank you very much!