<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by eriesown:
I want to thank past FF contributors as to advice on buying savings bonds. I took the process a step further by buying the bonds on my dividend earning cards then immediately transferring the purchase balance onto a "0" interest credit card with no balance transfer fees and "0" interest for the next year. Cash in the bonds in 6 months, earn 3 months interest and pay off the "0" interest card with the bond proceeds. You only have to meet minimun monthly payments on the "0" card during this period and you receive this back when cashing in the bonds. Some of the "0" periods are long enough out into the future that you can cycle the bond purchase ( 6 months) twice therby doubling your miles.</font>
Interesting, but I didn't think there would be a bank that would allow free balance transfers any time you wish, along with no interest for a whole year. What would they gain? Which bank is this?
Best I could do (just using one bank), is buy lets say $5,000 bonds near the end of the month, so you get interest from the first of the month. My Citibank AAdvantage MasterCard billing date is in the middle of the month. I could hold off in paying until the first part of next month. Citibank allows me to make up to four online payments per month. But realistically, I can pay the bill a little more than a month after my purchase, and not have to worry about paying the bill late. That along with getting interest based on the first of the month, based on my purchase in the fourth week of the month, should allow me to get nearly five months interest after the three month penalty on owning the bond only six months.