show_me_the_points

I have a few hundred thousand dollars in a money market account earning just .7% at the bank I need the cash liquid because I plan to buy a house in the next six months to a year. Here are some questions I have about bank direct, hopefully someone can answer whichever ones they know the answers to:

Is the money market account that pays .1% the best deal for me or should I open a checking account? I assume both are free?

How does one fund the account with such a large amount as I have?

Is it easy to close the account and get the funds I need on short notice? Any fees for that?

Wishful thinking here, but can the miles go to somebody else, that is not the account holder? Or if a joint account can the miles be split equally among the two accounts?

On the account opening page it says "Note: Limit 2 Mileage transaction accounts per customer." What does this mean?

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MODERATOR'S NOTE

If you need a BankDirect referral, please do not post to this thread. Please post here instead:

http://www.flyertalk.com/forum/ameri...solidated.html

Additional links:

BankDirect AAdvantage Mileage Program: http://www.bankdirect.com/programs/aadvantage.aspx
BankDirect AAdvantage FAQ: http://www.bankdirect.com/programs/aafaq.aspx

dstan
AA Forum Co-Moderator

gemac

1. I believe that the money market account pays half the mileage that a checking account does. With the checking account, you lose interest. Which is best for you is a personal decision. Both are free.

2. I funded my account with a check. Did the application online, then sent in the check.

3. You can get the funds by writing a check. If you remove all the funds, you can cancel the account online.

4. My account pays the miles to my wife's AA account. Whether this can be done with an unrelated party is beyond my knowledge.

5. I think the limit of 2 mileage accounts is because some people might want to open multiple accounts to get around the FDIC insurance limits. Just two to a customer.

Mountain Trader

I funded my initial Bank Direct deposit with a check. I then set-up a link with my regular bank to do ACH transfers, which are free at my bank. With ACH, I can send funds to/from Bank Direct and my regular bank on a next business day basis. My regular bank holds funds for 3 business days. So all in, it takes about 4-5 business days from when I start a transfer to have cleared funds in my regular bank.

I haven't tested this with Bank Direct using large amounts but I see no reason it would not hold up.

dave209

I've transfered large amounts also, no problem.

pagotto

If you're worried about FDIC limits and limitations on number of accounts, Guaranty Bank also offers an AA mileage account, which currently pays 0.10% right now with same 1 mile per $10

dave209

Guaranty Bank was bought out, Guaranty Bank has a seperate thread also. You are allowed two account at Bank Direct so unless your talking over $500K your ok.

JudyJFLA

Guaranty bank is currently being taken over by another bank and has suspended new accounts for a bit of time. I love BankDirect. It is a brainless way to get alot of AA miles every month without having to keep moving money around or using credit cards for coins, ect (which I still do of course). Since I am a seasonal business, I put all our excess cash for opening next season into the account. Checking pays squat in interest, but I figure my current 14K miles a month makes up for it. I just opened 2 accounts at UFB Bank for 19K in AA bonuses, but it will take a year and deals with Direct deposits ($5 from ing) and bill pay, a hassle, but only 3K in deposits.
I will get to that Million AA miles someway, someday!
JudyJFLA

NWAOldtimer

This entire topic is news to me, so my comment may be old news BUT:

Do you earn enough AA miles to make it worth forgoing the 2.2%-2.25% interest that is widely available from banks and credit unions?

Alfonso XIV

It all depends on how much a mile is worth to you, and your marginal tax bracket.

Assuming a 33% tax bracket, and an alternative account that could pay you 2.25%, you'd have to value a mile at 1.85¢ or higher for the BankDirect account to be the better investment.

Remember that the miles earned represent a tax-free return.

Some formulae worked out to analyze these accounts were previously discussed in this thread.

dave209

In most cases yes it's by far worth it if you do any amount of traveling and especially international travel where the miles really pay off.

show_me_the_points

Which banks are paying these rates? I know some pay upto 4% but requires making all sorts of monthly debit card transactions and they only pay 4% upto like $25k.

Mountain Trader

Could you list a few of the many banks offering 2%-2.25% on immediately available funds with no other requirements? Thanks very much-this could be very useful.

garimell

Second that! From all the means that I can earn AAdvantage miles - including using Citi AA credit cards to pay property taxes, income taxes and such despite a convenience charge - I typically aim for staying around 2 cents per mile. Am a new convert to BankDirect myself and am moving money from ING Direct savings accounts (that pay 1.4%) to it!

When I get to 130,000+ AAdvantage miles, it's time to line up one of those superb OneWorld awards (see http://www.flyertalk.com/forum/ameri...er-awards.html) that have allowed me multiple round-the-world business class trips over the past few years! Never blow miles on domestic travel btw.

rep109

Show_me_the_points, you should know until you have a Bank Direct account open for 30 days, they will put your funds on a 9 business day hold.

During that time your funds will earn the .1% interest but will not earn miles. Best to put in a minimal amount until your account is more than 30 days old, then pile in the bulk of your funds.

dave209

I earned miles when my inital deposit was on the 9 day hold it just wasn't available to me this is only for deposits made within the first 30 days. Now all my deposit as available as soon as they are received.