Miles for Large Bank Balances
May 1, 2010 | 5:15 pm
#31
Original Poster
Join Date: Oct 2004
Location: Orlando, FL
Programs: CO Gold, AA Plat, DL Gold, US Chairman's Preferred, Starwood Plat, Hyatt Diamond
Posts: 187
The problem with this approach is that they are offering an extra 0.5 miles per dollar only on the amount you spend, but Ferdinand Magellan wants to earn on money he is not spending. Also, there are other cards which award 1.25, 1.5 or 2 miles per dollar for general spending with no bank account requirement.
May 1, 2010 | 6:28 pm
#32
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
Posts: 51,884
May 1, 2010 | 9:51 pm
#33
Original Poster
Join Date: Oct 2004
Location: Orlando, FL
Programs: CO Gold, AA Plat, DL Gold, US Chairman's Preferred, Starwood Plat, Hyatt Diamond
Posts: 187
May 2, 2010 | 1:21 am
#35
Join Date: Feb 1999
Location: Denver CO
Posts: 3,686
Well, this statement is true, but the important question is why in the world would you leave $100k sitting in an exceptionally low interest yielding checking or savings account?
The thing I think people miss about the "alternative miles earning" opportunities (i.e. miles for checking, miles for electricity, etc.) is that most of the time you are not "earning" miles; you are simply buying miles through either a lower interest rate than you'd earn elsewhere, or a higher electricity rate, etc.
To each his own I suppose, but it seems to me that many FTers, in their obsession with miles, often end up spending a dime to save nickel...
Regards
The thing I think people miss about the "alternative miles earning" opportunities (i.e. miles for checking, miles for electricity, etc.) is that most of the time you are not "earning" miles; you are simply buying miles through either a lower interest rate than you'd earn elsewhere, or a higher electricity rate, etc.
To each his own I suppose, but it seems to me that many FTers, in their obsession with miles, often end up spending a dime to save nickel...
Regards
At the end of the day, it all comes down to the value of mile/point and the hard cash you'd give up to get a mile/point. Those should be two amounts with a decent spread between them-otherwise you're spending a dime to get something you think might be worth a dime later.
May 2, 2010 | 1:43 am
#36
Join Date: May 2008
Programs: Marriott Titanium, Hilton Diamond, Hyatt Globalist, AA Plat, UA Silver, Delta Silver
Posts: 462
Well, this statement is true, but the important question is why in the world would you leave $100k sitting in an exceptionally low interest yielding checking or savings account?
The thing I think people miss about the "alternative miles earning" opportunities (i.e. miles for checking, miles for electricity, etc.) is that most of the time you are not "earning" miles; you are simply buying miles through either a lower interest rate than you'd earn elsewhere, or a higher electricity rate, etc.
To each his own I suppose, but it seems to me that many FTers, in their obsession with miles, often end up spending a dime to save nickel...
Regards
The thing I think people miss about the "alternative miles earning" opportunities (i.e. miles for checking, miles for electricity, etc.) is that most of the time you are not "earning" miles; you are simply buying miles through either a lower interest rate than you'd earn elsewhere, or a higher electricity rate, etc.
To each his own I suppose, but it seems to me that many FTers, in their obsession with miles, often end up spending a dime to save nickel...
Regards
Also I'm sure anyone with $100k to put into a miles checking account is someone that enjoys (or would rather) fly business or first tickets where the value per mile is signicantly higher.
Also some people really don't want to be bothered with high yielding interest accounts where the max is 25k and you have to do 10-12 check card transactions a month.
May 2, 2010 | 7:42 am
#37
Used to be Colonelwes
Join Date: Sep 2004
Posts: 69
+1 VXMike, Robbert; also,like BD for the regular AA miles we earn each month (25,000), use for once a year biz class seats overseas (thus the tradeoff is worth it for us). This sure beats schelpping US Mint coins. Plus, when you refer BD customers you get 1000 AA miles per referral (have done 10).
May 4, 2010 | 9:42 am
#39
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,687
1000 miles if you get referred, for both the referrer and the referred.
See this thread:
http://www.flyertalk.com/forum/ameri...solidated.html
Or, better yet, PM me and I'll refer you!
See this thread:
http://www.flyertalk.com/forum/ameri...solidated.html
Or, better yet, PM me and I'll refer you!
May 4, 2010 | 9:44 am
#40
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,687
May 4, 2010 | 11:19 am
#41
Join Date: May 2010
Location: NY
Programs: AA PLT 2M, ANA Bronze, KrisFlyer Silver, Starwood Platinum, Hyatt Platinum, Marriott Gold
Posts: 25
What is the limit?
May 4, 2010 | 11:37 am
#42
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,687
Sorry, I should phrase it more clearly: I meant 100K dollars, not miles. Is there really no limit on the size of the account that is going to collect miles at the rate of .1 m/$? I mean, if you open a $100M account, will they really give you 10M miles a month? What is the limit?
What is the limit?
May 4, 2010 | 11:44 am
#43
Join Date: Sep 2008
Posts: 187
there is no limit on earned miles
i have significant deposits at bank direct and called to ask about mile caps.
they allow 2 accounts per person with no mileage cap. ive earned more than 100k AA as well.
for me i leave money there to be liquid... money i need to have in cash. i had 2% 1 yr citi CDs but prefer to earn the miles instead. 2% post tax is about 1.4% cash. id rather buy my miles at 1.4 cents.
once i have lifetime AA though i may move it out of bankdirect.
they allow 2 accounts per person with no mileage cap. ive earned more than 100k AA as well.
for me i leave money there to be liquid... money i need to have in cash. i had 2% 1 yr citi CDs but prefer to earn the miles instead. 2% post tax is about 1.4% cash. id rather buy my miles at 1.4 cents.
once i have lifetime AA though i may move it out of bankdirect.
May 5, 2010 | 9:43 am
#44
Join Date: May 2010
Location: NY
Programs: AA PLT 2M, ANA Bronze, KrisFlyer Silver, Starwood Platinum, Hyatt Platinum, Marriott Gold
Posts: 25
Thank you, josephstern and magicspot!
i have significant deposits at bank direct and called to ask about mile caps.
they allow 2 accounts per person with no mileage cap. ive earned more than 100k AA as well.
for me i leave money there to be liquid... money i need to have in cash. i had 2% 1 yr citi CDs but prefer to earn the miles instead. 2% post tax is about 1.4% cash. id rather buy my miles at 1.4 cents.
once i have lifetime AA though i may move it out of bankdirect.
they allow 2 accounts per person with no mileage cap. ive earned more than 100k AA as well.
for me i leave money there to be liquid... money i need to have in cash. i had 2% 1 yr citi CDs but prefer to earn the miles instead. 2% post tax is about 1.4% cash. id rather buy my miles at 1.4 cents.
once i have lifetime AA though i may move it out of bankdirect.