Miles for Large Bank Balances
May 29, 2010 | 11:02 am
#91
Join Date: Feb 2010
Location: Disney World
Programs: Fairmont Lifetime Platinum, Hyatt Globalist, AA Lifetime Gold
Posts: 321
Miles earned tax free?
Can anyone confirm if the mileage earned is indeed tax-free? Ideally, I'd love to hear from someone who earned BankDirect miles in 2009 and who got a 1099 for their interest income. Did BankDirect report the equivalent value of the miles as interest income somehow?
It seems like the miles are de facto interest income but if the bank isn't reporting it that way, and the IRS isn't complaining, then who am I to make a fuss?
It seems like the miles are de facto interest income but if the bank isn't reporting it that way, and the IRS isn't complaining, then who am I to make a fuss?
May 29, 2010 | 5:53 pm
#92
Join Date: Apr 2000
Location: Fort Myers, FL
Programs: Hilton Gold, SPG & IHG Plat, & every airline program that I can join
Posts: 2,279
I received a 1099 for the interest amount, but there was no mention of the value of the miles. BankDirect is great for a brainless accumulation of AA miles, so I park our business seasonal cash there for the winter. Also I pay out of the account for the CD's that I use my Credit card for.
JudyJFLA
JudyJFLA
May 30, 2010 | 1:55 am
#93
Join Date: Aug 2009
Posts: 528
Don't you think you will be better off with 5% interest on rewards checking account?
May 30, 2010 | 3:51 pm
#94
Join Date: May 2008
Programs: Marriott Titanium, Hilton Diamond, Hyatt Globalist, AA Plat, UA Silver, Delta Silver
Posts: 462
At 1.2 miles per dollar annual yield she (and others) can easily beat the yield of a RC account (without even taking into account taxes).
May 30, 2010 | 4:11 pm
#95
Join Date: Dec 2001
Location: NYC
Programs: AA LT PLT, SPG Gold
Posts: 2,567
May 30, 2010 | 8:07 pm
#96
Join Date: May 2003
Programs: AA (1MM), Marriott (LT Gold)
Posts: 1,769
Most likely a checking account which requires 10-20 debit card transactions per month and is capped at a relatively small balance of $25k or so. If it doesn't have these restrictions and it isn't a bank on the verge of being taken over by the FDIC, I'd also be interested in learning the identity of this financial institution.
May 30, 2010 | 9:22 pm
#97
Join Date: Mar 2010
Location: mountains of western NC
Programs: Life, Love and Laughter
Posts: 9,861
https://www.bankofasheville.com/80-ezchecking/
Asheville Savings Bank offers 3.75% up to $25,000:
http://www.ashevillesavingsbank.com/
It's a personal checking called The Best Checking
Southcoast Community Bank in Charleston, SC offers 3.25% up to $35,000:
http://www.southcoastbank.com/person...-checking.html
All require 10 debits per month and at least one direct deposit or automatic bill pay. Also, these rates are subject to change. In the last three years, these rates have slowly come down (were over 5% 3 years ago).
You can open up accounts at any of these banks online.
I would imagine that there are community banks in other cities that have similar offers. In my experience, interest rates at community banks are always higher than at national banks.
May 30, 2010 | 9:29 pm
#98
Join Date: Apr 2010
Location: jfk, lga
Programs: Amex Gold Pref. Rwds, Mariott Gold, AA Gold
Posts: 64
I have $$ at Emigrant.com earning a measily 1% on an annual basis. Let's say I have $100k, this would give me $1000 in interest earned per year. If I switch to Bankdirect AA money market (greater than 10k), i would get .10% interest, which at $100k will give me $100 of interest earned for the year. However, it would get me 2000 miles per month or 24,000 points per year. For the miles though, I lose $900 in interest earned... with this example $900 for 24,000 points does not seem worth it to me. THe cheapest ticket with points on AA is 25,000 points, which would not be worth $900.
Am I thinking about this right?
Am I thinking about this right?
May 30, 2010 | 9:39 pm
#99
Join Date: Jul 2009
Posts: 345
I have $$ at Emigrant.com earning a measily 1% on an annual basis. Let's say I have $100k, this would give me $1000 in interest earned per year. If I switch to Bankdirect AA money market (greater than 10k), i would get .10% interest, which at $100k will give me $100 of interest earned for the year. However, it would get me 2000 miles per month or 24,000 points per year. For the miles though, I lose $900 in interest earned... with this example $900 for 24,000 points does not seem worth it to me. THe cheapest ticket with points on AA is 25,000 points, which would not be worth $900.
Am I thinking about this right?
Am I thinking about this right?
May 30, 2010 | 9:58 pm
#100
Join Date: Nov 2008
Programs: MTA NYCTA Super Plutonium Elite
Posts: 107
I have $$ at Emigrant.com earning a measily 1% on an annual basis. Let's say I have $100k, this would give me $1000 in interest earned per year. If I switch to Bankdirect AA money market (greater than 10k), i would get .10% interest, which at $100k will give me $100 of interest earned for the year. However, it would get me 2000 miles per month or 24,000 points per year. For the miles though, I lose $900 in interest earned... with this example $900 for 24,000 points does not seem worth it to me. THe cheapest ticket with points on AA is 25,000 points, which would not be worth $900.
Am I thinking about this right?
Am I thinking about this right?
May 30, 2010 | 10:45 pm
#101
Join Date: May 2003
Programs: AA (1MM), Marriott (LT Gold)
Posts: 1,769
I have $$ at Emigrant.com earning a measily 1% on an annual basis. Let's say I have $100k, this would give me $1000 in interest earned per year. If I switch to Bankdirect AA money market (greater than 10k), i would get .10% interest, which at $100k will give me $100 of interest earned for the year. However, it would get me 2000 miles per month or 24,000 points per year. For the miles though, I lose $900 in interest earned... with this example $900 for 24,000 points does not seem worth it to me. THe cheapest ticket with points on AA is 25,000 points, which would not be worth $900.
Am I thinking about this right?
Am I thinking about this right?
May 31, 2010 | 4:49 am
#102
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: 51,887
I see this is possible for Southcoast Community Bank, but not for Bank of Asheville...
Can I open an eZchecking over the Internet?
Currently, Bank of Asheville does not open accounts over the Internet.
https://www.bankofasheville.com/82-e...ked-questions/
Can I open an eZchecking over the Internet?
Currently, Bank of Asheville does not open accounts over the Internet.
https://www.bankofasheville.com/82-e...ked-questions/
May 31, 2010 | 5:26 am
#103
Join Date: Mar 2010
Location: mountains of western NC
Programs: Life, Love and Laughter
Posts: 9,861
I see this is possible for Southcoast Community Bank, but not for Bank of Asheville...
Can I open an eZchecking over the Internet?
Currently, Bank of Asheville does not open accounts over the Internet.
https://www.bankofasheville.com/82-e...ked-questions/
Can I open an eZchecking over the Internet?
Currently, Bank of Asheville does not open accounts over the Internet.
https://www.bankofasheville.com/82-e...ked-questions/
That's strange. I have a friend from out of town who opened an account at Bank of Asheville, and had no problems doing so. I'll have to find out how he did it.
Jun 1, 2010 | 7:23 am
#104
Join Date: Mar 2010
Location: mountains of western NC
Programs: Life, Love and Laughter
Posts: 9,861
My post #97 is not all correct. Accounts at the Bank of Asheville and Asheville Savings Bank can NOT be opened online. You have to call the banks to initiate the account opening procedures and they will then mail you the forms.
Jun 1, 2010 | 9:23 am
#105
Join Date: Feb 2003
Location: Boston, MA, USA
Programs: DL, AA, UA, BA, Hilton
Posts: 46
- up to $25K,
- 15 Debit Card Transactions,
- eStatements,
- Direct Deposit.
https://www.cambridgesavings.com/pg_...spx?PageID=401
PM me for an additional $50 MC Gift Card when new account opened by referral.