Great % rate + miles
 

Uncle is selling US Savings Bonds online which you can charge to your credit card.
The inflation indexed "I Bond" is presently yielding 7.49% plus the interest tax free (on a state level only). I bought $15,000 worth using my NEA card (which is their level for an air tic)(I don't know if the tic is taxable). The US web site states that buying a bond will be treated as a PURCHASE. www.savingsbonds.gov

How long are you required to hold onto the bonds?

"Investors cashing I Bonds before five years are subject to a 3-month earnings penalty."

from: http://www.savingsbonds.gov/com/comi500.htm

How did you order $15,000 with your credit card? It seems you may only order $500 at a time.

This has been posted earlier - espcially under ways to use a citi/click card. Glad to see that someone else thinks this is a good deal. I think that you have nothing to lose if you have some savings sitting around. It really is pretty liquid even though it might not seem so. If you don't need the money, just leave it. The interest rate is re done every six months based on the inflation rate. You can keep going back and ordering another $500 bond (right awa). I have done quite a few at a time. You can cash in after 6 months but if it is cashed in before 5 years it has the 3 month interest penalty, just like a CD. If you put this in your name (adult) (I have put my 14 yr old daughter as beneficiary so if something happens to me she will have her college paid for)and it is used for your child's college, the interest is tax free. If you use your citi/click you will get double miles.(until May 31). They only take visa and MC at this point. I have been buying up a storm earmarked for my daughters college in case they don't take credit cards when she goes, and if they do and I have the money to pay for her college I'll have it for retirement. Mainly I am taking what has been in a savings account for her and transferring it to bonds. I'll be getting about 49000 miles (on AA)this month on my click card this month (it includes a few other purchases). When May is over, I'll stop.

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DtG

dg, 49,000 miles not bad I hope that you are an Elite with AA,since the Click acct only allows 60,000 miles per year I believe but arent sure that Ex.Plat& Plats allowed to earn as much as they can as is the case on the reg AA cards. So if a person isnt Elite keep in mind that if you charged $30,000 you earned the max of 60,000 miles and use a different card since after you reach that 60,000 miles you wont earn any more till 2001 unless youre Plat or Ex.Plat
Dont know if the same applies to Gold level.

The US Savings Bond site say's you have to hold the bonds a minimum of 6 months and if you cash them in then or any time before 5yrs you will lose 3mos. interest. I used a value of $250 for the air tic I will get and based on that its still over a 7% annual return - it sure beats money market funds.

In response to "reisevergnuegen" your right they only allow you to buy $500/order. There is no prohibition to keep coming back for more.

I did the Platiunum challenge with two trips to Belgium this year. I was Gold by flying at the end of last year. I will get ALL those miles without the 60,000 ceiling. YES!

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DtG

Hey, thanks, jack123. I always buy savings bonds as gifts for my nieces, nephews and godchildren. I wasn't aware I could buy online. Now, I get a benefit out of this, too (other than their kisses and hugs when I give them the bonds).