high yield savings or MM and miles?
Oct 30, 2007 | 12:33 pm
#1
Original Poster
Join Date: May 2002
Location: Chevy Chase
Posts: 1,824
high yield savings or MM and miles?
I just learned that Capital One now has a MM product earning 4.66% and 1 mile for every $20 of average balance for the month in your Rewards Money Market account. http://www.capitalone.com/directbank...L_R1_01_T_SP25
It does not seem that Cap One has a stellar record as far as FT'ers are concerned. But, are there other banks that are doing this with the more standard mileage programs most of us FT'ers are familiar with?
I have a chunk of change in Countrywide earning 5.5% right now.
Thoughts?
It does not seem that Cap One has a stellar record as far as FT'ers are concerned. But, are there other banks that are doing this with the more standard mileage programs most of us FT'ers are familiar with?
I have a chunk of change in Countrywide earning 5.5% right now.
Thoughts?
Last edited by chobby100; Oct 30, 2007 at 1:17 pm
Oct 30, 2007 | 12:53 pm
#2
Join Date: Mar 2006
Location: YYZ
Programs: Haven't been flying for a while... :(
Posts: 478
With respect to the valuation of the offer, it looks quite favourable. Customer Service may tilt it against.
Let's take our $10,000 balance, and compare. You can choose $550 (fully taxable) or $466 + 6000 miles (miles not taxable?). Opportunity cost for the miles is therefore the $84*(1-your marginal tax rate) for 6000 miles. That means you're paying at most 1.4 cents per mile, and more likely 1.1 cents per mile.
Of course, I would request that you not ask taxpayers to subsidize your miles.
Let's take our $10,000 balance, and compare. You can choose $550 (fully taxable) or $466 + 6000 miles (miles not taxable?). Opportunity cost for the miles is therefore the $84*(1-your marginal tax rate) for 6000 miles. That means you're paying at most 1.4 cents per mile, and more likely 1.1 cents per mile.
Of course, I would request that you not ask taxpayers to subsidize your miles.
Nov 5, 2007 | 9:12 am
#6
Join Date: Dec 2004
Posts: 8,226
If you want real miles, instead of Capital One "miles," you can get 9500+ just in bonuses fairly easily.
1k AA miles for being referred, 5k for direct deposit, 2k for bill pay for a year, 1k for opening the account. You can put $500 initial funding on visa/mc as a purchase. Also earn 100 miles per month per $1000 balance. -- I still have referrals available.
1k AA miles for being referred, 5k for direct deposit, 2k for bill pay for a year, 1k for opening the account. You can put $500 initial funding on visa/mc as a purchase. Also earn 100 miles per month per $1000 balance. -- I still have referrals available.