Seeking CC help/suggestions - Specific conditions

If the IRS knew how much unreported income you generated from CC rewards, maybe they’d change their mind about not pursuing it. Better make sure nobody you know personally knows that you’re doing this. I think IRS has a bounty program for reporting tax dodgers. And there’s no statute of limitations on fraud (I’m not saying this rises to the level of fraud, but IANAL).

It’s the same argument as rewards generated from manufactured spending. Are they taxable? But credit card rewards are rebates that aren’t taxable according to that one private ruling that doesn’t apply to anyone other than the party it was directed to. But they are, because they’re not rebates, they reduce the cost basis of the cash-equivalent investment, so the liquidation of that investment should result in a taxable profit. And so on and so forth.

Certainly that is a possibility. But the point is they would have to change their mind before I would need to have any concerns at all. As things stand right now, all is well.

Possible victory for the possum

It’s too soon for a routine update here. But there was a significant development yesterday I have to document:

There is this financial institution I’m pretty sure I’ve never revealed here on this thread. I’ll call it “Gold Mine FCU”, but that’s not its real name. More than two years ago I was doing a whole lot of business with GMFCU and making an absolute fortune. To be more specific, I was earning between 24% APY and 36% APY on my CD money there, tax free. Those who follow this thread will realize right away this is because GMFCU was selling me one month CDs.

After I did well over a quarter million back in 2018, GMFCU decided to shut me down. It happened abruptly just about two years ago. I was dead in the water there. Went from big money to zero in an instant.

The representative at GMFCU who collaborated with me in 2018 on every one of those CD purchases is no longer with them. The VP there who actually shut me down might be. I have no way to determine that and it’s a possible fly in the ointment.

Anyway, as I’m pretty certain I documented up thread, I never broke any rules at GMFCU or did anything wrong. Hence I was permitted to retain my membership and was not kicked out of the CU. So what did I do?

I played possum. Kept my account going but perfectly still save for the annual “keep alive” tiny funds movement. The account went dormant, and has been for two solid years since I got wiped out. That is, until yesterday:

Yesterday I telephoned them and asked if I could open a CD and pay with a credit card. The answer was “yes”. I remained calm and did not jump right in. It was uncontrollable exuberance that deep sixed me two years ago. Now I’m older and (I hope) smarter.

Today 36% APY is specifically off the table because I did that with my Discover Miles card during the first year. But 30% APY remains achievable with my Alliant Visa Signature, while 24% APY is a cinch with any number of my 2% reward cards. In fact:

It is theoretically possible that 72% APY, tax free, could be within reach. How? I did not have my Keesler Visa Signature back in 2018. But that card has consistently been coming through with a 6% reward, something I assume is an error and highly subject to correction. Nevertheless, it is fun to consider that six times twelve is, indeed, seventy-two! :sweat_smile:

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Of course they’d tell you yes, that is their general policy. What you will be able to do may not coincide with general policy - ie, you may be blacklisted. It may be flagged by the system, it may rely on periodic manual review, or it could’ve been an entirely empty threat from the beginning. Even if initially successful, it may be unwound days or weeks later.

But, you never know unless you try. Keep pounding your head against a wall, and occasionally you’ll find a loose brick.

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I do not think so. GMFCU is too small to have a formal black list. But no question I was shut down two years back.

I think what did it back then was my sheer volume of purchases. This time I will take a FAR more measured approach. I must fly beneath their radar.

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With 1-mo CDs you don’t even need your own money*. Your only limit is your credit limits… a goldmine indeed.

*well I suppose you do if you want to churn without any gaps.

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I would love to know about 1mo CDs that can be opened online.

Credit funding not necessary. I’ve found a few via the google, but I’m sure there are more I’m missing.

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I’m a little confused by your post. But I want to try to help if I’m able. So if I’m off the mark here please forgive me. That said:

If you have no requirement to fund with a CC, then one month CDs are available for purchase in many places. The best database for this would be at Ken’s website:

Link to Ken’s website

Ken provides data regarding the sorts of deposit products offered by most of the financial institutions in the USA. In particular he, in many instances, lists the term lengths of CDs offered.

I use Ken’s database as a starting point for my own hustle activity when I’m searching for counterparties. It’s only a starting point for me because I must apply additional filters to the information Ken provides. But using Ken’s data I’m able to identify prospective counterparty candidates, ones offering certificates of deposit with terms three months or less. Three months is my cutoff. Then I go further as I make effort to determine whether or not a prospective candidate will allow me to buy their CDs with a credit card.

I realize you do not care about the credit card aspect. But regardless I know of no better database for seeking out short term CDs than Ken’s.

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Thanks, still going to be some leg-work because 1 month/28 day/30 day CDs aren’t really a category. Everyone and their uncle sells a 3 month CD, but very few shorter terms. Even found a 28 day CD that allowed CC funding, but min deposit is 5k and max CC funding is 1k, making it impossible to open, lol.

Agreed.

Ken’s data is not arranged that way. You have to go in with the name of a prospective, hoped-for, financial institution. But if you have a name, Ken’s data often will tell you whether or not that FI offers the CD product you are seeking.

And I also agree one month CDs are not out there growing on trees. Most CD buyers are going for high yield. Hence they opt for longer term products.

But heck, the way things are today there is huge rate compression long vs. short. I’m actually earning 0.2%-0.25% (taxable) on my three month CD purchases, while many five year offerings are not much more than 1%. The whole thing is ridiculous.

Hence 8%-10% (tax free) using credit cards to buy three month CDs is a whole lot more attractive.

Of course. Nothing wrong with leg-work. Just wasn’t sure if I was wasting time and there was an easier way. Found a few prospects. Lots of fish in the sea.