Seeking CC help/suggestions - Specific conditions

Finance
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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.

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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.

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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.

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Full disclosure

I hate posting this but honesty forces my hand

I’m wiped out.

My post above, the one month CD and all the high yields, and how great it was . . . . well . . . . it has all evaporated.

I just tried to open my first CD in two years. They told me no problem, couple of representatives did, so I went ahead.

Problem. Busted

They shut me down and threw me out of the credit union for trying.

You win some. You lose some. I lost this one big time. :anguished: :anguished:

So it’s back to three month CDs for me. Much lower APYs. Much less drama.

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Just sort of thinkin’ out loud here. Still ever so slightly dazed, like a knocked out fighter just coming to and getting up off the canvas. But

You know everybody can participate in this hustle. I mean, why not? GTE will sell you all the six month certificates you want with no hassle or drama whatsoever. So let’s do the math together:

Your multiplier is two. You go in with a 2% card. So you’re making 4% APY tax free. Your money is NCUA insured and there are no additional requirements as would be the case with, for example, an RCA (reward checking account).

Today an RCA is probably only netting you less than 4% taxable, plus the hassle. And there are no 4% CDs today; anywhere. And rest assured GTE will be happy to take your money. You can open as many CDs there as you want. I know because, back when I was starting out with this hustle, that is exactly what I did. :grinning:

But this is 2020. We have a pandemic in progress. What sane person is gonna turn down 4% APY tax free on funds they want to put into certificates of deposit!

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Oh so sad, poor guy!!

Checking now, looking for 1 mo CD, none found. Closest 3 mo CD.
So your hustle is to call first to see if they take your Credit Card for the down payment?

I’ve just started on those Reward Checking deals. Keesler $25k 3% 12 debit (done)
Security Bank $50k 1.76% 10 debit (done) I don’t have the $50k yet, but working on it.
Getting those debit transactions is a lot of work. Giving it a try

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Yeah. I got spanked.

It’s beyond me, I can tell you that. I don’t have the patience.

If you want to have some fun, and if I recall correctly that you are a GTE Financial member, go to your account there. Click on “Accounts” upper left and then on “Open additional account” in the drop down menu. It’s the bottom most option.

On the page that comes up click: “share certificate”

On the next page that appears click only “share certificate” and then, at the bottom, click “next”.

Now you’re at the share certificate choice page. Choose six month and then scroll to the bottom and click "yes . . "

Click your way through the next several screens, answering the questions. You will arrive at the funding screen. Click on “credit or debit card” and then, at the bottom, “next”.

This will lead you to a screen where you put in the amount of your CD ($5,000 max per CD but you may open as many CDs as you wish) and your funding source. For you this would be your Citi DoubleCash card with the 2% reward.

Bottom line you will obtain a quick hundred dollar reward and you can do that again when the CD matures in six months. In a year that’s $200 you make on $5000, or 4% APY and the rewards on your Citi DC card are tax free. So you’re making 4% APY NET.

All that just for opening a CD online at home. There is no requirement whatsoever to execute this or that many transactions per month. It’s hassle free and you pocket 4% APY tax free on your investment.

In the past I had tens of such certificates working for me at GTE, earning tax free income in the process.

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Can any credit card be used for this purpose without incurring in a cash advance type of transaction?

PS. I didn’t scroll to the top of the thread to find out if this has been discussed before. Sorry if I’m asking a question with a well-known answer.

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Thanks shinobi… I’m gonna give this a try.

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@shinobi since they kicked you out and you’re blacklisted, are you now willing to share the name of the CU with the rest of us so we can take advantage?

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Sure, no problem.

Inova FCU

They are in Indiana. Good luck to all. Hope your luck is better than mine was.

However, nota bene:

Unlike the other counterparties I use, and also unlike the situation I just brought to the attention of pattyb53 at GTE:

The Inova CD purchase process is not online. Of course first you must be a member. Then you must call in and request to purchase a CD. The rep will take your card information over the telephone and email you a Docusign document to sign (easy). There is also a $10 convenience fee for using a CC. Max CD size is $5,000, and as I found out the hard way:

I’m not at all certain how often you are permitted to “rinse and repeat”.

Happy gold mining. Think of me if you find a nugget. :innocent:

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There is one more thing, at GTE, at Inova, and anywhere else this hustle is operated:

Once the CD is open be sure to contact the financial institution and have them code your CD so that at maturity all proceeds are transferred into your savings.

The last thing you want is for any of these hustle CDs to renew. Be absolutely certain your hustle CDs, regardless where opened, do not auto-renew.

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Sorry if I sound repetitive… Can any CC be used? I’m a little concerned about the transaction being treated as “cash advance”.

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Thanks @shinobi and as a bonus they have a 3% reward checking account. Maybe having a checking relationship will help with the CD’s, haha probably not