Do any of those CUs let you fund with an Amex?
I have never found a CU willing to fund with Amex. If you locate one, please let us know.
Although I haven’t tried it, you should be able to do that with PayPal Key which is a Mastercard (debit).
Bit of an unanticipated turn this morning. Throughout this entire thread, going all the way back to April of 2018, I have repeatedly posted about the uselessness of AMEX platform cards in this endeavour.
I’m aware certain participants here, Argyll for example comes to mind along with _TJ, but there must be others as well, value highly their relationship with the AMEX platform. I myself own two cards on that platform, one issued by American Express itself and the other from BBVA. Both cards have been useless for CD purchases and I have only kept them because the high credit limits help me with my score. When I wrote up thread that I’m operating a dozen cards, those two AMEX platform cards were not included in the dozen, all instead either Visa or Mastercard or my single Discover Miles card.
Anyway, it has all changed and I’m here to document the change:
Sun East FCU, a credit union anyone may join, appears to be accepting AMEX platform cards for online purchase of certificates of deposit. I say “appears” because I am not able to take the CD purchase process to completion. My AMEX platform cards offer only a 1% reward. But the Sun East application allowed me to input an AMEX platform card without protest. I’ve never seen that happen before.
Couple of things about Sun East:
Weiss rates them “C+” which is not too bad. Their taxable interest rate on your three month CD is just 0.10% APY, which stinks. But it’s only pennies anyway so not really important (I usually get either 0.25% APY or 0.20% APY taxable).
Bottom line, you can forget my two and one half years plus of carping that you cannot do this deal with an AMEX platform card. Now you can.
I’m never been a huge fan of Amex. I had charged a tuition on their platinum card to hit a bonus. The school refunded it even though I told them not to. Amex reversed points after I cashed out the sign up bonus, so then there was 60k negative balance. That would have taken multiple years to zero out that negative balance. I closed my platinum and green card due to a negative MR balance that was impossible to recover. They said they understood my position, perhaps they will never approve a card for me again.
I still have a Blue Cash card, but if they closed that one, I wouldn’t care too much. I only really use it for Amex Offers.
I mainly use Bank Of America, as long as they have that 2.625% card on everything with just putting investments with Merrill Edge, I’ll primarily be using the BofA cards for the foreseeable future.
Yesterday over on scripta’s liquid accounts thread I posted a 1% liquid money deal at Merchants Bank of Indiana. While noodling around their website, so I could make that post, I noticed that same bank welcomes online applications for cherished one month certificates of deposit. Something like that instantly has the smell of “free money”, so naturally I followed up:
I’m just off the telephone with the bank. Am sad to report they do not allow CDs to be funded with one’s credit card. But it cost nothing and consumed scarcely a minute to check out the possibility, and I would do so again, elsewhere, in a heartbeat. After all, such a find would result in 12% APY, even when using a credit card with a meager 1% reward. This in theory though the reality of processing time might reduce the yield by a point or so. And of course credit cards having a higher percentage reward would double that outcome at least. Finding a situation where you can open one month certificates with your credit cards is akin to locating the golden fleece, and is equally difficult and challenging.
But it will not come true at Merchants Bank of Indiana. So the quest goes on.
I did just this morning finish opening probably the last in my current batch of CDs. But sadly they are all three month CDs.
Why would you call them? Most of the time, the CSRs have no idea what the online applications allow. Just start an application and see what funding options are offered.
It’s a reasonable question. There is no way to apply for this bank’s CDs without first having a username and password. This would mean becoming a customer of the bank. Now I might end up becoming a customer anyway, later, because of that 1% liquid money deal I posted. My current Keesler HIMMA Plus account turns into a pumpkin around the end of February, at which point I will be shopping for a home for my liquid funds.
But right now I have no such need, so no interest in becoming a customer of the Indiana bank today. The rep who took my call was very knowledgeable and polite. I got my answer quickly and absent hassle or need first to sign up with the bank. And she even wished me Merry Christmas! I love the people of Indiana. They are so normal.
Be careful doing this. I went halfway through an application, only got to the CC funding part (which failed).
They pulled my ChexSystems report, and later reported me for fraudulent activity to Chex.
I was able to get the fraud part removed by disputing it. After all, how could I commit fraud when I never even finished opening the account? But that was not before finding out about it the hard way: getting denied an account by another bank.
Thanks, I was also thinking about opening an acct at Merchants. 1% Savings, but then again by Feb that rate could be gone. HIMMA is good for now.
Agreed. We must wait until Keesler HIMMA Plus goes away before making our move. Rates could be lower then, or higher. We do not know yet.
For me, I need liquid funds in order to lubricate this hustle. For example, I currently have thirty grand, more or less, out in the three month CDs. But I will need to pay off those credit card charges in circa two months from now. So for the first two months I am earning 1.35% APY at Keesler in addition to something like 0.20% to 0.25% APY on the CDs themselves, all taxable. Then, just prior to the final month, the liquid money in HIMMA Plus is used to pay off the credit card charges and I have to carry the CDs personally for one month at only their lower interest rate. At maturity the money goes back into the (hopefully higher yielding) liquid account, HIMMA Plus or whatever it turns out then to be.
Obviously none of the above is big money anyway. The real juice is in the credit card rewards on which I pay no tax. Regardless:
The point is you need as good a liquid money account as you can locate to enable the whole scheme to operate at maximum profitability.
All right, I see it has been a couple of months. So with heavy snow out there at this hour, and a couple of feet already on the ground, this is as good a time as any for an update:
Executive summary: It’s going pretty smoothly
Yeah, it is. Everything’s just perking right along. Am doing, I dunno, twenty or thirty grand a month. It varies. Still using HIMMA Plus to contain any spare capital. Working three different CD vendors, one of which allows me to go up to five grand, the other two capped at $2.5k.
Regarding the cards, I basically have too many given the lower monthly spend. Focus is on my best, a total of only about 5-6 cards which offer a minimum of 2% reward. I’m not using Citi DC now because of the reward delay. I milk my Bank of America World Mastercard just once a quarter for the 3% reward.
So bottom line the halcyon spending days of a hundred, hundred twenty, grand per month are long gone. But even with today’s much less aggressive spend, it’s still a tidy little tax free income.
*** This claim is disputed ***
Thank God only by you.
Seriously your post gets me to thinkin’:
What would I do if the IRS became active in this realm . . . . which certainly they could especially with Biden now in the big chair.
Upon reflection I think it would be time to roll up the entire hustle . . . . even though it still would be quite profitable. But with tax in the mix this would be a lot less fun. And gubberment involvement in anything is a turnoff for me.
Why would you turn down the free $$ though?? If you’re doing $30k/month, you’re pulling at least $600/mo in cash back. If it’s worth your time pre-tax, it should be worth time after tax. Do you have massive RMD’s or something?
It’s a reasonable question. I dunno. I’ve become accustomed to the very high returns I’ve been obtaining since this thread began. That level of gain sort of spoils you to where something less is a let down. And that is especially true when you are handing still more money to the gubberment.
It does take some effort to crank out the profits with this hustle, though it’s nice with the pandemic to be able to run the thing 100% from home on the net. So I really cannot say for sure what I would do if suddenly they began taxing me.
Shinobi, you mentioned the 2% cards you use. I’m sure you’ve already looked into this, but I would hate to see you spending that kind of money and not know about this credit card deal…
The Bank of America Travel Rewards card - no annual fee and if you have $100k w/ BOA, your net cash back is 2.625%.
Only issues I see with this card:
- To get the full 2.625%, you have to use the rewards on travel (and grocery / dining thru the end of 2021);
- Also, Bank of America sucks with the worst damn customer service of anyone except for cable companies;
I quite honestly do not have a hundred grand to tie up with B of A. Now I do pay a $99 annual fee at Alliant, and my Alliant Visa Signature card is only good for a 2.5% reward, not 2.625%. But Alliant does not require me to tie up any money with them . . . . and I don’t.
I do use my B of A Cash Rewards World Mastercard quarterly within the outlines of my hustle activity. The benefits are limited, but nice. I can “spend” $2500 each quarter and collect a 3% reward on that amount. This is because B of A treats my CD purchases as online purchase activity, and that is the category I have selected for the 3% reward. So far this has been working out, the 3% is welcome, and they have not come after me. And, again, they do not demand I tie up money with them as a condition of earning the 3% reward.
Finally generally speaking:
I do not use any credit cards having other than cash rewards. Never have. It’s just a habit, I guess. This has been true since the commencement of this thread.
You don’t have an IRA or brokerage that you can move to Merrill Edge?