Why else would they put such low limits on CDs? Anything else doesn’t make sense to me.
I’m impressed. None of mine are over 2.5k, and most are 2k.
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It’s the funding method. Cant speak to his targets since I dont know what he uses, but any I’ve seen have different maximums for different funding methods.
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Over time, and having operated this hustle with counterparties that allowed much larger limits in the past and now smaller ones, I really do not see $2k or $2.5k as a problem. In fact, perhaps strangely, it’s almost a help.
It all comes down to not setting off any alarm bells, having a good system, and having patience. One example:
I operate my two B of A cards (one Visa and the other Mastercard) having otherwise the same terms and conditions. Do this to harvest the 3% reward even though spending is capped. I like 3% rewards and I don’t mind getting only $600 each year, year after year, from this endeavour between B of A and myself. However:
Typically with those two B of A cards I open CDs sized less than $1500. And I spread 'em out among my counterparties. This in attempt to maintain a low profile and keep that B of A golden goose alive and in good health. Hence:
Any of your $2k counterparties would work just fine in this situation. That B of A golden goose has been strutting around for a while now paying me $600/year with no tax. I’m not too haughty to accept such largesse humbly and gratefully - from a goose. 
And I know you understand geese! 
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Been a while since I posted here but bit of a kick in the head for me this afternoon. I dislike posting bad news and this is bad:
One of my counterparties has discontinued offering ability to purchase CDs with a credit card. 
A single such event of course does not a trend make. But I certainly hope this is not commencement of a trend.
For a while I was quite upbeat and positive about CD purchase opportunities using a credit card for payment. But obviously financial matters everywhere, stock market, inflation, availability of some goods, are falling apart right now. I didn’t realize prior to this that I might become a victim like so many others; I did not see this coming.
It has been about a month since I last opened a CD with this one counterparty. When I tried earlier today the credit card funding option had simply vanished. I called and they confirmed the change.
This side hustle of mine is the only way I have to even come close to keeping up with inflation and taxes. That CD I was unable to open would have netted me 12% APY with no tax. I did shift the transaction to an alternate counterparty without trouble, so the 12% is still in the bag. But this reduction in the size of my counterparty stable is quite troubling.
Things are bad. You don’t know whence will come the next torpedo. At least I don’t know. 
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My take on this is you are very smart…BUT how are you sure that BOA 3% online sales and Alliant and others code as online purchase and not cash advance?
I mainly do bank bonuses with opening funding with my Citi double cash. I opened a few checking accts for at least 300.00 bonuses and Citi codes these as purchases. Did 3k opening deposit at 3 banks in past year netting 1100. In bonuses (taxable) but also 240.00 in Citi rewards. Plus I use these accts to deposit mo.
And I have big CL on PedFed 2% card Citi double and Santander 3% card. How would I find out the coding before it’s too late? That would be a big no no in doing this. I admire you though.
Thanks. That is kind of you.
Again, thanks.
What I always do, when it is a new CC or a new financial institution, or both, is to run a test. Most often it is possible to open a CD for as little as $500. So that is the amount I choose for my test CD. I open the CD, then stand back and observe how things transpire . . . . purchase or cash advance.
If the former, fine let it ride and open larger CDs going forward. If the latter I pay off the cash advance ASAP and charge the (small) interest cost up to “lessons learned”.
It has been “so far so good” with the above system, but a word of caution:
My principal, “go to”, credit cards are not from the big money center banks. They are issued, instead, by smaller/mid size credit unions. The latter are less sophisticated than the big banks when it comes to ferreting out people who do what I do. One example:
I have a Citi DoubleCash card with a decent line. I have not used that card for a long time. I don’t need it, and I am concerned about the high sophistication level of a bank like Citi.
That said, I do use two B of A cards on a quarterly basis and have had no pushback. So there are no hard and fast rules except to be as watchful and prudent as it is possible to be.
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Some credit card issuers let you change the cash advance limit. I would change the limit to zero if possible.
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Yeah, but then they could magically transform a transaction that initially goes through as a purchase into a cash advance. Happened to me with a CapOne card. They waived the CA fee after I explained that my CA limit was less than the transaction amount so it should have been declined. And it wasn’t phone CSRs either, I wrote a strongly worded letter.
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thanks for this advice. I just might give a shot like you said for 500 with City double. Ill report back and thanks again!!!
Wow, thanks. Never knew such a thing could happen.
History indicates that you are giving those big banks wayyyyy too much credit. It’s usually the smaller issuers that are quicker to drop the hammer on excessive volume/anomalous activity. Not criticizing your strategy 'cause it clearly has worked for you, just pointing out that “sophisticated” and “big banks” dont go all that well together.
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