Could funding a high yield savings account from credit cards make money? - yield savings account
For example, I have two credit cards. I pulled my cap 1 card and a high yield money market account. All 21 days I will pay one card with another.
Sunday, January 3, 2010
Yield Savings Account Could Funding A High Yield Savings Account From Credit Cards Make Money?
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His specific plan would not work. Transaction costs and the fact that companies do not accept credit cards allow a grace period for cash advances a sure loser.
ReplyDeleteHowever, a similar idea has really made money for me over the years. Basically, you have to offer a credit card zero percent teaser-see for six months or a year on balance transfers. Most companies will allow you to transfer funds in your checking account. From there you can switch to the higher returns account and get the teaser rate expires.
Be warned that transferred almost all the cards in exchange for a form of the statement balance, so also the offer zero percent of the money is not really free. Additionally, you must earn to pay taxes on your interest. Unfortunately, the transmission rates are of most pay increases over the past year. It is not uncommon for a 3% balance transfer fee in advance, making it difficult to an account of the performance high enough to see a profit. Nevertheeless if we get enough interest to offset taxes, you will make a small profit in this case. So make sure you do not miss a payment and proposed penalties.
One could, while the cost associated with their credit cards are less than the interest they deserve. The payouts are cash advances that often a sentence of 1% -3%. Suppose the minimum of 1%. During the year 17 Number bodies would be financed. Whether it consumes 17% of the money is. I would therefore like to have even found a recording of the acquisition of 17% just to break.
ReplyDeleteAnd anyway, if you have two credit cards, each with a limit of $ 20,000, and found some savings account interest rate of 20% at year end was $ 600.
The return is not much work for so large.