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March 20 2016

StudentLoans917

Cash Back Bonuses vs Savings Interest

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student loans

Cashback earned from Chase Freedom in 22 months: $481.41

Money back earned from Discover it Miles in 7 months: $90.26 (that can double in 5 months)

Total cashback earned in less than Two years: $571.67 ($661.93 whenever we add in the anticipated double points)

Total interest paid on those cards: $0

Interest earned with a 1.20% APY savings account with $15,000 with out monthly deposits by 50 % years: $364.17

 

Because i was writing my post on obtaining the most out of cash back rewards cards, I started thinking about the savings account I opened lately and I realized that I’ve made more from cash return and bonuses with two charge cards in less than two years than Let me have made after having my family savings for two years. Which led me to take into account how my cash return rewards aren’t taxable along with the interest earned from my savings is. Permit me to say this now: I’m not discouraging opening a savings account or any similar taxable accounts. I’m still making profits from my money while I’m not deploying it, instead of it just present. I just thought this was an interesting thing to take into consideration.

This is how much I created from two cards. Eventually, I will stop getting sign-up bonuses, but even then I would make a decent amount from cash return and in the future, hopefully, travel rewards. I haven’t even gotten cards which will give me even greater rewards for gas and Amazon purchases since i spend a lot on those. The wheels are submiting my mind right now thinking about the possibilities.

student loans

The only time I’ve ever paid money I didn’t already invest in my credit card was that particular time I paid my Chase Freedom bill late (by only like 5 hours) together to pay a $25 late fee. Luckily, no interest was charged because it was during my intro 0% APR period so my no-interest streak continues. However i learned my lesson and after this have my bills intent on autopay and haven’t had another late payment since.

I guess this is simply a small continuation on my small other credit card articles and a peek into my train of thought. Also, someone near me is anti-credit cards and perhaps this will convince these to change their mind. I’ve stated it before and I’ll say it again: pay your cards fully each month so you don’t get charged interest. Don’t allow credit card own you. You use the credit card.

*Side note, a persons vision earned from the piggy bank in my example isn’t depending on mine. 1.20% APY is probably the highest you’ll find for any savings account these days understanding that bank requires a $25,000 initial deposit. I just made up that scenario since a $15,000 deposit seemed more obtainable.

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