Make up to $1819.87 using the new AMEX promo

[mileageman]

I have not tried this yet, but correct me if I am wrong:

1. Apple for the new AMEX card which was introduced yesterday that pays 5% cash back: http://www66.americanexpress.com/cards/Fmacfservlet?csi=66/20/b/3/0/210091459232/0/n
2. Go to http://www.savingsbonds.gov/ols/olshome.htm, and purchase $15,000 worth of EE bonds and $30,000 of the I Bonds using your new AMEX
3. Wait six months, cash in the bonds (bonds may not be cashed before then) and pay off the credit card debt (there should be no finance charges if timed properly, as the card has a six month interest free promotion)

You will get:
3.5% of the $45,000 charged = 1575
3.96% on the EE = $297 and 2.57% on the I bonds = $192.75 total is $489.75 minus three month penalty for cashing the bonds early = $244.87

Now I assume that most people will not be approved for a $45,000 credit line, so if you are approved for 1/4 of that ($11,250), the profit will be 1/4 of the above number ($454.97)

WARNING: Do your due dilligence before attempting this, I have absolutely no idea if this works!

 

[TheGizmo]

eh.. too risky for me, maybe for others though

 

[durin]

uh

Your annual cash reward for everyday purchases at stand-alone U.S. supermarkets, drugstores, gas stations and home improvement stores is up to 3%. Your annual cash reward for all other purchases is up to 1.5%. You will receive an additional rebate of up to 2% for purchases in months in which your account carries a balance. Your cash rewards are limited to $50,000 of eligible spending.

 

[allisolm]

durin beat me to this.

From the way I read it you only can get up to 1.5% for a purchase like that.

 

[all168]

Your annual cash reward for everyday purchases at stand-alone U.S. supermarkets, drugstores, gas stations and home improvement stores is up to 3%. Your annual cash reward for all other purchases is up to 1.5%. You will receive an additional rebate of up to 2% for purchases in months in which your account carries a balance. Your cash rewards are limited to $50,000 of eligible spending.

This is rule no. 1 of the card, don't think anyone will get full 5% rebate.

 

[MarkM]

nm

 

[mileageman]

edited the numbers, do they work now?

 

[Digdug23]

not to mention they might charge it as a cash advance and hit you with a hefty little fee...?

 

[mileageman]

I have charged bonds on my amex credit card before, it is NOT charged as a cash advance, it is like a regular purchase.

 

[Ipno]

Maybe I'm missing something but wouldn't you lose money for being charged interest on that much money for 6 months?

---

nm, I was missing the 6 months interest free.

Money for nothing, well, nothing if you don't mind floating that much debt for 6 months.

 

[all168]

Even they charge cash advance fee, is there is maxinum amount like $50? My chase has a limit of $35.

 

[PandaBear]

Bond is not like a rebate, it has a risk that if the company went bankrupt your money is gone. I think if you have that much cash and is willing to take such a high risk buying stock is a good choice right now, I think the market is going to turn around sooner or later but maybe not 6 months.

Also, why would AMEX give you such a high limit to start with? Most likely they will only give you a few grands.

 

[MarkM]

I ALREADY buy these bonds using a 2% rebate card I have (and which I continue to maintain is better than what you'll get here) and play this rebate/bond rollover game. There is a VERY extensive thread about the technique over at the ChubbyBillfold Finance forum. I know form expereince that these charges are treated as purchases, not cash advances.

Although this is intriguing, if you deliberately carry a VERY small balance into a month, and then make big purchases of bonds & then pay it off at the end of that month, it does sound like you could get 3.5% Hmmm ....

 

[MarkM]

Originally posted by: PandaBear
Bond is not like a rebate, it has a risk that if the company went bankrupt your money is gone. I think if you have that much cash and is willing to take such a high risk buying stock is a good choice right now, I think the market is going to turn around sooner or later but maybe not 6 months.

Uh, PandaBear, these are US SAVINGS BONDS. If the govt goes bankrupt, trust me, losing these bonds will be the least of your worries

 

[Ipno]

ok but correct me if I'm wrong but it would be nearly impossible to time this perfectly. given that transactions nearly always take "one business" day to process, you'd run the risk of accidentally having to pay 6 months worth of interest on the entire balance just because of one day (isn't that how it works?)

6 months is what it takes to mature the bonds to sale ... 6 months free interest. You'd have to have some serious good luck to pull off that timing.

 

[arbntmare]

or isn't the interest doesn't start till the first day after the 6th months???

or am i wrong??

 

[arbntmare]

Q:Is this considered a merchandise purchase or a cash advance?
A: Your savings bond purchase is treated as a merchandise purchase. It is not a cash advance.

Savings bond web page

 

[Player]

The irony of course being most who will be approved for a $45,000 credit line would consider this too much effort for what amounts to a little over $300 a month.

Now I assume that most people will not be approved for a $45,000 credit line

 

[TheGameIs21]

Don't forget that APR stands for Annual Percentage Rate. If you have a 10% APR and you put $100.00 in the account for 6 months, you are not getting $10.00 return on your money. If I remember correctly, you will get capital * apr / 12 months * months invested.

$100.00 * 10% / 12 * 6 months = $5.00

most people would assume they would get $10.00.

 

[wisdomdbn]

MarkM - Where can I find these finance forums?

 

[arbntmare]

hmm

Over-limit and late payment fee: $0 - $30 as determined by applicable law. We may apply payments and credits first to your balances with lower APRs (including balances with promotional APRs, such as balances transferred pursuant to this offer) before balances with higher APRs. This will result in the lower APR balances being paid before the higher APR balances. Fee for Cash Advances through Express Cash: 3% of the cash transaction, $5.00 minimum with no maximum. The line of credit offered with the "Card" is up to $100,000. The minimum income required to qualify for the "Card" is $25,000. If you are an existing American Express Cardmember there is no minimum income requirement to qualify for the "Card".

would that be a problem of a max of 30 bucks per month for 6 months??

 

[MarkM]

Originally posted by: wisdomdbn
MarkM - Where can I find these finance forums?

Anandtech won't let me post it. If you had PM on I would tell you.

 

[Evadman]

LMAO! Taht's a good idea. Never would have thought of that.

 

[Spac3d]

Interesting concept. I dont have the money to front right now But interesting.

Spac3d

 

[ktg]

I understand how you can make money off this deal. But how the hell do you "apple" for the new Amex card?