1% cashback vs. transferring monthly CC balances and keeping money in savings
I'm just wondering if there's any flaw in my thinking that rather than spending my money immediately (Chase debit card) and get 1% back, I accumulate monthly spending on one of my credit cards and then balance transfer it to another card with 0% for 18 or 22 months. There is a fee of 2.4% for 18 months which equals to 1.6% annual loss. The other BT card has 1.99% fee for 22 months 0%, which equals to 1.085% annual loss (fee). So I will lose some money on BT fees, but at the same time I can earn over 5% on the money I saved by using CCs instead of Chase debit card. Even if I keep money just in Tandem easy access, that's still earning over 4%. Some money need to go towards monthly CC repayments (slightly over minimum), but even after BT fees, net return will be still higher than just 1% cashback on Chase. Good or bad idea?
EPICA - the best symphonic metal band in the world !
★ ★ ★ Meet your Ambassadors
- All Categories
- 339K Banking & Borrowing
- 248.7K Reduce Debt & Boost Income
- 447.6K Spending & Discounts
- 230.8K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 171.1K Life & Family
- 244.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards