Now that the APP o RAMA is under way where is the highest paying Bank to place credit card arbitrage money?
There are a few options out there for you guys. Most people reading my credit card blog that do APP o RAMAs have jobs and therefore they are able to pay the monthy minimum charges using their salaries. This option allows them to safely place the money in a bank CD ( certificate of deposit). Right now bank CDs are paying a lot more than savings accounts pay. For example www.CountrywideBank.com pays 5.65% on a 1 year CD. This is your best bet to make the highest profit using credit card arbitrage.
If you want to go with a savings account because you are unable to pay the monthly minimum credit card bills you will need to go with a reputable bank. We all saw what happened to Everbank last mont, so maybe earning an extra .005% on your money may not be worth it if you go with a smaller bank as a result. Both AMtrustdirect.com and Umbrellabank.com are paying the highest rates on savings accounts.. around 5.35% each. You can go with Emigrant direct Eloan or ING if you want a very safe place to put the money, however the return on investment will only be 4.75%.
It is really up to you guys to decide where to put the money. If you feel like you can trust online banks with less brand recognition than Emigrant, Eloan, or ING make sure each account will have under $100,000 in it, this way they are FDIC insured.
Filed under: Interest Rates, 0% balance transfer Credit cards
