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Bankdirect: The best kept secret to getting AA miles?  

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JetsettingEric
(@jetsettingeric)
Silver

Rob, don't forget to add the opportunity cost of a high interest checking/savings account (after tax of course).

I'm putting my cash in a Amex Savings account and might use a targeted Chase deposit promo for new cash. Even if it's marginal cost differential, i'll save myself a lot of trouble by being able to get online statements, and not having to deal with the quirks of the bank direct site.

What are the experiences with closing the account? Anyone getting fee waivers to stay? Is it a pain to close?

Chairman Diamond Gold Executive 5 star

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Posted : January 7, 2012 2:48 am
Rob
 Rob
(@rob)

JetsettingEric, post: 1111319 wrote: Rob, don't forget to add the opportunity cost of a high interest checking/savings account (after tax of course).

I'm putting my cash in a Amex Savings account and might use a targeted Chase deposit promo for new cash. Even if it's marginal cost differential, i'll save myself a lot of trouble by being able to get online statements, and not having to deal with the quirks of the bank direct site.

What are the experiences with closing the account? Anyone getting fee waivers to stay? Is it a pain to close?

High yield being 0.90% for Amex savings? Doesn't sound like much of an opportunity cost at this point ;).

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Posted : January 7, 2012 4:03 am
schnitzel
(@schnitzel)

I'd say, 1.2 AA miles for .9 cents is really a pretty good deal.

AA, SPG, United, Delta, and Hilton are my main programs. I also go for MR and UR points.

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Posted : January 7, 2012 5:16 am
MLW20
(@mlw20)

Rob, post: 1110672 wrote: So with the new monthly fee about to kick in, I've had a post-it note on my desk to cancel my account once the last batch of miles posted. Thinking some more about it, though, I'm slowly changing my mind, seeing that $12/mo as long as I keep $12k in the account is a cost of 1 cent per mile, which doesn't seem all that bad to me. Anyone else thinking about leaving their accounts open?

I've also gone back and forth with closing my account. For now I've decided to keep it open considering there isn't any great options on where to put the $. I think the miles I earn are still worth the $12 fee for now.

Gold Ruby
Check out my blog- MichaelWTravels

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Posted : January 7, 2012 5:25 am
JetsettingEric
(@jetsettingeric)
Silver

High yield being 0.90% for Amex savings? Doesn't sound like much of an opportunity cost at this point ;).

Let's say that is 0.60% after taxes - on $12k that is $72 of foregone interest annually, or $6 per month. Add in the $12/month fee, you're at $18/month. You earn 100 miles per $1000 deposited per month, so you earn 1200 miles for $12k deposited. 1200 miles for $18 = 1.5 cpm. Everyone values their miles differently, but i'd say it's marginal. Dealing with bank direct would tip me over to the other side.

At much higher balances, it's a different story.

Chairman Diamond Gold Executive 5 star

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Posted : January 7, 2012 12:32 pm
sas140
(@sas140)

Any reasons there havent been any more Bank Direct postings in the past year?

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Posted : December 31, 2012 2:26 pm
arkleseizure
(@arkleseizure)
Silver

The $12 monthly fee, and the change to the AA million mile program, both took a big toll on the value of the BankDirect offer, especially if you did not carry a large balance with them. One thing that has also generally been ignored, in part because interest rates are so darn low now, is that you lose the benefit of compounding.

I just closed my account about a month ago. Interestingly, they actually stopped charging the $12 fee after August I think, so they may have some sort of overall fee limitation on their accounts. All in all, I was very happy with the deal while I was able to maintain a sufficient balance in the account. I'd probably consider it if I had some big $$$ 0% balance transfer offers come through.

...just 599k more AA miles to go to 2MM... 😳 😮

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Posted : December 31, 2012 2:36 pm
schnitzel
(@schnitzel)

Still working fine for me. It's a sleeper, but a reliable points-poster each month. One of my best . . .

AA, SPG, United, Delta, and Hilton are my main programs. I also go for MR and UR points.

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Posted : December 31, 2012 3:39 pm
gleff
(@gleff)
Admin

arkleseizure, post: 1806641, member: 1471 wrote: Interestingly, they actually stopped charging the $12 fee after August I think, so they may have some sort of overall fee limitation on their accounts.

More likely you just got lucky. They've continued to charge me the fee each month. Although historically there are tons of fees that they were SUPPOSED to charge (fees for bank checks, replacement statement copies, Fedex charges) that they never have.

I continue to use my Bankdirect checking -- not as some sort of place to park 0% money but as n actual checking account. I do not prefer it to investing as some have argued for. It *is* a safe investment of course up to FDIC limits and for liquid funds that aren't really investable it's a reasonable place to park those.

But I carry high short-term account balances to pay off my credit cards -- business expense reimbursements, I get the reimbursement, hold the funds a couple of weeks, pay off the cards. Over the course of each month my average daily balance is significant so that makes the fees well worthwhile.

View from the Wing: everything you need to know about earning/redeeming miles & getting the most bang for your travel $$

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Posted : December 31, 2012 4:06 pm
OceanBreezes
(@oceanbreezes)

I just logged in to my account and noticed a banner indicating changes to the mileage program. Based on a cursory review, it looks like the $200K limit is now being reduced to $50K effective 6/1/2003.
Mileage Checking with Interest 100 AAdvantage® miles Earn credit for every $1,000.00 of the collected balance up to the first
$50,000.00 on deposit.
25 AAdvantage® miles Earn credit for every $1,000.00 in collected balances over $50,000.00.
Mileage Money Market
50 AAdvantage® miles Earn credit for every $1,000.00 of the collected balance up to the first
$50,000.00 on deposit.
25 AAdvantage® miles Earn credit for every $1,000.00 in collected balances over $50,000.00.

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Posted : May 1, 2013 4:07 am
estnet
(@estnet)

if they are changing the terms dont they have to notify us? I never log in to my account!

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Posted : May 1, 2013 7:39 am
gleff
(@gleff)
Admin

They're cutting earning by 75% for deposits $50,001 - $200,000 but it doesn't appear the $200,000 cap is in place any longer.

View from the Wing: everything you need to know about earning/redeeming miles & getting the most bang for your travel $$

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Posted : May 1, 2013 10:49 am
kadence
(@kadence)
Silver

Great! I finally opened an account just last week.

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Posted : May 1, 2013 11:52 am
schnitzel
(@schnitzel)

gleff, post: 1940479, member: 40 wrote: They're cutting earning by 75% for deposits $50,001 - $200,000 but it doesn't appear the $200,000 cap is in place any longer.

Saw that note on your blog also - what cap was that? The ratio changed at $200,000, but there was no cap.

AFAIK, they just changed the ratio point from $200K to $50K.

AA, SPG, United, Delta, and Hilton are my main programs. I also go for MR and UR points.

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Posted : May 1, 2013 1:33 pm
gleff
(@gleff)
Admin

I believe there was no mileage earning on balances above 200k for the past 2 years (prior to that there was no cap)

View from the Wing: everything you need to know about earning/redeeming miles & getting the most bang for your travel $$

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Posted : May 1, 2013 1:58 pm
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