Avoiding The BankDirect Monthly Account Service Fee

Discussion in 'Blogstand' started by BoardingArea, Apr 24, 2015.  |  Print Topic

  1. BoardingArea

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    Last month I analyzed the BankDirect Mileage Checking account and how it can be a lucrative way to earn American Advantage miles. To recap, you earn 100 American Advantage miles for every $1000 you keep in the account each month, up to $50,000. Then above $50,000, you earn 25 miles per $100. It also pays a neglible interest rate (0.01%). As long as you don't mind being paid in miles, this is one of the higher yielding opportunities for a completely liquid FDIC-insured account. The downside of the BankDirect Mileage Checking account is that it has a $12 monthly fee regardless of how much you keep in the account. This is particularly annoying because the $12 fee is almost certainly more than you'll make in interest each month. For example, if you have $50,000 in the account, you'll earn about $0.42 of interest each month -- no joke, it really is negligible! That means that you are paying $12 per month in service fees and earning only $0.42 for a net loss of $11.58. Yes, that's right -- your account balance actually goes down over time! Sure, your American account will go up, but it still stinks to see your hard earned cash dwindle away. The post Avoiding The BankDirect Monthly Account Service Fee appeared first on One Mile at a Time.

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