CapitalOne Rewards Money Market Account

Discussion in 'General Discussion | Miles/Points' started by carpe diem, May 13, 2011.  |  Print Topic

  1. carpe diem
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    carpe diem Silver Member

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    I loved getting in on the CapitalOne Match your Miles credit card promotion and have made it my primary card (for the moment, at least). I've used my points for travel reimbursement and they have been quick with posting the credits. Since I'm so happy with that aspect, I am considering their Money Market offer. The rate is not tremendous (but I haven't found any that are) but when combined with the miles and reimbursement option, it's better than any local banks I've found. I'd love some input from others who may or may not consider this option. (And maybe the offer will get better with time....didn't see it mentioned anywhere so maybe it's fairly new.)

    http://www.capitalone.com/directban...EW_C1_01_T_REWD&itc=CAPITALONE1111K1INTMKTGDF


    Earn Rewards

    It's simple. You earn rewards for saving your money.
    • Every month, you'll accumulate 1 mile for each $20 of your average balance for the month.
    • You'll get 2,500 bonus Miles for opening your account with $500 or more.
    • Rewards Miles will be posted to your account within 60 days after the end of each month.
    For Example:
    If your average balance for the month is $10,000, you'll get 500 Miles for that month.
    Also, deposit at least $500 within the first month and receive 2,500 bonus Miles*

    0.75%APY





    Rewards Money Market Earnings Table


    With $10,000 You'll Earn:



    Annual Percentage Yield 0.75% APY*
    Interest Earned $75.00
    Miles Earned 8,515
    See below for important information on miles calculation ‡
     
  2. chemist562
    Original Member

    chemist562 In Memorian

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    Each mile would cost 0.54 cents. Each mile is worth 1 cent if redeemed for travel credit or gift cards. The Cap One savings account pays 1.1% plus 10% bonus for a total of 1.21%. I would take the 0.75% APY plus the miles. I am assuming that Cap One does not send a 1099 for the value of miles like Citi does for >=$600.

    Decent deal.
     
  3. carpe diem
    Original Member

    carpe diem Silver Member

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    Okay - checked this out again and it doesn't look as good as before.
    The 8515 miles earned in the example includes the one time 2500 mile bonus for opening the account...so, you'd only be getting 6015 miles annually (equal to $60.15 toward travel reimbursement). Like I said...not quite as good as I initially thought. (Sure have to read the fine print!) That plus the the $75 would equal a value of about $135/yr.
     
  4. BurBunny
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    BurBunny Silver Member

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    However, another of their Money Market accounts is quite good for travelers, if you want an ATM card with no foreign transaction or currency conversion fees. Their Money Market account with ATM access has free ATM card and all the same excellent foreign currency benefits of their credit cards. I now use this as my primary way of obtaining local currency when I travel. I transfer what I expect to need (and of course a bit more) before I leave, then pull it out in local currency when I arrive at my destination(s). No more foreign transaction fees.
     

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