Citi Checking Account for AA miles

Discussion in 'American Airlines | AAdvantage' started by MLW20, Feb 8, 2011.  |  Print Topic

  1. MLW20
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    MLW20 Gold Member

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    Hello All,

    I've been looking for more ways to up my AA mileage balance. I tried opening a Citi Gold checking account but was then told the mileage offer was only for new Citi customers! I was wondering if anyone knew of a bonus code good for current Citi customers or other good suggestions on ways to add to my miles?
     
  2. Biu
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    Biu Silver Member

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    While there might be codes out there, opening a Citi checking account might not be worth the trouble because 1) the miles take forever to post, if at all, and many people report having to deal with customer service to chase the miles, and 2) there's a thread over at FT that talks about how Citi has started issuing 1099's for these AA miles, valuing them at I believe 2.5 cents per mile, which might incur you a hefty tax. Just something to consider, but maybe others can shed light on their Citi experience.

    Have you looked into BankDirect's checking account at all? From what I know, BankDirect hasn't had any of these problems and you can just park your money there for a while and get a bunch of AA miles. They're an online branch of the Texas Capital Bank and many AA mile lovers use them. Here is their info link for the checking account with interest: http://www.bankdirect.com/products/checkingmileage.aspx

    If you get a referral from an existing customer, you get an additional 1,000 miles on top of the 1,000 bonus for opening the account, so you get 2,000 off the bat. Private message me with your email address and I'd be more than happy to send you a referral (I also get 1,000 bonus miles too for referring). There's also an ongoing MiPo thread here about this, good luck!
     
  3. MLW20
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    MLW20 Gold Member

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    Hey Biu,
    I've considered the Bank Direct idea but I am not sure if it is worth the effort either. To earn 100 miles per $1000 in the account per month will not get you much unless you are leaving a hefty sum in with them. I am considering opening an account with a small amount just to see if it is convenient etc...
    I've read some things about the 1099s with Citi checking which sounds ridiculous but an easy 20-30,000 miles would be nice.
     
  4. Biu
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    Biu Silver Member

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    Yeah, I agree that you would need a big chunk of change to sit in the BankDirect account to generate anything substantive. You can definitely look through this FT thread and see if anyone else has anything positive to say about for the Citi checking. Doesn't seem too easy. What about the Citi credit cards, they offer a good pile of miles too if you haven't done those yet. Also, have you considered the AA Fidelity account? That requires some capital too but it might be more worth your time as a one-time lump of miles.
     
  5. MLW20
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    MLW20 Gold Member

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    I've had tons of AA Citi Cards. I luckily got one 75000 mile card through and missed out on a biz card recently because I couldn;t prove the biz info... Too bad I didn't just use my real biz name. I already have a Fidelity account so I could only get Delta miles from them but I know there is one other financial which gives miles for signing up. That I will have to look into some more.
     
  6. Biu
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    Biu Silver Member

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    Yep, it's with TD.
     
  7. Even at a valuation of 2.5 cents the taxes seems worth it to me. Anyone have a link to the citibank checking account offer? I can't find one at the AA site.
     
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  8. merice107

    merice107 Silver Member

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    I just got an email offer for 30,000 AAdvantage miles for a Citigold ($750 a month in debit purchases a month), 15,000 miles for Citibank ($375 in debit purchases a month), and then 5,000 miles for basic banking ($125 a month in debit purchases. All three need to have a direct deposit at least once a month for two calendar months. It looks like some blogs posted about the same deal in July:

    http://boardingarea.com/blogs/viewf...ines-miles-for-new-citibank-checking-account/

    I could do CitiGold (which is the most alluring because of the most miles) but it seems like from what I've read on this thread and some others that it is not worth it because of the taxes and that Citi is hard to work with (and slow at posting miles)? Could someone help break down how to calculate if this is worth it with the taxes and fees. I'm a little overwhelmed with all this math! I'm a history teacher... I just add and subtract years and dates :).

    For CitiGold I would be charged $30 a month for lets say 4 months (since the miles take a long time to post; a conservative length). Are 30,000 miles worth $120 plus what I'm charged for taxes (how do figure that out)?

    Then what about CitiBank at $20 a month. Are 15,000 miles worth $80 plus taxes?

    And for Basic Banking at $10 a month. Are 5,000 miles worth $40 plus taxes?

    Can I just close the account after the miles post? Has anyone had the miles taken away because of the short length of the account being open?

    Finally, does this affect your credit score? Is this the same as applying for a credit card?

    I am intrigued with this offer (who doesn't love 30,000 miles?), but I'm just worried that it is too good to be true and the negatives (fees/taxes/your time) outweigh the positives of the miles.
     
  9. servo

    servo Silver Member

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    I haven't done it, and I don't plan to do it based on what I've read here and on TOBB.

    A) It's a checking account - has no bearing on your credit. The only exception to that (and I haven't heard of banks doing this - only credit unions) is if they do a soft hit for your beacon/FICO score if you don't have any other accounts with them. They do it in tandem with checking ChexSystems for fraud, etc. It's mainly to offer you additional products and services once they know what your score is. Again, I haven't read anything from other posters that indicates that Citi does this, but if you're still considering it, you should do your due diligence and make sure they don't.

    B) To me it isn't worth it when you can buy miles on special cheaper if Citi gives you a 1099 at the end of the year and values each point at 2.5 cents. You're paying the $120 in fees + $750 in taxes (30k*.025) = $870 for 30,000 miles. That works out to buying miles at 2.9cpm by my calculations, which is just slightly less than the going rate on aa.com right now (30k miles = $917 after all taxes and fees) without any specials.
     
  10. merice107

    merice107 Silver Member

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    So:

    30,000 miles means $750 (at 2.5 CPM) in taxes and $120 in fees: $870. 2.9 CPM Not worth it.

    15,000 miles means $375 (at 2.5 CPM) in taxes and $80 in fees: $455. 3 CPM Not worth it.

    5,000 miles means $125 (at 2.5 CPM) in taxes and $40 in fees: $165. 3.3 CPM Not worth it.

    You do not get taxed if it is under $600 correct? Meaning that:

    15,000 miles is $80 in fees only. .5 CPM

    5,000 miles is $40 in fees only . .8 CPM

    So if you aren't taxed for the CitiBank or Basic Banking, those are good deals correct?
     
  11. servo

    servo Silver Member

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    Financially, it sounds like a good deal, IF they don't tax you. If you have the minimum funds and the desire to mess with switching direct deposit (it's an event to switch at my company), and (from what I've read only - since I haven't done this myself) hassling with Citi to honor the mileage offer (since posting experience is all over the place it seems), then feel free to try it.

    The combo of the hassle + mistrust of Citi posting the miles properly (means another thing I have to watch like a hawk) is just too many hoops for me to call it an overall "good deal", despite the possible cpm. It might be worth it to you if you don't mind those hassles, but I believe there are easier ways to acquire 15,000 miles (where the cpm might be a little higher, but fewer hoops to jump through).
     
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