I read about a neat little money movement idea from this super average guy at mymoneyblog.com - this is a "duh", why didn't I think of that sooner type of thing. The philosophy is to take your 0% APR credit card offers and make money on it.
Here's how: most of the card issuers offer 0% balance transfer rates for 12 or up to 18 months. They send you blank checks that can be written to anyone - they intend them to pay off other credit card balances but they can be written to yourself, deposited in your own accounts or used to buy a car or whatever. See where this is going yet?
Then, you open a savings account at ING for 4.25% or a 9-month CD from ING for 5.25% - you use the 0% balance transfer checks, write yourself the money and deposit it into one of these accounts. Now, you are using free money to earn yourself 5.25%!
Example: You get a $10,000 credit limit with 0% balance transfer rate for 12 months. You put the money into a 9-month CD, earn $525 in interest, then payback the credit card. You've just earned $525 by using someone else’s money and it didn't cost you anything!
WARNING: This type of investment is only for the disciplined!
No comments:
Post a Comment