4 ms·
> Citi Double Cash is 2% flat cash back with no annual fee Citi Double Cash is 1 percent when you swipe, and 1 percent when you pay it off. It's 2 percent, but
by jldugger 7y ago
> Citi Double Cash is 2% flat cash back with no annual fee
Citi Double Cash is 1 percent when you swipe, and 1 percent when you pay it off. It's 2 percent, but the delay is like 1-2 months on the second half. As for BoA's assets under management deal, I largely view that as a hidden annual fee. They'll get their pound of flesh somehow.
If these cards are all largely comparable, is it worth switching? For rewards optimizers and churners, likely not. But it's also definitely not worth switching to Double Cash if already have the Apple card and tap to pay regularly, and that's likely what AAPL/GS are banking on. Walk into an Apple store, buy a thousand dollar iPhone on credit, and the sales Genius helps you set up tap to pay with that new card right there.
And daily credit is a double edged sword. 30 bucks a month or whatever you might just apply to the balance, but with a daily trickle it's likely some folks will just dump it into iTunes / the App Store. It's certainly a way to reduce the friction of spending on Apple services. Plus, someone is free to profit from the float of all that cash back money sitting idle. Could be Goldman, could be Apple, could be Green Dot Bank.
- arcticbull 7y ago> But it's also definitely not worth switching to Double Cash if already have the Apple card and tap to pay regularly, and that's likely what AAPL/GS are banking on. Walk into an Apple store, buy a thousand dollar iPhone on credit, and the sales Genius helps you set up tap to pay with that new card right there. The argument being made isn't switch from the Apple Card, it's switch to and strictly speaking 2% all the time is better than 2% some of the time, all else being equal, and it pretty much is. Sure, you buy at the Apple Store and you get 2%, though I think less than half the places I regularly shop at, including 100% of the places I buy things online (like Amazon) offer contactless payments. People find delayed reward motivating, and having the credit trickle in over time instead of daily is actually going to get you to engage with the card more as you redeem the rewards for things of higher perceived value. While what you're saying sounds right on face, human psychology says otherwise :) The 2.67% back is 40% more cash back, so yeah, transfer 100K worth of assets to a BAML account that you're holding for the long term (and I believe IRAs count), and enjoy. It's a better product.
- jldugger 7y ago> Sure, you buy at the Apple Store and you get 2% Well, 3 percent, which is kind of the point here -- you get the Apple card for use with Apple purchases. > The 2.67% back is 40% more cash back, so yeah, transfer 100K worth of assets to a BAML account that you're holding for the long term (and I believe IRAs count), and enjoy. It's a better product. Will add it to my list of cards to research, but looking now, it seems like a 75 percent boost to their card offerings, and the 1.5 percent cash back card comes with a 95 dollar annual fee. Is there a different card you were thinking of?
- astura 7y agoBoA Travel Rewards does not have an annual fee: https://www.bankofamerica.com/credit-cards/products/travel-rewards-credit-card/ https://www.bankofamerica.com/credit-cards/products/travel-r...