This post is not directly related to travel. But if you are getting the best return on your money, you will have more money to travel!
In my last post, I detailed how I saved money using the Capital One travel portal to rent a car. I rented a car at the White Plains, NY airport (HPN) for three days for $50.75. I saved at least $50 on the rental using the portal. I am happy to have access to this portal! Recently I found a way to use Capital One, to make some extra money.
Capital One is offering sign-on bonuses on their Capital One 360 accounts for savers who have not previously had a 360 account. I have had a money market account with them for about 5 years, but this is a different product so I am eligible. I recently sold a house and have some extra cash that I want to keep on hand (i.e., not put in the stock market). This seems like a great deal for people in a similar situation.
The sign on bonus appears in your account after you have had the account fully funded for three months. If you open a 360 account with $50,000 they will give you $500 after 90 days. This is like buying a 90 day $50,000 CD that pays 1%. If you can find a 90 day CD that pays 1%, let me know. The going rate on 1-year CDs is 1%.
But you also get 0.75% interest on the account on any amount you have on deposit.
If you combine the interest rate and the bonus, your combined interest rate is 1.75% which is comparable to a 5-year CD rate. And with the savings account you have the flexibility to pull it out at any time with no penalty (other than the loss of the sign-on bonus.)
One important caveat here–you will get a 1099 from Cap One, as the sign-on bonus is treated as interest, and therefore taxable income.
It is hard to get decent returns on cash in this low-interest rate holding pattern, but risk-free returns of 1.75% help to lessen the pain.