Update: Looks like the mileage CD is actually 0.10% APY so this is a terrible deal.
Offer at a glance
- Interest Rate: 1.5% APY
- Minimum Balance: None
- Maximum Balance: $50,000
- Availability: Nationwide
- Hard/soft pull: Soft pull
- ChexSystems: Unknown
- Credit card funding: None
- Monthly fees: None
- Insured: FDIC
Contents
The Offer
- BankDirect is currently offering 1.5% APY on its 12 month CD. You also receive 500 American Airline miles for every $1,000 deposited (up to $50,000 and then it drops to 25 miles)
Our Verdict
Current rates are at around 2%-2.1% for basic savings account rates & CDs. If you deposited $50,000 into this CD you’d earn 25,000 American Airline miles and $750. If you put that $50,000 into a 2% APY account you’d earn $1,000 and in a 2.1% APY account you’d earn $1,050. This means you’re basically purchasing miles for 1¢-1.2¢. Not a terrible deal, but keep in mind some rewards checking accounts offer APYs of up to 5%. That makes this deal significantly worse. BankDirect has it’s own rewards checking account where you can earn 22,000 miles
Personally I don’t think this is a good deal, but I guess it might make sense for some people. Keep in mind interest raises are also likely to rise in the short to medium term. You can also get double miles on two year CDs, but the interest rate is lower at 1.21% APY so definitely not worth considering.
Hat tip to readers Tyler P, MontyFC & Floyd
