Discussion on 2% credit cards. These give 2% on everything regardless of category. Don’t use them outside of USA. the Citi Double cash is great, but always get cash back…not statement credit…statement credit lowers the amout you earn…I’m not sure if this is true of the Synchrony 2% card.
Thanks ratbert2k. I saw the $10k limit for 2.5% and almost missed the fact that is per billing cycle. Odd that I haven’t heard of this card before. Hmm, that cash-back rate requires keeping $1k in an Alliant checking account and depositing into that account monthly. I just abandoned my credit union due to it not paying measurable interest on checking. Based on my annual card spending (about 20k), and my average card balance around $2k (due to cumulative spending after prior statement date but before paying off statement in full), I’m actually slightly ahead keeping that $2k in savings. Of course, as savings & money-market funds interest rates drop, it will tilt the other way. For me, even in that scenario, it doesn’t seem worth the effort to have another checking account to manage.
Makes sense. Since I use an online Fidelity Cash Management account for checking, my cash in that account is in money market funds currently paying over 4%, so after tax it’s still better than most physical banks pay on savings.
Of course, at some point money market returns will come back to earth…