The other day I wrote about my personal experience of using BigCrumbs.com. Today, I will delve into a little more details on the easiness of buying money and getting cash back in terms of percentages.
Bigcrumbs.com (my referral link) is offering 1.75% cash back on the value of the gift card.
As a heads up if you are a Discover card holder, on December 22, Discover is offering 2% back if you enroll on any purchases made that day, online or in person. If you’re an owner of the Fidelity American Express Investment Rewards you receive 2% back everyday on all purchases.
That means, you could potentially earn a little more than 3.75% on buying gift cards! It is a little more than 3.75% because the 2% is on the purchase total, after activation fees and shipping. The fees are fixed at $3.95 per card activation. Because the cost is fixed, the larger the card purchase, the lower as a percentage the fee will become. I did not and still don’t want to give American Express my SS#, so I load $999, as a percentage the fee will be .395% per card. The net return would then become 3.355%. Where can you find 3.355% in bank interest today? Even if you use your 1% card, you’d be netting 2.355%. On INGDirect.com, will soon be known as Capital One 360, a 5 year CD only gives you .90% APY.
I called Discover and spoke to another very nice rep and I discussed the finer details on the promotion. I asked since it’s a Saturday, if it doesn’t post until 12/24 or 12/26 would I still be credited the 2%. She said yes because their systems will know when a transaction is made. She also confirmed the 5% online + 2% on Saturday is eligible for 7% back. So if you haven’t maximized the 5% online (up to $1500), you could potentially earn a whopping 8.875%!
I’m all about Chasing The Points and am seriously contemplating purchasing more gift cards; however, I fear that Discover may not want my business if I make only large promotional purchases. I’m practically a brand new customer.
