How to leverage $20k in credit card expenses

[chesebert]

I have about $20k in reimbursable credit card expenses. My banking situation prevents me from paying the amount off directly with the amount reimbursed without transaction fees.

So here are my options:

1. Transfer the money from the reimburse account to credit card account and incur banking and transaction fees (probably around $80).

2. Borrow $20k from the line @2.5% and pay the line off ASAP using all of my monthly income (since I have $20k in my other account to live off of). Will take approximately 2 months do wipe that out.   

3. Borrow $20k from the line @2.5% but instead of using the monthly income to pay off the debt, I would invest the surplus and hope I do better with my investment.

I am leaning toward option 3, as I think I can do better than 2.5% I pay in interest rate. I am open to other suggestions.

[appledumplins]

Unless my math is wrong ($20,000 * 0.025 )/12 = $41.66 per month in interest. Since (41.66*2) is greater than $80, don't do option #2. Option number 3 is not unreasonable. But, you need to be sure that you are confident and long term with your investments. If you plan on putting the $20k in the Vanguard total stock market index and realize that it could drop 50% between now and November (or pick any other arbitrary period) and you will be fine and stick with the plan, that should work. However if you just know that some stock is going to crush it the next few years and want to dump it all in there, things will likely end badly.

Finally, change your banking situation. It should cost you $0 per transaction to make a deposit and online bill pay should cost you another $0 per transaction.

[madage]

Finally, change your banking situation. It should cost you $0 per transaction to make a deposit and online bill pay should cost you another $0 per transaction.

Yes. We don't have enough details to understand why you only have these three options. We don't know why the expenses are reimbursable or why you must pay transaction fees to access the reimbursement account funds. If possible, definitely find a better bank/custodian.

[arebelspy]

1 or 3, depending on your risk tolerance.

Regarding switching banks (even a slow transition over time), Charles Schwab is great for banking, IMO - free checks, free everything (bill pay, no fees or minimums), they reimburse all ATM fees (you can use any ATM and not pay any fees), etc.  I'm a big fan.