Author Topic: Extreme badassity - 50% per year with no risk...  (Read 5372 times)

MrSal

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Extreme badassity - 50% per year with no risk...
« on: January 30, 2015, 01:17:42 PM »
Here's an extreme badassity that I use ...

So, there is this credit card in my country that gives you a 5% casback with no limits on your purchases.

Wow that-s awesome you say.... that's a good deal already with no strings attached you say...

Yes you get 1000 dollars of product and in your statement you pay 950 ...

OK so I do I make money? The post office in my country has an exclusive right to sell to the public T-Bills that renovate automatically... they also have a debit card terminal where you can pay with the card. The thing is, being a debit card terminal doesn;t accept credit cards... BUT somehow, my credit card is dual, which means it works on debit terminals as well but whatever is charged... goes into the credit statement!

So what I did?

Ask for the max credit of that CC which is 10k ... and buy 10k worth of treasuries, which are yielding around 2% a year right now, and keep repeating over and over... I get about 5k of money worth per year on this simple thing :)

bigalsmith101

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Re: Extreme badassity - 50% per year with no risk...
« Reply #1 on: January 30, 2015, 02:12:04 PM »
Is your title incorrect? Do mean 5% per year with no risk?

Correct me if I am wrong, but from your description, I understand the following.

You use your credit card to purchase $10k worth of Treasury bills. Essentially you pay $9500 with your 5% statement credit.

The return on the treasury bills is 2%. Therefor receive a 7% return on your $10k purchase?

What is the length of time necessary for the T-Bill to mature so that you can liquidate the T-Bill and repay your credit card statement?

How many times in one year can you purchase the T-Bills? It seems to me that your math is a little funny.


MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #2 on: January 30, 2015, 02:24:18 PM »
TBills have a 30 day maturity... so I make this thing about 12 times a year ... which ends up being the amount I said :)

MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #3 on: January 30, 2015, 02:28:44 PM »
i've tried them to increase my credit but it seems its the limit of credit for this card... the solution was to sign up my mother dad and such that can show income to have also their CCs ... ive been using this method for about 2.5 years...

MrFrugalChicago

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Re: Extreme badassity - 50% per year with no risk...
« Reply #4 on: January 30, 2015, 03:06:17 PM »
Are you sure the 5% still happens when run as a debit? Do it 1 time and see.

For what it's worth, people did this a few years back with $1 coins. Either infinite rewards or frequent flyer miles. Didn't need to even hold the thing 30 days, could turn right around and sell them back.

http://www.creditcards.com/credit-card-news/mint-closes-loophole-ends-credit-card-coin-sales-frequent-flyer-flier-miles-1263.php

bigalsmith101

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Re: Extreme badassity - 50% per year with no risk...
« Reply #5 on: January 30, 2015, 03:10:23 PM »
TBills have a 30 day maturity... so I make this thing about 12 times a year ... which ends up being the amount I said :)

This seems like a too good to be true scenario!

It would seem that you can make 5% every transaction. Or $6k a year. This is AWESOME.

Not to mention you make 2% per year on the balance of $10k, so another $200/year.

What country are you in?

bigalsmith101

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Re: Extreme badassity - 50% per year with no risk...
« Reply #6 on: January 30, 2015, 03:16:54 PM »
... ive been using this method for about 2.5 years...

Apparently it's a proven system.

MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #7 on: January 30, 2015, 03:20:24 PM »
Are you sure the 5% still happens when run as a debit? Do it 1 time and see.

For what it's worth, people did this a few years back with $1 coins. Either infinite rewards or frequent flyer miles. Didn't need to even hold the thing 30 days, could turn right around and sell them back.

http://www.creditcards.com/credit-card-news/mint-closes-loophole-ends-credit-card-coin-sales-frequent-flyer-flier-miles-1263.php

that doesnt work because the 5% credit to you only happens in n+1 month... so its not just a matter of buying the treasuries, pay the card the next day and rebuy... i need to hold them 30 days because that is the minimum holding period for the Government Certificates (what they are called)

rpr

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Re: Extreme badassity - 50% per year with no risk...
« Reply #8 on: January 30, 2015, 03:23:06 PM »
Great scheme! Keep going. Make hay while the sun shines. I'm guessing that some time the bank is going to catch on. Otherwise, it maybe time to short it's stock.

bigalsmith101

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Re: Extreme badassity - 50% per year with no risk...
« Reply #9 on: January 30, 2015, 03:37:46 PM »
I still want to know what country this is in... :)

rpr

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Re: Extreme badassity - 50% per year with no risk...
« Reply #10 on: January 30, 2015, 03:47:43 PM »
I still want to know what country this is in... :)
I recall the OP saying that he was from Portugal and that now he has moved to the US.

MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #11 on: January 30, 2015, 05:20:55 PM »
TBills have a 30 day maturity... so I make this thing about 12 times a year ... which ends up being the amount I said :)

This seems like a too good to be true scenario!

It would seem that you can make 5% every transaction. Or $6k a year. This is AWESOME.

Not to mention you make 2% per year on the balance of $10k, so another $200/year.

What country are you in?

I-m in Portugal ... and Ive actually made a good killing with this kind of stuff in some other ''schemes'' there is one type of scheme where you wont believe... you actually trade in the markets with past PRICES!!

MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #12 on: January 30, 2015, 05:21:52 PM »
Great scheme! Keep going. Make hay while the sun shines. I'm guessing that some time the bank is going to catch on. Otherwise, it maybe time to short it's stock.

i doubt its the bank eating the fees... maybe the postal office that belongs to the government? i dont know...

MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #13 on: January 30, 2015, 05:31:47 PM »
... ive been using this method for about 2.5 years...

Apparently it's a proven system.

In another bank, I made 50% in only 3 months... although that was non recurring... meaning i couldn-t do it over and over.

This time, this bank was making apromotion on its brokerage trading services... ''Fund your account with 500 euros and well give you 300 euros as a bonus... ''

of course there was a caveat... minimum period of having funds there was 3 months and you had to make at least 5 transactions in the FOREX market.

So I signed myself up ... my mother... my father... my brother... my stepdad... and so on... you get the idea... to the total of 13 people... it was really easy because it was an online bank.

I funded all the accounts myself... waited until the last day. There were two approaches here. I could either invest 50000 monetary units for each transaction and forfeit the transaction fee of 5 dollars or i could use the minimum transaction amount of 500 units per transaction and pay a 5 dollar fee per transaction.

I figured Id be better paying the transaction fee by buying 4 times 500 unites and then selling 2000 units of EURUSD at once totalling the 5 transactions and paying  20 dollars in fees.

If I had gone towards the free fee minimum amount Id have 50000 units each time... and even if I sold 5 seconds after I was always exposed to the spread of the EURUSD currency plus the market exposure where each pip = or each 0.0001 movement equaled 5 dollars -  a currency easily moves 5 pips each second or two seconds so this would expose me to 25 dollars per transaction of probably more if volatility was higher...

So I ended up choosing paying the fee only and making transactions of 500 units where even if the EURUSD had moved 50 pips it wouldnt make a dent.

End result about 280 dollars x 13 ... in 3 months!

I did this and a colleague of mine did it with 20 of his family members... of course the next promotion the bank did, probably because of us... they tightened the rules much more... instead of 3 months it was now 9 months... and the bonus was only 100 dollars... not worth it in my opinion

bigalsmith101

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Re: Extreme badassity - 50% per year with no risk...
« Reply #14 on: January 30, 2015, 06:02:02 PM »
... ive been using this method for about 2.5 years...

Apparently it's a proven system.

In another bank, I made 50% in only 3 months... although that was non recurring... meaning i couldn-t do it over and over....

...So I ended up choosing paying the fee only and making transactions of 500 units where even if the EURUSD had moved 50 pips it wouldnt make a dent....

End result about 280 dollars x 13 ... in 3 months! (OR $3640)

I did this and a colleague of mine did it with 20 of his family members... of course the next promotion the bank did, probably because of us... they tightened the rules much more... instead of 3 months it was now 9 months... and the bonus was only 100 dollars... not worth it in my opinion

NICE! That is awesome! A 56% return ($280/$500). And of course you would wait until the last day, make all transactions as close to possible, eliminate the spread on the FOREX and laugh all the way to the bank! I love it!

MrSal

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Re: Extreme badassity - 50% per year with no risk...
« Reply #15 on: January 30, 2015, 06:58:59 PM »
yup I made the calculations... my colleague wanted to forfeit the 5 dollar fee by meeting the 50000 unit EURUSD threshold, to which I said it was much riskier because then youd have market risk and even a move of 5 pips would mean a 25 dollar negative move per transaction. Of course, you could argue if those 5 pips were on our side, then wed get 25 dollars in additon... but then again, market risk! when we wanted none! (in reality all these numbers were euros... so the 3800 unit profit was actually around 5/6k in profit at the time in dollars (ohh how i miss EURUSD at 1.40 ...)

I shall tell you one story later in this same bank regarding FX as well which enabled me to make a lot of money as well ..!!! you can still do it (but to lesser extent since they increased the fees).

It worked for 5 years (at least since i found this flaw... maybe its been working for longer i dunno) and is still working... the only caveat is, the Euro must be in a downtrend to really make you money! Which for the past 8 months as been the rule!
« Last Edit: January 30, 2015, 07:08:53 PM by MrSal »