Property tax due 12/10!

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ps99472

ps99472

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Just paid my annual property tax online.  Used the echeck option for no fees.  Anyone ever pay with a credit card?  How do you make up for the 2.3% fee charge?  Decent chunk of money to invest, what are some ways to juggle that?  If your credit card closes near the beginning of the month, you can pay the tax right when your new credit card cycle start, and get the double grace period.  So 1% credit card cash back plus around 50 days of parking the cash in 0.75% online savings account pretty much breaks even. 
 
ps9 said:
Just paid my annual property tax online.  Used the echeck option for no fees.  Anyone ever pay with a credit card?  How do you make up for the 2.3% fee charge?  Decent chunk of money to invest, what are some ways to juggle that?  If your credit card closes near the beginning of the month, you can pay the tax right when your new credit card cycle start, and get the double grace period.  So 1% credit card cash back plus around 50 days of parking the cash in 0.75% online savings account pretty much breaks even. 
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You can get 1.5% cash back using the new Capital One card.
 
ps9 said:
Just paid my annual property tax online.  Used the echeck option for no fees.  Anyone ever pay with a credit card?  How do you make up for the 2.3% fee charge?  Decent chunk of money to invest, what are some ways to juggle that?  If your credit card closes near the beginning of the month, you can pay the tax right when your new credit card cycle start, and get the double grace period.  So 1% credit card cash back plus around 50 days of parking the cash in 0.75% online savings account pretty much breaks even.
Click to expand...

You could possibly get a new credit card with 0% APR  and cash back rewards with bonus points offer. Most times bonus points (40K - 50K, equivalent to $400-$500) easily cover the 2.3% fee. Could be converted to a bigger win if one could invest the amount saved using 0% APR.
 
Just put the first property tax installment on my Capital One Quicksilver card.  So 2.3% fee - 1.5% cashback - ~50 days grace period (0.7% savings - income tax) = ~break even (+$10)
 
All that work for $10. What comes to my mind, I hope you don't forget to pay your credit card bill. That $10 gain, can be a $25-50 late fee plus interest.  ;) #justsaying
 
ps9 said:
Just put the first property tax installment on my Capital One Quicksilver card.  So 2.3% fee - 1.5% cashback - ~50 days grace period (0.7% savings - income tax) = ~break even (+$10)
Click to expand...

are you saying that the 50 day grace period nets you .7%? that sounds really high. most bank accounts are paying .03% APR, if you pro-rate that for 50 days, it is a much smaller amount than your .7%. you sure your math is right? i think you just may have engaged in negative arbitrage :-)
 
qwerty said:
ps9 said:
Just put the first property tax installment on my Capital One Quicksilver card.  So 2.3% fee - 1.5% cashback - ~50 days grace period (0.7% savings - income tax) = ~break even (+$10)
Click to expand...

are you saying that the 50 day grace period nets you .7%? that sounds really high. most bank accounts are paying .03% APR, if you pro-rate that for 50 days, it is a much smaller amount than your .7%. you sure your math is right? i think you just may have engaged in negative arbitrage :-)
Click to expand...

Hey we are talking about high roller PS9 here.  Capital One offers 0.8% for checking balance above $100K and 0.75% for savings
 
qwerty said:
ps9 said:
Just put the first property tax installment on my Capital One Quicksilver card.  So 2.3% fee - 1.5% cashback - ~50 days grace period (0.7% savings - income tax) = ~break even (+$10)
Click to expand...

are you saying that the 50 day grace period nets you .7%? that sounds really high. most bank accounts are paying .03% APR, if you pro-rate that for 50 days, it is a much smaller amount than your .7%. you sure your math is right? i think you just may have engaged in negative arbitrage :-)
Click to expand...

Online savings:  AMEX is 0.8% and also Palladian is 1.25%, both are liquid accounts.

@eyephone, I only did this because I already have everything in place, I have the credit card and the savings account setup.  And my cc is on  autopay so no worries there.  I wouldn't recommend applying for a cc and new savings just to float a few thousand dollars over 50 days.  Typing this reply is more work then what I did to pay property tax with my cc this morning.

Why pay now when you can pay later? (with no penalty)
 
So if you paid 6000 in property taxes, so far you are under water .8% (1.5%-2.3%). Using the average of 1.0% for those two accounts in 50 days you will earn .14% (1.0% /365 days x 50 days). So how is this a break even transaction?  I hate to break it to you man but this was a loser.  You just paid .66% to pay your taxes on a credit card. On a 6000 property tax bill it's about $40.
 
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qwerty said:
So if you paid 6000 in property taxes, so far you are under water .8% (1.5%-2.3%). Using the average of 1.0% for those two accounts in 50 days you will earn .14% (1.0% /365 days x 50 days). So how is this a break even transaction?  I hate to break it to you man but this was a loser.  You just paid .66% to pay your taxes on a credit card. On a 6000 property tax bill it's about $40.
Click to expand...
I just picked up the new Citi Double Cash credit card which basically gives you 2% back (1% when you buy and 1% when you pay the balance) and may pay my property taxes with the card since it's no interest under Jan 2016. 
 
qwerty said:
So if you paid 6000 in property taxes, so far you are under water .8% (1.5%-2.3%). Using the average of 1.0% for those two accounts in 50 days you will earn .14% (1.0% /365 days x 50 days). So how is this a break even transaction?  I hate to break it to you man but this was a loser.  You just paid .66% to pay your taxes on a credit card. On a 6000 property tax bill it's about $40.
Click to expand...

That was dumb, forgot savings acct is APR, not simple interest.  It was just the math added up so nicely:  1.5% + 0.8% = 2.3%

Back to the drawing board
 
ps9 said:
qwerty said:
ps9 said:
Just put the first property tax installment on my Capital One Quicksilver card.  So 2.3% fee - 1.5% cashback - ~50 days grace period (0.7% savings - income tax) = ~break even (+$10)
Click to expand...

are you saying that the 50 day grace period nets you .7%? that sounds really high. most bank accounts are paying .03% APR, if you pro-rate that for 50 days, it is a much smaller amount than your .7%. you sure your math is right? i think you just may have engaged in negative arbitrage :-)
Click to expand...

Online savings:  AMEX is 0.8% and also Palladian is 1.25%, both are liquid accounts.

@eyephone, I only did this because I already have everything in place, I have the credit card and the savings account setup.  And my cc is on  autopay so no worries there.  I wouldn't recommend applying for a cc and new savings just to float a few thousand dollars over 50 days.  Typing this reply is more work then what I did to pay property tax with my cc this morning.

Why pay now when you can pay later? (with no penalty)
Click to expand...

That's good you pay your cc bills.

I heard that saying before, why pay now when you can pay later. Then a snowball of unpaid debt comes falling.
 
USCTrojanCPA said:
I just picked up the new Citi Double Cash credit card which basically gives you 2% back (1% when you buy and 1% when you pay the balance) and may pay my property taxes with the card since it's no interest under Jan 2016. 
Click to expand...
Heh... I think we got the same card recently.

Going to charge our cans and fans on there.
 
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