free money - Tilted Forum Project Discussion Community

clavus · 10-21-2005, 01:11 PM

USAA offers a home equity line of credit at prime minus .36. HOWEVER, it has a rate of 3.5% for the first six months.

Everbank offers a 6 month CD at 4.15%.

Sooooooooo if you use the money from USAA to invest in a CD from Everbank...free money.

iccky · 10-21-2005, 02:40 PM

Still, only $65 for a 10 grand line of credit.

Probably not worth the time or effort.

clavus · 10-21-2005, 02:49 PM

Think a little bigger and it makes more sense.
$200,000 line o' credit = $650
Sure, it ain't much. But let's examine home much effort it takes.

15 minutes on the phone to secure the LOC.
10 minutes to buy the CD
2 minutes / month to write a check on the LOC interest.

Let's put it another way. Would you spend two minutes to make $100? Would you do it every month for six months? Would you do it even if you had to work for 25 whole minutes up front and only make $50 for that time?

Astrocloud · 11-14-2005, 03:36 PM

Quote:

Originally Posted by clavus

USAA offers a home equity line of credit at prime minus .36. HOWEVER, it has a rate of 3.5% for the first six months.

Everbank offers a 6 month CD at 4.15%.

Sooooooooo if you use the money from USAA to invest in a CD from Everbank...free money.

You are forgetting about the inflationary rate and it's effect on the whole deal. Say you get your money back but now you need more of it to do anything with.

Also with CD's you pay taxes on the Growth. Consider annuities for tax free growth.

soma · 11-14-2005, 09:29 PM

I read on fn.com about a guy who did the same thing, but used money from a 0 interest rate credit card promo. He netted some 1500 dollars. Doesn't seem worth the effort though. I'd hate to through all of the fine print to make sure I don't get screwed, but even then
...

well, more power to you. If it works out for you, kudos bro.

10-21-2005, 01:11 PM	#1 (permalink)
clavus pow! Location: NorCal	free money USAA offers a home equity line of credit at prime minus .36. HOWEVER, it has a rate of 3.5% for the first six months. Everbank offers a 6 month CD at 4.15%. Sooooooooo if you use the money from USAA to invest in a CD from Everbank...free money. __________________ Ass, gas or grass. Nobody rides for free.

10-21-2005, 02:49 PM	#3 (permalink)
clavus pow! Location: NorCal	Think a little bigger and it makes more sense. $200,000 line o' credit = $650 Sure, it ain't much. But let's examine home much effort it takes. 15 minutes on the phone to secure the LOC. 10 minutes to buy the CD 2 minutes / month to write a check on the LOC interest. Let's put it another way. Would you spend two minutes to make $100? Would you do it every month for six months? Would you do it even if you had to work for 25 whole minutes up front and only make $50 for that time? __________________ Ass, gas or grass. Nobody rides for free.

11-14-2005, 09:29 PM	#5 (permalink)
soma Addict Location: USA	I read on fn.com about a guy who did the same thing, but used money from a 0 interest rate credit card promo. He netted some 1500 dollars. Doesn't seem worth the effort though. I'd hate to through all of the fine print to make sure I don't get screwed, but even then ... well, more power to you. If it works out for you, kudos bro. __________________ Having Girl Problems?

10-21-2005, 02:40 PM	#2 (permalink)
iccky Psycho Location: Princeton, NJ	Still, only $65 for a 10 grand line of credit. Probably not worth the time or effort.