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Emigrant Direct Improves Their Reward Credit Card

Written by Nickel - 4 Comments

I got an e-mail from Emigrant Direct this weekend announcing that they’ve improved their reward credit card. As I’ve mentioned before, Emigrant offers a 1.25% reward credit card. There are, however, some pretty major strings attached, including a requirement that you maintain an average daily balance of $10k in your Emigrant Direct savings account in order to receive the full reward. Well, it looks like the average daily balance requirement is still in place, but they’re bumping the reward rate up to 1.40%. All things considered, this still doesn’t sound like a great deal, but I thought it was at least worth mentioning.

Published on March 27th, 2006 - 4 Comments
Filed under: Credit Cards

About the author: is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

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Comments (scroll down to add your own):

  1. Until Emigrant Direct emerges again as the clear savings rate leader, I won’t even think about applying for this card. All the banks locked in this big Savings Rate War need to stop shooting at each other with cap guns and start using bazookas instead.

    Comment by Anonymous — Mar 27th 2006 @ 2:16 pm
  2. five cent,
    I’m wondering if it makes sense to wtich from my mileage credit card to the emigrant.
    Which is a better deal? an international ticket each year or 1.4%?
    Regards,
    Making Our Way

    Comment by Anonymous — Mar 29th 2006 @ 1:27 am
  3. I guess my best advice would be to do the math. You usually get 1 mile per dollar spent. For domestic tickets, which I typically value at around $250 (give or take), and which usually require 25,000 miles, this would work out to a penny per mile, or a reward of 1%. Keep in mind that some mileage cards have an annual fee, but also keep in mind that Emigrant requires you to maintain a six month average daily balance of $10k to get the full reward. Finally, you have to decide if cash money is more valuable to you than are miles… If you’re definitely going to use the miles, then it’s probably as good as cash. If not, then you might want to adjust the value of the miles downward (at least in your head).

    Comment by Nickel — Mar 29th 2006 @ 8:03 am
  4. IMHO, air miles are the worst credit card deal out there and here are the reasons why:

    1. Hidden inflation – each year, depending on the airlines, the number of miles needed seem to go up. Last year 20,000 this year 25,000 next year 30,000, etc

    2. Dreaded blackouts – What’s the point of miles if you can’t use them during the holidays?

    3. Bankruptcy – Most airlines are near bankruptcy – what’s going to happen to all those miles after bankruptcy?

    4. Liquidity – Let’s face it, cash is king and that can buy ANYTHING – why stick to miles that can be used for only one thing?

    Comment by Anonymous — Mar 29th 2006 @ 2:33 pm

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