Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays.
The question of whether or not to pay your taxes with a credit card has been around for a few years now. According to conventional wisdom, the answer is “no” — the fees associated with doing this are simply too high. But what if your reward credit card is generous enough to more than offset those fees?
Edit: While there used to be a great 5% cash back promo floating around, it has since expired… When this deal was still available, you could couple it with payment through OfficialPayments.com, which charges a 2.49% processing fee, and you can earn a quick 2.51% by paying your tax bill with a credit card.
I would’ve been all over this deal myself this year if we hadn’t intentionally under-withheld to the point that our tax bill will be far larger than what we could reasonably put on a credit card.
Update to add: And no, your credit card rewards aren’t taxable.
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