Wall Street Journal Article, EmigrantDirect Raises Payout on MasterCard"
Guest: stilltrying
Post subject: Wall Street Journal Article, EmigrantDirect Raises Payout on MasterCard"
Posted: Thu Mar 30, 2006 2:15 am
If it's okay to post this, here is a recent article:Quote:
Wall Street Journal
Tuesday, March 28, 2006 page D2:
"EmigrantDirect Raises Payout on Mastercard" by Ron Lieber
In an unusual move in an industry better known for scaling back freebies and layering on restrictions, EmigrantDirect.com Friday raised the payout on its cash-refund Mastercard to 1.4% of all purchases. That is up from 1.25% just two months ago, when the online bank rolled out the product, dubbing it "America's Highest Cash Back Card."
EmigrantDirect, a unit of New York's Emigrant Savings Bank, was already widely known for its American Dream Savings Account, which currently pays out 4.5% annually, among the best rates in the nation. Since the account's introduction in January 2005, it has kept pace with the Federal Reserve's interest-rate increases and attracted over 225,000 customers and $ 6 billion in deposits. The bank started pitching the new credit card this January.
So why raise the rebate so quickly? John Hart, Emigrant's vice chairman, says the bank saw competitors in the marketplace with better offers. Capital One Financial Corp. is doing direct-mail tests of a card that pays out 1.25%, though if you aren't offered the card directly, you can't call the company and request the deal.
Mr. Hart says that customers shouldn't expect the Emigrant card's payout to increase with any regularity. "I suspect it's the last hike for a while," he says. "I don't think you'll see others match this rate. I don't know how they could."
Whether any competitors already offer better rates is a matter of some dispute. Some of them -- such as Fidelity's two co-branded credit cards; Bank of America's Power Rewards card; and cash-back cards from Citibank, Chase and American Express -- may require someone to spend a certain amount each year before rebates higher than Emigrant's kick in. Or, the higher rate applies only to certain categories such as groceries. Then there may also be caps on what a person can earn, or a person may be required to link a card to an investment account.
Yet Emigrant's "Highest Cash Back" claim comes with a footnote. In order to be eligible for the 1.4% cash-back rate, a person has to have a savings account with the bank that has maintained an average daily balance of at least $10,000 during the previous six months. The bank says the average balance is currently about three times that number.
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Guest: Board Monitor
Board Monitor/ Administrator
Posted: Thu Mar 30, 2006 9:38 am
Good article. Thanks for sharing.
_________________
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Guest: db619196
Posted: Fri Mar 31, 2006 8:59 am
I am suprised the average Emigrant Direct balance is 30,000 dollars! I think a lot of folks are viewing these high yield, FDIC insured accounts a investments as opposed to classical savings account. I know I tend to use them that way. I manage to have more than 10,000 in there because I am single and living in a family owned property, with a low, low, rent. However, I think the 10,000 dollar balance requirement is not that realistic for your average ED customer.
David
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Guest: morebate
Posted: Wed Jun 14, 2006 5:01 pm
Kinda' bumpin' this thread as it's "on topic" for what I"m curious about........
Since I've got a while to ride out my 4 months on the Discover Gas Card (before it becomes useless to me for hitting the $1,200 gas max), I thought I'd tackle my other issue of not necessarily having the *best* FLAT RATE card.
As I've learned the hard way recently here, Discover isn't a full 1% 'til I get to $3K. Well, that said.........my next best card is my Costco/Amex True Earnings card at 1%, but that rebate is more controlled as it only comes every February and *has* to be redeemed at Costco....(albeit can be cashed out there, however).
That said.......I *do* have an Emigrant acct and I *have* held more than $10K in it for the last 6 months. I wonder if that would be the best *FLAT RATE* card I could do????
TIA!
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Guest: quiznut1
Credit Expert (100+ Posts)
Posted: Wed Jun 14, 2006 7:23 pm
Quote:
I thought I'd tackle my other issue of not necessarily having the *best* FLAT RATE card.
That said.......I *do* have an Emigrant acct and I *have* held more than $10K in it for the last 6 months. I wonder if that would be the best *FLAT RATE* card I could do????
TIA!
All I can say is remember what I told you about the Bank of America Power Rewards. 1 point per dollar, redeem 50,000 points for $1,000 statement credit, a full 2% cash back! This in my mind, is the best flat rate credit card, because you would get 2% back on everything, no tiers, unlike AMEX Blue Cash.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Wall Street Journal Article, EmigrantDirect Raises Payout on MasterCard"
Posted: Thu Mar 30, 2006 2:15 am
If it's okay to post this, here is a recent article:Quote:
Wall Street Journal
Tuesday, March 28, 2006 page D2:
"EmigrantDirect Raises Payout on Mastercard" by Ron Lieber
In an unusual move in an industry better known for scaling back freebies and layering on restrictions, EmigrantDirect.com Friday raised the payout on its cash-refund Mastercard to 1.4% of all purchases. That is up from 1.25% just two months ago, when the online bank rolled out the product, dubbing it "America's Highest Cash Back Card."
EmigrantDirect, a unit of New York's Emigrant Savings Bank, was already widely known for its American Dream Savings Account, which currently pays out 4.5% annually, among the best rates in the nation. Since the account's introduction in January 2005, it has kept pace with the Federal Reserve's interest-rate increases and attracted over 225,000 customers and $ 6 billion in deposits. The bank started pitching the new credit card this January.
So why raise the rebate so quickly? John Hart, Emigrant's vice chairman, says the bank saw competitors in the marketplace with better offers. Capital One Financial Corp. is doing direct-mail tests of a card that pays out 1.25%, though if you aren't offered the card directly, you can't call the company and request the deal.
Mr. Hart says that customers shouldn't expect the Emigrant card's payout to increase with any regularity. "I suspect it's the last hike for a while," he says. "I don't think you'll see others match this rate. I don't know how they could."
Whether any competitors already offer better rates is a matter of some dispute. Some of them -- such as Fidelity's two co-branded credit cards; Bank of America's Power Rewards card; and cash-back cards from Citibank, Chase and American Express -- may require someone to spend a certain amount each year before rebates higher than Emigrant's kick in. Or, the higher rate applies only to certain categories such as groceries. Then there may also be caps on what a person can earn, or a person may be required to link a card to an investment account.
Yet Emigrant's "Highest Cash Back" claim comes with a footnote. In order to be eligible for the 1.4% cash-back rate, a person has to have a savings account with the bank that has maintained an average daily balance of at least $10,000 during the previous six months. The bank says the average balance is currently about three times that number.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Thu Mar 30, 2006 9:38 am
Good article. Thanks for sharing.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: db619196
Posted: Fri Mar 31, 2006 8:59 am
I am suprised the average Emigrant Direct balance is 30,000 dollars! I think a lot of folks are viewing these high yield, FDIC insured accounts a investments as opposed to classical savings account. I know I tend to use them that way. I manage to have more than 10,000 in there because I am single and living in a family owned property, with a low, low, rent. However, I think the 10,000 dollar balance requirement is not that realistic for your average ED customer.
David
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: morebate
Posted: Wed Jun 14, 2006 5:01 pm
Kinda' bumpin' this thread as it's "on topic" for what I"m curious about........
Since I've got a while to ride out my 4 months on the Discover Gas Card (before it becomes useless to me for hitting the $1,200 gas max), I thought I'd tackle my other issue of not necessarily having the *best* FLAT RATE card.
As I've learned the hard way recently here, Discover isn't a full 1% 'til I get to $3K. Well, that said.........my next best card is my Costco/Amex True Earnings card at 1%, but that rebate is more controlled as it only comes every February and *has* to be redeemed at Costco....(albeit can be cashed out there, however).
That said.......I *do* have an Emigrant acct and I *have* held more than $10K in it for the last 6 months. I wonder if that would be the best *FLAT RATE* card I could do????
TIA!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: quiznut1
Credit Expert (100+ Posts)
Posted: Wed Jun 14, 2006 7:23 pm
Quote:
I thought I'd tackle my other issue of not necessarily having the *best* FLAT RATE card.
That said.......I *do* have an Emigrant acct and I *have* held more than $10K in it for the last 6 months. I wonder if that would be the best *FLAT RATE* card I could do????
TIA!
All I can say is remember what I told you about the Bank of America Power Rewards. 1 point per dollar, redeem 50,000 points for $1,000 statement credit, a full 2% cash back! This in my mind, is the best flat rate credit card, because you would get 2% back on everything, no tiers, unlike AMEX Blue Cash.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 11:53 AM
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