I’m at the stage in my financial journey where I want to maximize the benefits of my accounts and I’m having a hard time understanding how best to use them. My head can’t wrap around the math. I am paying off my Apple Card so that there is no interest.
My Apple Credit Card gives
* 1% cash back on all purchases
* 2% cash back on Apple Pay purchases
* 3% cash back on Apple store purchases
My One Finance Account
* Rounds up purchases made with the debit card and auto-saves it to a high yield 3% APY account (so at most $1 per transaction)
* Offers a 1% APY account that I can freely put up to $25,000
Do I just use my Apple Card and then put the cash back into my 1% account? Or do I make some sort of rule to take advantage of the rounding up so some more goes into the 3% account?
Thanks!
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Edit: Thank you for all your input! It definitely makes more sense to save the cash back rather than doing the rounding up. The idea of compound 3% interest just seemed really appealing and made my brain derp.
You keep your cash in the 3% account and spend on the cash back card.
“Rounding up” doesn’t do anything you cant do with a simple transfer
Cash back is money from the bank, rounding up is your own money.
If you spend $100.50 with a cash back card at 1% they give you $1.03 back making your effective purchase $99.47
If you spend $100.50 on a round up card they put $0.50 of your money into a savings account making your adjusted purchase $101.
$0.50 at 3% $0.015 you really get free from the bank since the original deposit is your money.
Look into the green fidelity credit card. 2% on all purchases auto deposited into my roth ira. It’s just the best daily driver out there.
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