Bank of America/Merrill Edge - Preferred Rewards

[frugalor]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

[tj]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I would assume that everyone who pays it does.

[StewedCarrot]

Heads up for anyone using BoA's My Financial Picture with a Fidelity account:

My Financial Picture will helpfully let you know Fidelity now has an upgraded connection (OAuth at last, yay!) However, the upgrade will wipe out the previously downloaded Fido data. So, yes, upgrade, after downloading your data to a CSV file if it matters to you.

[CletusCaddy]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I use the PayPal credit card and get 3% back on taxes.

[rama13]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

Of course!

[Leesbro63]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I've been doing this for a while. .77% positive arbitrage. So far no hang ups and I always check the IRS site a week or so later to be sure it posted correctly. I took advantage of the extra 2% day, on two cards each maxed $2500, to get 4.625% on $5000 minus 1.85% fee. About $139 bonus for paying $5000 in tax that's due anyway.

[frugalor]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I've been doing this for a while. .77% positive arbitrage. So far no hang ups and I always check the IRS site a week or so later to be sure it posted correctly. I took advantage of the extra 2% day, on two cards each maxed $2500, to get 4.625% on $5000 minus 1.85% fee. About $139 bonus for paying $5000 in tax that's due anyway.

Thanks for confirming. Sounds like I should withhold the minimum on my regular paychecks and make estimated payments using the credit card. Are there any downsides doing this?

[frugalor]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I use the PayPal credit card and get 3% back on taxes.

Oh you are saying you link the PayPal credit card in your PayPal account and you pay via PayPal?

In fact, with this setup, all payments via PayPal will get you 3%. Which is better than boa’s 2.62%?

[Leesbro63]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I've been doing this for a while. .77% positive arbitrage. So far no hang ups and I always check the IRS site a week or so later to be sure it posted correctly. I took advantage of the extra 2% day, on two cards each maxed $2500, to get 4.625% on $5000 minus 1.85% fee. About $139 bonus for paying $5000 in tax that's due anyway.

Thanks for confirming. Sounds like I should withhold the minimum on my regular paychecks and make estimated payments using the credit card. Are there any downsides doing this?

My situation is different, but that sounds like it will work. But you have to be organized and disciplined to avoid penalties. Sounds like you are. Not sure it's worth it, really. Depends on how much tax you pay.

[CletusCaddy]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I use the PayPal credit card and get 3% back on taxes.

Oh you are saying you link the PayPal credit card in your PayPal account and you pay via PayPal?

In fact, with this setup, all payments via PayPal will get you 3%. Which is better than boa’s 2.62%?

Yes

[spammagnet]

For Costco you can buy Shop cards online to get that coded as online. My better half does not like it when I've done that so I think we'll be sub-optimal in this regard. ...

A recent enhancement in the Publix app is that it automatically uses any balance on gift cards first, after which it rolls to your primary credit card. If CostCo has an app you can use for in-store payment, it works similarly, and your partner is willing to use it, you can optimize without being aggravating. The mantra can be "use the app", and needn't change when you buy more Shop cards, or they're exhausted.

[spammagnet]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I use the PayPal credit card and get 3% back on taxes.

Oh you are saying you link the PayPal credit card in your PayPal account and you pay via PayPal?

In fact, with this setup, all payments via PayPal will get you 3%. Which is better than boa’s 2.62%?

Yes

When making that payment, do you have multiple cards in PayPal and select a specific card?

[CletusCaddy]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I use the PayPal credit card and get 3% back on taxes.

Oh you are saying you link the PayPal credit card in your PayPal account and you pay via PayPal?

In fact, with this setup, all payments via PayPal will get you 3%. Which is better than boa’s 2.62%?

Yes

When making that payment, do you have multiple cards in PayPal and select a specific card?

My default card is the PayPal Mastercard

[leland]

For Costco you can buy Shop cards online to get that coded as online. My better half does not like it when I've done that so I think we'll be sub-optimal in this regard. ...

A recent enhancement in the Publix app is that it automatically uses any balance on gift cards first, after which it rolls to your primary credit card. If CostCo has an app you can use for in-store payment, it works similarly, and your partner is willing to use it, you can optimize without being aggravating. The mantra can be "use the app", and needn't change when you buy more Shop cards, or they're exhausted.

Costco app as of now only allows their branded credit card to be set as a payment method in the app. They make this annoying. We've used paper printouts of the shop cards. I agree it's kludgy, just differ in that I get additional value out of the optimization efforts vs. annoyance.

[cubs1999]

For Costco you can buy Shop cards online to get that coded as online. My better half does not like it when I've done that so I think we'll be sub-optimal in this regard. ...

A recent enhancement in the Publix app is that it automatically uses any balance on gift cards first, after which it rolls to your primary credit card. If CostCo has an app you can use for in-store payment, it works similarly, and your partner is willing to use it, you can optimize without being aggravating. The mantra can be "use the app", and needn't change when you buy more Shop cards, or they're exhausted.

Costco app as of now only allows their branded credit card to be set as a payment method in the app. They make this annoying. We've used paper printouts of the shop cards. I agree it's kludgy, just differ in that I get additional value out of the optimization efforts vs. annoyance.

I get the e gift cards and just pull them up on my phone vs printing them out. I also keep an physical shop card for the gas station. Ive noticed some of the cashiers didn't even know this was possible, but I can make my purchases in store and load $ onto my physical shop card using an e gift card.

I just joined a few months ago and thats my plan forward. In Sept, I used Chase freedom for gas since that was the quarter category and I could use the visa straight at the pump. This quarter I've been just using that for Sam's club and Costco bc it's warehouse quarter but I also loaded up money onto the physical shop card to get gas.

[anon_investor]

... Will this ensure that my account is not closed for inactivity?

Additionally, what is the least amount of money I need to keep in my checking for it not be closed? I currently have a dollar in ME Cash in cash and $25 in BOA Checking in cash, but I would prefer to only keep a dollar in each.

Just direct your monthly PR credit card bonuses to your BA checking account. Transfer the balance periodically by pulling it into Fidelity. BA seems happy with $100 minimum checking balance. You needn't keep any cash at Merrill. Just set VSUX to reinvest dividends.

I second what Spam stated. I just keep one cent in my account. No problems.

I only keep about $10 in my BoA checking. My only transactions are deposit of my BoA CC reward redemptions and transfer out. 2+ years with Platinum Honors status, no issues.

[TheRoundHeadedKid]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I've been doing this for a while. .77% positive arbitrage. So far no hang ups and I always check the IRS site a week or so later to be sure it posted correctly. I took advantage of the extra 2% day, on two cards each maxed $2500, to get 4.625% on $5000 minus 1.85% fee. About $139 bonus for paying $5000 in tax that's due anyway.

Thanks for confirming. Sounds like I should withhold the minimum on my regular paychecks and make estimated payments using the credit card. Are there any downsides doing this?

Would the IRS care if federal taxes are paid through biweekly estimated taxes instead of withholding of biweekly salary? As long as IRS gets the same amount of taxes in the same time period it seems like it shouldn't matter.

[frugalor]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I've been doing this for a while. .77% positive arbitrage. So far no hang ups and I always check the IRS site a week or so later to be sure it posted correctly. I took advantage of the extra 2% day, on two cards each maxed $2500, to get 4.625% on $5000 minus 1.85% fee. About $139 bonus for paying $5000 in tax that's due anyway.

Thanks for confirming. Sounds like I should withhold the minimum on my regular paychecks and make estimated payments using the credit card. Are there any downsides doing this?

Would the IRS care if federal taxes are paid through biweekly estimated taxes instead of withholding of biweekly salary? As long as IRS gets the same amount of taxes in the same time period it seems like it shouldn't matter.

I think you just need to make quarterly estimated payments, not bi-weekly.

[tj]

Did anyone pay estimated tax using payUSAtax and got the 2.62% cash back?

payUSAtax charges 1.85%. So one is basically getting paid to pay estimated taxes if that works.

I've been doing this for a while. .77% positive arbitrage. So far no hang ups and I always check the IRS site a week or so later to be sure it posted correctly. I took advantage of the extra 2% day, on two cards each maxed $2500, to get 4.625% on $5000 minus 1.85% fee. About $139 bonus for paying $5000 in tax that's due anyway.

Thanks for confirming. Sounds like I should withhold the minimum on my regular paychecks and make estimated payments using the credit card. Are there any downsides doing this?

Would the IRS care if federal taxes are paid through biweekly estimated taxes instead of withholding of biweekly salary? As long as IRS gets the same amount of taxes in the same time period it seems like it shouldn't matter.

I think you just need to make quarterly estimated payments, not bi-weekly.

And if you're wanting to do it by credit card, there's a limit on how frequently you can do that.

[808]

I get the e gift cards and just pull them up on my phone vs printing them out. I also keep an physical shop card for the gas station. Ive noticed some of the cashiers didn't even know this was possible, but I can make my purchases in store and load $ onto my physical shop card using an e gift card.

To load the physical shop card with an e-gift card, do you do that at Customer Service or the check-out registers? Also, do you know if it works with self-checkout or do you have to do it with a cashier?

[jeffyscott]

Maybe they've improved but when I tried the Costco digital shop card last spring, I felt that it was not worth the hassles:
viewtopic.php?p=7330420#p7329771

I didn't think that the ~$10 or $11 per $500 gift card was enough compensation to deal with it. I felt like I spent too much time ordering the cards, keeping track of the card balances, arranging things on my phone so I could easily and quickly display the correct gift card, and then also dealing with employees not knowing the magical tricks to scan the cards correctly.

After my spring experience, when I needed to charge something to a credit card for some sort of promo during the summer, I order a physical shop card. Those are annoying as well, as you have to wait for them to come and then call to activate, etc. But at least once that's done, they have worked without fail at the store. To be clear, I'd also probably not want to bother with the physical shop cards on an ongoing basis for $10-11 in extra credit card rebates for each $500 card.

[bbrock]

Maybe they've improved but when I tried the Costco digital shop card last spring, I felt that it was not worth the hassles:
viewtopic.php?p=7330420#p7329771

I didn't think that the ~$10 or $11 per $500 gift card was enough compensation to deal with it. I felt like I spent too much time ordering the cards, keeping track of the card balances, arranging things on my phone so I could easily and quickly display the correct gift card, and then also dealing with employees not knowing the magical tricks to scan the cards correctly.

After my spring experience, when I needed to charge something to a credit card for some sort of promo during the summer, I order a physical shop card. Those are annoying as well, as you have to wait for them to come and then call to activate, etc. But at least once that's done, they have worked without fail at the store. To be clear, I'd also probably not want to bother with the physical shop cards on an ongoing basis for $10-11 in extra credit card rebates for each $500 card.

What do you mean Jeffy? I’m pushing a whole $13.12 per $500 Costco e-Cash card. Who would not want to do it for two extra dollars versus your $10-$11 range? LOL

Yes, amazing the hassle we put ourselves through to squeeze a buck. But I’ll keep doing it.

[cubs1999]

I get the e gift cards and just pull them up on my phone vs printing them out. I also keep an physical shop card for the gas station. Ive noticed some of the cashiers didn't even know this was possible, but I can make my purchases in store and load $ onto my physical shop card using an e gift card.

To load the physical shop card with an e-gift card, do you do that at Customer Service or the check-out registers? Also, do you know if it works with self-checkout or do you have to do it with a cashier?

Don't think it can be done a self checkout. I've done it with check out register. Pretty sure customer service can't do it.

[frugalor]

I have not been following this discussion regarding costco e-card. there is a 5% savings to be made?

I tried to read through of the threads and don't understand how the 5% saving is done.

Can someone kindly explain (again)?

[cubs1999]

Maybe they've improved but when I tried the Costco digital shop card last spring, I felt that it was not worth the hassles:
viewtopic.php?p=7330420#p7329771

I didn't think that the ~$10 or $11 per $500 gift card was enough compensation to deal with it. I felt like I spent too much time ordering the cards, keeping track of the card balances, arranging things on my phone so I could easily and quickly display the correct gift card, and then also dealing with employees not knowing the magical tricks to scan the cards correctly.

After my spring experience, when I needed to charge something to a credit card for some sort of promo during the summer, I order a physical shop card. Those are annoying as well, as you have to wait for them to come and then call to activate, etc. But at least once that's done, they have worked without fail at the store. To be clear, I'd also probably not want to bother with the physical shop cards on an ongoing basis for $10-11 in extra credit card rebates for each $500 card.

I haven't had any problems. Like one of the responses to your post also reported, I have no issues printing the gift cards to PDF and then using them. I use the self checkout unless I'm loading a physical card. I sort by date on my phone and use the older ones first. If you accidentally scan one with zero balance z you'll now bc it won't work and just scan the next on the list.

I find this easier than shop cards bc I don't have to carry the actual cards (though I am now carrying one for gas but wasn't in Sept) and don't have to worry about losing them as they are always with me on my phone. Also don't have to worry about remembering to bring the printout or physical cards and can drop by there spontaneously as well without making sure I have cards with me.

Btw, You can't use them at the food court kiosk but can use the physical shop card there.

I have like $500 on a physical shop card now, but I'll probably only keep $250 or under In the future to minimize my losses if wallet is stolen or lost.

[lakpr]

I have not been following this discussion regarding costco e-card. there is a 5% savings to be made?

I tried to read through of the threads and don't understand how the 5% saving is done.

Can someone kindly explain (again)?

You can buy CostCo Shop cards online, and that purchase gets coded as online. If your BofA card is "Customized Cash Rewards" card, and one of your categories is "online shopping", you will get 3% back on such purchase, or 5.25% if you hold Platinum Honors status with Bank of America (through 75% additional bonus).

[frugalor]

I have not been following this discussion regarding costco e-card. there is a 5% savings to be made?

I tried to read through of the threads and don't understand how the 5% saving is done.

Can someone kindly explain (again)?

You can buy CostCo Shop cards online, and that purchase gets coded as online. If your BofA card is "Customized Cash Rewards" card, and one of your categories is "online shopping", you will get 3% back on such purchase, or 5.25% if you hold Platinum Honors status with Bank of America (through 75% additional bonus).

Oh I see. Thanks for this tip. That's nice. But the digital cards don't work on self checkout right?

Do you have to pick either "online shopping" or "gas"? If so, the digital cards don't work on costco gas stations either right?

[02nz]

Other question - have heard people mention a triple dip if signing up for the elite card near year-end. Is there a good writeup of that somewhere?

The credits apply per calendar year, so if you get the card this December, you could get the credits for 2023, 2024, and 2025 (would need to use at the beginning of Jauary, and cancel/downgrade the card in time to get the annual fee refunded).

[WapelloHawk]

I have not been following this discussion regarding costco e-card. there is a 5% savings to be made?

I tried to read through of the threads and don't understand how the 5% saving is done.

Can someone kindly explain (again)?

You can buy CostCo Shop cards online, and that purchase gets coded as online. If your BofA card is "Customized Cash Rewards" card, and one of your categories is "online shopping", you will get 3% back on such purchase, or 5.25% if you hold Platinum Honors status with Bank of America (through 75% additional bonus).

Oh I see. Thanks for this tip. That's nice. But the digital cards don't work on self checkout right?

Do you have to pick either "online shopping" or "gas"? If so, the digital cards don't work on costco gas stations either right?

For Costco, I only purchase Shop Cards online using a BoA CCR card set to online. BoA always gives me 5.25% rewards for an online Costco Shop Card purchase.

To buy something at Costco, I first take a screen shot of the bar code email from Costco of the Shop Card. Then I open the screen shot photo at check out and scan the picture of the bar code to pay. Select Digital Shop Card. It works 100% of the time. No problems.

For gas - at least in Memphis - you need an real Shop Card. You can buy a Shop Card online with a BoA CCR card and then go into Costco customer service and have them convert your email to a hard copy Shop Card. If your local customer service knows how to convert a digital Shop Card to a "real" one, this will work with no problems.

[lakpr]

Oh I see. Thanks for this tip. That's nice. But the digital cards don't work on self checkout right?

Do you have to pick either "online shopping" or "gas"? If so, the digital cards don't work on costco gas stations either right?

See @cubs1999 response above. I have never done this so I can't really comment from self experience, but that response is indicating that if you print the digital cards on paper you can scan them at self checkout.

They cannot be used at Costco gas stations, though; only physical cards are valid at the pump.

You have to pick "online shopping", not gas.

[frugalor]

Oh actually when you buy the shop card on Costco.com, you can choose mail or email delivery.

Are you folks saying only email delivery is coded “online shopping”?

[stilllurking]

Oh actually when you buy the shop card on Costco.com, you can choose mail or email delivery.

Are you folks saying only email delivery is coded “online shopping”?

Both physical and email shop cards code as online for CCR cards.

[sailaway]

Oh actually when you buy the shop card on Costco.com, you can choose mail or email delivery.

Are you folks saying only email delivery is coded “online shopping”?

Both physical and email shop cards code as online for CCR cards.

For the 2% day, the issue was that ecards post on the day of purchase, whereas physical cards post the day they ship.

[Lyrrad]

For gas - at least in Memphis - you need an real Shop Card. You can buy a Shop Card online with a BoA CCR card and then go into Costco customer service and have them convert your email to a hard copy Shop Card. If your local customer service knows how to convert a digital Shop Card to a "real" one, this will work with no problems.

You could also buy or reload a physical shop card at a cashier and pay with an electronic one.

I tend to keep a physical card around for refunds, food court and other transactions that require a physical card.

[bbrock]

I’ve got about $2000 on Costco e-cards. So far works fine as we shop Costco as our main grocery store.

[indexfundfan]

Does anyone know whether using Amazon Pay qualifies for the "online shopping" bonus category on the Customized Reward card?

[guitarguy]

I have not been following this discussion regarding costco e-card. there is a 5% savings to be made?

I tried to read through of the threads and don't understand how the 5% saving is done.

Can someone kindly explain (again)?

You can buy CostCo Shop cards online, and that purchase gets coded as online. If your BofA card is "Customized Cash Rewards" card, and one of your categories is "online shopping", you will get 3% back on such purchase, or 5.25% if you hold Platinum Honors status with Bank of America (through 75% additional bonus).

Oh I see. Thanks for this tip. That's nice. But the digital cards don't work on self checkout right?

Do you have to pick either "online shopping" or "gas"? If so, the digital cards don't work on costco gas stations either right?

For Costco, I only purchase Shop Cards online using a BoA CCR card set to online. BoA always gives me 5.25% rewards for an online Costco Shop Card purchase.

To buy something at Costco, I first take a screen shot of the bar code email from Costco of the Shop Card. Then I open the screen shot photo at check out and scan the picture of the bar code to pay. Select Digital Shop Card. It works 100% of the time. No problems.

For gas - at least in Memphis - you need an real Shop Card. You can buy a Shop Card online with a BoA CCR card and then go into Costco customer service and have them convert your email to a hard copy Shop Card. If your local customer service knows how to convert a digital Shop Card to a "real" one, this will work with no problems.

Question: how does this affect the Executive membership at Costco? I assume you don't get the 2% back on Costco Cash Card purchases and so it would render keeping the executive membership moot...?

Or do you still earn executive cash back when you check out and pay with a Cash Card? <-- This would seem too good to be true.

[guitarguy]

For those that use the BoA credit cards and Merrill investment platform to meet the preferred rewards criteria:

1. Do I have to have a BoA checking account, or can we do a Merrill investment account only to satisfy the $100k balance for platinum tier?

2. At Merrill, do we have to use an advisor or anything like that? Or can we operate like we do at Vanguard and just stick the funds in the right investments ourselves?

3. In our brokerage account at Vanguard, we currently have a chunk of our e-fund in VMFXX (money market), and our taxable investments in VV (Large Cap ETF). Do they have equivalent funds at Merril Lynch? I googled this, and see that you can even hold Vanguard ETFs at Merrill EDGE, but is that the same as Merrill LYNCH which is required to hold the balance for the BoA preferred rewards?

[sailaway]

For those that use the BoA credit cards and Merrill investment platform to meet the preferred rewards criteria:

1. Do I have to have a BoA checking account, or can we do a Merrill investment account only to satisfy the $100k balance for platinum tier?

2. At Merrill, do we have to use an advisor or anything like that? Or can we operate like we do at Vanguard and just stick the funds in the right investments ourselves?

3. In our brokerage account at Vanguard, we currently have a chunk of our e-fund in VMFXX (money market), and our taxable investments in VV (Large Cap ETF). Do they have equivalent funds at Merril Lynch? I googled this, and see that you can even hold Vanguard ETFs at Merrill EDGE, but is that the same as Merrill LYNCH which is required to hold the balance for the BoA preferred rewards?

I believe checking is a requirement for rewards, but many report keeping minimal balances.

We transferred MFs in kind, but bought ETFs with dividends. These days, I just take the the dividends as cash and make my investments elsewhere.

I only have Merrill Edge and have the preferred rewards, including deposit account. You use the same login, either way, Edge just means you are self directed. We get occasional calls offering to help us with those investments, but they aren't pushy.

[Lyrrad]

Question: how does this affect the Executive membership at Costco? I assume you don't get the 2% back on Costco Cash Card purchases and so it would render keeping the executive membership moot...?

Or do you still earn executive cash back when you check out and pay with a Cash Card? <-- This would seem too good to be true.

Executive cash back is earned when you spend the Shop card, but not when you purchase it.

For those that use the BoA credit cards and Merrill investment platform to meet the preferred rewards criteria:

1. Do I have to have a BoA checking account, or can we do a Merrill investment account only to satisfy the $100k balance for platinum tier?

A checking account is needed. You can keep it at a low balance.

2. At Merrill, do we have to use an advisor or anything like that? Or can we operate like we do at Vanguard and just stick the funds in the right investments ourselves?

No. I use Merrill Edge with no advisor. I started out by moving some ETFs in my Roth for a brokerage bonus. They sometimes call me, but I decline to use their services.

I also use their cash management solutions since some of those options are pretty competitive.

3. In our brokerage account at Vanguard, we currently have a chunk of our e-fund in VMFXX (money market), and our taxable investments in VV (Large Cap ETF). Do they have equivalent funds at Merril Lynch? I googled this, and see that you can even hold Vanguard ETFs at Merrill EDGE, but is that the same as Merrill LYNCH which is required to hold the balance for the BoA preferred rewards?

You can look at Cash Management options in this PDF.

If you have an account, you can see the options from the Desktop site:
Research -> Mutual Funds -> Cash Management Solutions

[zie]

For those that use the BoA credit cards and Merrill investment platform to meet the preferred rewards criteria:

1. Do I have to have a BoA checking account, or can we do a Merrill investment account only to satisfy the $100k balance for platinum tier?

2. At Merrill, do we have to use an advisor or anything like that? Or can we operate like we do at Vanguard and just stick the funds in the right investments ourselves?

3. In our brokerage account at Vanguard, we currently have a chunk of our e-fund in VMFXX (money market), and our taxable investments in VV (Large Cap ETF). Do they have equivalent funds at Merril Lynch? I googled this, and see that you can even hold Vanguard ETFs at Merrill EDGE, but is that the same as Merrill LYNCH which is required to hold the balance for the BoA preferred rewards?

1: Yes, though you don't really have to "use" it. I deposit my cash back there and that seems to be enough activity for it to not close down.

2 No advisor with the ME product, and yup you do it all online, via the website or app.

3 Yes equivalents. They have a nice set of MMF's that are all low fee and all(?) of the Vanguard ETF's are available. I don't have a Lynch account, nor do I want one, you don't need an account with the advisor side of the house(Lynch) to get PH status. I have > 100k in a ME CMA account, works great.

I recommend you just open a ME account and send over $1k or whatever and play around, decide if it will work for whatever you are trying to do and then send over the $100k. For Bogleheads, they shouldn't have any trouble. I hold AOA (80/20 1 fund ETF) there without trouble and do all of my taxable investing with ME.

[HappyJack]

Consider TYTXX money market with ME
.19 expenses are high but pays around 5.24%

[HappyJack]

TTTXX

[rustlers]

3. In our brokerage account at Vanguard, we currently have a chunk of our e-fund in VMFXX (money market), and our taxable investments in VV (Large Cap ETF). Do they have equivalent funds at Merril Lynch? I googled this, and see that you can even hold Vanguard ETFs at Merrill EDGE, but is that the same as Merrill LYNCH which is required to hold the balance for the BoA preferred rewards?

ETFs are by design portable. You can transfer VV in kind. I did.
You can do cash + ETF to be > 100K.

[anon_investor]

3. In our brokerage account at Vanguard, we currently have a chunk of our e-fund in VMFXX (money market), and our taxable investments in VV (Large Cap ETF). Do they have equivalent funds at Merril Lynch? I googled this, and see that you can even hold Vanguard ETFs at Merrill EDGE, but is that the same as Merrill LYNCH which is required to hold the balance for the BoA preferred rewards?

Just to be clear assets held at Merrill Edge do count towards qualify for BoA Preferred Rewards. I have over $100k worth of ETFs and money market fund goldings at Merrill Edge that I use to qualify for Platinum Honors level BoA Preferred Rewards status. I transferred the ETFs in-kind from my Vanguard account.

TTTXX is a good money market fund offered commission free at Merrill Edge, only a $1,000 minimum initial purchase, $1 for any subsequent purchase. It is probably close to VUSXX than VMFXX since it only holds US Treasuries, but it currently had a great 5.27% yield and is mostly exempt from state/local income taxes.

[guitarguy]

Question: how does this affect the Executive membership at Costco? I assume you don't get the 2% back on Costco Cash Card purchases and so it would render keeping the executive membership moot...?

Or do you still earn executive cash back when you check out and pay with a Cash Card? <-- This would seem too good to be true.

Executive cash back is earned when you spend the Shop card, but not when you purchase it.

Whoa! That is a game changer right there.

1. Set BoA custom rewards card to online shopping
2. Use card to purchase Costco Cash Cards online - 5.25% cash back (3% plus 0.75 platinum tier bonus)
3. Shop at store with Costco Cash Cards + Exec Membership - another 2% cash back

That is an AWESOME hack for heavy Costco shoppers.

[guitarguy]

Thanks all for the replies!

Me and DW both have the BoA Custom Cash card and Unlimited Cash card. I think we will make the shift from Vanguard to Edge with our taxable account to be above $100k for platinum tier, and use the benefit of these cards plus the preferred rewards for most of our misc shopping going forward. Minimum of 2.625 cash back for all spending...it's a nice setup!

Couple follow up questions, and does this make sense for the workflow?

a. Open the Merrill Edge account and park $1000 in TTTXX to start and get the account open, check out the user interface, etc

[EDIT]: Just completed this step and there's a $250 cash reward for opening the ME account and transferring at least $20k in within 45 days. Nice little bonus!

b. Transfer in kind our VG ETF and cash to meet the $100k limit; should I start the transfer in kind process at VG or ME?

c. Open BoA checking account; what tier is recommended? The account will mostly sit unused with a $5 balance, so I suppose the lowest tier
checking will be fine unless the higher tier offers some other advantages that might be useful at some point...?

d. Enroll in the preferred rewards program (probably at the same time as completing step c...)

[GaryA505]

What will happen to my PR status is I transfer out all of my IRA and CMA assets? I probably only keep a maximum of ~$10,000 in my checking account.

[bbrock]

Question: how does this affect the Executive membership at Costco? I assume you don't get the 2% back on Costco Cash Card purchases and so it would render keeping the executive membership moot...?

Or do you still earn executive cash back when you check out and pay with a Cash Card? <-- This would seem too good to be true.

Executive cash back is earned when you spend the Shop card, but not when you purchase it.

Whoa! That is a game changer right there.

1. Set BoA custom rewards card to online shopping
2. Use card to purchase Costco Cash Cards online - 5.25% cash back (3% plus 0.75 platinum tier bonus)
3. Shop at store with Costco Cash Cards + Exec Membership - another 2% cash back

That is an AWESOME hack for heavy Costco shoppers.

I am still trying to wrap my head around how using my digital cash card is then tied to my executive membership so I get the 2%. Will someone please explain that? Is the cash card number encoded to my Costco membership number?

[erp]

I am still trying to wrap my head around how using my digital cash card is then tied to my executive membership so I get the 2%. Will someone please explain that? Is the cash card number encoded to my Costco membership number?

I've always had to scan my membership card before checking out.

However, you don't earn points for gas and no membership card is required at the gas pump. I just give my kids Cash Cards so they can get gas there from time to time.