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## CSP + Freedom + Checking. Use wisely.

Established Contributor

## CSP + Freedom + Checking. Use wisely.

This is for those who wonder why this combo is so wanted, and how to use this combo correctly. It is a long read, but is necessary and worth it in my opinion. I sure hope my math is correct, please correct me if I'm wrong. Post if you have questions.

To use the CSP + Freedom + Checking combo correctly, the ONLY time CSP should be used is on Restaurant/Travel purchases which are \$10 or greater.

Freedom should be used on every other purchase outside this rule which includes:

a) Restaurant/Travel \$9 or less

b) "All other purchases" outside these two catagories, regardless of the amount (\$1 to a billion dollars).

Here's why:

CSP yields 2.14% on travel and restaurants which is more than Freedom except when the transaction amount is \$9 or less.*

CSP yields 1.07% on "all other purchases", regardless of amount vs Freedom yielding 1.1% + 10 points net per transaction.*

*For these calculations, keep in mind the 7% dividend gets standard on CSP and the 10/10 bonus you get on Freedom if you have a Chase checking account.

The +10 points per transaction bonus gives the Freedom a high yield for purchases under \$10. Which is the amount of a lot of every day transactions. So even Freedom + Checking without CSP is IMO untouchable on small everyday purchases.

Remember, you have to have the chase checking account for all calculations, and enrolled in the quarterly promo for the #3 calculation.

Here's a few calculation examples of purchases on Freedom:

1. Spend \$10, earn 21 points. How: \$10 points gets 11 points + 10 points per transaction. 21 points is 21 cents which is 2.1% on a \$10 purchase.

2. Here's the exception mentioned above: Spend \$9, earn 19.9 points. How: \$9 gets 9.9 points + 10 points per transaction. 19.9 points is 19.9 cents which is 2.21% on a \$9 purchase. Freedom 2.21% (any purchases including restaurants) > CSP 2.14% (at restaurants). Imagine a to-go order for one or lunch? Anything less than \$9 purchase yields a higher % reward!!

3. Last example: Spend \$1 on a catagory purchase that earns 5% cash back, earn 15.5 points. Without doing the full breakdown again 15.5 cents on a 1 dollar purchase is 15.5%!! Imagine your daily coffee at a gas station during the 5% promo.

The combo comes into play by transferring your UR points from Freedom to CSP. Book your travel on UR website and you get a 20% discount on airfare. Also worded as worth 25% more on travel, but simply said: 40K points (\$400 cash value) is worth \$500 on travel on UR website.

Another option is to then transfer CSP points to participating airlines at 1:1 ratio. Transfer 25K points to a participating arlines for a domestic round trip. Remember UR points would get you a trip worth \$312.50 booked on UR website. So compare prices on the participating airline vs UR website. Remember to account for the taxes and fees you have to pay to book your flight for total trip cost.

Total trip costs greater than \$312.50 on UR website? Transfer 25K points to participating airline (assuming the flight is available at that point cost). And remember I can't account for taxes and fees when booking with miles. So it still may be worth booking a trip greater than \$312.50 on UR website depending on fees at participating airline. If the trip costs less than \$312.50 on UR website, book on UR website. \$300 airfare on UR website would cost only 24K points vs transferring 25K.

Traveling abroad? Take advantage of no foreign transaction fees on your CSP! Remember 65K points on your airline would be worth \$812.50 on UR website. Most international flights are greater than \$812.50.

EDIT: Due to the poplularity of this thread, I've edited the original post to make this thread easier to understand. I"ve also rearranged some words for the explanation to flow better. I reread again today and felt it could be worded better.

Message 1 of 113
112 REPLIES
Established Contributor

## Re: CSP + Freedom + Checking. Use wisely.

Is the 10 cents per transaction limited? In the other thread someone says 10 per transaction up to only 100.
Amex BCP/BC/Zync - Amex Business GR - Barclays NFL Visa Sig 49ers/Arrival - BoA BBR - Cap 1 Quicksilver - Citi Forward/Preferred - Chase Amazon/Freedom/Ink Plus - Discover IT - Fidelity Amex - GECRB Amazon/Walmart - PenFed PRV - Target - USAA Amex - US Bank CASH+/Club Carlson
Message 2 of 113
Blogger

## Re: CSP + Freedom + Checking. Use wisely.

SamsungHDTV wrote:

So compare prices on the participating airline vs UR website.

This is a huge one for me. I've been using the "combo" for a while.

I did have an Ultimate Rewards Debit Card so I gained some experience with the UR website and found that typically, the airline website was a few dollars cheaper than what it was posted at one the UR website. Not a biggie since I saw the same thing with other travel websites like Orbitz.

At the time, my UR points were just a bit over a multiple of 20, so what I did was book the flight from the airline website and just had the UR deposited into my account as cash.

Follow my financial journey: http://www.frugalrican.com

EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 3 of 113
Established Member

## Re: CSP + Freedom + Checking. Use wisely.

I've read into this combo multiple times and it is very appealing... the only problem for is meeting that \$500 direct deposit requirement to waive the \$12 fee. I really don't want to have to change my payroll at work.... again.

April 2011 -- EQ: 593, EX: 603, TU: 619
April 2012 -- EQ: 699, EX: ???, TU: 714
May 2012 -- MyFico EQ: 743
July 2012 -- MyFico EQ: 760!!!
Wallet: Chase Sapphire Preferred: \$5K CL, AMEX BCP: 1k CL, Chase Freedom: 3k CL, Sams Club Private Label: \$5k CL, BofA 1-2-3: 5k CL
Sock Drawer: Cap1 Platinum, 1FBUSA
Message 4 of 113
Blogger

## Re: CSP + Freedom + Checking. Use wisely.

• With monthly direct deposits totaling \$500 or more made to this account.
• OR with a \$1,500 minimum daily balance
• OR, with an average daily balance of \$5,000 or more in linked deposits/investments.

If you meet any of those,  you should.

Personally, I found changing my direct deposit was well worth the hassle.

Follow my financial journey: http://www.frugalrican.com

EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 5 of 113
Valued Contributor

## Re: CSP + Freedom + Checking. Use wisely.

Thank you!  Excellent post.

So do the points equal differently if you have their checking then?  Is the 7% earned from CSP's earned UR points throughout the year?

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP \$24.1K/Clear \$8.5- Sallie Mae \$27.5 -Cap One QS \$7.5 - Chase Freedom \$7.5/United \$5k/CSP \$20k/Ink- Citi DP \$9.5/Dividend \$13k/HHHx2 \$15k/16.4/Reserve \$4.5k Best Buy \$1940 HD \$1701- Discover IT \$15k - Elan \$8k GEMB Lowes \$20k - Macy's \$2k - Kohl's \$800

Starting Score: 648
Current Score: 736
Goal Score: 765

Take the FICO Fitness Challenge

Message 6 of 113
Frequent Contributor

## Re: CSP + Freedom + Checking. Use wisely.

the direct deposit was misleading to me, they said it has to be in a single direct deposit of \$500 or more not \$500 total in direct deposits, Im a student and I get paid weekly instead of bi weekly so I had to get the student account to waive the fee.

Message 7 of 113
Established Contributor

## Re: CSP + Freedom + Checking. Use wisely.

So is it a single direct deposit of \$500 or more or a reoccuring direct deposit of \$500 or more each deposit? I currently have a chase checking and savings, but I switched my direct deposit to Navy Federal a few months ago...

TU FICO: 772 (Discover) • Exp FICO: 772 (Citi)

Amex BCE \$13K | Amex Costco TE \$10.4K | Amex SPG \$5K | Chase Freedom Visa Signature \$15K | Chase Sapphire Preferred Visa Signature \$15K | Chase Ink Plus World Elite MC \$5K | Citi TY Preferred World MC \$10.1K | Citi Forward \$10K | Citi Diamond Pref \$7.6K | Discover IT \$9.9K | JP Morgan Chase Select Visa Signature \$9.2K | NFCU CashRew Visa Sig \$25K | NFCU LOC \$15K | NFL Visa Signature (Saints) \$8.1K | USAA Amex \$11.3K | USAA World MC \$11.5K
Message 8 of 113
Blogger

## Re: CSP + Freedom + Checking. Use wisely.

I have bi-weekly direct deposits of \$400 each and my account is free.

And btw, the bullet list I added in my previous post was directly taken from the Chase account website for that particular Checking account.

I actually have two checkings. One with direct deposit and one with the \$1,500 minimum and I've never been charged for either.

Follow my financial journey: http://www.frugalrican.com

EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Message 9 of 113
Established Contributor

## Re: CSP + Freedom + Checking. Use wisely.

FrugalRican wrote:

I have bi-weekly direct deposits of \$400 each and my account is free.

And btw, the bullet list I added in my previous post was directly taken from the Chase account website for that particular Checking account.

I actually have two checkings. One with direct deposit and one with the \$1,500 minimum and I've never been charged for either.

Is the requirement for a single direct deposit of \$500 or more or a reoccuring direct deposit of \$500 or more each deposit?

Understood, but question still stands. Is the requirement for a single direct deposit of \$500 or more or a reoccuring direct deposit of \$500 or more each deposit?

TU FICO: 772 (Discover) • Exp FICO: 772 (Citi)

Amex BCE \$13K | Amex Costco TE \$10.4K | Amex SPG \$5K | Chase Freedom Visa Signature \$15K | Chase Sapphire Preferred Visa Signature \$15K | Chase Ink Plus World Elite MC \$5K | Citi TY Preferred World MC \$10.1K | Citi Forward \$10K | Citi Diamond Pref \$7.6K | Discover IT \$9.9K | JP Morgan Chase Select Visa Signature \$9.2K | NFCU CashRew Visa Sig \$25K | NFCU LOC \$15K | NFL Visa Signature (Saints) \$8.1K | USAA Amex \$11.3K | USAA World MC \$11.5K
Message 10 of 113