topic Re: CSP + Freedom + Checking. Use wisely. in Credit Cards

CSP + Freedom + Checking. Use wisely.

SamsungHDTV — Thu, 10 May 2012 19:53:29 GMT

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.

Re: CSP + Freedom + Checking. Use wisely.

flowfaster — Wed, 18 Apr 2012 12:16:56 GMT

Is the 10 cents per transaction limited? In the other thread someone says 10 per transaction up to only 100.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 12:21:05 GMT

@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.

Re: CSP + Freedom + Checking. Use wisely.

Topher227 — Wed, 18 Apr 2012 12:27:36 GMT

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.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 12:29:57 GMT

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.

Re: CSP + Freedom + Checking. Use wisely.

clocktick — Wed, 18 Apr 2012 12:48:29 GMT

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?

Re: CSP + Freedom + Checking. Use wisely.

tsquad131 — Wed, 18 Apr 2012 16:26:42 GMT

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.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 16:50:37 GMT

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...

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 17:07:23 GMT

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.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 17:10:47 GMT

@Anonymous 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?

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 17:12:17 GMT

Nope, that's what I was saying. I don't deposit $500 at a time, I deposit less, but my $800 total equals more than the $500 required monthly.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 17:15:39 GMT

So it has to be a reoccuring direct deposit, and not a one time deposit? In other words, can I make a one-time deposit of $500 or does it have to be bi-weekly or monthly? Sorry for all the questions...just trying to get clarity.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 17:37:53 GMT

Ask as much as you want.

It has to be a reoccuring monthly deposit. Whether it is once, twice or twenty times, it doesn't matter as long as at least $500 goes into that checking account over the span of 30 days. If you do it only once, you won't get charged that first month, but then every month after would get charged $12.

Re: CSP + Freedom + Checking. Use wisely.

flowfaster — Wed, 18 Apr 2012 17:58:49 GMT

Is the Freedom 10 cents per transaction unlimited?

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Wed, 18 Apr 2012 18:13:17 GMT

Thanks, but what about the regular Sapphire?

Re: CSP + Freedom + Checking. Use wisely.

TBOY012 — Wed, 18 Apr 2012 19:46:09 GMT

This was very useful, thanks OP

Re: CSP + Freedom + Checking. Use wisely.

SamsungHDTV — Thu, 19 Apr 2012 00:09:35 GMT

@flowfaster wrote:
Is the 10 cents per transaction limited? In the other thread someone says 10 per transaction up to only 100.

Yes unlimited.
The thread you read is here: http://ficoforums.myfico.com/t5/Credit-Cards/sapphire-vs-freedom/m-p/1355545#M376408

And I clarified what he was saying, I'll refer you to that thread to get clarity.

@ ptr2593:

The regular sapphire is geared towards people who eat out at restaurants a lot. 2% cash back on that. The main CSP benefit is the 20% discount on travel and being able to transfer rewards to a participating airline which the regular sapphire does not have. If you did have a regular sapphire it should only be used on restaurant purchases $11 or higher. Not much of a combo benefit with freedom + checking.

@ searchfor67 and others who still need clarification on direct deposit requirement. Frugalrican has it right. As long as you direct deposit to your account that total more than $500 each cycle period. Although you get 2 months free with no requirements not 1. Examples:

1. You get paid social security once a month that is $600. Fee waived.

2. You get paid $125 per week (total $500). Fee waived.

3. If you get paid $500 one payperiod, and $400 the next..total $900. Fee waived.

*If you have direct deposits that do not add up to $500 per cycle or more then your account is not free unless you can meet another qualifier.

@ topher227:

It's totally worth changing your direct deposit..again. Espeically in the long run. Or simply keep $1,500 in the account daily and that waives the direct deposit requirement. Given that you have $1500 you can just leave in a chase checking. Another option; just split your direct deposit. Example: if you get paid bi monthly, split $250 each pay period. Weekly? ..$125 each check. Add your other bank as an external account on chase.com and transfer money between your two banks free of charge.

@ everybody

Appreciate all the thanks and views. I'm hoping this thread is useful enough to be stickied. I'm trying to give back to the myfico community for the help I've received here.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Fri, 27 Apr 2012 14:03:13 GMT

Bumping up, it's a great read.

CSP is what I'm gunning for in a few months once the dust settles from a busy 2012.

I originally wanted the Chase United MileagePlus but things have changed in the last week.

I'd get a better deal from the CSP and combining my Checking/Freedom with the CSP.

I wonder what the math is on how much dining you would need to do to cover the annual fee?

Re: CSP + Freedom + Checking. Use wisely.

jefftca925 — Fri, 27 Apr 2012 14:32:27 GMT

I've had the 10+10 benefit on my Freedom card for a while now and it is a GREAT program. If you use it for everything the points really add up quickly. I just converted my regular Sapphire to a CSP and the ability to transfer points to Southwest or United is gonna be great. I can now get rid of my Southwest card and avoid the AF. PLUS!! The CSRs for the Sapphire card are exceptional. Each and every time I have called them they have been WONDERFUL!! Chase, despite their CLI issues, has some of the best CCs out there and the UR program is the best I've seen.

Re: CSP + Freedom + Checking. Use wisely.

Anonymous — Fri, 27 Apr 2012 14:39:29 GMT

You're telling me, CSP would be my third card with them.

I feel so cheap.