Comments on: Capital One Money Market Offers Higher Rate for Costco Members http://www.consumerismcommentary.com/2008/05/19/capital-one-money-market-offers-higher-rate-for-costco-members/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Fred http://www.consumerismcommentary.com/2008/05/19/capital-one-money-market-offers-higher-rate-for-costco-members/#comment-150444 Fred Tue, 20 May 2008 00:19:45 +0000 http://www.consumerismcommentary.com/?p=3300#comment-150444 I'm not a Costco member, but I've been thinking that membership may be worthwhile just to get the benefits offered by their American Express (aka TrueEarnings) card; the Capital One interest bonus may be an additional incentive provided that a) its rates stay competitive, and b) you're not a rate-chaser. Here's my thinking on the card...as I understand it, the TrueEarnings card serves as both your Costco membership card and a regular Amex credit card that's usable anywhere, so that you get two uses out of a single $50 annual fee. Then, the Amex card offers 3% cash back on gasoline and restaurants, and 1% on everything else. In my case, this means that since I already spend more than $1,667 annually for gas ($32/week) commuting to/from work, I get my membership fee back by doing nothing more than what I'm already doing anyhow. Is this sound reasoning? Are there any gotchas I didn't think of? Anyway, here's a link to the Costco Amex page: http://www.costco.com/Service/FeaturePage.aspx?ProductNo=11264812 I’m not a Costco member, but I’ve been thinking that membership may be worthwhile just to get the benefits offered by their American Express (aka TrueEarnings) card; the Capital One interest bonus may be an additional incentive provided that a) its rates stay competitive, and b) you’re not a rate-chaser.

Here’s my thinking on the card…as I understand it, the TrueEarnings card serves as both your Costco membership card and a regular Amex credit card that’s usable anywhere, so that you get two uses out of a single $50 annual fee. Then, the Amex card offers 3% cash back on gasoline and restaurants, and 1% on everything else. In my case, this means that since I already spend more than $1,667 annually for gas ($32/week) commuting to/from work, I get my membership fee back by doing nothing more than what I’m already doing anyhow. Is this sound reasoning? Are there any gotchas I didn’t think of?

Anyway, here’s a link to the Costco Amex page: http://www.costco.com/Service/FeaturePage.aspx?ProductNo=11264812

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