The Credit Card that Earns 6% Cash Back on EVERYTHING!!
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- Опубліковано 31 тра 2024
- 💳 Learn more on the Save Wealth Card: bit.ly/3stlpEY
In this video we look at the Save Wealth Card, actually there are two versions of this card, the plus and the Premier. These are cash back cards with a twist, they invest a multiple of the money you spend on the card and pay out the equivalent of 4% or 6% in cash back. These would be candidates for the best cash back credit cards of 2022.
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I’ve got so far ahead in credit as a student with your advice
Thanks for the support, it really means a lot
It’s because UA-cam community college is free and university puts you in debt for life and you don’t learn shit.
Definitely an interesting concept here and I’m glad they made the card. I won’t be applying for it any time soon because my spend isn’t that high and I usually sign up bonus search but I’ll keep an eye out for sure. Hopefully other issuers will do something like this as well.
I will check this card out, thanks!
Thanks for calculating the break even point, as (almost) always.
Nothing that I'm really interested in but I love to see competition in the market and giving people more choices.
There is an old saying about keeping your insurance and investments separate. That can be extended to also say this - keep your credit card rewards and your investments separate.
Right-o...rediculous program if you ask me...just invest in stocks on your own
Would this be a good card to use with plastiq? Pay rent, mortgage, or other non credit card eligible bills?
Thanks for this video . This is a game changer !
What are strategy-linked securities? Do they have a big vault of cash and actually invest whatever you spent? How is that sustainable?
Greta video! It would be good to see this vs a points based card.
2 questions:
For military members, we may not have to worry about the annual fee since we usually get them waived for our service. Would this card be better than Citi DC with no annual fee effecting the earnings?
Also would taxes have to be paid for the earnings?
Great question, curious on both
Getting AFs waived isn't a given. Not all lenders apply such liberal interpretations to MLA/SCRA laws. And these are always subject change. Currently, only Amex, Chase, Citi, and USB apply liberal interpretations to MLA/SCRA to AD SMs. BOA and Capital One apply SCRA to accounts opened before AD service. The common thread here is that these are all large, established financial institutions. I highly doubt small startup fintechs like Save are going to be able to do the same.
Amex Platinum & Amex Delta Reserve (purple) would be decent for military use you can use the Centurian lounge if airports have one and not flying delta and then delta flights use the delta card and use their lounge --- Amex Platinum also has uber credits and streaming credits and a few others that could be useful
when is that credit card available to sign up for?
I have about $50k in student loans and the company lending to me doesn’t have a fee for using a cc as payment. Probably gonna give this a shot after finishing up my 5/24 slots
I'll stick with my current cards. Much easier. Have been considering getting a cash back card, but I can wait for now since I don't feel like opening another card right now
Hey Ben!
Big fan of the channel and where it’s headed. I have a question about these newer investment reward cash back style credit cards. I have a recent interest in them and in simplifying my cc setup and investments. Do you think that a card like the SoFi card could earn more per year when you factor in the percent you could make investing your rewards than having a more complex setup for cash back? I wouldn’t put all spend on a 2% card but possibly a bit more than just non category spend.
I do put a lot of value in having not only my cc rewards but investments all in one place and having traditional options and crypto options for rewards as well.
Would love to hear your thoughts!
I’m definitely getting this card
I prefer my method of just taking all my MR points and dumping into my Charles Schwab and putting that towards ETF LEAP options. Same idea but more perks I feel and I’m a control freak lol.
I roll with a similar plan for similar reasons. Generate MR points and roll into CS Plat. for cash out or investment options.
But that 700 AF...
Are cardholders responsible for any capital gains taxes or taxes on any dividends?
Good question. I'm assuming no, but I'm not sure. The fact you don't lose money with this card and that the rewards function similar to a cash back card lead me to believe no.
Not for credit card rewards 👍
I am assuming since you don't hold the assets or equities then you don't. Sounds like Save borrows your rewards money to invest and they break you off some of the returns they get. It's like a pension fund; you pay people to make money off of you and for you. They get rich mostly and you a little bit of their spoils.
I'm guessing yes since they also say you will be subject to investment management fees 😳 but it could be like those index life insurance policies
So if I spend $100 on the CitiDouble I get $2 back that I can invest and at an average market grown of 3%, after a year I'll have $2 x 1.03 = $2.06. But spending $100 on the Save Premium would do what exactly? ($100*2.17*1.03)-($100*2.17)=$6.51 ? If markets are stable and after the break even point. Still a way better potential return than investing by yourself.
I don't know what kind of math you do. The site is trying to confuse you with their example. They say for every dollar you spend they invest $2.17 on your behalf; that doesn't mean that $2.17 is your's. Seems like they are using a lot of thier own capital and your money to invest and they will give you a return based on the market. So in a bear market you will get 0% cashback. In a bull market you will cap you at 6%. So your $100 example, after a year your Save credit card will either give you $2 or anything between $2.00 and $2.12; that is 0%-6%. The example they give is if you spent $42,000 in a year then you would get about 5% cash back which is roughly $2,000. Don't forget you have an annual fee of $750 for the higher end card or $400 something for the other one. Investing byself isn't scarey and depends if you need your money right away. If you need liquid cash within a few years then probably don't invest. Save isn't being trying to make you money, they may break you off a bit but they keep the lion share of the returns. Historically if you invested in a S&P 500 index you can expect an average return of 6-10% depending if you add in inflation or not. The last decade we got about a 20% annualized returns. If you just wanted to go off of last year, the market returned around 30%. With the Save Card you still experience the same down side in the bear market without the wonderful gains in the bull market. Maybe this might make sense for those who wouldn't invest if left to their own device. If people wanted to step it up a notch they could use something like Acorns. Or if you don't know even where to start you can always just go with one of those robo advisers. They ask you questions about your goals and they just put you in a portfolio that works towards your demands and goals.
There is no cap at 6%. 6% is the average.
Interesting card for sure.
Awesome
Finally something interesting)
I like control over what I do...iffy maybe doesn't cut iy...so many 3 4 and 5 % rewards opportunities with no risk...you'd have to spend a crap-ton of money just to get to the place where you are now entering risk...so many better opportunities out the ...can you say scam?
Does this credit card do a credit check
Not sold on this card. I am loving my capital one venture x. No card on the market comes near.
This one comes near, but the final results, like with glass coffins, remains to be seen...
Cap 1 sucks
Am I the only one, listening to ear hey credit warriors it's credit shifu 🤣🤦🏽♀️. Forgive me am still adjusting to the change 🙆🏽♀️
Apparently this is no longer available - or was just a "joke/scam/potential" offering that this bank was offering -- even the debit card is no longer available.
These 2 cards look interesting, and I hadn't heard of them before. Are business purchases possible or only personal purchases?
I just cannot find the answer to certain things like let’s say you spend $100k on the card, where does the money they get to invest come from? Can you choose individual stocks and ETFs which will be used to estimate your rate of return?
They provide the investments for you, thats why you dont keep them, just the returns. I only see one portfolio though.
@@TheLordFinland yes but where does the money they invest come from? Do they borrow it from banks?
That save company only have customer service on the app... The benefits is cool, but the con is reaching customer service...I shouldn't have to go to an application for that.
Temping since I pay over 19k on Childcare and shop on Amazon
Not sold. Need a high spend rate, with risk of not getting any cash back on a market downturn.
An awesome strategy I deployed was using the hell out of my cash back cards and taking all my rewards and staking USDC at 12%pa I’ve come out on top year over year! But that’s if your into crypto. I’m so grateful for this channel I’ve made so many generational leaps in my credit knowledge that I can now help my family understand how credit works! Thanks Ben for all your hard work!
Damn bro, I’m currently looking for CC like this with good cashback to do the same that you’re doing, can you explain it to me
@@carloslobo4439 It all depends on what you spend the most on in your daily life. But the strategy did change since then. Due to all the craziness rn
Good for rent payments
I lost all interest when you mentioned the annual fee. No thanks. I'll stick with my points credit cards.
Stop being scared of annual fees
@@shawndoe6843 I'm not afraid of annual fees. I have several annual fee cards, but my interest in the credit card game is accruing points/miles. The perks & travel credits outweigh the annual fees. With cash back cards you have to do a lot of spend before you break even. I'd much rather use the same amount of spend on travel cards to boost my rewards statuses and accrue more points.
@@tcgtpl o ok 👍
Do you pay taxes on earnings? If it does I’m out!
Wouldn't you owe capital gains tax on these rewards?
No
Yeah these cards are way too expensive 750 they’re crazy
Couldn't you just take your 2% cash back from your Citi double cash and invest it in stocks in a separate brokerage account? This would likely yield higher than 2%. I don't understand the advantage or the risk/reward of these save wealth cards.
I like the idea behind these cards, but I think it's targeted more to people who don't really budget their money so they'll believe they're making headways on their lack of investing. For those people who are already into budgeting, playing the credit card game, and investing I don't see this really being that much of a draw.
If thats what you would like, Fidelity has a 2% cash back card that does exactly that. The cash back can be put directly into a Fidelity brokerage account.
Not exactly, I thought that at first, but it looks like the card invests either 1.45x or 2.17x ($300 AF/ $750 AF) the money you spend, and the return from that investment is your reward. So theoretically you could earn more (or less) than you would if you take 2% of your spending, and then tack on whatever you could make investing that for a year. For example if your "investment" earns 5%, and you spend 50k. 50k x 1.45 x 5% - 300AF= $3325 reward. In your example 50k * 2%(double cash) * 1.05 = $1050 reward. It all sounds pretty good actually, but I'm still skeptical. It's very dependent on how well the available investments do. I'm betting there will be a lot of years where you either don't recover the annual fee, or only break even with the double cash. Let me know if you think my numbers are not correct. I'm curious.
@@bhpetersheim Obviously, the more you spend on the card & the better your returns do, the more of a deal this card looks. But I'm considering this card against other cards out there, and I just don't see the point. Travel cards have perks that offset their annual fees, and no annual fee cash back cards don't require large spends to make a net positive. Besides, you'd have to put a lot of spend on this card to see a notable difference. In your example you used 50k. That's a lot of spend in a year. How many people would wind up spending 50k on transactions that don' t incur a transaction fee (i.e. paying rent/mortgage could be a service fee of 3%, etc.)?
@@bhpetersheim Historically if you invested in a S&P 500 index you can expect an average return of 6-10% depending if you add in inflation or not. The last decade we got about a 20% annualized returns. If you just wanted to go off of last year, the market returned around 30%. With the Save Card you still experience the same down side in the bear market without the wonderful gains in the bull market. Maybe this might make sense for those who wouldn't invest if left to their own device. If people wanted to step it up a notch they could use something like Acorns. Or use a robo adviser. Save works the same as those pension funds or annuities. They cap you on the upsize. So whatever returns they get they give you a small percentage. Remember Save credit card dictates how much you get back. Maybe for a few months they give you 5% or the next month they only give you 1%.
But are the cards metal tho?
I believe they are, when i talked to them last year they said they aimed for a metal card for the premium card. I said it didnt really matter.
@@TheCreditShifu It does matter tho who the hell is paying a 300 or 750 annual fee for a flimsy piece of plastic besides a moron ?
Is Amex BCP the only one that legit give 6% cash back?
Yes, its 6%for groceries only and with a monthly cap. Very good value.
One issue, when you cash out the investment, you owe tax on the amount paid to you, minus YOUR investment (which is $0). So you pay income tax on it. Compare to actual cash back which isn't taxed.
I will reach out to Save and ask about this. One thing to note though is that the investment is held for a year which means it will be subject to long term capital gains, so for many people (depending on income) that will be a 0% rate.
@@TheCreditShifu this is very fascinating. Definitly make a new video when you find out this information as there are people who do spend a good bit on a credit card for their businesses so this can be a great deal.
@@TheCreditShifu A married couple filing jointly might have an income that has a 0% LTCG and the spend required to beat the 2% card. Also there is (possibly) state taxes on long-term gains.
Federal: Single making under 52.9k annual income (40.4k + 12.5k standard deduction) or Married under 105k (80.8K + 25k deduction) pays no federal LTCG.
Also, if you have to pay taxes you are paying taxes on a higher return. Historically if you invested in a S&P 500 index you can expect an average return of 6-10% depending if you add in inflation or not. The last decade we got about a 20% annualized returns. If you just wanted to go off of last year, the market returned around 30%. With the Save Card you still experience the same down side in the bear market without the wonderful gains in the bull market. Maybe this might make sense for those who wouldn't invest if left to their own device. If people wanted to step it up a notch they could use something like Acorns. So if you get a 10% return on 1,000. Then I think if you make between $41,000-$500,000 then your tax rate is 15%. So $100 would net you $85 where as your 4% cashback from Save nets you only $40. These credit card companies aren't stupid. They are still making money off of you somehow. You might want to double check those tax rates but I am pretty sure you come out behind. Seems like Save just uses the same investment strategis pension funds use.
@@tamwilfred that is not the case. 6% is the average, we show on the graph in the video there are periods of time where you would be getting 15% or more with the save card.
lol them taxes tho
Have you or anyone on here gotten the card yet to give their impressions?
Seems like these cards are geared towards big spenders.
Free for military Ben? :)
Good question, I'll ask them
Stick with Citi Custom Cash 5%
Has a small monthly cap and that's only for one specific category of your choosing. I do agree, though, that it's a better offering than this card.
Citi bank sucks
These cards are a yawn for me but thanks for the heads up. :)
You’re welcome 😊
Discover it 5% cash back on gas rn
It’s a no for me!
Nope
First, watching now. Cash back cards dont make financial sense they are just an easy solution for people who dont want to deal with how to use points at max value (this isnt directed at you you are doing your job telling us good info on good deals, but to the banks). They are for people that like a 2% savings account, and will find this an upgrade.
Or, I could just put my money in the stock market myself for free.
I think you are misunderstanding, they are matching your spending in the market, this is money you wouldn’t have otherwise
@TheCreditShifu Do you know anyone who has this card? It's been almost a year since you posted this video and curious if anyone received it yet.
No thanks
That save card sounds so scammy. So complicated, on purpose. Most people wont make crap on that card
Pretty much. They are still making money off of you. Historically if you invested in a S&P 500 index you can expect an average return of 6-10% depending if you add in inflation or not. The last decade we got about a 20% annualized returns. If you just wanted to go off of last year, the market returned around 30%. With the Save Card you still experience the same down side in the bear market without the wonderful gains in the bull market. Maybe this might make sense for those who wouldn't invest if left to their own device. If people wanted to step it up a notch they could use something like Acorns. Or use a robo adviser. Save works the same as those pension funds or annuities. They cap you on the upsize. So whatever returns they get they give you a small percentage. Remember Save credit card dictates how much you get back. Maybe for a few months they give you 5% or the next month they only give you 1%.
@@tamwilfred I dont think there is a cap, but sure, no guarantee you make 6% average either.
Sounds very gimmicky
So basically this is a terrible card right now given the market.
If someone REALLY only wanted 1 card, and had high enough spend, this makes sense. Otherwise, no thanks.