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How is this for being Frugal!
Old 02-12-2011, 01:50 PM   #1
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How is this for being Frugal!

Read this in the morning St. Louis Post Dispatch paper (yes, I'm a dinosaur, get it delievered in paper print on the driveway) about a man and how he saves/makes money. One thing he does is buy $4000 worth of $1 coins every month from the U.S. Mint. Buys them with his credit card and the mint ships dollar coins FREE to the purchaser. He them saves some of them for his kids to buy their school lunches, etc., then deposits rest in the bank. For people who get cash back on their purchases with credit card, you can get a significant amount of "free rewards money". I wonder what the bank teller thinks everytime he comes to deposit the coins each month. He says not only does it give him reward dollars, but acts as a free fronted loan. Interesting how some people think. I would never have thought of that.
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Old 02-12-2011, 02:08 PM   #2
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Yeah - that's an interesting way to get a non-fee cash advance - LOL!
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Old 02-12-2011, 02:46 PM   #3
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I thought they closed this program. What a waste of taxpayer money.
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Old 02-12-2011, 03:09 PM   #4
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I thought they closed this program. What a waste of taxpayer money.
+1
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Old 02-12-2011, 04:10 PM   #5
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It is still being offered but the following message is on the website:

Circulating $1 Coin Direct Ship Rolls The intended purpose of the Circulating $1 Coin Direct Ship program is to make $1 coins readily available to the public, at no additional cost, so they can be easily introduced into
circulation—particularly by using them for retail transactions, vending, and mass transit. Increased circulation of $1 coins saves the Nation money. The immediate bank deposit of $1 coins ordered through this program does not result in their introduction into circulation and, therefore, does not comply with the intended purpose of the program.
Order Limit: Order Limit: There is a 4-box $1 coin limit for every 10-day period on any and all $1 coin orders. Beyond that your credit card will not be authorized. If you need quantities greater than this, please send an e-mail before placing your order to directship@usmint.treas.gov explaining why your order should be exempted from the limit.

By clicking “Add to Cart” I agree that I understand, and will comply with, the intended purpose of the program.
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Old 02-12-2011, 05:51 PM   #6
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When there wasn't a limit, why stop at $4,000?


Quote:
Originally Posted by Mulligan View Post
. One thing he does is buy $4000 worth of $1 coins every month from the U.S. Mint. Buys them with his credit card and the mint ships dollar coins FREE to the purchaser. He them saves some of them for his kids to buy their school lunches, etc., then deposits rest in the bank. For people who get cash back on their purchases with credit card, you can get a significant amount of "free rewards money".
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Old 02-12-2011, 05:57 PM   #7
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I think what he (and many others) are doing is unethical, and I don't condone it.

However, I really like the dollar coins. Every year I buy $500 worth, and I always have 5-10 of them in my pocket. It's great fun to buy things with them, because at least half the recipients do a double-take, and stare at the coins for 15-20 seconds trying to figure out what the hell they are.

In fact, I'm sometimes asked "What are these?"
My reply is occasionally a smart-alecky "Money. Haven't you heard of it?"

The entertainment value of using the coins the way they're supposed to be used is huge (OK, I'm easily amused).
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Old 02-12-2011, 10:59 PM   #8
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Assuming this is being done, could you imagine how much money the federal government could waste on this program if everybody was loading up on their cash back rewards by buying dollar coins and dumping them back at the bank each month?
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Old 02-13-2011, 10:30 AM   #9
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He could save himself a lot of trouble and yield nearly the same results but making all his purchases with a cash back credit card directly, including mortgage payments. Then pay off the credit card in full each month.
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Old 02-13-2011, 10:41 AM   #10
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He could save himself a lot of trouble and yield nearly the same results but making all his purchases with a cash back credit card directly, including mortgage payments. Then pay off the credit card in full each month.
Missionfinder, Do banks take mortgage payments by credit cards? I could get $10 extra bucks a month just on that, save the stamp and use that stamp money for gas to go to the bank to haul all my $1 coins I had shipped to me! I am serious about the mortgage thing though.
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Old 02-13-2011, 04:19 PM   #11
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i tried to put my mortgage payment when i had one on my cc, no deal. absolutely not i was told. the cash back would have been awesome!
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Old 02-13-2011, 05:08 PM   #12
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i tried to put my mortgage payment when i had one on my cc, no deal. absolutely not i was told. the cash back would have been awesome!
I've tried to the same. Thanks but no thanks say the mortgage holder.
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Old 02-13-2011, 05:21 PM   #13
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My DW and I have cash back no annual fee cards and buy every thing we can on them however we have found the following here will not take them w/o an additional fee:
Electric and Natural Gas Utilities
Local state and federal govt for taxes Taxes income or real estate.

We usually get around 500 bucks back per year.

Many years ago a wise man told me never pay the bank always have the bank pay you and you will end up well off. He was correct.
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Old 02-13-2011, 06:23 PM   #14
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There are ways around mortgage companies not accepting cc payments. :-D Legal intermediary companies, they charge a small fee. Shop around - rates vary. Depending on your rewards program, and the intermediary company, it may or may not be worth it.
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Old 02-13-2011, 06:46 PM   #15
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Quote:
Originally Posted by growing_older View Post
I thought they closed this program. What a waste of taxpayer money.
Why is it a waste of taxpayer money?
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Old 02-13-2011, 07:13 PM   #16
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Why is it a waste of taxpayer money?

I keep editing my post. Here is the final (oh, sure) edit.

The cost for the actual coins is recouped as a one-to-one cost. The additional costs for the rest of the program (store, inventory, handle, ship) are shifted to the taxpayer.
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Old 02-13-2011, 07:41 PM   #17
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AARP's credit card is offering 5% back on all purchases for the first 6 months, so there's your opportunity for profit: AARP. There is a growing thread at FatWallet Finance about it.
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Old 02-13-2011, 10:56 PM   #18
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Why is it a waste of taxpayer money?
The not inconsiderable cost to ship the coins is paid for with taxpayer funds. Also the credit card processor who accepts the payments charges a fee for that service that the cardholder does not pay. It is paid by the "merchant" which in this case is Uncle Sam - so taxpayers. Normally governments will not accept credit card payments because of this fee unless they can charge it back to the card holder, but in this coin distribution plan the fee was explicitly paid by the government, not the card holder. Where do you think the bank gets the money to pay for the rewards programs? It's a partial rebate of merchant fees.
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Old 02-13-2011, 11:13 PM   #19
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The real cost is replacing the paper money that wears out.
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Old 02-14-2011, 07:13 AM   #20
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The real cost is replacing the paper money that wears out.
I'm sure one of these days we'll go to all coins. However, the discussion in this thread is someone gaming the banking system process for their personal gain.

Hopefully someone at the federal level saw the article and will put the wheels in motion to stop the practice.
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