How is this for being Frugal!

[Mulligan]

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.

 

[audreyh1]

Yeah - that's an interesting way to get a non-fee cash advance - LOL!

 

[growing_older]

I thought they closed this program. What a waste of taxpayer money.

 

[Midpack]

I thought they closed this program. What a waste of taxpayer money.

+1

 

[MDJO]

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.

 

[Aiming_4_55]

When there wasn't a limit, why stop at $4,000?

. 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".

 

[braumeister]

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).

 

[Mulligan]

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?

 

[missionfinder]

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.

 

[Mulligan]

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.

 

[veremchuka]

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!

 

[Ronnieboy]

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.

 

[Trawler]

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.

 

[missionfinder]

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.

 

[racy]

I thought they closed this program. What a waste of taxpayer money.

Why is it a waste of taxpayer money?

 

[East Texas]

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.

 

[HawkeyeNFO]

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.

 

[growing_older]

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.

 

[devans0]

The real cost is replacing the paper money that wears out.

 

[East Texas]

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.

 

[devans0]

My mistake, I thought the topic was that someone was taking advantage of a hidden incentive that ends up saving tax dollars. LOL

Seriously, a couple of wasteful federal spendings are pennies and paper dollars. And to be way off topic, I am all for stopping a government deflating money by running the printing presses.

I have largely switched to coin dollars a few years ago. The vending machines at work take and dispense the coin dollars. I seldom buy anything until someone doesn't show up for work and I end up working an extra half or a double shift. This happens a lot, especially on weekends. I have learned to keep a supply of Sacs or Suzies on hand to keep from starving. Other than those, I don't carry or spend money.

 

[Sarah in SC]

I forgot all about those dollar coins, devans! Thanks for the reminder--I'm all for adding more of these into circulation.

 

[mickj]

I did this a year or so ago.

The first box of coins that I received was empty :-(

They did end up shipping me another box which came full of the coins, as expected.

I didn't take them straight to the bank though.

I use them for my kid's allowance.

 

[Mulligan]

I know I must have too much time on my hands, but it you bought $4K worth of coins to get say the 1% cashback you earn $40 a month by dumping them back in the back. The government however I assume is eating say $20 in shipping cost (4,000 coins weigh a bit,plus insurance I assume) for all this plus what 2% charge from the credit card which could cost totaly maybe $100? Even if I'm somewhat close on the guess, this could be a huge waste of money. Another great government program. It would save the government $50 bucks a month to PAY YOU directly to NOT ORDER THE COINS.

 

[Nords]

I think what he (and many others) are doing is unethical, and I don't condone it.

Let me get this straight-- the federal government is paying him to put metal coins in circulation, and you think that he's the one lacking in ethics?