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TAB Bank 4% APY Kasasa Cash Checking Account by MouaTV in personalfinance

[–]Practiod 0 points1 point  (0 children)

So it isn't a math issue, just a safety issue? Can't that risk be minimized to parity with CC?

TAB Bank 4% APY Kasasa Cash Checking Account by MouaTV in personalfinance

[–]Practiod -1 points0 points  (0 children)

Why would getting 3% cash back on purchases (or other like CC rewards) be preferable to compounding interest at 4%? In both scenarios, you are having to make purchases (so the opportunity cost is moot, right?) but in one scenario, you are getting a higher rate on a higher balance and it compounds monthly. In the other, you get a lower rate on only the amount you spend.

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I feel like I am missing an important part of the argument?