[maat55]

Originally Posted by noppenbd

It looks like a good deal so I checked it out. Currently we use a Chase Freedom card (3% cash back on top 3 categories up to $600 a month). When you get 200 points you can cash it in for a $250 check. Over the last 7 months we are averaging about 2.3% back when you factor in the monthly limits and the additional savings for waiting to get the $250 check. So for us it is better to stay with Chase.

With Chase, if you spend $2000 a month, and your top 3 categories total more than $600 (easy to do with groceries as one of the categories), you end up getting 32 points a month. If you save up your points until you have 200 you can redeem that for $250. At 32 points a month it takes 6.25 months on average to get to 200. That means you have to spend $2000*6.25= $12500 to get $250, which works out to exactly 2%.

Bottom line, if you spend more than $2000 a month you are better off with the Schwab card, if you spend less, the Chase card is probably a better deal.

I have the chase freedom card, how am I missing out on this?