Gift Card

[sstarch3]

My local grocery store is having a "bonus" on gift cards for the store.
Basically it's a 10% bonus on top of the cards value.
So if you purchase a giftcard for 300 it's actual value is 330.

My question being am I over looking something or would it be advantagous to get say a 600 dollar giftcard for my grocery shopping over the next 6 months.

Assuming the card does not depreciate and there are no additional fees. The "bonus" ends at the end of June or July I can't remember which.

Basically I would pull some of the money out of my savings account that just has extra money floating in it that's collecting 3% interest and pay for groceries in advance since the 10% is better then the 3% compounding over a year.

Or am I missing something?

Appreciate the responses thank you.

I apparently can't edit my mistaken title...

[sweeps]

Title fixed.

Seems like a good deal to me.

[Daylily]

It's only a good deal as long as you don't end up spending more on groceries than normal. Once your money is on the gift card, you might be tempted to spend extra at the grocery store.

[cooliemae]

I assume by local, you mean the grocery store that you shop at. I do a very small amount of shopping at my "local" store because their prices are high, so if your local store has higher prices than other stores in the area your 10% gain on the gift card may be negated.

[disneysteve]

I think it is a good deal as long as the conditions make sense, as cooliemae suggested. Several stores around here are doing this due to the tax stimulus checks.

I've taken advantage of similar deals in the past, especially around the holidays, where a store or company offers a deal on gift cards. One year, for example, Marriott had a deal that if you bought $100 worth of gift cards, you got a $25 card as a bonus. So I just bought a few hundred dollars worth of cards and kept them all for us. We already had some travel plans that involved Marriott hotels for later that year and this way we knocked $75 off our total spent.