Does anyone know a ballpark figure that a savings interest rate would be reduced by state and federal taxes? For example, if this money is borrowed at 2.99, about what investment rate would be needed to beat 2.99% when you consider taxes (33% Fed bracket)?

DAWG said:Does anyone know a ballpark figure that a savings interest rate would be reduced by state and federal taxes? For example, if this money is borrowed at 2.99, about what investment rate would be needed to beat 2.99% when you consider taxes (33% Fed bracket)?

Investment interest is tax-deductible.

nilaychampion said:I just got approved for refinance of my New Car Loan at 4.25%. I have credit score greater than 770 . CSR told me that i have been approved for upto $20000 balance trasfer at 2.99%.

As, i am new to all this financial transaction, i have question. When we do balance transfer with penfed do they deposit amount in our checking/saving account? If that's the case can i use that money to payoff my car loan rather than actual car loan from penfed? that way my car loan would be 2.99% rather than 4.25%?

is there any -ve side to this transaction, if this transaction is possible?

Thanks for your help.

from the t/c it says the offer cannot be used to pay off an existing penfed loan.

Investment interest is tax deductible? I thought only mortgage and student loan interest was deductible (?)... I feel dumb. I have several credit cards right now at 1.9 and 2.9 for life that I invested the cash from and did not deduct the past 2 years. I'll be more careful on TurboTax next year.

jwk1000 said:DAWG said:Investment interest is tax deductible? I thought only mortgage and student loan interest was deductible (?)... I feel dumb. I have several credit cards right now at 1.9 and 2.9 for life that I invested the cash from and did not deduct the past 2 years. I'll be more careful on TurboTax next year.

Don't think you missed out because there are a lot of rules for this deduction. I was stopped by the 2% limit of AGI. If you had enough to claim you could file a 1040X, for the past three years. It would be a good exercise to figure it out so you remember to check it in the future.

2% of AGI Limit? I am not aware of such a limitation on investment interest. Article about Investment Interest Deduction on WSJ.

I got a 50K line with the rewards card a couple of months back, they requested to see my tax returns, my fico is around 800. I usually don't like sending in tax stuff but I really needed the line because I wanted to use the card for foreign transactions. Capital one is very stingy with their credit lines. So penfed charges 1% but you get 1.25% Cash Back so it evens out.

DAWG said:Investment interest is tax deductible? I thought only mortgage and student loan interest was deductible (?)... I feel dumb. I have several credit cards right now at 1.9 and 2.9 for life that I invested the cash from and did not deduct the past 2 years. I'll be more careful on TurboTax next year.
Are the BT fees deductible too?

fokatkamaal said:DAWG said:Investment interest is tax deductible? I thought only mortgage and student loan interest was deductible (?)... I feel dumb. I have several credit cards right now at 1.9 and 2.9 for life that I invested the cash from and did not deduct the past 2 years. I'll be more careful on TurboTax next year.
Are the BT fees deductible too?

My guess is it cannot. From Form 4952,

Investment interest expense is interest paid or accrued on a loan or part of a loan that is allocable to property held for investment

BT fees are bank charges unrelated to obtaining an investment property.

2.99% for life offer expires June 15, according to penFed's website.

coolambo said:btw, they won't deposit the bt amount to a checking account. when i spoke to the csr, she said they'd have to pay off the accounts themselves. which means you have to pay the 1% (10 min, 100 max) balance transfer fee per loan you transfer.
Are there any strategies about how to get this BT money onto a mortgage?