MyMoneyBlog.com

Updated March 2025. Do you have small business income or work as an independent contractor? Freelance, Uber/Lyft, DoorDash, Amazon, eBay, Etsy, Airbnb? A small business credit card separates your personal and business expenses and can build up your business credit profile. If you are not a corporation or LLC, you can apply as a sole proprietorship, with your name as the business name and your Social Security number as the Tax ID number. These are the top 10 credit card offers that I would personally apply for right now (or have already). Recent changes:

• Added Hilton 175k, Delta Gold 90k, Marriott 125k, United 100k, Alaska 70k, Spark $2,000, Amex Gold 100k, Platinum 150k.
• Removed Hyatt 60k+FreeNightAward, JetBlue 60k, Citi AA 75k, Ink Unlimited $900

This is a companion post to my Top 10 Best Credit Card Bonus Offers for personal cards. Notice that small business bonuses are on average even higher than those on consumer cards.

Capital One Spark Cash Plus Card

• $2,000 cash bonus after $30,000 in the first 3 months. Additional $2,000 cash bonus for every $500K spent during the first year. See link for details.
• Unlimited 2% cash back spent on all purchases with no limit.
• $150 annual fee; Spend $150,000 annually and Capital One will refund this fee every year.

The Business Platinum® Card from American Express

• 150,000 Membership Rewards points after $20,000 on eligible purchases in the first 3 months. See link for details.
• American Express Global Lounge Collection® provides complimentary access to more than 1,400 airport lounges across 140 countries and counting, including their exclusive Centurion lounges.
• $1,000+ in value per year via statement credits on select purchases, including tech, recruiting and wireless. Enrollment required.
• $695 annual fee.
• See Rates and Fees

Delta SkyMiles® Gold Business American Express Card

• 90,000 Bonus Miles after $6,000 in purchases in the first 6 months. Limited-time offer ends 4/2/25. See link for details.
• 60,000 Skymiles are worth at least $600 in Delta airfare with “Pay with Miles” option.
• First checked bag free on Delta flights ($70 value per roundtrip, per person).
• $200 Delta flight credit. Get a $200 credit to use toward future Delta travel after $10,000 in purchases within a calendar year.
• $0 introductory Annual Fee for the first year, then $150.
• See Rates and Fees

American Express® Business Gold Card

• 100,000 Membership Rewards points after $15,000 in eligible purchases in the first 3 months. See link for details.
• Up to $240 Annual Flexible Business Credit. Earn up to $20 in statement credits monthly after you use the Business Gold Card for eligible U.S. purchases at FedEx, Grubhub, and Office Supply Stores. Enrollment is required.
• Up to $155 Annual Walmart+ Credit. Get up to $12.95 back in statement credits each month when you pay for a monthly Walmart+ membership (subject to auto-renewal) with your Business Gold Card. Enrollment is required.
• Annual fee is $375.
• See Rates and Fees

UnitedSM Business Card

• 100,000 bonus United miles after $5,000 in purchases in the first 3 months. Limited-time offer. See link for details.
• Free first checked bag for both you and a companion (a savings of up to $160 per roundtrip).
• 5,000-mile “better together” bonus each anniversary when you have both the UnitedSM Business Card and personal Chase United credit card.
• Primary rental car coverage when renting for business purposes.
• $99 Annual Fee.
• Subject to 5/24 rule.*

Capital One Venture X Business Card

• 150,000 Miles (worth $1,500 towards travel) after spending $30,000 in the first 3 months. See link for details.
• $300 annual travel credit. Get up to $300 in statement credits when booking through Capital One Travel.
• Additional 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary.
• Capital One Lounges, Priority Pass(TM) and Plaza Premium Group lounges access.
• Up to a $120 credit for Global Entry or TSA PreCheck(R).
• $395 annual fee.

Ink Business Preferred® Credit Card

• 90,000 Ultimate Rewards points (worth $900 straight cash back or $1,125 toward travel when redeemed through Chase Travel) after $8,000 in purchases in the first 3 months. See link for details.
• 3X points on the first $150,000 spent on travel, shipping purchases, internet/cable/phone services, and advertising purchases with social media sites and search engines.
• Primary rental car coverage when renting for business purposes.
• $95 annual fee.
• Subject to 5/24 rule.*

Ink Business Unlimited® Credit Card

• $750 bonus cash back. (75,000 Ultimate Rewards points) after $6,000 in purchases in the first 3 months. See link for details.
• Flat 1.5% cash back on all purchases with no limit.
• No annual fee.
• Subject to 5/24 rule.*

The Hilton Honors American Express Business Card

• 175,000 Hilton Honors Bonus Points after $8,000 in purchases within the first 6 months of Card Membership. Limited-time offer ends 4/29/2025. See link for details.
• Up to $240 in Annual Hilton Credits. Get up to $240 back each year on eligible Hilton purchases made on your Hilton Honors American Express Business Card, with up to $60 in statement credits per quarter.
• $195 annual fee.
• See Rates and Fees

World of Hyatt Business Credit Card

• 60,000 Bonus Points after $5,000 in purchases in first 3 months.
• Up to $100 in Hyatt statement credits – spend $50 or more at any Hyatt property and earn $50 statement credits up to two times each anniversary year.
• $199 annual fee.
• Subject to 5/24 rule.

CitiBusiness / AAdvantage Platinum Select Mastercard

• 65,000 American Airlines miles after $4,000 in purchases in first the 4 months. Limited-time offer. See link for details.
• First checked bag free on domestic AA flights for you and up to 4 companions (Up to $80 value per roundtrip, per person).
• $0 annual fee for the first year, then $99.

Marriott Bonvoy Business® American Express® Card

• 125,000 Marriott Bonvoy(R) Points after $8,000 in eligible purchases within the first 6 months. Terms apply. Limited-time offer ends 03/12/2025. See link for details.
• New award night top-off option: Marriott now allows you to supplement your free night certificates with up to 15,000 points of your own. For example, the 50k Award can be used to book a hotel at 65,000 points level if you spend 15,000 points of your own. This opens up the number of potential hotels available in expensive areas.
• Additional Free Night Award upon card anniversary (worth up to 35,000 Bonvoy points). Earn another additional Free Night Award after spending $60K in purchases on your Card in a calendar year.
• Annual fee is $125.
• See Rates and Fees

Ink Business Cash® Credit Card

• Up to $750 bonus cash back total (75,000 Ultimate Rewards points). Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months. See link for details.
• 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.
• No annual fee.
• Subject to 5/24 rule.*

Hawaiian Airlines Business MasterCard

• 50,000 Hawaiian miles after $4,000 in purchases in first 90 days. See link for details.
• Receive a one-time 50% off companion discount for roundtrip coach travel between Hawaii and The Mainland on Hawaiian Airlines.
• $99 annual fee.

BofA Business Advantage Unlimited Cash Rewards card

• $500 statement credit after $5,000 in purchases in the first 90 days. See link for details.
• 1.5% cash back on all purchases, which can be increased to 2.62% cash back when combined with the Preferred Rewards program.
• No annual fee.

US Bank Business Leverage Card

• 75,000 bonus points after $7,500 in purchases (on the Account Owner’s Card only) in first the 120 days. 75,000 bonus points can be redeemed for $750 in cash back. See link for details.
• Availability may be restricted to certain states.
• $0 annual fee for the first year, then $95.

JetBlue Business Card

• 50,000 TrueBlue points total. 50,000 points after $4,000 in purchases in first 90 days. See link for details.
• First checked bag free for the primary cardmember and up to 3 companions when tickets are purchased with your JetBlue Plus Card.
• $99 annual fee.

Alaska Airlines Visa Business Card (Bank of America)

• 70,000 Alaska miles + Companion Fare Voucher after $4,000 in purchase within 90 days. See link for details.
• Companion fare voucher is “Buy one ticket, get one for $122” ($99 fare plus taxes and fees from just $23).
• Free checked bag on Alaska flights for you and up to six other passengers on the same reservation (worth $70 roundtrip per person).
• $70 annual fee for company, plus $25 per card.

Capital One Spark Cash Select Card

• $500 cash bonus after $4,500 in purchases in the first 3 months. See link for details.
• Unlimited 1.5% cash back spent on all purchases with no limit.
• No annual fee.

Southwest® Rapid Rewards® Premier Business Credit Card

• 60,000 Southwest points after $3,000 on purchases in the first 3 months. See link for details.
• Southwest still gives everyone two free checked bags.
• $99 annual fee.
• Subject to 5/24 rule.*

* Note: Certain Chase cards have a “5/24 rule” which is an unofficial rule that they will automatically deny approval on new credit cards if you have 5 or more new credit cards on your credit report within the past 2 years. This rule applies on a per-person basis, so if you are new, you might want to start with those Chase cards.

American Express(R) Business Gold Card: See Rates and Fees. The Business Platinum(R) Card from American Express: See Rates and Fees. The Hilton Honors American Express Business Card: See Rates and Fees. Marriott Bonvoy Business(TM) Card from American Express(R): See Rates and Fees. Delta SkyMiles(R) Gold Business American Express Card: See Rates and Fees

Updated March 2025. That space in your wallet or purse is valuable, and you should be the one to get that value. By being smart and picky, you can find offers worth $500+ for a single card, all to encourage you to apply and try it out. This adds up to thousands of dollars in extra income (over $5,000 in 2023). These are the top 10 credit card offers that I would personally apply for right now (or have already). Notable recent changes:

• Added Hilton 70k+FreeNight, JetBlue 70k, Venture 75k+$250, Southwest Companion Pass, CitiAA 75k, Delta 80k, IHG 100k/170k, Air Canada 70k, BarcAA 70k, Alaska 75k
• Removed United 60k, British Airways 85k, CitiAA 75k, Sapphire 60k+$300, Amex Gold 60k+$100

This is a companion post to my Top 10 Best Business Card Offers. Small business bonuses are on average even higher than those on consumer cards.

Hilton Honors American Express Card

• 70,000 Hilton Honors Bonus Points plus a Free Night Reward after $2,000 in purchases in the first 6 months. Limited-time offer ends 4/29/2025. See link for details.
• No annual fee.
• See Rates and Fees

Capital One Venture Rewards Credit Card

• Limited-time offer bonus of $1,000 value towards travel. 75,000 Miles after $4,000 in purchases within the first 3 months (worth $750 to offset travel purchases, or transferrable to miles), plus a one-time $250 Capital One Travel credit valid towards hotels and flights booked through Capital One Travel. See link for details.
• 2 Miles per dollar on all purchases.
• Up to a $120 credit for Global Entry or TSA PreCheck(R).
• $95 annual fee.

Delta SkyMiles® Gold American Express Card

• 80,000 Bonus Miles after $3,000 in purchases within the first 6 months. See link for details.
• 80,000 Skymiles are worth at least $800 in Delta airfare with “Pay with Miles” option.
• $200 Delta flight credit after $10,000 in purchases on your card in a calendar year.
• First checked bag free on Delta flights ($70 value per roundtrip, per person).
• $0 annual fee for the first year, then $150.
• See Rates and Fees

Southwest Rapid Rewards® Plus Credit Card

• Limited-time offer: Earn a Companion Pass(R) good through 2/28/26 plus 30,000 points after $4,000 on purchases in the first 3 months. See link for details.
• Southwest still gives everyone two free checked bags.
• Timing for Companion Pass. If you can sign up for this one and perhaps also the small business version, and time the points to post in 2025, you can qualify for a Companion Pass for 2025 and 2026.
• $69 annual fee.
• Subject to 5/24 rule.*

Chase Sapphire Preferred® Card

• 60,000 Ultimate Rewards points (worth $750 towards travel or transferrable to miles/points) after $4,000 in purchases within the first 3 months. See link for details.
• $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase TravelSM, 3x on dining and 2x on all other travel purchases.
• $95 annual fee.
• Subject to 5/24 rule.*
• Upgrade pick: Chase Sapphire Reserve® Card. Higher travel perks including airport lounge access, higher annual fee.

British Airways Visa Signature® Card

• 75,000 Avios after $5,000 in purchases within first 3 months. See link for details and redemption tips.
• 10% off British Airways flights starting in the US when you book through the website provided in your welcome materials.
• Free Travel Together companion ticket when you spend $30,000 in a calendar year.
• $95 annual fee.

Aeroplan® Credit Card

• Up to 70,000 bonus points. 60,000 bonus points after $3,000 on purchases in first 3 months. Plus, 10,000 bonus points after annual fee renewal payment posts and is paid in full. 70,000 points are redeemable for $875 against any travel purchased with Pay Yourself Back. See link for details.
• Free first checked bags on Air Canada flights: one free checked bag for the primary cardmember and up to eight other travelers on the same itinerary.
• Aeroplan 25K Elite Status benefits for the remainder of the first calendar year, plus the following calendar year.
• Up to $120 Global Entry, TSA PreCheck® or NEXUS fee credit.
• $95 annual fee.
• Subject to 5/24 rule.

Citi AAdvantage Platinum Select Card

• 75,000 American Airlines miles after $3,500 in purchases in first 4 months. See link for details.
• First checked bag free on domestic AA flights ($80 value per roundtrip, per person).
• $0 annual fee for the first year, then $99.

IHG One Rewards Premier Credit Card

• 170,000 Bonus Points after $4,000 in purchases in the first 3 months. See link for details.
• Free Night after each account anniversary year (valued up to 40,000 IHG points).
• $99 annual fee.
• Subject to 5/24 rule.
• Don’t like annual fees? The no-annual fee Traveler version also has a competitive offer with no annual fee.

IHG One Rewards Traveler Credit Card

• 100,000 IHG Rewards club points after $2,000 in purchases within the first 3 months. See link for details.
• 4th Award Night Free (Book 3 nights in a row with points, 4th is free)
• No annual fee.
• Subject to 5/24 rule.*

The Platinum Card® from American Express

• 80,000 Membership Rewards(R) points after $8,000 in purchases in the first 6 months.
• Up to $200 Hotel Credits, up to $240 Streaming Credits, $200 Airline Fee Credits, $200 Uber Cash, $199 CLEAR Plus credit, $300 Equinox credit, up to $155 Walmart+ credit and more annually! Enrollment is required.
• Up to $120 Global Entry or $85 TSA PreCheck fee credit.
• Premium airport lounge access through the American Express Global Lounge Collection®.
• $695 annual fee.
• See Rates and Fees

Capital One Venture X Rewards Card

• 75,000 miles (worth $750 to offset travel purchases, or transferrable to miles) after $4,000 in purchases within the first 3 months. See link for details.
• $300 annual travel credit. Get up to $300 in statement credits when booking through Capital One Travel.
• Additional 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary.
• Priority Pass + Capital One airport lounge access. Additional cardholders are free, and also get their own Priority Pass!
• Up to a $120 credit for Global Entry or TSA PreCheck(R).
• $395 annual fee.

Citi Strata Premier Card

• 75,000 points (worth $750 in gift cards, or transferrable to miles/points) after $4,000 in purchases in the first 3 months. See link for details.
• 3X points for every $1 spent on Hotel purchases, Air Travel, Restaurants, Supermarkets, Gas Stations, EV Charging.
• Must not have gotten bonus from or closed a Citi Premier or Strata Premier card in the past 48 months.
• $95 annual fee.

Bank of America Premium Rewards Card

• 60,000 points (worth $600) after $4,000 in purchases within the first 90 days. See link for details.
• $100 annual Airline Incidental Statement Credit.
• Up to $100 credit towards TSA PreCheck or Global Entry application fee.
• $95 annual fee.

Wells Fargo Autograph Journey Card

• 60,000 points (worth $600 towards travel) after $4,000 in purchases within the first 90 days. See link for details.
• $50 annual statement credit with $50 minimum airline purchase.
• $95 annual fee.

Alaska Airlines Visa Card (Bank of America)

• 75,000 bonus miles + Companion Fare voucher after $3,000 in purchases within first 90 days. See link for details.
• Companion fare voucher is “Buy one ticket, get one from $23” ($0 fare plus taxes and fees from just $23).
• Free first checked bag on Alaska flights for you and up to six other passengers on the same reservation (worth $70 roundtrip per person).
• $95 annual fee.

Hawaiian Airlines MasterCard

• 70,000 Hawaiian miles after any purchase (of any amount) within the first 90 days. Try various 6-digit codes, like “000111”. The normal offer has a higher spending requirement. See link for details.
• Two free checked bags for primary cardmember when you use your card to purchase tickets directly from Hawaiian Airlines.
• One-time 50% off companion discount for roundtrip coach travel between Hawaii and The Mainland on Hawaiian Airlines.
• $99 annual fee.

JetBlue Plus Card

• 70,000 bonus TrueBlue points after $1,000 on purchases and paying the $99 annual fee in full, both within the first 90 days. See link for details.
• First checked bag free for the primary cardmember and up to 3 companions when tickets are purchased with your JetBlue Plus Card.
• $99 annual fee.

American Express® Gold Card

• 60,000 Membership Rewards(R) points after $6,000 in purchases in the first 6 months. See link for details.
• $84 Dunkin’ Credit. Up to $7 in monthly statement credits after you enroll and pay with the American Express(R) Gold Card at US Dunkin’ locations. Enrollment is required.
• $100 Resy Credit. Get up to $100 in statement credits each calendar year after you pay with the American Express(R) Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. Broken down into up to $50 in statement credits semi-annually. Enrollment is required.
• $120 in Uber Cash annually (good towards Uber Eats or Uber rides in the US). Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
• Up to $120 in annual dining credit at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment is required.
• 4X points at restaurants on up to $50,000 per calendar year.
• 4X points at US supermarkets on up to $25,000 per calendar year.
• $325 annual fee.
• See Rates and Fees

Marriott Bonvoy Brilliant® American Express® Card

• 95,000 Marriott Bonvoy(R) points after $6,000 in purchases in the first 6 months. See link for details.
• $300 in Annual Dining Credits, valid at restaurants worldwide.
• Priority Pass Select airport lounge membership.
• Automatic Marriott Bonvoy Platinum Elite status.
• Free Night Award upon card anniversary (worth up to 85,000 Bonvoy points).
• $650 annual fee.
• See Rates and Fees

Barclays AAdvantage Aviator Red Mastercard

• 60,000 American Airlines miles after any single purchase and paying the $99 annual fee in full, both within the first 90 days. See link for details.
• First checked bag free on domestic AA flights ($80 value per roundtrip, per person).
• $99 annual fee.

UnitedSM Explorer Card

• 50,000 miles after $3,000 in purchases within 3 months. See link for details.
• Free first checked bag for both you and a companion (a savings of up to $160 per roundtrip) when you use your Card to purchase your United ticket.
• Up to $120 Global Entry, TSA PreCheck® or NEXUS fee credit.
• $0 intro annual fee for the first year, then $95.
• Subject to 5/24 rule.

If you pay off your balances every month, then you can join me and many others in funding a huge chunk of your annual travel budget with cash credits, points, and miles. I mostly use my rewards points on family trips – domestic economy flights, mid-range hotels, and cheap car rentals. If you have credit card debt, you should focus on paying that off first as the interest charges could offset most of the perks.

* 5/24 Rule? Certain Chase cards have a “5/24 rule” which is an unofficial rule that they will automatically deny approval on new credit cards if you have 5 or more new credit cards from any issuer on your credit report within the past 24 months (2 years). This rule applies on a per-person basis, so if you are new, you might want to start with those Chase cards.

Delta SkyMiles(R) Gold American Express Card: See Rates and Fees

American Express(R) Gold Card: See Rates and Fees

The Platinum Card(R) from American Express: See Rates and Fees

Marriott Bonvoy Brilliant(R) American Express(R) Card: See Rates and Fees

Hilton Honors Card from American Express: See Rates and Fees

Raisin is a financial marketplace that allows you to access high-interest certificates of deposit and savings accounts from multiple different banks and credit unions without having to open up a new account at each one. Right now, they have some new deposit bonuses that are pretty solid based on the bonus-to-deposit ratios and minimum holding periods. However, I will personally not be taking advantage of them due to their use of custodial FBO accounts. I think it’s most useful to both point out the existence of these bonuses and explain my take on them. Details below.

Here are the new bonuses:

• New customer $250 bonus. Open a new account with promo code GET250, deposit $25,000 within 14 days, and maintain for 90 days for the $250 bonus.
• Existing customer deposit bonus, up to $400. Must deposit $50,000 in new money. $200 on a 3–6 month CD. $300 on a 7–11 month CD. $400 for a 12+ month CD. Must maintain for full CD maturity period.

How Raisin works. The benefit of Raisin is that you can easily access aggressively high rates at a new bank or credit union without having to open yet another new account (and endure credit checks, identify verification hurdles, join partner organizations, leave funds in share savings accounts, etc). The price is added complexity, higher risk for miscommunication and errors, and a place in a regulatory shadow zone.

Instead of opening a direct account at a new partner bank, there are at least three different parties.

• Raisin, which is the overall business (“financial technology company”) and not a bank and not a credit union. (Source #1)
• There are the middlemen, Custodial Bank(s) and Service Bank. The Custodial Bank opens up FBO (For Benefit Of) accounts at each of the Partner Banks/Credit Unions in THEIR names. These FBO accounts are basically big pooled accounts, and the Custodial Bank is supposed to keep track of all the money going in and out for all the individual Raisin customers in their own virtual ledger. The Service Bank is in charge of moving your funds amongst the various banks. Central Bank of Kansas City (CBKC), Member FDIC, is the Service Bank. CBKC, Lewis & Clark Bank and Starion Bank, each Member FDIC, are the Custodial Banks. (Source #2)
• There are the partner banks. These banks and credit unions are looking to grow deposits, but they have no idea who you are as an individual. They come and go on the Raisin platform. They only see that they opened a single, huge FBO account for the Custodial Bank. (Source #3)

While this setup appears to be perfectly legal (as far I can tell, I am not a lawyer), that doesn’t mean that there is someone to clean up the mess if something goes wrong. It’s like if someone steals your wallet and the cops are too busy with violent crime to track them down, it doesn’t matter if it’s illegal, you’re still not getting your money back.

The real-world example is what happened with Juno, Yotta, Synapse, and Evolve Bank & Trust. They had major disagreements about the ledger tracking all the deposits and withdrawals. They all blamed each other for the missing funds (~$50 million). Since no bank actually failed, the FDIC did not step in. No other regulatory agency stepped in. I was surprised. It was all left to a severely-underfunded bankruptcy court, and the mess still isn’t figured out. Someone ran off with tens of millions of dollars, and innocent individuals were left holding the bag.

Source #1:

Raisin is not a bank and your money is always handled by a federally regulated financial institution — whether in transit, stored in the Cash Account, or in an account at a partner bank. The Custodial Bank keeps records of all funds deposited through the Raisin platform for added security.

Source #2

Custodial accounts are accounts held on for the benefit of Raisin customers by a custodial bank at the banks and credit unions where customers deposit their money through Raisin. When a customer makes a deposit through the Raisin platform into a savings product offered by a given financial institution, the funds move from the customer’s external bank account (also referred to as their reference account) to a custodial account held by one of Raisin’s partner custodial banks at the financial institution offering the savings product. Central Bank of Kansas City (CBKC), Lewis & Clark Bank and Starion Bank, each Member FDIC, are the Custodial Banks.

Source #3:

An FDIC-supervised custodial bank opens the “For Benefit Of” account for each customer and agrees directly with Raisin’s customers to act as the custodian of their funds. This custodial bank is authorized by Raisin customers, as their agent, to hold their deposits at federally regulated banks and credit unions on their behalf in a custodial capacity. Customer funds are never co-mingled with Raisin funds.

Again, if everyone does what they say they will, then it’s all good. The problem is what happens when they don’t. If it happens with Raisin (or any of the parties involved, all relatively small institutions), it has the potential to be a complete mess that could take years to untangle. In today’s regulatory environment, I have zero interest in putting my cash into any sort of regulatory grey area.

In contrast, the CIT Bank $225/$300 deposit offer involves a simple, direct relationship with CIT Bank, an FDIC-insured bank, where you have an individual/joint account directly held in your name. There is a single system. There is no potential pointing of figures between multiple parties. There is a long, established history of the FDIC stepping in resolve a bank failure within days. It’s about as safe as it gets.

Bottom line. I’m doing the CIT bank offer, but not the Raisin offer.

As a follow-up to my posts for Vanguard and Fidelity money market funds, iShares ETFs (Blackrock) has also recently released their US GOI percentages for 2024 tax year. US Government Obligation Interest (US GOI) like Treasury bills and bonds are generally exempt from state and local income taxes. However, in order to claim this exemption, you’ll likely have to manually enter it on your tax return after digging up a few extra details.

The tax document has a pretty good summary of the situation for all brokers:

The Form 1099-DIV (or substitute form) you received from your financial advisor or brokerage firm may include income derived from U.S. Government and agency obligations. This income may be excluded from state income tax (although in many states, only the income from Treasury obligations is exempt from personal state income tax). The information below is provided to assist with the completion of shareholder state income tax returns. The amount in Box 1a of 2024 IRS Form 1099-DIV should be multiplied by the applicable percentages below to obtain the dollar amount of income derived from the sources categorized below. Because the qualifications for exclusion vary by state (some states have investment threshold requirements), please consult your tax advisor for details.

It’s notable that even things like the iShares iBonds 20XX Term TIPS ETFs are not 100% US government obligations, so it’s important to reference this document and not assume. For iShares TIPS Bond ETF (TIP) and iShares 0-5 Year TIPS Bond ETF (STIP) the USGOI percentage for 2024 was indeed at 100.00%.

For iShares 0-3 Month Treasury Bond ETF (SGOV), the USGOI percentage for 2024 was 97.53%. This is pretty good and why SGOV is my default cash position at most brokers. The tax document also confirms that at least 50% of the assets of the fund were invested in Federal Obligations at the end of each quarter of the fiscal year. That means that SGOV met the minimum criteria for the dividend income to be exempt in the states of California, Connecticut, and New York.

The Virgin Red Rewards credit card is the co-branded card for Virgin Red, the loyalty program for Virgin Atlantic flights, Virgin Hotels and Virgin Voyages. In addition, Virgin points can be used for other things like Delta Airlines flights, Legoland tickers, all the way down to a bag of AMC movie popcorn. Right now, there is a limited-time offer, so let’s take a closer look.

• 60,000 Virgin Points when you open an account between 2/18/25-3/31/25 and spend $3,000 in the first 90 days.
• 3X Virgin Points per $1 spent on Virgin Atlantic, Virgin Hotels and Virgin Voyages.
• 2X Virgin Points per $1 spent at grocery stores, on dining out, select streaming services and EV charging.
• 1 Virgin Point per $1 spent on everything else.
• Spend $15,000 in a year to choose one Personal Perk, or $30,000 to?choose two. Options include Flying Club reward voucher for a companion seat or cabin upgrade (Virgin Atlantic), a free night stay or priority upgrade (Virgin Hotel), or a $150/$300 Bar Tab credit or Blue Extras perk package (Virgin Voyages).
• Book two nights at a Virgin Hotel, get your third night free with this card.
• Add an authorized user and earn 2,500 Virgin Points. Maximum of 10,000 Virgin Points.
• Earn Tier Points with Virgin Atlantic Flying Club. Earn 25 Tier Points for $2,500 of qualifying spend, up to 50 Tier Points a month.
• Anniversary bonus: 5,000 Virgin Points every year you renew.
• $99 annual fee.

This card is currently a Mastercard issued by Synchrony Bank. While Synchrony is not my favorite issuer, that can actually be a good thing once if you’ve already gotten many of the other popular rewards cards and they start to turn you away…

What can you redeem Virgin Points for? First, a quick reminder that there are both Virgin Red points and Virgin Flying Club points. Although they are separate programs, you can link your accounts together and use your points across both programs.

You can redeem Virgin points for free flights on Virgin Atlantic Airlines, including Economy, Premium Economy, and Upper (First) Class. There is no fixed award chart, but you can use this Reward Seat Checker tool to see what is available. Here are the best case scenarios for a Saver reward, which are very limited. You’ll also have to watch out for carrier-imposed surcharges, which are not included.

The US partner airlines include Delta Airlines and Hawaiian Airlines. There are also a variety of international partner airlines including both SkyTeam (Air France/KLM) and non-SkyTeam (like ANA), which I won’t go into detail here.

For Hawaiian Airlines, here are the roundtrip costs, excluding taxes, fees and carrier-imposed surcharges.

For Delta Airlines, here are the one-way costs for domestic flights within the US, excluding taxes, fees and carrier-imposed surcharges. The cost is based on distance, so it can be a relatively better deal for shorter Delta flights within the US.

Lots of incoming transfer partners. Even if you rarely/never fly Virgin, a positive feature is that there are many ways to get Virgin points if you need some extra to meet a redemption. These are all the programs that transfer into Virgin Red points at a 1:1 ratio:

• American Express Membership Rewards
• Chase Ultimate Rewards
• Bilt Rewards
• Capital One Miles
• Citi ThankYou Rewards
• Wells Fargo

You can also transfer from Marriott Bonvoy at a different 3:1 ratio (plus possible 5,000 bonus miles for every 60,000 points transferred).

Like most co-branded credit cards, the value depends a lot on how often you already use Virgin products. As someone who has never used any Virgin product, my plan for this card would be instead to use the bonus points within the first year on economy Delta flights for my entire family. I’d transfer enough points over from another program to top off the account and use them all at once. I’ll have to see if Delta flies to where we want to go and calculate the cost based on distance.

Bottom line. The Virgin Red Rewards credit card is the co-branded card for Virgin Atlantic flights, Virgin Hotels and Virgin Voyages. Right now, there is a limited-time offer of 60,000 bonus Virgin points, which are can be redeemed towards airfare on Virgin Atlantic or Delta Airlines, along with some other partner airlines.

I do believe it is reasonably easy to get $600+ of flight value out of 60,000 Virgin points, so I will be adding this card to my list of Top 10 Best Credit Card Bonus Offers.

The information for the Virgin Red Rewards credit card has been collected independently by My Money Blog. The card details on this page have not been reviewed or provided by the card issuer.

The Canada Pension Plan Fund (CPP) is one of the two major components of Canada’s public retirement income system, along with Old Age Security (OAS). The CPP mandates that all employed Canadians age 18+ to contribute a certain percentage of their earnings (with an match contributed by their employer) to the CPP, managed by a group called CPPI. (Source: Wikipedia.)

I learned all of this because the CPP has become an interesting example where we can compare an investment manager that has chosen to switch to the high-cost, “we can do better because we are smarter” philosophy: lots of highly-paid employees, lots of highly-compensated hedge fund and private equity managers, lots of fees paid, all in search of higher returns. Luckily, we can see if they succeed because they have to publish their results for all to see.

My sources are two interesting articles and the CPP 2024 Annual Report:

• Opinion: Eighteen years and $46-billion later, the CPP admits it could have earned more just by buying index funds [Globe and Mail]
• Canada Pension Plan Falls Short of Indexed Benchmark [Center for Retirement Research at Boston College]
• CPP Annual Report 2024

In their fiscal 2024, the CPP paid C$3.5 billion in fees to external investment managers. (The fees paid in 2006 were just C$36 million. As in only C$0.036 billion, 100 times less!) The pension fund itself has grown to over 2,000 employees (up from only 100 employees in 2006), and after adding all operating expenses and transaction costs, the fund’s total expenses now exceed C$5.5 billion annually.

The total assets are roughly C$630 billion. C$5.5 billion of costs on C$630 billion of assets means the fund’s annual expenses eat up 0.87% of the total assets every year. That is creeping very close to 1% of assets annually.

What have those costs bought? Not much so far. In fact, the 5-year performance lag in returns as compared to a passive benchmark portfolio is actually higher than that. The CPP chooses its own Reference Portfolio to match up with their mix of hedge funds and private investments, and it has shifted over the years going from 65% Global Equities/35% Bonds in 2015 to 85% Global Equities/15% Bonds in 2024. (Specifically, 85% MCSI World Index and 15% Canadian government bonds.)

After many pages in the CPP Annual Report explaining their very fancy system and why they believe they will outperform… here’s the one chart that shows their actual value-added. This is their own chart and language.

The CPPI says that we should be okay with this lag, partially because they are so “resilient” during market downturns. This is an often-cited reason for underperformance, but I question it on two levels.

First, with many of these illiquid investments, the values are essentially self-reported. Private REITs always have lower volatility than publicly-traded REITs because they get to report their own net asset value. What’s the value of a building or business that hasn’t actually sold on the open market? Who really knows? Sure, the numbers have to be within reason, but otherwise they are easily fudged. Second, you could have gotten lower volatility by simply holding a little less stocks and a little more bonds. That would have also been more resilient.

I’ve also read the follow-up defense pieces, but I wasn’t really swayed. It’s all the same old stuff. The benchmark wasn’t really a good benchmark (in retrospect), even though they picked the benchmark themselves. Our performance beat our arbitrarily-set target (’cause everything went up), even if it lagged the benchmark. You have to pay up for smart helpers! Don’t you understand?! “I have people skills!”

(Counterpoint: It’s not common, but it can be done with less bloat and lower fees. The Public Employees’ Retirement System of Nevada (NVPERS) is an example of a pension fund that uses low-cost index funds for all of their publicly-traded asset classes. They have two employees. Their overall fees are 0.13%, mostly because they do hold about 12% in private assets. Their trailing 1-year performance as of 9/30/24? 20% annualized. Source.)

Right now, the alarms are not ringing for the CPP because the markets are up a lot and they are generating solidly positive returns even if they lag the market by 1% or 2% annually. I will be on the lookout for future updates on the CPP to see if they can justify their high cost structure over the long run. In the meantime, perhaps Canadian taxpayers should re-read Warren Buffett’s parable warning us about expensive Helpers.