AMEX MRCC to Wallet rotation [DETAILED POST]

[codenerd]

Hi TCFers,
This is a detailed post with calculations on the usage of AMEX MRCC to rotate money from wallet to bank.

Mobikwik Wallet:

• We need 3-4 Mobikwik accounts to maximize the benefit and minimize our wallet loading cost. Mobikwik allows 1 credit card to be linked to max 3 Mobikwik accounts. To make it further rewarding, you can opt for an add-on card and then use total 4 Mobikwik accounts by splitting 4 transactions on 4 accounts but via 1 card per 2 mobikwik accounts.
• We need multiple accounts because Mobikwik allows first Rs.1000 loaded via a credit card to wallet per Mobikwik account for free. No charge, no GST. Beyond 1000 rupee, it charges 29.5 per Rs 1000 loaded inclusive of GST.
• Below calculations are on that basis.

Transaction 1: 1500 (Cost = 14.75)
Transaction 2: 1500 (Cost = 14.75)
Transaction 3: 1500 (Cost = 14.75)
Transaction 4: 15500 (Cost = 457.25-50(via CENTURY code)=407.25)
Total: Rs.20000 (Cost = 14.75*3 + 407.25 =451.5)

Withdrawal:
Withdrawal from Mobikwik Wallet to savings account is free and no charges applicable

Amex MR:
Rs.1500*4 Bonus = 1000
Rs.20000 spend bonus= 1000
Total base rewards on 20k spent = 20000/50=400
Total MR Points = 1000+1000+400 = 2400
MR Points value (Considering worst case cash redemption @ 1MR=0.25p) = 2400/4= Rs.600

Mobikwik Xtra:
Now, to take it to next level and enjoy the interest free credit period (AMEX provides around 48 days period), we can invest the money we rotated via credit card to our savings account on Mobikwik Xtra which is a P2P which gives 12% PA.

Daily interest earning on 20K = (20000*0.12)/365 = 6.5
Amex interest free credit period = 30+18 days = 48 days
Approx earning for 44 days = 6.5*44=286 (removing 4 days for contingency for CC bill payment/investing/withdrawal)

Final Calculations:
Mobikwik credit card to wallet loading cost = Rs.401.5
Amex MR points value @0.25/MR = Rs.600
MB Xtra earning = Rs.286
Final estimated earning =600+286-401.5=Rs.485/month
Yearly eastimated earning = 485*12 = Rs. 5820

Earning the same interest via Bank Savings account interest rate:
Interest Amount earned above = 5820
Avg interest rate =4.5%
Principal Amount = 5820/0.045 = 1.29Lakhs

Avg interest rate =4.0%
Principal Amount = 5820/0.04 = 1.45Lakhs

If you feel that this calculation is off/some important factors not considered by me, please enlighten me and I will update the post accordingly.
By far i think this is the best way to utilize it without manufacturing unnecessary spends like Amazon GVs, etc.

One can question if all this is actually worth the hassle for a mere 500 rupee monthly? Well thats subjective and totally upto the cardholder!
There are people who undergo much more hassle for a mere less reward!

NOTE:
This is not for people who madly just go on a money rotation spree with no income and just for the sake of rewards. This whole strategy holds good if you have a financial standing to be able to prove so.
Also, when you can make money with a bit of extra effort, why leave that stone unturned as long it doesnt hurt you .

 

[techt]

In the noise of RuPay, I can understand American's pains of Amex. But focus this math towards investments like MFs, Sharemarket.

 

[AlgoTrader]

well, is it worth all the hassle for 500 ?

 

[techt]

well, is it worth all the hassle for 500 ?

Tax notices and CA fee is not accounted. If you do, it shall be -1,000 INR.

OP, not discouraging you. But these are not worth your time and effort.

 

[kushhh]

well, is it worth all the hassle for 500 ?

D E P E N D S

 

[codenerd]

In the noise of RuPay, I can understand American's pains of Amex. But focus this math towards investments like MFs, Sharemarket.

Yeah, already invested substantial amount of my salary towards MF, Stocks. This is just for reaping rewards for the sake of earning some rewards/retaining the card!

 

[codenerd]

Tax notices and CA fee is not accounted. If you do, it shall be -1,000 INR.

OP, not discouraging you. But these are not worth your time and effort.

Please explain this. And yes, I wanted some insights from a tax perspective too. From what I have gathered through my CA friends, mere 20k rotation monthly is like insignificant for a person earning a lakh or more and whose finances and taxes are all legitimate, no unnecessary spends.
I am sure we all have seen on this portal such people who knowingly/unknowingly just for the sake of these rewards/cashback spend 2x,5x,10x their income which obviously is stupid and unjustified.
But yeah, please share some drawbacks/loopholes with this strategy from tax/legal perspective.

 

[Zacobite]

no

Hi TCFers,
This is a detailed post with calculations on the usage of AMEX MRCC to rotate money from wallet to bank.

Mobikwik Wallet:

• We need 3-4 Mobikwik accounts to maximize the benefit and minimize our wallet loading cost. Mobikwik allows 1 credit card to be linked to max 3 Mobikwik accounts. To make it further rewarding, you can opt for an add-on card and then use total 4 Mobikwik accounts by splitting 4 transactions on 4 accounts but via 1 card per 2 mobikwik accounts.
• We need multiple accounts because Mobikwik allows first Rs.1000 loaded via a credit card to wallet per Mobikwik account for free. No charge, no GST. Beyond 1000 rupee, it charges 29.5 per Rs 1000 loaded inclusive of GST.
• Below calculations are on that basis.

Transaction 1: 1500 (Cost = 14.75)
Transaction 2: 1500 (Cost = 14.75)
Transaction 3: 1500 (Cost = 14.75)
Transaction 4: 15500 (Cost = 457.25-100(via CENTURY code)=357.25)
Total: Rs.20000 (Cost = 14.75*3 + 357.25 =401.5)

Withdrawal:
Withdrawal from Mobikwik Wallet to savings account is free and no charges applicable

Amex MR:
Rs.1500*4 Bonus = 1000
Rs.20000 spend bonus= 1000
Total base rewards on 20k spent = 20000/50=400
Total MR Points = 1000+1000+400 = 2400
MR Points value (Considering worst case cash redemption @ 1MR=0.25p) = 2400/4= Rs.600

Mobikwik Xtra:
Now, to take it to next level and enjoy the interest free credit period (AMEX provides around 48 days period), we can invest the money we rotated via credit card to our savings account on Mobikwik Xtra which is a P2P which gives 12% PA.

Daily interest earning on 20K = (20000*0.12)/365 = 6.5
Amex interest free credit period = 30+18 days = 48 days
Approx earning for 44 days = 6.5*44=286 (removing 4 days for contingency for CC bill payment/investing/withdrawal)

Final Calculations:
Mobikwik credit card to wallet loading cost = Rs.401.5
Amex MR points value @0.25/MR = Rs.600
MB Xtra earning = Rs.286
Final estimated earning =600+286-401.5=Rs.485/month
Yearly eastimated earning = 485*12 = Rs. 5820

Earning the same interest via Bank Savings account interest rate:
Interest Amount earned above = 5820
Avg interest rate =4.5%
Principal Amount = 5820/0.045 = 1.29Lakhs

Avg interest rate =4.0%
Principal Amount = 5820/0.04 = 1.45Lakhs

If you feel that this calculation is off/some important factors not considered by me, please enlighten me and I will update the post accordingly.
By far i think this is the best way to utilize it without manufacturing unnecessary spends like Amazon GVs, etc.

One can question if all this is actually worth the hassle for a mere 500 rupee monthly? Well thats subjective and totally upto the cardholder!
There are people who undergo much more hassle for a mere less reward!

not worth the effort..

 

[Pavan]

Transaction 4: 15500 (Cost = 457.25-75(via CENTURY code)=382.25)
This needs corrections

 

[sxchzy]

the arbitrage opportunity is good but mere 600 bucks a month wont make it lucrative enough

 

[codenerd]

Transaction 4: 15500 (Cost = 457.25-75(via CENTURY code)=382.25)
This needs corrections

Actually I checked multiple times and I was getting 100 instead of 75! I know some people get 75 but I am getting 100

 

[codenerd]

6

the arbitrage opportunity is good but mere 600 bucks a month wont make it lucrative enough

600 is the worst case redemption. People who go for MR to marriott bonvoy, they will get 4x or maybe even more. So its upto you!
Also this whole rotation takes mere 15 mins of my time once a month. Already have 3 mobikwik accounts in the family.

 

[sousnake]

One issue is since all your transaction are on Mobikwik, amex might block your card. In that case your earned MR points are also gone.

 

[sxchzy]

One issue is since all your transaction are on Mobikwik, amex might block your card. In that case your earned MR points are also gone.

no it wont

 

[sxchzy]

6

600 is the worst case redemption. People who go for MR to marriott bonvoy, they will get 4x or maybe even more. So its upto you!
Also this whole rotation takes mere 15 mins of my time once a month. Already have 3 mobikwik accounts in the family.

then that becomes a value proposition thing not an arbitrage oppurtunity

 

[techt]

Please explain this. And yes, I wanted some insights from a tax perspective too. From what I have gathered through my CA friends, mere 20k rotation monthly is like insignificant for a person earning a lakh or more and whose finances and taxes are all legitimate, no unnecessary spends.
I am sure we all have seen on this portal such people who knowingly/unknowingly just for the sake of these rewards/cashback spend 2x,5x,10x their income which obviously is stupid and unjustified.
But yeah, please share some drawbacks/loopholes with this strategy from tax/legal perspective.

If you are aware of tax you are safe as of now. But again you may up the game towards some other bigger premium cards and may go off hand.

 

[codenerd]

If you are aware of tax you are safe as of now. But again you may up the game towards some other bigger premium cards and may go off hand.

Yes but how is the current money rotation dealt with when it comes under taxation.

Also you are right if someone madly exploits this for roasting absurd amount of money which their finances/salary don't justify, it's plain stupidity 😅

 

[sidp]

One can question if all this is actually worth the hassle for a mere 500 rupee monthly?

After achieving so much in your life, from being a criminal to policeman, patient to a doctor, homeless to multi millionaire, you want to do rotation for a mere 500rs.
I expected better from you.
Very disappointed. Sigh!

 

[techt]

After achieving so much in your life, from being a criminal to policeman, patient to a doctor, homeless to multi millionaire, you want to do rotation for a mere 500rs.
I expected better from you.
Very disappointed. Sigh!

Side effects of blue pill

 

[sidp]

Side effects of blue pill

Joke's on you! too young to take a pill.
Like a wise man (Red forman) once said, " if a horse is in good shape, they say it's healthy as me".
And unlike him, my pant isn't on fire.

P.s.- is that Daniel day Lewis?