Passive Income With Coins From The U.S. Mint

by Scott on August 20, 2008

Madison @ My Dollar Plan found an interesting way to get Free Money From the US Mint. What’s needed is $250-$2,500 in available funds and a rewards credit card. I would not advise you try this if you carry any balance on your cards, as it defeats the purpose. Start here if you need to get out of credit card debt. In fact, I would urge you not to consider this if you also don’t have an emergency account or short term savings account. This is an investment and will take a couple weeks to receive your coins. You might have the CC bill come due before you receive your coins, so be careful! If you want to read further, here’s an interesting way to earn some fun money.

  1. Visit the U.S. Mint website and review the details.
  2. As of 8/19/08 standard shipping is free.
  3. Coins may be purchased as one box for $250 or two boxes for $500.
  4. One President per household. It appears you can purchase other Presidents. 5 are currently available.
  5. Use a cash back or reward credit card. The U.S. Mint accepts Visa, Mastercard, American Express (Amex), and Discover Cards.
  6. Once coins arrive, you can use them anywhere you shop. This is U.S. currency and is accepted everywhere. They would make a great gift from the tooth fairy too!
  7. If you don’t plan on spending $250 or $2,500 in cash soon, visit your local bank branch and make a deposit. If they give you a hard time, just make several $50 deposits.

What kind of passive income or alternative income will I expect from this transaction? I’m going to use my Blue Cash Rewards from American Express as an example. I have two reward tiers with this Amex card. I earn .05% on purchases up to $6,500 and then 1.5% on everything over that. Two examples show earning potential at .05% and 1.5% below. Be sure to read your credit card reward information carefully and call your company if you have any questions.

  1. Purchase $250 in coins @ .05% earns $1.25
  2. Purchase $250 in coins @ 1.5% earns $3.75
  3. Purchase $500 in coins @ .05% earns $2.50
  4. Purchase $500 in coins @ 1.5% earns $3.75
  5. Purchase the max $2,500 in coins @ .05% earns $12.50
  6. Purchase the max $2,500 in coins @ 1.5% earns $37.50

My conclusion: It may not be worth your time or effort if you are only going to purchase $250 in coins with a 1% reward card. You’ll only be earning $2.50 and may not be worth your time and cover your gas expense to your local bank. It could still be fun and if you were looking to purchase $1 Presidential coins anyway, you still might want to consider it. I do think it would be worth your time and money if you have a higher reward credit card and you can invest $500 or more. It takes just a few minutes to purchase the coins and as long as your bank will take your deposit, you’ll be making $1.25-$37.50 for your efforts. Your credit card reward program may earn you more! Just to be sure you should probably ask your bank manager if you could deposit these coins. I don’t see it being an issue, but they might have a limit to how many $1 coins they like to have on hand. You could probably get around this by making several $50 deposits.

Do you have a reward card that would yield more than 5% in this U.S. Mint example? Please share it with us. Have you ever purchased coins through the U.S. Mint before?

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{ 4 comments… read them below or add one }

1 jeflin August 24, 2008 at 5:26 am

This is an ingenious way to make some money but some people may sniff at the small change they make and time wasted in queuing.

Still it shows us what a little thinking can yield.

2 My Dollar Plan August 29, 2008 at 1:09 pm

So what do you think? Should we both order some?

3 Steve C | MyWifeQuitHerJob October 24, 2008 at 10:55 pm

I think the cost of gas in getting to the bank would offset most of the gains:)

4 D Peterson November 4, 2008 at 9:39 pm

Does a purchase as the USMint for coins get detected by a credit card company as a cash advance? If so, this may be a money loser as some credit cards immediately start charging interest on cash advances.

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