Get Free Money: 0% Balance Transfer cards with No Transfer Fee: Chase Slate (15 months)
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VO: ChipsMoneyTips. Starring Chip Chinery, with guest stars Socky, The Geezer and Pancho Pete – The Patron Saint of Online Banking, and introducing Annie. Tonight’s episode: Arbitrage!!
Chip: Hi everybody, welcome to ChipsMoneyTips, I’m Chip Chinery. Today I’m going to talk about Arbitrage.
Socky: What’s Arbitrage?
Chip: That is a VERY good question Socky. To answer your question, let’s ask Annie…
Annie: Arbitrage is profiting by exploiting price differences of identical or similar financial instruments, on different markets or in different forms.
Chip: In simple terms, and the best of circumstances, it is the possibility of a risk-free profit at zero cost.
Geezer: I don’t get it. I’m a geezer. Old.
Chip: If you can borrow money at 0%, then turn around and invest it somewhere at guaranteed return of 3%, you made 3% with no risk. That is arbitrage.
CUT TO Annie saying “Arbitrage”.
A few years ago, I made thousands of dollars a year doing this.
Socky: Pray tell, ChipsMoneyTips.
Chip: Well, I will pray tell you. Socky.
I would get a 0% balance transfer credit card, then have them dump the entire balance into an account where I was earning 5-6% interest – at an online bank.
INSERT PANCHO PETE: WE DON’T NEED NO STINKIN’ BRANCHES
No you don’t, Pancho Pete. 5-6% on $40K was $2,000-$2,400 a year! Then in 2008, interest plummeted and cards started charging 3-5% transaction fees. They checked our mate; parried our thrust; upped our jig!
Geezer: What the hell did you just say? Give it to me straight – in Spanish!
Chip: No mas.
Now it’s 2012 and 0% balance transfer cards with NO Transfer fee are popping up again! If you are watching this at ChipsMoneyTips.com, there are links below this video for those cards as well as some suggestions as to where you can put your free money so you can decide if you wanna dabble in a li’l ARBITRAGE!