Feed on

Man, it’s a dreary day. For one, it’s been raining the entire day, and it looks very morose and bleak outside. Secondly, I just got done filing my taxes (just in the nick of time — my deadline is Jan. 31!)

Yowch. I just wrote two big fat checks in the amount of $1134 and $715 to the feds and arizona dept of revenue, respectively.

That’s a lot of money!! It always seems to hurt more when you pay it in one lump sum, rather than have it taken automatically out of your biweekly check.

Even though I earned less since I was a full-time student last year, I am pleased to report that I more than TRIPLED my taxable interest. I increased my taxable interest from $714 in 2006 to $2194 in 2007. Wowsers! That’s interest I earned solely from my saving accounts, CDs, and any bank bonuses I received. I guess that is a reflection of my increased efforts to seek higher interest accounts in the past year or so, as well as take advantage of some incredibly good sign up offers (e.g. Chase). For example, I had one CD at Arizona Heritage that matured in July which had a 8% APY — a rate which makes today’s APYs seem incredibly low in comparison.

However, a threefold increase in interest cannot be achieved without a huge increase in savings, and since I earned less I was actually able to stow away even less (*insert sad face here*). So how did I earn so much interest, you ask? My little credit card arbitrage experiment! With over $18,000 borrowed from credit card companies sitting in some high yield savings accounts, I was able to pull in some extra dividends.  I’d say the experiment has been pretty successful so far.

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