zeroshiki wrote: ↑Tue Feb 01, 2022 8:17 am
Basically you can invest 50k in Rakuten Cash per month completely separate from the CC Tsumitate so they've effectively made it 100k a month for the CC except that you have to invest using Rakuten's funny money that's not tpoints. Buying Rakuten Cash using your CC gets you 0.5% points (and then Securities gives a temporary boost of 0.5% during the initial period making it total 1% points)
It is a shame that Rakuten are making this 1% -> 0.2% cut.
But there's one more positive side to having another 50k/month (up to 100k/month total) you can funnel through the CC. It is a point that is not mentioned much, but there is an opportunity benefit to investing via credit cards. In Rakuten's case you receive the investment at the start of the month (usually 2nd or 3rd), but only have to pay for it via the CC bill at the end of the month (27th). So it helps cash flow, and means effectively you can gain an extra month of investing. For an investment product with say 6% average yearly growth, this is a ~0.5% benefit.
So even after the new Rakuten Cash promotion ends and that part drops to 0.5%, anyone who would be investing 100k/month+ anyway and manages their cash flow diligently could be slightly better off from this change* in the long run. Or at least until Rakuten next change the rules.
* before was 1% points + 0.5% opportunity benefit for 50k/month, which is 750 yen/month
after is 0.2% from CC 50k/month, 0.5% from Rakuten Cash 50k/month, + 0.5% opportunity benefit on 100k/month, total 850 yen/month
I don't think anyone on that tight a margin should be investing that much monthly personally.
The better thing in any case would be to start another 5万 Tsumitate with SBi or Monex via their CCs.
Haystack wrote: ↑Tue Feb 01, 2022 1:50 pm
The better thing in any case would be to start another 5万 Tsumitate with SBi or Monex via their CCs.
This is true of course.
But the point wasn't aimed so much for people operating on tight margins. It's the old adage about why do the rich still borrow when they can pay cash? Because they can benefit from leverage... It's is interest free in this example - even if only for a few weeks.
Putting aside the points, investing via CC is a good way to build credit I guess. Its also less painful than setting up direct debit which some people might find appealing.
On the other hand, SBI just announced that they're expanding their CC tsumitate offering to Tokyu (the department store, train company, hotel) which bodes well. I hope they expand it to a card I already have.
This whole conversation did remind me that the basic SMBC card (not gold) only gives 0.5% points so I'd hold off on actively switching to SBI if I were you (unless you want a gold card)
zeroshiki wrote: ↑Wed Feb 02, 2022 12:26 am
Putting aside the points, investing via CC is a good way to build credit I guess. Its also less painful than setting up direct debit which some people might find appealing.
On the other hand, SBI just announced that they're expanding their CC tsumitate offering to Tokyu (the department store, train company, hotel) which bodes well. I hope they expand it to a card I already have.
This whole conversation did remind me that the basic SMBC card (not gold) only gives 0.5% points so I'd hold off on actively switching to SBI if I were you (unless you want a gold card)
Monex will give 1% off starting this month with their card. SBI gives 1%-2% atm for premium cards (Probably temporary).
I can afford a Tsumitate Nisa + Regular Tsumitate.
So I will be looking to double-dip through two different Securities companies/cards.
My issue is I have a Rakuten card, an Amazon card and a Monex Account, and a Rakuten account. You CAN do a Tsumitate via SBI with a Amazon card, but you get no points.
I will need to acquire a Monex card, or open and SBI account and get a basic SMBC card. All that seems daunting.
Interesting. I never really bothered with Rakuten Pay (except to burn time limited points), because the extra 0.5% you can get via charging Rakuten Cash first was too much effort. But if you have to charge Rakuten Cash anyway to keep getting at least some points for investing, you may as well put in a bit more and get an extra 0.5% on cash for use with Rakuten Pay - of course this is what they want you to do - and you're still down 0.5% points on your investments. They'll probably cut the Rakuten Pay bonus next.
As an aside, at FamilyMart, I get 1 point when I show the Rakuten Point Card part of the Rakuten Pay app before paying, then I get 1 point from paying using the Rakuten Pay part. As I have set Rakuten Pay to deduct the price from my Rakuten Cash account instead of directly from my Rakuten Card, I am using up the the 0.5 point freebies I received earlier when using Rakuten Card to top up Rakuten Cash.
In effect I get 2.5 points per purchase at FamilyMart.
I don't know many other places that let you collect points from Rakuten Point Card, and Rakuten Pay simultaneously.
Lawson doesn't. From what I have seen, most supermarkets don't offer points for Rakuten Point Card as they have their own rival point cards.
Topping up Rakuten Cash is not a major deal for regular shopping.
But I am not sure how the new Rakuten Securities scheme will work.
Last edited by ToushiTime on Fri Feb 04, 2022 1:25 am, edited 2 times in total.
zeroshiki
01 Feb 2022, 17:17
Basically you can invest 50k in Rakuten Cash per month completely separate from the CC Tsumitate so they've effectively made it 100k a month for the CC except that you have to invest using Rakuten's funny money that's not tpoints. Buying Rakuten Cash using your CC gets you 0.5% points (and then Securities gives a temporary boost of 0.5% during the initial period making it total 1% points)
Do you think the Rakuten Cash deal will apply to scheduled tsumitate payments only?
If so, I wonder how it would be automated?
zeroshiki
01 Feb 2022, 17:17
Basically you can invest 50k in Rakuten Cash per month completely separate from the CC Tsumitate so they've effectively made it 100k a month for the CC except that you have to invest using Rakuten's funny money that's not tpoints. Buying Rakuten Cash using your CC gets you 0.5% points (and then Securities gives a temporary boost of 0.5% during the initial period making it total 1% points)
Do you think the Rakuten Cash deal will apply to scheduled tsumitate payments only?
If so, I wonder how it would be automated?
They actually said in the article that they will offer an automatic top up of Rakuten Cash from Rakuten CC for this so the flow of Rakuten Card -> Rakuten Cash -> Rakuten Securities is automated. The extra 0.5% bonus from August to December 2022 obviously will only apply to the Cash -> Securities portion.
ToushiTime wrote: ↑Thu Feb 03, 2022 3:56 am
As an aside, at FamilyMart, I get 1 point when I show the Rakuten Point Card part of the Rakuten Pay app before paying, then I get 1 point from paying using the Rakuten Pay part. As I have set Rakuten Pay to deduct the price from my Rakuten Cash account instead of directly from my Rakuten Card, I am using up the the 0.5 point freebies I received earlier when using Rakuten Card to top up Rakuten Cash.
In effect I get 2.5 points per purchase at FamilyMart.
To be pedantic, the actual breakdown is:
0.5% from Rakuten Card for charging Rakuten Cash
1.0% from Rakuten Pay for using Rakuten Cash
0.5% from Rakuten point card at Family Mart.
So you're getting a total of 2% points - 0.5% of which comes from the point card. Here are the places you can use the point card: https://pointcard.rakuten.co.jp/partner/
