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 .

 

[ujjwal2024]

Cool, but
1. Get a dc which gives 1% cb on cc bill.
2. Get 2-3 mobikwik account for more cb on adding money.
3. Plat travel is first year free
Still returns are bad but it can be used if you are little shy of completing milestone.
Getting it for 4L wallet loading doesn't look that attractive.

1) I have assumed the worst case...for AMEX now getting 1% is very difficult as it is not in BBPS,,,if possible, then return will improve by 1%. Still real return will be very very small.
2) That will have very little effect as only Rs. 1000 free for a single account in a month so will have rs.24000 free for 2 other account
3) When it is first year free, you will miss the 10000 RP joining bonus, hence, the return will reduce further