Today I received a no-fee 0% APR balance transfer offer from my Discover credit card for up to my credit line of $6,000. It is the first such offer (both 0% APR and zero-fee) I have received, so I did spend some time reading and confirming the fine prints.

I plan to save this $5,000 to the 2.10%-yielding VirtualBank eMoney Market account. This little carry trade should land me about $75 in interest in the next nine months. (I do need to pay back the minimal every month, so not all $5,000 will be used for carry trade for the entire nine months.)

I finally decided to write me a check of $5,000 to take advantage of the offer (yes, the offer explicitly says even if I write myself a check, it will be considered as a balance transfer instead of cash advance). I don't want to take out the entire $6,000 because maxing out a credit account will leave the impression that I am cash stripped and hurt my credit profile.

I also thought about depositing the money at TreasuryDirect by purchasing Saving Bonds. It will generate a little more interest, but as Saving Bonds cannot be cashed in the first 12 months, and early withdrawal before five years will lead to 3-month interest penalty, it is not a good place to park the 0% APR money.

(By the way, if you want to open an account in VirtualBank to exploit the highest interest rate with maximum liquidity, give me a mail so I can refer you and both of us can enjoy a nice bonus of $20.)