Red card

New to YNAB- but curious if people purchase Target gift cards with their red card to save the 5%  on things like Netflix,  etc...?   

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  • You don't get the 5% discount when you buy Target gift cards. However, often around Christmas, they do sell the gift cards at a 10% discount so you can buy $300 worth of gift cards for $270. However, since I don't get the 5% discount via the Redcard, I just my Citi Double Cash to at least get the 2% cash back on the $270.

    Now, if you mean buying say a Disney gift card at Target with a Redcard, that could work. I get 6% cash back on streaming from my Amex Blue Cash Preferred so that's what I use for Netflix and Hulu though before they added that benefit I bought Netflix and Hulu gift cards at grocery stores because the Amex gave me 6% cash back there.

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  • Yes I buy Disney gift cards at 5% discount with red card- debit.  Was wondering if I should do the same for a year's worth of Netflix, Uber etc....

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  • I usually use my AmEx Blue Cash Preferred if I am running under the annual grocery cap. That's 6% rather than 5%. Also, that card recently added streaming services as a 6% reward, so I am no longer going to be paying for netflix through gift cards.

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  • I have never thought of this, but it is genius! I may consider it in the future. How would you track it in your budget tho?

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      • jenmas
      • jenmas
      • 5 mths ago
      • Reported - view

      Heatskitchen I have a gift card account so I just do a transfer from credit card to gift card account. However, then I have to mess with the credit card payment category a bit because YNAB treats it as a cash advance and adds money to TBB and the $ actually needs to be in the credit card payment category.

      HOWEVER as a caveat, my budget is not tight so I'm perfectly able to receive a Home Depot gift card for $25 and allocate those funds to my Clothing category because location and purpose of my funds is 100% separated. If your budget is tighter, you may need to consider the funds 100% spent when you buy the gift card in which case you need to first have a year's worth of Netflix funds available in the relevant category.

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