Bonus Money for Opening New Bank Account?

[Eagle]

Not sure if there's been a thread started on this somewhere but I'm curious as to what people think about opening up bank accounts for bonus cash.

For example Chase offers a $150 cash bonus the company will give a new customer for opening up a checking account… Conditions are set up direct deposit within 60 days, and deposit at least $100 within 10 days. You then receive a $150 bonus credited to your account within 10 days of completing these requirements. You can apply online or get a coupon emailed to you that you can take to a Chase branch. This offer expires on July 7, 2014. A $12 monthly service fee applies if you don’t meet at least one of the following requirements: have at least $500 in monthly direct deposits, have an average daily balance of at least $1,500, or have an average balance of $5,000 between all your Chase accounts. Must keep account open for 6 months.

Citizens Bank offers a $1,000 Bonus for College Savings when you open a CollegeSaver account. It is an interest bearing account, and if you open it and save the monthly minimum amount ($25 if child nuder 6 and $50 if child under 12) every year, you’ll receive a $1,000 bonus when your child turns 18. Opening an account earlier than when your child turns twelve will only increase the savings.

Has anyone taken advantage of such offers? Is it worth your time and effort? The bonus is typically reported as interest from what I understand?

Thanks in advance.

[doingitallwrong]

Yes, you'll get a 1099-INT from the bank for the cash bonus amount. I've done this a handful of times -- my mom does it quite often. (She has a more money to spread around than I do. ) If you've got an easy way to arrange the direct deposit, it doesn't take much time to set up the account (many of them you can do online). Most do require that you keep the account for six months.

These are probably the better deals, but I do kind of miss the days of free toasters and French white Corningware.

[corn18]

I haven't done this for opening a bank account, but I did do it on my old car loans. NFCU was offering a $250 bonus to refi a car with them. So I did three of mine and got $750. Then I paid them all off after the 2 month minimum time. No tax impact with this deal.

[scfr]

I actively pursue bank account opening bonuses now because pursuing the highest possible interest rate doesn't pay off like it did when rates were higher. (I still look for the highest interest rate but these days it's more like 1% vs. 0.5% instead of 4% vs. 2% like it was not too long ago). But I keep a critical eye on the requirements and what it takes to avoid monthly fees. There are only so many DDs you can have, so I avoid those unless the bonus is really juicy.

In 2013 I got $425 cash bonuses plus a Kindle Fire, and got almost half-way to meeting requirements for what is going to be a pretty decent bonus that is going to take 2 years to earn.

The DepositAccounts.com web site is the best place to look for bonuses. I'll bet you can find something better than the Chase one.

Yes, bonuses are reported as interest income.

Is it worth your time? Depends on the individual and what you would use that time for if not pursuing bonuses. Some people may think that $425 & a Kindle Fire is "chump change." I don't. (I quit doing $3 Pinecone surveys in 2013 because I decided it wasn't worth my time and I didn't enjoy it, but I picked up my bonus-pursuing activities.)

But yes, it means more record-keeping (keeping track of when you can close the account and still keep the bonus). That may drive some people nuts. I enjoy it.

[Eagle]

I actively pursue bank account opening bonuses now because pursuing the highest possible interest rate doesn't pay off like it did when rates were higher. (I still look for the highest interest rate but these days it's more like 1% vs. 0.5% instead of 4% vs. 2% like it was not too long ago). But I keep a critical eye on the requirements and what it takes to avoid monthly fees. There are only so many DDs you can have, so I avoid those unless the bonus is really juicy.

In 2013 I got $425 cash bonuses plus a Kindle Fire, and got almost half-way to meeting requirements for what is going to be a pretty decent bonus that is going to take 2 years to earn.

The DepositAccounts.com web site is the best place to look for bonuses. I'll bet you can find something better than the Chase one.

Yes, bonuses are reported as interest income.

Is it worth your time? Depends on the individual and what you would use that time for if not pursuing bonuses. Some people may think that $425 & a Kindle Fire is "chump change." I don't. (I quit doing $3 Pinecone surveys in 2013 because I decided it wasn't worth my time and I didn't enjoy it, but I picked up my bonus-pursuing activities.)

But yes, it means more record-keeping (keeping track of when you can close the account and still keep the bonus). That may drive some people nuts. I enjoy it.

Thanks for the heads up SCFR. I'll check out depositaccounts.com

I think with a simple spreadsheet it shouldn't be too hard to figure out when to close an account.

[rennigade]

$150? I thought you said they give you a reward!?

Seriously though...$150 reward is a joke. This isnt even something to get excited about. You can find almost any time a credit card that offers at least $500 in gift cards...or if you redeem the rewards for flights you can score much better deals. Not to mention a credit card requires far less effort to open/deal with.

[scfr]

$150? I thought you said they give you a reward!?

Seriously though...$150 reward is a joke. This isnt even something to get excited about. You can find almost any time a credit card that offers at least $500 in gift cards...or if you redeem the rewards for flights you can score much better deals. Not to mention a credit card requires far less effort to open/deal with.

You are assuming Eagle isn't already pursuing credit card bonuses, aren't you? Personally, I do both (bank and credit card bonuses), and perhaps Eagle already has the cc bonuses covered and that is why s/he asked about bank bonuses. And not everyone considers $150 a joke.