Downside to opening new checking account for bonus $$

[familyfirsttimer]

I can always find great information here for both sides of any financial issue.
Got a bonus offer for a bank(Santandar) for $150 if you open a new checking account and have $500 direct deposited in the first 90 days. There are no fees and a small minimum balance so I don't really see the downside here except for changing my direct deposit which is simple.

Please let me know what I could be missing here? I have not been happy with my credit union for the last few years and this might be the perfect time to switch....

TIA for sharing any of your experiences.

 

[amcnj]

The only possible downside (if it really is one) I know of can be if you have things paid directly from your current checking account. Switching them over to the new account can take time and you will have to maintain both accounts (each with sufficient money to cover any direct debits) till all the changes are completed. Is that the only offer Santander currently has? They used to have one where they gave you $10 or $20 each month (put directly into your account) and they claimed it would be forever I think.

 

[familyfirsttimer]

The only possible downside (if it really is one) I know of can be if you have things paid directly from your current checking account. Switching them over to the new account can take time and you will have to maintain both accounts (each with sufficient money to cover any direct debits) till all the changes are completed. Is that the only offer Santander currently has? They used to have one where they gave you $10 or $20 each month (put directly into your account) and they claimed it would be forever I think.

thanks for the advice and as far as the offers, will have to look into that. I just got a paper offer in the mail yesterday and since it was $150, I thought I should entertain it. Thank you

 

[cherrybomb11]

I can always find great information here for both sides of any financial issue.
Got a bonus offer for a bank(Santandar) for $150 if you open a new checking account and have $500 direct deposited in the first 90 days. There are no fees and a small minimum balance so I don't really see the downside here except for changing my direct deposit which is simple.

Please let me know what I could be missing here? I have not been happy with my credit union for the last few years and this might be the perfect time to switch....

TIA for sharing any of your experiences.

Actually, you don't even really have to switch everything. If your work allows you to do an allottment, just have it deposit a set amount the next few paychecks to make the $500, then stop the allotment when you're done. You may also want to do some google sleuthing - when I've done this in the past (other banks, not Santander), a direct transfer from your own bank account counted as a direct deposit. Either link the accounts together online or send yourself an e-check, both options are available from most bank websites.

The only tiny downside is that opening a bank account sometimes counts as a hard credit inquiry, but unless you are applying for a big loan soon or opening accounts left and right, it shouldn't be an issue.

 

[tvguy]

The only possible downside (if it really is one) I know of can be if you have things paid directly from your current checking account. Switching them over to the new account can take time and you will have to maintain both accounts (each with sufficient money to cover any direct debits) till all the changes are completed.

That would be about my only concern.

 

[Ngwira]

I can always find great information here for both sides of any financial issue.
Got a bonus offer for a bank(Santandar) for $150 if you open a new checking account and have $500 direct deposited in the first 90 days. There are no fees and a small minimum balance so I don't really see the downside here except for changing my direct deposit which is simple.

Please let me know what I could be missing here? I have not been happy with my credit union for the last few years and this might be the perfect time to switch....

TIA for sharing any of your experiences.

You will likely get a 1099 interest from the bank. Interest on checking accounts(and savings) is reportable while cash back bonus or sign up bonuses on credit cards are not.

 

[disneychrista]

You will likely get a 1099 interest from the bank. Interest on checking accounts(and savings) is reportable while cash back bonus or sign up bonuses on credit cards are not.

This is what I was going to say.

 

[Shelly F - Ohio]

As far at the 1099 you would have to earn $10 or more in interest to get one. You don't have to claim the interest if it is under $10 therefore banks do not mail them out for anything under $10. Now a days with the interest rates so low you would have to have A LOT in an acct to get that much in interest. I say go for it. $150 is a good deal especially if you are not happy with your current bank.

 

[disneychrista]

As far at the 1099 you would have to earn $10 or more in interest to get one. You don't have to claim the interest if it is under $10 therefore banks do not mail them out for anything under $10. Now a days with the interest rates so low you would have to have A LOT in an acct to get that much in interest. I say go for it. $150 is a good deal especially if you are not happy with your current bank.

While that may be true the $150 would be considered income for tax purposes. I did this once. Set up my account for autopay and got $X and got 1099 for the amount.

 

[Ngwira]

While that may be true the $150 would be considered income for tax purposes. I did this once. Set up my account for autopay and got $X and got 1099 for the amount.

Me too.

 

[DreamIsaWish]

The only tiny downside is that opening a bank account sometimes counts as a hard credit inquiry, but unless you are applying for a big loan soon or opening accounts left and right, it shouldn't be an issue.

That's the thing most people don't realize. I sure was surprised the first time I figured that out.

 

[hsmamato2]

I wasn't paying attention to this,then I got a really nice offer from a local bank in the mail.... I am considering it.... my offer says I need to have either one direct deposit,10 debit transactions using the pin, or 5 bill payments to get the bonus.... wondering if just using the debit card will do it?

 

[tvguy]

The only tiny downside is that opening a bank account sometimes counts as a hard credit inquiry, but unless you are applying for a big loan soon or opening accounts left and right, it shouldn't be an issue.

I'm sorry, I can't even imagine being in a situation where one hard credit inquiry would disqualify me from getting a loan.