New to bank bonuses...any tips/tricks?

[Frwinkley]

I'm intrigued by some of the bank sign up bonuses that I'm seeing on other threads, but have yet to do any of them. Are there things I should be aware of? Any advice would be appreciated.

 

[Anthony1971]

No tricks but a bank bonus will be taxable as interest income. Banks are required to report 10 and over. If you plan on using the bank for what is offered it may be worth to switch but there are online savings accounts that will pay much higher interest. Many offers for bonus is localized so if you see something worth while and you read all the fine print including balance minimums and fees if….. and you agree with all then it may be worth it.

 

[Dznypal]

I do these whenever I qualify for them. Most banks yiu can’t have an account within a certain time. Most of the time it’s a year before you can open another one. Usually you need to have payroll or social security checks most banks want 1000$ within 45 days. I just open these accounts for the bonus. After the required time I close it put the money back in main account. It’s become a hobby for me. The interest so far didn’t effect our taxes.

 

[gottalovepluto]

Doctorofcredit.com is the best blog for that. Data points on all sorts of aspects of the bonuses (hard hit? What counts as a direct deposit?) and usually a rundown on the specific bonus you’re looking at. They maintain a monthly list of the best bank bonuses so I would start there.

Tips:

SPREADSHEET. Make it now. Bank, opening date, date to close, bonus, bonus posting date, bonus requirements, fees, fee waiving requirements, 1099 received Y/N (yes bonuses are taxable income), misc notes

Details. Details. And I’m gonna say it again, Details. You have to know the details of every bonus and you have to keep track in your spreadsheet. If you don’t do pesky details this is not the hobby for you. (Yep, it’s an actual hobby for some of us! You can have all the bank accounts you want if you can keep track of them. And just because you hit the bonus doesn’t mean you start moving your actual banking to them )

 

[Frwinkley]

Doctorofcredit.com is the best blog for that. Data points on all sorts of aspects of the bonuses (hard hit? What counts as a direct deposit?) and usually a rundown on the specific bonus you’re looking at. They maintain a monthly list of the best bank bonuses so I would start there.

Tips:

SPREADSHEET. Make it now. Bank, opening date, date to close, bonus, bonus posting date, bonus requirements, fees, fee waiving requirements, 1099 received Y/N (yes bonuses are taxable income), misc notes

Details. Details. And I’m gonna say it again, Details. You have to know the details of every bonus and you have to keep track in your spreadsheet. If you don’t do pesky details this is not the hobby for you. (Yep, it’s an actual hobby for some of us! You can have all the bank accounts you want if you can keep track of them. And just because you hit the bonus doesn’t mean you start moving your actual banking to them )

Just the advice I was looking for! Thanks so much.

Is there one (savings vs checking) that is easier and maybe less cumbersome? I'd hate to get starter checks/debit card for a bank account I never intend to use.

 

[gottalovepluto]

Just the advice I was looking for! Thanks so much.

Is there one (savings vs checking) that is easier and maybe less cumbersome? I'd hate to get starter checks/debit card for a bank account I never intend to use.

Never order checks. Get the debit card and put in a drawer as sometimes a bank will use that info to verify you. These bonuses are all about electronic transfers of money. I don’t care if it’s checking or savings personally, I just want bonuses so chasing bigger bonuses is my priority over type of account.

 

[Frwinkley]

Checking it out right now! Thanks for the help.

 

[georgina]

Checking it out right now! Thanks for the help.

Watch for offers from local banks. When we lived in Pittsburgh I had fairly easy bonuses from Huntington and Citizens, both on savings accounts because I had been avoiding the ones requiring a direct deposit. Those offers came on cards in the mail. Savings are usually easier. I opened an Ally online savings account in October and they were offering a 1% bonus for the money you transferred and kept until Jan 15. Once the bonus credits I will close the account.

I just signed up for Chase checking and savings accounts for a combined $900 bonus, then found out in order to get a direct deposit for the checking account I do have to send the company a voided check, they won't accept anything else. So I have to get checks. Something to think about if you sign up for an account that requires direct deposit.

 

[DisneyBill]

Marcus Bank is offering $100 bonus for 10k. It's on their landing homepage.

 

[georgina]

Marcus is extremely easy to work with.

 

[Dznypal]

I never get the checks or debit. There was one bank that instead having direct deposit you had to use the debit card 10 times amount didn’t matter so i woukd just buy small item since I squarriel away money for vacations so I didn’t want to spend a lot. Some banks are especially credit unions want both checking and savings. Sometimes too banks want a certain amount direct deposited by a certain time. Usually 1000$ within 90 days. It’s hard for me to make sure I can do the amounts since I’m pool at a hospital so I have no set schedule or hrs I work when there’s a sick call or someone need a day off but so far it hasn’t been a problem but as some one suggested keep good records. Have fun with it. It’s a fun hobby

 

[SueInBoston]

Thanks for this thread, it's time to move my $$, I got my Chase year end statement and I've made...ding ding ding $1.49 interest last year!!

Looks like I can move my money to TD and get $500 bonus

 

[Ryoukoe]

Watch for offers from local banks. When we lived in Pittsburgh I had fairly easy bonuses from Huntington and Citizens, both on savings accounts because I had been avoiding the ones requiring a direct deposit. Those offers came on cards in the mail. Savings are usually easier. I opened an Ally online savings account in October and they were offering a 1% bonus for the money you transferred and kept until Jan 15. Once the bonus credits I will close the account.

I just signed up for Chase checking and savings accounts for a combined $900 bonus, then found out in order to get a direct deposit for the checking account I do have to send the company a voided check, they won't accept anything else. So I have to get checks. Something to think about if you sign up for an account that requires direct deposit.

Direct Deposit doesn't always necessarily mean from your work paycheck...some banks consider deposits from Paypal or Venmo and many other places as a form of direct deposit. I would look at the forums for Doctor of Credit...there is a spreadsheet that lays out what each bank considers "Direct Deposit" that might make things easier for you.

 

[rangerxenos]

Thanks for this thread, it's time to move my $$, I got my Chase year end statement and I've made...ding ding ding $1.49 interest last year!!

Looks like I can move my money to TD and get $500 bonus

You'll get the bonus, but their regular interest rates are horrible. We moved most of our money to an online savings account, it's earning a LOT more than TD pays, even if you sign up for the bump up account.

 

[georgina]

Direct Deposit doesn't always necessarily mean from your work paycheck...some banks consider deposits from Paypal or Venmo and many other places as a form of direct deposit. I would look at the forums for Doctor of Credit...there is a spreadsheet that lays out what each bank considers "Direct Deposit" that might make things easier for you.

I have looked at the DOC list for Chase, have you? No Paypal or Venmo for them. The most recent Vanguard reports also said it didn't work, I may still try a Vanguard transfer, but not very confident. Trying to get Allianz to send DH's annuity payment, they insist on a voided check to do it. So I had to order checks, which will take several weeks. For the extra $700, I will give it my best shot.

 

[Ryoukoe]

I have looked at the DOC list for Chase, have you? No Paypal or Venmo for them. The most recent Vanguard reports also said it didn't work, I may still try a Vanguard transfer, but not very confident. Trying to get Allianz to send DH's annuity payment, they insist on a voided check to do it. So I had to order checks, which will take several weeks. For the extra $700, I will give it my best shot.

No, I hadn't looked a Chase specifically, sorry, was just throwing out some ideas.

 

[StacyStrong]

Wrong thread lol

 

[ruadisneyfan2]

Doctorofcredit.com is the best blog for that. Data points on all sorts of aspects of the bonuses (hard hit? What counts as a direct deposit?) and usually a rundown on the specific bonus you’re looking at. They maintain a monthly list of the best bank bonuses so I would start there.

Tips:

SPREADSHEET. Make it now. Bank, opening date, date to close, bonus, bonus posting date, bonus requirements, fees, fee waiving requirements, 1099 received Y/N (yes bonuses are taxable income), misc notes

Details. Details. And I’m gonna say it again, Details. You have to know the details of every bonus and you have to keep track in your spreadsheet. If you don’t do pesky details this is not the hobby for you. (Yep, it’s an actual hobby for some of us! You can have all the bank accounts you want if you can keep track of them. And just because you hit the bonus doesn’t mean you start moving your actual banking to them )

This is ALL spot on.
I wasn't good with spread sheets but kept a Word document with every detail in it. The date I applied, what promo code I used, where the opening funds came from (cc, savings acct. etc.) when/how I attempted to trigger the bonus, what worked/didn't work, when/if I actually made changes to my DD at work, if I had to mail back a signature card, where/when I mailed that back.
I took screenshots of many of the application steps, esp the page that shows the promo code entered where it should be. (Don't even try to tell me I didn't enter it!) I also kept track of the steps taken to keep the account fee-free such as DD of $500/month, when bonus posted, when I could close account without penalty and when I'd be eligible for another bonus.

I wasn't always this anal about it but so many instances when I'd look back and wonder if I really did follow a particular necessary step or did I neglect to do so? Lack of recorded details early only leads to later frustration.

None of it is difficult but if you're churning mulitple accounts, it all gets to be a blur. At one point, I had around 8 checking accounts under one log in with M&T in my name, dh's, and our 2 adult kids. That is 24 checking accounts just with M&T. It was rare to only deal with one bank at a time but M&T was a gravy train.

The bonuses for our kids went to either their student loans or car loans, so they were happy to cooperate.
For dh and me, we made around $5k/year combined and we used it to pay off either our CCs or car loan. As pp mentioned, yes you owe taxes on that. Still, would you turn down a $5k raise from your employer simply because you'd have to pay income tax on it? Of course not.

The best one I ever got was $750 from HSBC. The only reason I still remember those initials is because to me, it was saying: Have Some Big Cash.

This was precovid so I don't know how things are these days. I've been taking care of my dad with dementia in my little bit of free time so I haven't been taking on any added chores these days. IIRC, the last time I did any of this was in 2019 or 2020.

Good luck and have fun with it! It's addicting.

 

[ruadisneyfan2]

I have looked at the DOC list for Chase, have you? No Paypal or Venmo for them. The most recent Vanguard reports also said it didn't work, I may still try a Vanguard transfer, but not very confident. Trying to get Allianz to send DH's annuity payment, they insist on a voided check to do it. So I had to order checks, which will take several weeks. For the extra $700, I will give it my best shot.

For years, Chase has been a hard nut to crack. I think last time I actually changed my DD at work but most other banks you don't have to.
I have found Santander a great bank to push from to mimic a DD.

It's nice if you can use a credit card to fund the account when opening it without it processing as a cash advance. Then if you are also churning credit card bonuses with a minimum spend, it helps to satify that requirement too.

Some banks want you to enter the debit number to bank online. I would always just take the debit card. Some don't ask and just send you checks.

Get a good shredder and keep it lubricated.