Author Topic: Bank account churning: how to make $1600 in a year by being organized  (Read 44875 times)

johnny847

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EDIT: I made $2800 last year doing this! (This thread got revived after a long time...)

So I've seen plenty of talk of credit card churning on this forum, but I haven't seen nearly as much chatter on bank account churning. I thought I'd write up my experiences on this.

Numerous banks have signup bonuses for their bank accounts. Typically I go for the $150 or higher ones (I'll explain why I don't go for every single one I see later - it's not just because it's one more account to manage).

What are the requirements?
The typical requirements for a signup bonus are:
  • Direct deposit $X
  • Sometimes, use their bill pay to pay Y payees at least $Z
  • Sometimes, make W debit card transactions
  • Sometimes, you must maintain $U for T days

Of course, many bank accounts require a minimum or average balance to avoid fees on the account. Also, some accounts charge a fee if you close your account soon after opening it (the threshold is usually 6 months).

What qualifies as a direct deposit?
I'm lucky to have an employer that allows me to 1) split my paycheck to three separate bank accounts, and 2) change my direct deposit accounts at any time online, thereby not annoying people in person at HR (maybe HR does need to do some human intervention every time I change my DD settings, but I doubt this). Therefore, I pretty much always just do an actual direct deposit.

However, more often than not, an ACH transfer from one of your other accounts will work. To see a list of such qualifying transfers, check here: http://www.doctorofcredit.com/knowledge-base/list-methods-banks-count-direct-deposits/

What kind of return can I expect?
Typically, you can get a $150-$200 fee free return for opening an account, fulfilling their DD and or bill pay and debit card transaction requirements, keeping $2000 in the account, and leaving the account open for six months. So that's a 7.5 - 10% return over 6 months. Which is a 15.56% - 21% annualized return, if I've done my math correctly.

How can I find these offers?
I find out about these bank account bonuses by following www.doctorofcredit.com. He has many other worthwhile posts too, mostly about MS and churning CC's. To find the current bonuses, go to http://www.doctorofcredit.com/best-bank-account-bonuses/.

How can I make $1600 in a year?
This year, I have earned
  • $150 from Chase Savings (this has a much higher requirement of maintaining $10k for 90 days. I did this because I was tax loss harvesting VTIAX at the time, otherwise I wouldn't have done it)
  • $200 from PNC Virtual Wallet
  • $200 from Fifth Third Bank
  • $60 from Santander
Total received so far: $610

I have the following that I am meeting the requirements for:
  • $200 from Nationwide Bank
  • $150 from BMO Harris
  • $200 from Suntrust
  • $180 from Santander
Total pending: $730

I also plan on getting a $300 Chase checking bonus again this year (I got it last year). The coupon for this will probably cost about $20. Hence the $1600 in the title.
But, I expect there will be more signup bonuses as the year goes on, so I'll probably make more than that.

I do believe some of these offers are expired. Check out that link I have above with current bonuses.

Things to watch out for
Stay organized! I created a calendar in Google Calendar specifically to track when I opened my accounts, when I met the requirements, by when I expect the bonus, and when I closed the accounts. I also do a check before every paycheck gets cut to make sure my DD settings are correct to meet the requirements.

Some banks will do a hard pull on your credit report to open an account. I would never recommend you do this. The Doctor of Credit blog always tries to tell you if it is a hard or soft pull to open the account.

Some bank account bonuses are specific to a region.

All bank account bonuses are treated as interest and are therefore taxable.
I think it's still worth it, but you just need to make sure your tax withholding and/or estimated tax payments take into account this income.

Why not chase all bank bonuses?
Some banks will pull your ChexSystems report. It's kinda like your credit report, but for banks. According to Doctor of Credit, if you have too many recent inquiries on your ChexSystems report, you may get denied for a bank account. Hence, I go after the $150-$200 bonuses only.

Another benefit: Manufactured Spending Opportunity!
Some banks will let you fund the initial deposit with a credit card. Sometimes this will be charged as a cash advance, sometimes not. I highly recommend you set your cash advance limit to zero before doing this. Also, you can check out http://www.doctorofcredit.com/does-funding-a-bank-account-with-a-credit-card-count-as-a-purchase-or-cash-advance/ to see if people have been charged cash advance fees in the past for popular cards and banks. Citi almost always charges this as a cash advance.

I've gotten 2500 Chase Freedom points and 2000 Barclaycard Arrival miles from funding bank accounts with a credit card, without cash advance fees.

Two notable bonuses
Santander gives you $20 for $1500 DD and 2 bill pays. Read more here http://www.doctorofcredit.com/santander-20-per-month-bonus-sign-extra20-bundle/

Chase often mails out coupons for bank signup bonuses. People sell these on eBay. I've bought one before and used it. You can read more here http://www.doctorofcredit.com/coupon-promo-codes/chase-coupon-codes/


In the end, is it worth it?
I think so. I use YNAB to keep track of all of these accounts, and Google Calendar to keep track of the dates of everything. I find it to be pretty easy - it doesn't take that much time and changing my DD settings is dead simple. But in the end, of course only you can make the judgement.

Even if you don't churn bank accounts, I'd still recommend getting the Santander one. That's one you can automate very easily (many people just set up automatic transfers of $1500+ and two bill pays).



I probably sound like a fanboy or something of the Doctor of Credit blog. But really, it's a good blog that I have no affiliation with.

P.S. For those of you who have methods of MSing with debit cards, I recommend you sign up for a UFB Airline Rewards checking account. For every $2 you spend with your debit card, you can earn 1 American Airlines mile.
« Last Edit: October 11, 2016, 02:03:15 PM by johnny847 »

ryanthequark

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #1 on: March 20, 2015, 08:10:28 PM »
Great post.

I stumbled upon this myself, and with the accounts I have now I should make $650:
$300 from Chase;
$200 from Key Bank;
$100 from Sound Credit Union;
$50 from BECU credit union.

I just closed my BECU account today, having fulfilled the duration requirement. It was nice to have that bonus in my pocket!

nanu

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #2 on: March 20, 2015, 09:19:16 PM »
This looks nice, and I've never really given it much thought before, but seems fairly inferior to CC churning.
With CC churning you can get several hundred dollars from each card's sign up bonus if you redeem it for cash/statement credit,
and potentially much more if you actually use the miles to book travel.
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johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #3 on: March 20, 2015, 10:30:56 PM »
This looks nice, and I've never really given it much thought before, but seems fairly inferior to CC churning.
With CC churning you can get several hundred dollars from each card's sign up bonus if you redeem it for cash/statement credit,
and potentially much more if you actually use the miles to book travel.

That's true, but credit cards always require a hard pull, limiting how many cards you can apply to. Bank accounts sometimes do a ChexSystems inquiry, which has nothing to do with your credit score. Other times they do a soft inquiry on your credit report, again not affecting your credit score.

Also, it's not like you have to do one or the other. I do both. In fact, one feeds the other - I MS'd $1000 on my Arrival+ to help meet the minimum spend while funding the BMO Harris account I am churning.

idjces

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #4 on: March 20, 2015, 10:33:56 PM »
Any idea if you can apply for these when you're not an american resident/citizen?

I'd love to be able to apply for all the bank and cc bonuses you guys get

There were quite a few of these available in Australia last year, made maybe $700 between me and my partner. That's a free $700 added to investments, so I won't say no to that :)

johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #5 on: March 20, 2015, 10:36:30 PM »
Any idea if you can apply for these when you're not an american resident/citizen?

I'd love to be able to apply for all the bank and cc bonuses you guys get

There were quite a few of these available in Australia last year, made maybe $700 between me and my partner. That's a free $700 added to investments, so I won't say no to that :)

As far as I know, you need a US address on all US bank accounts.

Cathy

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #6 on: March 20, 2015, 11:07:21 PM »
There's no US law that requires a US address for a bank account. There is no legal requirement that a person opening a US bank account have any connection to the USA whatsoever. There is also no requirement to have an SSN or other tax identifying number to open a bank account.

TD Bank, N.A. will open accounts for Canadians with no US address and no connection to the USA whatsoever, and they will do it over the phone without ever meeting you in person.

However, I don't know of any other US banks that do that.
« Last Edit: March 20, 2015, 11:10:56 PM by Cathy »
This post contains only general information on the issues raised by this topic. This post does not provide help tailored to your specific situation. There are many facts that could be relevant to your specific situation and I am not in possession of those facts. If you need help tailored to your specific situation, you should retain an appropriate professional and not rely on this post.

gomike

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #7 on: March 20, 2015, 11:10:31 PM »
Be careful as some banks, but specifically credit unions do a hard pull when opening a new checking account.

nanu

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #8 on: March 21, 2015, 05:01:39 AM »
This looks nice, and I've never really given it much thought before, but seems fairly inferior to CC churning.
With CC churning you can get several hundred dollars from each card's sign up bonus if you redeem it for cash/statement credit,
and potentially much more if you actually use the miles to book travel.

That's true, but credit cards always require a hard pull, limiting how many cards you can apply to. Bank accounts sometimes do a ChexSystems inquiry, which has nothing to do with your credit score. Other times they do a soft inquiry on your credit report, again not affecting your credit score.

Also, it's not like you have to do one or the other. I do both. In fact, one feeds the other - I MS'd $1000 on my Arrival+ to help meet the minimum spend while funding the BMO Harris account I am churning.
It's true that you could do both, but CC churning seems much more lucrative for the time spent,
whereas bank account churning seems like a small profit for the amount of work you put in.

That being said, I appreciate the information about something I didn't really know before, and I might try it in the future to see how much work it is and if it's worth the hassle.
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kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #9 on: March 21, 2015, 06:42:32 AM »
This looks nice, and I've never really given it much thought before, but seems fairly inferior to CC churning.
With CC churning you can get several hundred dollars from each card's sign up bonus if you redeem it for cash/statement credit,
and potentially much more if you actually use the miles to book travel.

You can actually combine them in some cases.

I opened a PNC account for the $300 bonus, and was able to put $2000 into the account with my Barclays Arrival, which helped me hit the bonus on that.  So I ended up with $740 with this combo.

I am grabbing a Chase Checking $200 bonus in a week or two.

I will admit that credit cards are much better, but if you are already signing up for 15+ credit cards a year like I am, you can't really get too many more. 
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johndcrist

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #10 on: March 21, 2015, 07:22:10 AM »
As a junior mustachian with a relatively low salary, who is still enjoying the novelty of this sort of thing, this sounds like a great project to start. Thanks Johnny!

johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #11 on: March 21, 2015, 07:53:30 AM »
This looks nice, and I've never really given it much thought before, but seems fairly inferior to CC churning.
With CC churning you can get several hundred dollars from each card's sign up bonus if you redeem it for cash/statement credit,
and potentially much more if you actually use the miles to book travel.

That's true, but credit cards always require a hard pull, limiting how many cards you can apply to. Bank accounts sometimes do a ChexSystems inquiry, which has nothing to do with your credit score. Other times they do a soft inquiry on your credit report, again not affecting your credit score.

Also, it's not like you have to do one or the other. I do both. In fact, one feeds the other - I MS'd $1000 on my Arrival+ to help meet the minimum spend while funding the BMO Harris account I am churning.
It's true that you could do both, but CC churning seems much more lucrative for the time spent,
whereas bank account churning seems like a small profit for the amount of work you put in.

That being said, I appreciate the information about something I didn't really know before, and I might try it in the future to see how much work it is and if it's worth the hassle.
Considering I have to MS in order to meet the minimum spend for credit card churning (and Amex Serve is disallowing online cc loads starting April 16th), I find that credit card churning and bank account churning take about the same amount of time. However, bank account churning definitely takes more capital, as you typically end up locking up some money to avoid bank fees.

daverobev

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #12 on: March 21, 2015, 02:15:23 PM »
There's no US law that requires a US address for a bank account. There is no legal requirement that a person opening a US bank account have any connection to the USA whatsoever. There is also no requirement to have an SSN or other tax identifying number to open a bank account.

TD Bank, N.A. will open accounts for Canadians with no US address and no connection to the USA whatsoever, and they will do it over the phone without ever meeting you in person.

However, I don't know of any other US banks that do that.

RBC Bank do both a checking and credit card off your Canadian history, without going to the US (I had to go in to my local RBC). Can all be set to a Canadian address.

TD have changed stuff and generally can be a pain - so I've read.

AFAIK most US banks will need a US address. Not a legal requirement, but a requirement nonetheless.
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misschedda

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #13 on: March 25, 2015, 12:52:39 PM »
Just cashed out a $50 Discover bank bonus today! It's my fourth or fifth banking bonus and I've found them much easier to do than credit card churning (but I do both anyway).
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Bob W

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #14 on: March 25, 2015, 03:04:05 PM »
This is an awesome advertisement post!

So if I read this right,  between my wife and I we could have a very lucrative 3K in annual income for about 20ish hours work per year?   So that is like getting paid $150 per hour.

Sweet!

Keep those excellent ideas coming! 

*(might only work for a year or two but still 6K in relatively free money is nice)
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daverobev

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #15 on: March 25, 2015, 04:33:57 PM »
Also, just a reminder, money from checking opening is taxable (unlike cc bonuses). You'll get a 1099-MISC for >$600, but even if you don't it should be reported (just like interest).
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johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #16 on: March 25, 2015, 04:51:23 PM »
Just cashed out a $50 Discover bank bonus today! It's my fourth or fifth banking bonus and I've found them much easier to do than credit card churning (but I do both anyway).

*High five*

This is an awesome advertisement post!

So if I read this right,  between my wife and I we could have a very lucrative 3K in annual income for about 20ish hours work per year?   So that is like getting paid $150 per hour.

Sweet!

Keep those excellent ideas coming! 

*(might only work for a year or two but still 6K in relatively free money is nice)

More or less, yea.
Many bank bonuses say you can only earn one bonus from them per year...meaning you should be able to get it again next year. I know some people get the Chase bonuses every eyar.

Also, just a reminder, money from checking opening is taxable (unlike cc bonuses). You'll get a 1099-MISC for >$600, but even if you don't it should be reported (just like interest).
Usually reported on a 1099-INT for any bonus amount, but yup it's taxable.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #17 on: March 25, 2015, 06:07:19 PM »
You can grab a $300 Chase checking bonus if you give them your email here: https://coupon.chaseoffers.com/banking/prep.do?ID=0000017415&jp_cmp=rb/8571557/ext/61945324/115878471

You get the bonus if you set up a direct deposit within 60 days.  You avoid the fee by keeping at least $1500 in the account.

There is also a $150 savings account code, but you need to tie up $10,000.

I grabbed one of these for each of use, which will get us to $900 for the year: 1 x PNC and 2 x Chase.  All for tying up $8000 total for 6 months, or a 22.5% return on cash.
« Last Edit: March 25, 2015, 06:09:29 PM by kpd905 »
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johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #18 on: March 25, 2015, 06:09:39 PM »
You can grab a $300 Chase checking bonus if you give them your email here: https://coupon.chaseoffers.com/banking/prep.do?ID=0000017415&jp_cmp=rb/8571557/ext/61945324/115878471

You get the bonus if you set up a direct deposit within 60 days.  You avoid the fee by keeping at least $1500 in the account.

There is also a $150 savings account code, but you need to tie up $10,000.
Wow I didn't know there was a link to just get one mailed to you! Doctor of credit tells people to go buy them on eBay. I always wondered how you can get targeted to get one mailed to you directly.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #19 on: March 25, 2015, 06:18:34 PM »
Wow I didn't know there was a link to just get one mailed to you! Doctor of credit tells people to go buy them on eBay. I always wondered how you can get targeted to get one mailed to you directly.

I actually found out about this from Doctor of Credit, so credit goes to him.  I'm not sure how often they do this email method. 

My fiance has gotten the $300 offers in the mail, but I only ever got $200, so I'm glad this popped up.
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johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #20 on: March 25, 2015, 07:53:05 PM »
Wow I didn't know there was a link to just get one mailed to you! Doctor of credit tells people to go buy them on eBay. I always wondered how you can get targeted to get one mailed to you directly.

I actually found out about this from Doctor of Credit, so credit goes to him.  I'm not sure how often they do this email method. 

My fiance has gotten the $300 offers in the mail, but I only ever got $200, so I'm glad this popped up.
Ah I must've missed that on his blog.

I'd sign up for this but I still have a Chase checking account open from the bonus I got last year (need to keep it open for six months to avoid them clawing back the bonus).

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #21 on: March 30, 2015, 01:14:59 PM »
I prefer credit card incentives to bank incentives because they aren't taxable.  Bank account money is taxable as ordinary income.  I did a lot of these one year, 8 years ago, and received $800 in "other income."  My standards are much higher now, and given my compensation is much higher, I also have lost the desire to do a lot of these, preferring to focus on expense reduction instead.  However, I did have a special offer for $300 from a local bank, that I passed up, that looked tempting given the amount. 

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #22 on: March 30, 2015, 01:47:34 PM »
Could some of you fine folks post links to these various bank offers?     Maybe start a new thread for these links?

johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #23 on: March 30, 2015, 02:05:27 PM »
I prefer credit card incentives to bank incentives because they aren't taxable.  Bank account money is taxable as ordinary income.  I did a lot of these one year, 8 years ago, and received $800 in "other income."  My standards are much higher now, and given my compensation is much higher, I also have lost the desire to do a lot of these, preferring to focus on expense reduction instead.  However, I did have a special offer for $300 from a local bank, that I passed up, that looked tempting given the amount.

Yes but we've already had this discussion on this thread before. There's only so many cc bonuses you can collect. You can generally collect more bank bonuses because many of them don't result in hard inquiries.
And you can sometimes fund bank accounts with cc's and not have it count as a cash advance, meaning you can use these bank account bonuses to help you MS for cc churning as well.

And bank account bonuses don't require you to spend anything. It does usually require you park money there to avoid fees, but just think of it as a temporary savings account that earns a high rate of return b/c of the signup bonus. It's just a tradeoff. For me, I always have to MS to get a CC signup bonus, so there's similar amounts of effort required.

Could some of you fine folks post links to these various bank offers?     Maybe start a new thread for these links?
Any links posted will go out of date sometime. It's better just to follow
Quote from: johnny847
How can I find these offers?
I find out about these bank account bonuses by following www.doctorofcredit.com. He has many other worthwhile posts too, mostly about MS and churning CC's. To find the current bonuses, go to http://www.doctorofcredit.com/best-bank-account-bonuses/.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #24 on: March 30, 2015, 04:36:59 PM »
I prefer credit card incentives to bank incentives because they aren't taxable.  Bank account money is taxable as ordinary income.  I did a lot of these one year, 8 years ago, and received $800 in "other income."  My standards are much higher now, and given my compensation is much higher, I also have lost the desire to do a lot of these, preferring to focus on expense reduction instead.  However, I did have a special offer for $300 from a local bank, that I passed up, that looked tempting given the amount.

Why can't you do both?  I am going to try for $1500 in checking account bonuses and $5000 in credit card redemptions for 2015.  That is for both me and my fiance.
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Bob W

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #25 on: March 31, 2015, 11:56:09 AM »
I prefer credit card incentives to bank incentives because they aren't taxable.  Bank account money is taxable as ordinary income.  I did a lot of these one year, 8 years ago, and received $800 in "other income."  My standards are much higher now, and given my compensation is much higher, I also have lost the desire to do a lot of these, preferring to focus on expense reduction instead.  However, I did have a special offer for $300 from a local bank, that I passed up, that looked tempting given the amount.

Why can't you do both?  I am going to try for $1500 in checking account bonuses and $5000 in credit card redemptions for 2015.  That is for both me and my fiance.

Love that idea!   I'll see your $6,500 and raise you $2,000.  lol
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greenjb

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #26 on: October 03, 2016, 06:26:44 PM »
FWIW, I just signed up for a Chase $400 cash back checking account. Don't know if anyone on this thread is still active (or if there's a newer one I didn't see), but I'd love to pick up the discussion and learn what other people are doing.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #27 on: October 03, 2016, 07:18:31 PM »
FWIW, I just signed up for a Chase $400 cash back checking account. Don't know if anyone on this thread is still active (or if there's a newer one I didn't see), but I'd love to pick up the discussion and learn what other people are doing.

I just signed up for the $500 Chase checking+savings bonus about 2 months ago, I will now have the wife sign up for it in about 2 weeks.  I was also sent a promotion for BMO Harris for another $500 checking + savings that will tie up $10,000 for a few months. 

If I get all of these done we'll have made $2200 for the year in checking and savings bonuses.

Our list:

2 x Associated Bank checking ($350)
PNC checking ($200)
Chase Checking + Savings ($500)
Santander Bank ($150)

To do:
Chase checking + savings ($500)
BMO Harris ($500)
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greenjb

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #28 on: October 04, 2016, 10:47:26 AM »
FWIW, I just signed up for a Chase $400 cash back checking account. Don't know if anyone on this thread is still active (or if there's a newer one I didn't see), but I'd love to pick up the discussion and learn what other people are doing.

I just signed up for the $500 Chase checking+savings bonus about 2 months ago, I will now have the wife sign up for it in about 2 weeks.  I was also sent a promotion for BMO Harris for another $500 checking + savings that will tie up $10,000 for a few months. 

If I get all of these done we'll have made $2200 for the year in checking and savings bonuses.

Our list:

2 x Associated Bank checking ($350)
PNC checking ($200)
Chase Checking + Savings ($500)
Santander Bank ($150)

To do:
Chase checking + savings ($500)
BMO Harris ($500)

Where do you live? I live in MD and tried to follow a link to the Chase $500 account, but it just sent me to the main Chase page. I'm guessing it may not be available in my area? I've never heard of BMO Harris, but I hope they send me a promo.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #29 on: October 05, 2016, 07:15:37 PM »
I'm in Wisconsin.

This is the Chase link: https://www.chase.com/customer/rb_acquisition_354117_xlob09012.html?ID=0000019038

You have to log into your Chase account to see the offer.
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johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #30 on: October 11, 2016, 02:04:26 PM »
Since that original post was from a while ago....I made $2800 last year doing this.

I recently opened an HSBC account for $350. But it was a lot of hassle to open.... 
http://www.doctorofcredit.com/hsbc-350-checking-account-bonus/
I haven't met the bonus requirements yet.

greenjb

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #31 on: October 11, 2016, 04:20:38 PM »
Since that original post was from a while ago....I made $2800 last year doing this.

I recently opened an HSBC account for $350. But it was a lot of hassle to open.... 
http://www.doctorofcredit.com/hsbc-350-checking-account-bonus/
I haven't met the bonus requirements yet.

Just curious, what are the banks you used? I live in MD, where I apparently cant' get the $500 Chase account everyone raves about. I'm about 2 weeks from getting the $400 bonus from Citi; thinking about signing my wife up for the same.

johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #32 on: October 12, 2016, 03:52:13 PM »
Since that original post was from a while ago....I made $2800 last year doing this.

I recently opened an HSBC account for $350. But it was a lot of hassle to open.... 
http://www.doctorofcredit.com/hsbc-350-checking-account-bonus/
I haven't met the bonus requirements yet.

Just curious, what are the banks you used? I live in MD, where I apparently cant' get the $500 Chase account everyone raves about. I'm about 2 weeks from getting the $400 bonus from Citi; thinking about signing my wife up for the same.

Last year I got bonuses from:
Santander
Nationwide
Suntrust
Fifth Third
PNC
Regions
Chase
BMO Harris
US Bank
First Tennessee Bank
Discover

Some of these banks are not available in MD. However, I saw quite a few bank account bonuses (such as M&T) that were available in MD but not for me here in GA. Check http://www.doctorofcredit.com/best-bank-account-bonuses/ for the best bonuses, both nationwide and regional.

cschx

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #33 on: October 12, 2016, 04:17:20 PM »
First year doing this and I'm on track to bring in about $4000 in bank and CC bonuses by year's end. There's a lot of potential synergy there (fund the new bank account with the new CC, meet minimum spend and deposit requirements, get both bonuses). DoC, depositaccounts and /r/churning have all been very helpful. New knowledge of MS and related techniques has been really useful in helping me find more flexible ways to arrange my finances, even though I don't really do any CC churning beyond the bonuses (and not many of those).

The funniest part has been meeting all the super friendly bankers who would love to help you help them get another commission...

ender

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #34 on: October 12, 2016, 07:06:47 PM »
I've thought about doing the bank account thing. This year we'll clear about $2500 worth of CC benefits, but we've not gotten into bank account bonuses.

/r/churning is great.

I can't believe that Chase offered the CSR recently given how prolific churners are. Big banks must be stupid when it comes to this somehow, still. Except Amex.

forumname123

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #35 on: October 12, 2016, 07:44:41 PM »

I can't believe that Chase offered the CSR recently given how prolific churners are. Big banks must be stupid when it comes to this somehow, still. Except Amex.

For every churner they probably get 3 people who will carry a balance for the next 10 years.

johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #36 on: October 13, 2016, 11:39:24 AM »

I can't believe that Chase offered the CSR recently given how prolific churners are. Big banks must be stupid when it comes to this somehow, still. Except Amex.

For every churner they probably get 3 people who will carry a balance for the next 10 years.

Something like that, yea.

Since all money is fungible, I once said to a friend that those who are paying credit card interest are subsidizing our credit card rewards. She hated me for saying that because she now felt like it was morally wrong to churn cards with that realization.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #37 on: October 13, 2016, 04:32:53 PM »

I can't believe that Chase offered the CSR recently given how prolific churners are. Big banks must be stupid when it comes to this somehow, still. Except Amex.

For every churner they probably get 3 people who will carry a balance for the next 10 years.

Something like that, yea.

Since all money is fungible, I once said to a friend that those who are paying credit card interest are subsidizing our credit card rewards. She hated me for saying that because she now felt like it was morally wrong to churn cards with that realization.

Would she like it better if the credit card companies kept all the profits instead of sharing some with churners?
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Ebrat

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #38 on: October 13, 2016, 08:49:43 PM »

I can't believe that Chase offered the CSR recently given how prolific churners are. Big banks must be stupid when it comes to this somehow, still. Except Amex.

For every churner they probably get 3 people who will carry a balance for the next 10 years.

Something like that, yea.

Since all money is fungible, I once said to a friend that those who are paying credit card interest are subsidizing our credit card rewards. She hated me for saying that because she now felt like it was morally wrong to churn cards with that realization.

Would she like it better if the credit card companies kept all the profits instead of sharing some with churners?

Don't forget that they also get transaction fees from merchants on all that money we spend to meet the minimum spend requirements

johnny847

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #39 on: October 14, 2016, 04:20:09 PM »

I can't believe that Chase offered the CSR recently given how prolific churners are. Big banks must be stupid when it comes to this somehow, still. Except Amex.

For every churner they probably get 3 people who will carry a balance for the next 10 years.

Something like that, yea.

Since all money is fungible, I once said to a friend that those who are paying credit card interest are subsidizing our credit card rewards. She hated me for saying that because she now felt like it was morally wrong to churn cards with that realization.

Would she like it better if the credit card companies kept all the profits instead of sharing some with churners?

She's got a very inconsistent set of ethical rules to judge what is right and wrong. I've stopped pointing out all of her fallacies because then she just gets all emotional and butthurt.

Koffee

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #40 on: April 02, 2017, 07:56:26 AM »
Hello!

Sorry to necro this thread, but it came up in a Google search. I did want to comment on it and add to the discussion, even though it was old. (plus I've been reading MMM for a couple years now and never commented)


One thing that the author does not mention is return. A number of commenters mentioned CC churning, but I believe this is an apples to oranges comparison. I do a light (opportunistic) bank account churn. Why? Because its yield exceeds T bills and is FDIC insured.

Here is a list of current offers: https://www.nerdwallet.com/blog/banking/best-bank-bonuses-promotions/
For instance, I am currently doing the Citi $300 bonus from the above list.


Consider:

You have to have $15,000 for 30 days and then you can reduce it to $10,000 for the next 90 days (to avoid fees).
Therefore you have on average $11,250 invested over 4 months.

A $300 bonus is 2.66% of this average amount.

BUT WAIT, that's for only 4 months!!!
Therefore you have to adjust for full year yield.
Therefore 2.66% / (4/12) = 8%!!!

A risk free 8% yield is phenomenal!!!
6 Month CD rates are at about .86 APY. Even the Vanguard total Bond (BND) only returns 2.54%

Therefore, I humbly submit that it is worth considering in light of FDIC insurance, liquidity and yield.
« Last Edit: April 02, 2017, 08:04:42 AM by Koffee »

Car Jack

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #41 on: April 03, 2017, 01:01:07 PM »
Koffee, you're right.

The number of hoops required and the time required are of utmost importance to me.  I just completed the "win" on the Citi checking account.  I had the older $400 bonus.  My experience and things I learned:

For unknown reasons, they kept sending me forms because my name didn't match my IRS name.  I literally pulled the name off of my tax form (middle initial not there, and no suffix).  This delayed things 2 months, which kept me from funding but did not disqualify me for the bonus.  Finally was able to fund and the required 90 days started from the point the funds cleared with them.  First 30 days, $15000 had to stay there.  Then another 60 days, $10000 had to stay there.  I got the end date directly from them, waited 2 extra days, called to verify balance (the bonus had hit) and closed.  Note, I did write a check after the first 30 day period for $4900 to give myself padding and get the money back that didn't need to be there.

What I like about that Citi offer is that I don't have to do 10 debit transactions, use an ATM for things and direct deposit.  These are a big hassle to me.  If they're not to you, go for it.  I picture myself at the gas station with the debit card.....set up the pump.  Pump 10 cents of gas.  Stop.  Repeat 9 more times.


fh2000

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #42 on: April 03, 2017, 08:20:26 PM »
Below is Citi requirement:

You either deposit $15,000, or set up paycheck direct deposit then do purchase totaling $250.   Not both, correct?

==========================================
To qualify for a $300 cash bonus, open a new eligible consumer checking account in The Citibank Account Package by 4/14/2017.


.Within 45 days after account opening, make a qualifying deposit of $15,000 or more in new-to-Citibank funds into the new checking account or your new or existing Citibank Savings Plus Account or Citi Savings Account and maintain a minimum balance of $15,000 for 30 consecutive calendar days following the date you made your qualifying deposit.

.Within 45 days after account opening, complete 1 qualifying Direct Deposit to your checking account or make 1 or more qualifying purchase transactions with your Citibank Debit Card totaling $250.
=====================================

ducky19

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #43 on: April 03, 2017, 08:56:06 PM »
I'm up to $1800 this year so far in bonuses - easiest one by far is Associated Banks (referral link in my sig). $150 bonus after 3 online bill pays, funded with a credit card and paid back to the same card! Bonus posted within a week, and no requirement for keeping the account open meaning you can do this one multiple times in a year. Only for IL, WI, and MN residents though.

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #44 on: April 04, 2017, 09:38:45 AM »
I'm late to this game, but have taken the plunge this year.  Already received $250 from Wells Fargo.  In the process of getting $250 for the wife also.  $100 from Pinnacle Bank and $200 from M&T.  Still trying to figure the best way to juggle the requirements as I don't have extra cash laying around to stash away for fee avoidance.  Currently reduced to 2 Direct Deposits of my work check and some combination of transfers to keep the money flowing.  Wish Capital One Bank allowed more than 3 external accounts for transfer purposes. 

fh2000

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #45 on: April 12, 2017, 12:52:30 PM »
Below is Citi requirement:

You either deposit $15,000, or set up paycheck direct deposit then do purchase totaling $250.   Not both, correct?

==========================================
To qualify for a $300 cash bonus, open a new eligible consumer checking account in The Citibank Account Package by 4/14/2017.


.Within 45 days after account opening, make a qualifying deposit of $15,000 or more in new-to-Citibank funds into the new checking account or your new or existing Citibank Savings Plus Account or Citi Savings Account and maintain a minimum balance of $15,000 for 30 consecutive calendar days following the date you made your qualifying deposit.

.Within 45 days after account opening, complete 1 qualifying Direct Deposit to your checking account or make 1 or more qualifying purchase transactions with your Citibank Debit Card totaling $250.
=====================================

Replying to my own post.  So, I opened Citi Regular checking account online.  I found out by talking to 2 Citi new account support agents that both of these requirements above need to be satisfied.  I am transferring $15,000 from another bank,  also setting up payroll direct deposit. The fund will need to stay there for 30 days.  I plan to close it once I receive the bonus.

kpd905

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #46 on: April 13, 2017, 06:25:31 AM »
Ducky, not sure what state you're in, but I just found another good offer for Wisconsin residents:  http://www.doctorofcredit.com/wi-300-first-bank-financial-centre-fbfc-checking-bonus-no-direct-deposit-monthly-fees/

$300 for making 5 debit transactions, that is it.  No direct deposit requirement.  I am going to sign up this weekend.  The offer expires May 12th.
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ducky19

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #47 on: April 13, 2017, 07:19:22 AM »
Damn, that's a great one! I'm in IL so won't be able to apply. Thanks for posting though, hopefully we have some WI residents on here who can benefit!

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #48 on: April 13, 2017, 08:35:12 AM »
This post motivated me to take advantage of a deal at my bank.  I opened an IRA with $50 and they matched that with $50, and I set up a $50 a month automatic transfer, which after 6 months they will give me $100.  The IRA itself also pays 3% APR and is a 12 month CD. 

If I stop the auto payments after the 6 months (I do have an IRA elsewhere with investments), then it will tie up only $300-350 depending on whether the 6 months is total time open vs number of months of auto investing, essentially providing around 55% return in best case situation.

I suppose I should look into some other opportunities now.  Thank you for the motivation!
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BikeFanatic

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Re: Bank account churning: how to make $1600 in a year by being organized
« Reply #49 on: April 13, 2017, 01:12:41 PM »
Quote
Replying to my own post.  So, I opened Citi Regular checking account online.  I found out by talking to 2 Citi new account support agents that both of these requirements above need to be satisfied.  I am transferring $15,000 from another bank,  also setting up payroll direct deposit. The fund will need to stay there for 30 days.  I plan to close it once I receive the bonus.

FH2000- wjich 2 requirements do you refer to? I opened a Citi checking,  funded with 15,000, I did no direct deposit but did 250 in debit transactions, so I assume I qualify, but I have not received the bonus yet, hmmm....