Chase Freedom + Chase Checking Promotion/ 10%. Is it worth it?

[wealthviahealth]

Just got a chase freedom card and saw the offer about the additional 10% being added on top of yearly rewards ( each year not just one year so decent accumulative effect) if you open a chase checking account. I also have a coupon for $200 for opening a chase checking account. I do have two other checking accounts so though I am not in need of a third, there could be a few benefits to having this third account due to its location/ relationship with my two chase credit cards.

Through a few strategies ( buying gift cards during cash back quarters)  I have found a way to essentially get 5% chase back year round on gas, groceries, amazon, and still 1% on everything else.

In order to avoid chase checking fees the requirement is to either set up $500 direct deposit into the checking account, or maintain
a $1,500 balance for 6 months. If either of these requirements are broken within 6 months, the $200 bonus is simply taken out. Neither of these requirements are a huge deal but do create additional steps In my financial maintenance.

I am looking for feedback on this and certainly realize that it really just depends on the person/situation but if any others have done this,
or decided against it, it would be helpful to hear about it.

[MarciaB]

May I add another perspective to this? I had a Chase checking account for years (started with Washington Mutual, and that got eaten by Chase a few years ago). I have recently switched to a local bank (I'm in Oregon) because I got sickened by the on-going financial scandals (and their huge fines) that this corporation is involved in. When you bank with them you are contributing to their "business as usual" and they're in the business of screwing investors and customers.

While the money is attractive, do you want to be associated with Chase? I don't (anymore). Good riddance.

[theSchmett]

MarciaB - I hear you 100% but that's why I take it upon myself to be the one's profiting off the banks.

The system isn't just going to change. If there were a movement... maybe.

I just make  sure that I maximize my rewards from the banks, and I never pay interest fees on my credit cards.

IMHO the REAL gains would be made with mortgage reform.

WealthViaHealth - 10% on top of 5% I think is a real rate of 5.5%.

Spend $1000

Get 5% back = $50 (awesome work maxing this btw)

Get 10% on top of that = $5

Total return on $1000 = $55 = 5.5%

Nothing wrong with this AT ALL. I just don't like how the numbers associated with rewards programs seem to be designed to trigger feelings of "oh hell yes!", especially points systems which I don't like at all.

I was a long time Discover fan before I started learning about this stuff and doing the math. It works during the 5% quarters, and then you get a bonus when you redeem the rewards if you shop at Lands End or Crutchfield or tons of other places... but the 1% everyday is nice but we can do MUCH better with good credit.

I recently got the Amex Blue Preferred Cash which gives me 6% on groceries and 3% on gas.

Seeing that you get 5% on gas all the time with Chase Freedom looks good. Most of the gas I burn gets reimbursed anyway, as I'm a rail commuter but I have to attend off site meetings on a regular basis. My other half burns about 2.25 gallons a day, so the 5% would add up!

[warfreak2]

The system isn't just going to change. If there were a movement... maybe.

There is.

[stashing_it]

200 in 6 months for having 1500 in the bank is a healthy 26.6 % interest rate.    (less time spent to sign up for an account)

I would do it for the 200 bonus, the extra 10% cash back isn't all that good.


-   Sidenote, I am planning on doing this with some banks / credit cards this year.    There seem to be enough out that to be possible to pull in  1-2K without too much trouble

[Ohio Teacher]

Do it!  I've taken advantage of the sign-up offer twice, once for $150 and then for $200.  Both times I set up my paycheck to put in the minimum of $500 to avoid fees.  Both times I cancelled right after six months to avoid a reversal of the bonus.

[umterp1999]

That is genius, to buy gas gift cards during the 5% window to use once the window closes.