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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: DrMoney on June 27, 2018, 07:53:20 AM

Title: Checking Account: Bonus "churn" or High(ish) APY?
Post by: DrMoney on June 27, 2018, 07:53:20 AM
Our e-fund (24K) is currently sitting in a Capital one 360 account earning .75 APY.

It occurred to me that this is probably stupid given that there are now options that would more than double the APY.

My question is this: does it make more sense (in your opinion) to go with the simplicity of moving the money to a higher yield account (maybe something like CIBC at 1.90%), or should I try a sign on bonus somewhere?

I really can't see myself being a bank account churner, but I was thinking about perhaps getting the $400 Citi bonus by moving 15k in, and then moving everything into a higher yield account. Or maybe I'll get a taste for bonuses...who knows.

Just looking for personal opinions! Thanks
Title: Re: Checking Account: Bonus "churn" or High(ish) APY?
Post by: jamaicaspanish on June 27, 2018, 09:12:40 AM
DW and I churn bank accounts whenever possible.

Currently completing our annual Chase Checking + Savings churn ($500 apiece).
We spent two hours with the banker (could have been quicker, but he was the best banker we've ever met -- so it was a pleasant conversation) and another 20 minutes setting up DD.  There's no other place for us to make that guaranteed return.

Our EF is in Lake Michigan Credit Union. Easy terms to receive 3% on up to 15k.

I'd fully recommend dipping your toes . . . but know that soon enough you'll be diving right in ;-)
Title: Re: Checking Account: Bonus "churn" or High(ish) APY?
Post by: maginvizIZ on June 27, 2018, 09:53:01 AM
I just started trying out the bonus churning...

I started with Citibank.  I tried to do it all online.  IT WAS MISERABLE.  My first card wouldn't activate, they sent me another card... That didn't activate either.  I burned 10+ hours on the phone trying to fix it all... I finally scrapped it and got my deposit back.

I went into Chase last week to do the $500 sign up bonus... Smooth sailing!  I don't officially have my $15k or direct deposit set up.. But I'll get on that right now :)
Title: Re: Checking Account: Bonus "churn" or High(ish) APY?
Post by: kpd905 on June 27, 2018, 06:03:53 PM
If you do the Citi bonus, you can get $400 for depositing $15k and another $200 if your spouse deposits $5k.  That'll be tied up for about 90 days, then you can get another $400 within 6 months by cycling the money through two Chase savings bonuses.

That gets you $1,000 in about 9 months, only thing up a Max of $20k at any one time.
Title: Re: Checking Account: Bonus "churn" or High(ish) APY?
Post by: seattlecyclone on June 28, 2018, 10:27:00 AM
Churning can be worth it. I got $700 from it last year ($400 for checking at KeyBank, $300 for checking at Chase, skipped the $200 for Chase savings because I don't want to tie up that much in a savings account).
Title: Re: Checking Account: Bonus "churn" or High(ish) APY?
Post by: DrMoney on June 29, 2018, 08:56:04 AM
Thanks, decided to go ahead and do the two chase cards. Then Husband will do it. Seems like an easy 1k to me.