Author Topic: Is it worth opening new bank account for $300?  (Read 6030 times)

VladTheImpaler

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Is it worth opening new bank account for $300?
« on: March 26, 2016, 06:33:03 PM »
I got a promotion from Chase Bank and was wondering if it's worth the hassle?
What I have to do:
(1) Go into a Chase location with coupon I received in mail and open a checking account with minimum of $25.
(2) Set up direct deposit of $500/month minimum from my employer into new checking account.
(3) Keep account open for at least 6 months to retain the $300 bonus.

Bonus will be deposited within 10 business days after all conditions are met.



kudy

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Re: Is it worth opening new bank account for $300?
« Reply #1 on: March 26, 2016, 06:37:36 PM »
I think it is - it averages out to a few hundred dollars per hour of work. That Chase bonus is one of 5 checking account bonuses I got last year totaling $1100.

The direct deposit can often be faked by doing an ACH transfer from another bank, if you search around you can find lists of banks where an ACH counts as a "direct deposit" at Chase.

tobitonic

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Re: Is it worth opening new bank account for $300?
« Reply #2 on: March 26, 2016, 06:47:10 PM »
I wouldn't do it...I prefer having as few bank accounts as possible.

JLee

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Re: Is it worth opening new bank account for $300?
« Reply #3 on: March 26, 2016, 06:47:57 PM »
I switched to Chase entirely from that promotion, except I only got $250. My credit union started charging me $3/mo a few years ago and the incentive to switch pushed me over the edge. I'm happy using Chase as my primary account now.

Vanguards and Lentils

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Re: Is it worth opening new bank account for $300?
« Reply #4 on: March 26, 2016, 06:48:55 PM »
(I have a feeling that the people who would answer "yes" to this, including me, are the ones who do a lot of these bonuses, and the ones who would say "no" have never done it or maybe had one bad experience.)

If you are a financially organized person (have you ever been late with a credit card payment? have you been charged a bank fee that you weren't expecting? do you roughly know the balances on your bank accounts and your credit cards?), then go for it!

The Chase checking bonus you're considering was my 12th (and highest $) one this year. At this point, an additional account opening is just another row on my spreadsheet, where I put info such as reward amount, how to avoid fees, any deadlines, etc. So definitely worth the time for me.

Just to clarify, if you are opening the "Total Checking" account, it would be easier to do 1 direct deposit, and then leave $1500 in the account to waive the monthly fee.

VladTheImpaler

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Re: Is it worth opening new bank account for $300?
« Reply #5 on: March 26, 2016, 07:00:44 PM »
Thank you for the valuable feedback.

Wow! $1,100 for opening bank accounts is nothing to sneeze at!
Yes, I use an Excel spreadsheet to track my finances.
I use my Outlook calendar for events and reminders religiously. (like when to transfer CC balances and other due dates.)

Yes, it is the Chase Total checking account. I think I'm gonna go for it.
How/where did you more experienced MMMers find out about other bank account bonus offers?

Willbrewer

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Re: Is it worth opening new bank account for $300?
« Reply #6 on: March 26, 2016, 07:04:21 PM »
Just curious, but do those bonuses show up on any 1099 forms, or are they tax-free?

randymarsh

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Re: Is it worth opening new bank account for $300?
« Reply #7 on: March 26, 2016, 07:05:36 PM »
I did a Chase promo a few years ago and am about to do the one you're talking about soon.

You just have to be organized and it's easy money. The only catch is that you have to leave the account open for X months usually or forfeit the bonus, so it's not money you can use right away for anything.

JLee

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Re: Is it worth opening new bank account for $300?
« Reply #8 on: March 26, 2016, 07:07:11 PM »
Just curious, but do those bonuses show up on any 1099 forms, or are they tax-free?

1099-INT, if I recall correctly.

randymarsh

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Re: Is it worth opening new bank account for $300?
« Reply #9 on: March 26, 2016, 07:07:48 PM »
Just curious, but do those bonuses show up on any 1099 forms, or are they tax-free?

Bank should send you a 1099 for cash bonuses. Airline mileage bonuses usually aren't reported.

randymarsh

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Re: Is it worth opening new bank account for $300?
« Reply #10 on: March 26, 2016, 07:08:32 PM »
How/where did you more experienced MMMers find out about other bank account bonus offers?

www.doctorofcredit.com provides an updated list of account bonuses.

VladTheImpaler

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Re: Is it worth opening new bank account for $300?
« Reply #11 on: March 26, 2016, 07:17:56 PM »
Just curious, but do those bonuses show up on any 1099 forms, or are they tax-free?

1099-INT, if I recall correctly.

Yeah, it says the cash bonus is considered interest and is reported on 1099-INT by the bank at end of year.
Thank you for providing the link to the list of bank accounts with bonuses.

jjcamembert

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Re: Is it worth opening new bank account for $300?
« Reply #12 on: March 28, 2016, 02:29:16 PM »
I've seen this promotion as well, but didn't know you only had to direct deposit $500. Is that just to get past the service fee? If so, it looks like you can also get past the service fee by maintaining a minimum daily balance of $1500, which after 6 months would mean you need less "invested" to get the same return. But I understand you need to do the direct deposit anyway to qualify.

Nice find! I had previously ignored this because I thought I would have to direct deposit my whole paycheck, which would not make the incentive worthwhile. But at $500/mo it's an easy 10% return in 6 months.

GrOW

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Re: Is it worth opening new bank account for $300?
« Reply #13 on: March 28, 2016, 02:35:09 PM »
I got a promotion from Chase Bank and was wondering if it's worth the hassle?
What I have to do:
(1) Go into a Chase location with coupon I received in mail and open a checking account with minimum of $25.
(2) Set up direct deposit of $500/month minimum from my employer into new checking account.
(3) Keep account open for at least 6 months to retain the $300 bonus.

Bonus will be deposited within 10 business days after all conditions are met.

The bonus you mention above seems to have such a light requirement, I would personally do it.

Chase is offering another deal lately which tacks on an additional $200 bonus but, if I remember right, the requirement is very steep. Something like $15k in a savings account for six months.

hpb

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Re: Is it worth opening new bank account for $300?
« Reply #14 on: March 28, 2016, 07:08:45 PM »
I love these bonuses.  I'm up $650 this year, all for about an hour of work total.  I usually just concentrate on the ones with the least hoops/restrictions.

Did the chase one for $300 last year - was very easy

Doctor of Credit is a great resource