Author Topic: Capital One Money Market $500 Bonus for $50K Balance  (Read 613 times)

jjones1438

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Capital One Money Market $500 Bonus for $50K Balance
« on: August 23, 2019, 11:19:41 AM »
Thought this was junk mail, but am intrigued by their 360 Money Market, says if a new customer deposits $50K and maintain a $50K balance for 90 days, they will then provide a $500 bonus (assuming no default, closed, suspended, within 60 days following the initial 90 days. Says the account has a 2% APY, so assuming they take the full 60 days to put the $500 in as the bonus, is this essentially the same as a 5 month "CD type as you can't touch it until 5 months has passed" that would yield 2% APY + $500.

Local banks are offering 2% money markets, but no $500 balance. Says they are FDIC insured. Assuming one is looking for a place to park $50K and will absolutely not need to touch it, this seems like a good home? (Not looking for a put it all in VTSAX discussion, this is specifically for parked money for this time frame).

Are there better alternatives? Does this seem like a good choice?

sherr

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Re: Capital One Money Market $500 Bonus for $50K Balance
« Reply #1 on: August 23, 2019, 11:38:31 AM »
Thought this was junk mail, but am intrigued by their 360 Money Market, says if a new customer deposits $50K and maintain a $50K balance for 90 days, they will then provide a $500 bonus (assuming no default, closed, suspended, within 60 days following the initial 90 days. Says the account has a 2% APY, so assuming they take the full 60 days to put the $500 in as the bonus, is this essentially the same as a 5 month "CD type as you can't touch it until 5 months has passed" that would yield 2% APY + $500.

$500 over 5 months for $50k is equivalent to a 2.4% interest rate. So they're essentially offering you a 4.4% interest rate for 5 months, then dropping to 2%. Or an alternate way of looking at it is they'd pay you $916.67 to park your $50k there for 5 months.

I think it's not bad, given the "I have to park $50k somewhere for a few months anyway" condition. You can probably beat it by signing up for multiple checking / savings accounts with different banks that offer sign up bonuses; $50k can meet the balance requirements of several different savings accounts. Especially if you have a direct deposit you can split into the various checking accounts. But the more accounts you'd have to sign up for to beat this 360 Money Market offer the more work it would be for you...

jjones1438

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Re: Capital One Money Market $500 Bonus for $50K Balance
« Reply #2 on: August 23, 2019, 11:49:32 AM »
Thought this was junk mail, but am intrigued by their 360 Money Market, says if a new customer deposits $50K and maintain a $50K balance for 90 days, they will then provide a $500 bonus (assuming no default, closed, suspended, within 60 days following the initial 90 days. Says the account has a 2% APY, so assuming they take the full 60 days to put the $500 in as the bonus, is this essentially the same as a 5 month "CD type as you can't touch it until 5 months has passed" that would yield 2% APY + $500.

$500 over 5 months for $50k is equivalent to a 2.4% interest rate. So they're essentially offering you a 4.4% interest rate for 5 months, then dropping to 2%. Or an alternate way of looking at it is they'd pay you $916.67 to park your $50k there for 5 months.

I think it's not bad, given the "I have to park $50k somewhere for a few months anyway" condition. You can probably beat it by signing up for multiple checking / savings accounts with different banks that offer sign up bonuses; $50k can meet the balance requirements of several different savings accounts. Especially if you have a direct deposit you can split into the various checking accounts. But the more accounts you'd have to sign up for to beat this 360 Money Market offer the more work it would be for you...

Thanks, yeah, I want to minimize headaches so wouldn't want to go sign up for a bunch of accounts, then have to deal with all of them in the future as well, this seemed like a simple solution.

ecchastang

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Re: Capital One Money Market $500 Bonus for $50K Balance
« Reply #3 on: August 23, 2019, 01:53:36 PM »
They had that offer 4 months ago, and I crossed the 90 day threshold last week. 

v8rx7guy

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Re: Capital One Money Market $500 Bonus for $50K Balance
« Reply #4 on: August 23, 2019, 02:33:20 PM »
50K in a Money Market Account does not jive with my Investment Policy Statement... too much cash sidelined from the market for me.  CapitalOne has also offered a $200 bonus for $10K in the past which I have taken advantage of.