Figuring out where to park your hard-earned money can be confusing, especially if you have considerable funds to work with. 50% of adults in the U.S. report using multiple banks, while the other 50% use just one. For many bank users, a lot hinges on the benefits the bank can offer, current interest rates, and fee schedules for open accounts.
However, one netizen is wondering if a $900 offering is worth setting up two new accounts. People shared their thoughts on the matter.
1. Conditions Apply
One user told our banker that conditions usually apply when a bank offers a financial gain of $900. “The conditions usually include keeping the money there for some amount of time and/or setting up direct deposit. You can usually only take advantage of such an offer once. Read the fine print.”
2. High-Yield Savings Account
Another commenter said this about parking considerable funds at one bank. “If they pay you $900, they probably require you to keep $20k in your account for six months or more. You could also make $500 in interest if you park that cash in a HYSA. So, the bank is willing to pay you a few hundred to become a new customer; it might not be as attractive as it sounds. These can be a great way to make money, but it’s also a bit time-consuming compared to parking your money in an interest-paying account.”
3. JPMorgan Chase
Another contributor mentioned a deal Chase is running: “$900 is only when you make both direct deposits to a new checking account and $15k in the savings account for three months. It’s a pretty good one, in my opinion.”
4. Superior Products
Another individual reminded us of our poster about exploring other options for banking the same amount of money. “There are many bank bonuses like this. I’ve done many and have always been paid. That said, it’s essential to consider the terms rather than list the dollar amounts. Not all bonuses are desirable. For example, I doubt it is $900 for simply opening a savings account. Far more common is $900 if you keep $x in the account for y days/months. You should consider whether the interest + bonus is superior to alternative investments for a comparable number of days.”
5. Bonus Bounce Back
One person discussed ways to achieve multiple bonuses by bouncing from one bank to another. “Wells Fargo has a $325 checking bonus so you can close that account and do the $900 bonus. Then, after you meet the terms for Chase’s checking bonus, open the Wells Fargo checking for another bonus.”
6. Been There
One participant mentioned they bounce banks multiple times. “I do this multiple times a year. I have no problem taking marketing money from banks, especially big ones. I’m up to about $2,000 for the year.”
7. Beware the Fee Factory
One current banker acknowledged the excellent deal and gave some sage advice. “Do it, $900 is a chunky promotion. I work in banking and open a new account about once a year when I see those promos. If you don’t plan on using the account once you qualify for the $900, close it out; there is no credit check involved with opening/closing a checking account, so it isn’t detrimental in any way like applying for a loan would be. However, a checking account that you’ve forgotten about can turn into a fee factory at some banks.”
8. Chex Reports
One knowledgeable poster told the thread that opening and closing bank accounts just for the bonus can make your Chex report a bit of an alert. “The only caveat is that when you open up a new account with them, most banks will run your Chex report. This is similar to a credit report but for bank (checking/savings/etc.) accounts.
In general, this isn’t something you need to worry about, but some banks — usually smaller banks — are more sensitive to the Chex report and may deny you a new account if you’ve recently opened and closed too many accounts. Again, this is unlikely to be an issue for you unless you’re opening/closing accounts like crazy, and even then, most banks are not “Chex sensitive” (meaning they don’t care as much).”
9. Hub Account
One interested party mentioned creating a central account. “Open a good online savings’ hub account’ link all your checking. When you get the direct deposit, transfer it to where you want it; in other words, don’t set up all your bills to pay out of the account if you’re going to close it.”
Some didn’t think bank shopping was worth it. “It’s not worth the headache to me. I don’t want money that spread around. $900 is pretty good, but even that, for me, is on the edge of not worth even reading all the terms and researching it,” a user cautioned.
One experienced bank user was all too aware of how the promos deal with taxes. “These promos are all subject to taxes, too. They’ll send you a form that will knock your $900 earnings down to like $600, and it will be after you already allocated that $900 to something else. Ask me how I know; laugh out loud. However, that is one of the highest promos I’ve seen.”
12. Banks Shutter Accounts Without Warning
With banks closing without warning, the days of simply opening a checking or savings account are long gone. People recently complained about having their accounts closed for ‘no reason.’ Banks will close accounts for suspicious behavior, primarily concerning deposits and withdrawals. Still, even people with regular deposit and withdrawal activity are having their accounts shuttered for no viable reason. If you plan to do bank bonus shopping, be aware of the fine print.