Online Savings Bonuses

[DeereClone]

https://www.nerdwallet.com/blog/banking/best-bank-bonuses-promotions/#citi

Has anyone done a promo like the ones listed in the link? It looks like an easy way to make a little money but I don’t want there to be a “catch” and was hoping some of you guys had some experience with these deals.

Looking at either the CitiBank or Discover Bank accounts most likely. Thanks.

 

[cyfan21]

I’m doing the Capital One 360 Savings account. I started it a week ago.

 

[Cyientist]

Just read on how much their fees are, and if they are waived for now, will they always be waived in the future.

I signed up for a Citi online savings account and have been happy with it. Although the interest started at 2.2 and is down to 1.5 now.

 

[matclone]

The checking account fees are a ripoff. I have checking in a credit union with no fees. Moreover, it pays interest.

There's no catch to the savings account bonuses (I got one from Capital One too), so long as parking your 10+ grand in savings is what you want to do with the money (safer, fairly liquid, but lower return than other potential investments).

 

[SpokaneCY]

https://www.nerdwallet.com/blog/banking/best-bank-bonuses-promotions/#citi

Has anyone done a promo like the ones listed in the link? It looks like an easy way to make a little money but I don’t want there to be a “catch” and was hoping some of you guys had some experience with these deals.

Looking at either the CitiBank or Discover Bank accounts most likely. Thanks.

I did something like this with Discover Bank... Cash award and I was getting 2% on my savings with no fees or other shenanigans.

 

[SayMyName]

Hmmm, that Citi offer is pretty tempting. If you have available cash parked somewhere, and can afford to "tie it up" for up to 180 days (maybe less) to satisfy the promotional requirements, it's like getting the equivalent of 2.8% APY on your $$ for the highest amount deposited. Without fees, too - just some paperwork hassle.

 

[DeereClone]

Hmmm, that Citi offer is pretty tempting. If you have available cash parked somewhere, and can afford to "tie it up" for up to 180 days (maybe less) to satisfy the promotional requirements, it's like getting the equivalent of 2.8% APY on your $$ for the highest amount deposited. Without fees, too - just some paperwork hassle.

I was thinking about doing the Discover offer first because the deadline is sooner, then closing that out and rolling into the Citi account after that by the later deadline for the Citi account.

If my wife and I both set up accounts separately it’d double the bonuses and start to add up really nicely actually.

 

[jdcyclone19]

I've done the capitalone 360 savings bonus. My main online saving is through Ally.

The deals are legit. Just make sure of the dollar amount you have to transfer in AND how long it needs to stay there before pulling it out.

 

[putsky]

Why would you not just put savings into a conservative mutual fund? Returns are much better than 1-2% and you can still pull money out quickly if you need it. No restrictions on the length of time the money is deposited either.

 

[DeereClone]

Why would you not just put savings into a conservative mutual fund? Returns are much better than 1-2% and you can still pull money out quickly if you need it. No restrictions on the length of time the money is deposited either.

For my short term savings/reserves I'm about 80% cash/money markets and 20% invested. That's my comfort level for risk on short term investments.

Long Term I am 100% invested in the most aggressive stock funds you can find.

 

[Sigmapolis]

The balances in your checking account should be low enough (e.g., have the money in something that returns much better) that getting 0% or 2% on a checking account should not really make much of a difference in terms of what you have.

 

[VeloClone]

I’m doing the Capital One 360 Savings account. I started it a week ago.

I've had one like that for quite a few years. I have a pittance from my direct deposit go in every pay period and it is far enough out of sight and out of mind that we don't bother it. We then generally have it for vacation when we need it.

 

[DeereClone]

The balances in your checking account should be low enough (e.g., have the money in something that returns much better) that getting 0% or 2% on a checking account should not really make much of a difference in terms of what you have.

I agree in principal but if you have a business that requires a lot of working capital or are looking to make capital purchases soon with the money that may not be the best case. For 95% of the public that are general wage earners with no large purchases planned I agree with you.

 

[Sigmapolis]

I agree in principal but if you have a business that requires a lot of working capital or are looking to make capital purchases soon with the money that may not be the best case. For 95% of the public that are general wage earners with no large purchases planned I agree with you.

The above is a fair point, but I generally assuming the personal finance discussions on here are indeed *personal* finance -- general wage earners.

You are right your view should be somewhat different if you are running a small- or medium-sized business where you make capital purchases and need to keep a substantive amount of money as liquid as possible for both large and unpredictable purchases.

 

[BCClone]

I agree in principal but if you have a business that requires a lot of working capital or are looking to make capital purchases soon with the money that may not be the best case. For 95% of the public that are general wage earners with no large purchases planned I agree with you.

My LOC allows me to go negative balance and when I do I get somewhere between 1/2 to 1%.

 

[Pat]

The above is a fair point, but I generally assuming the personal finance discussions on here are indeed *personal* finance -- general wage earners.

You are right your view should be somewhat different if you are running a small- or medium-sized business where you make capital purchases and need to keep a substantive amount of money as liquid as possible for both large and unpredictable purchases.

My dad is a financial advisor. A few years ago we moved short-term/cash out of money markets (under his management) and into a Discover savings account because the rate was better. As a bonus, the savings account is arguably even lower risk due to the FDIC insurance (counter-point: if the wheels fall off that badly, the dollar, much less the FDIC, will be meaningless).

 

[Sigmapolis]

My dad is a financial advisor. A few years ago we moved short-term/cash out of money markets (under his management) and into a Discover savings account because the rate was better. As a bonus, the savings account is arguably even lower risk due to the FDIC insurance (counter-point: if the wheels fall off that badly, the dollar, much less the FDIC, will be meaningless).

This reminds me of a counterargument I use against equity-phobic people.

"What would happen in my retirement if the DJIA or S&P 500 declined by 90%? Shouldn't I just stay with nice and safe money markets or CDs or even with bonds instead?"

My response --

"It would take something like a nuclear war for that to happen. And if that does happen, then you frankly have more important things to worry about than your 401(k). Plus, that situation would vaporize all those other assets you described just as much."

 

[khardbored]

Why would you not just put savings into a conservative mutual fund? Returns are much better than 1-2% and you can still pull money out quickly if you need it. No restrictions on the length of time the money is deposited either.

In part, because some of the offers with bank account have a signup bonus. Such as, put in $3000 for 2 months, get a $250 bonus. As a percentage, no conservative mutual funds will beat that. (note: made up figures for illustration purposes)

 

[khardbored]

There is a deal out there with a bank called Bask Bank that pays American Airlines frequent flyer miles instead of interest. I think if you put in $1000 for at least 60 days, you get 5,000 frequent flyer miles.

Just google it.

 

[CascadeClone]

This reminds me of a counterargument I use against equity-phobic people.

"What would happen in my retirement if the DJIA or S&P 500 declined by 90%? Shouldn't I just stay with nice and safe money markets or CDs or even with bonds instead?"

My response --

"It would take something like a nuclear war for that to happen. And if that does happen, then you frankly have more important things to worry about than your 401(k). Plus, that situation would vaporize all those other assets you described just as much."

You are of course correct. However, my response to that is usually-

"Sure, keep making 2% while inflation is 3%. Every year you will have more money which will buy even less, and it's 100% guaranteed."

Sadly, my folks invest this way. Luckily dad has IPERS...