Chasing Bank Deals?

[khorrell]

Does anyone here actively track down bank deals for profit? By this, I mean opening new accounts for bonuses or opening new credit cards for teaser rates and/or bonuses. I know that people make money doing this, but it seems like I would mess something up and end up costing myself money. What do you all think? Thank you for thoughts.

[rstlne]

I haven't been done that except for a few occasions when I wanted to switch banks anyway. I checked for deals at those times. For example, both ING Direct and HSBC Direct have had deals where new deposits earned a higher rate of interest for a few months. Since I was looking for a new home for my emergency fund, I went with them and I'll probably maintain accounts there until I see a good reason to switch banks again.

[jkuo13]

Personally, I don't find it worth the time to chase bank deals. My current banks are reliable and have a good enough interest rate relative to the competition. The hassle of the bonuses for having another account just doesn't appeal to me at this point in my life. Back when I was a student, it would have been a different story. I would have signed up for a new account for $25 without a second thought.

Using the teaser credit card rates to make money is an intriguing idea to me. I don't have the guts or organizational skills to try it though.

[alex]

It's not worth the time and effort. Unless it's fun to you, do something else.

[Xin Lu]

I am pretty paranoid about signing up for online banks that I have never heard of before. So I have never done this, but when I got married and signed up for a joint account with the hubby at Bank of America I made sure to search out the best cash reward code for opening that account. So basically I sign up for the services I want anyway and look for if there happens to be any special offers.

[Finally_Frugal]

I don't research bank accounts with a 'bonus' or reward in mind---I do look for accounts where I will NEVER pay a fee, regardless of how low my balance falls, or how many transactions I have. Of course, with savings, higher interest is better, but I don't chase that either: I have two savings accounts, one at 4% and the other at 3.65% (the last time I checked) and even if I found one at 4.5% or higher I wouldn't open another account. It's not worth my time. I think I can get a better return on my investment of time by researching the best mutual fund, or cutting my phone bill, or saving in a number of other areas.

Great question, though!

[Anne]

I do this occasionally, but the deal has to be pretty good. For a bank deal, it has to offer a reasonable return on investment (I'm not going to sign up for a $5 bonus on $1000 deposit offer--make it $50 on $100 and we're talking) and they have to credit my account fairly quickly (I'm not waiting 6 months for a deposit). For a credit card deal, since there's a hit to my credit score, generally I want at least $100 or equivalent.

[lilac]

I keep my eye out for ones that are spectacular, but in general I don't chase around bank deals. I too just stick with my old faithful bank with no fees.

My old bank didn't charge me any fees and then out of the blue started to, when I went in to complain and close my account they said that my account should've been free the whole time.

I decided to close the account anyway and went with a bank with completely free checking that'll never end. I've been very happy and they offer pretty competitive rates on "Online Savings" accounts too. The account is kind of like ING, but with much slightly higher APR and faster transfer times to and from my checking account since the accounts are with the same bank.

[MSMomsmoney]

I have done this a few times. Once with Citibank for a $100 bonus. Another time with BoA for a $100 bonus. e*trade a $25 bonus. Capitol One $25 bonus.

Okay maybe more than a *few*.

Right now Im doing the save yourself program with Suze Orman through TD Ameritrade, save $50 a month, and get a $100 bonus after a year.

I've done the ING bonus(es) and the Sharebuilder account for the $65 bonus.

Credit cards, I've done one Amex $250 credit to my card, after first purchase, and a $250 check with a BoA card Iowa card after the first $250 purchase, and I've done the Citicards Cash Back card (5% cash back for the first 3 months, no limit), and that was a great deall--got over $600 cash back in 3 months.

Most have been worthwhile, a few have been a hassle.

[dapooh1]

I have two basic rules of thumb when it comes to personal finance: KISS (keep it simple sweetheart) and look for a sale or coupon.

I recently decided to open an ING Orange Savings Account to get a higher rate than I had in my money market acount. I remembered that in the past ING had offered $50 bonuses to folks who opened new savings accounts so I did a google search for current ING promotions. I found a recently expired $25 promotion and some more recent $13 dollar new account promotions. I eventually found a link to get a "refer a friend" $25 bonus (I think we both got $25 dollars for the "referal"). Knowing that the promotions were out there, I was determined to not open an account unless I could get a bonus.

With the interest rates heading down, I don't suppose there will be too many more great promos for lending the banks our money. I see bigger long term returns in buying mutual fund shares that are down right now (no load funds, of course).