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Thread: Switching banks - need advice

  1. #1
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    Switching banks - need advice

    I just moved out west and need to switch banks. I had a really good gig going at my bank out east. 2% cash back credit card and a variable rate savings account which generated around 1.25-1.80%.

    I found a small bank in my new town that offers a 2% cash back credit card, but dismal interest on savings accounts. However they have generous rates on their CDs, which I can ladder to have one or more come due each month.

    So no sooner did I open an account, then I received an offer from Chase Bank. I would receive $600 if I open a checking and savings account if I keep it open for 90 days.

    So my question is, is it worth putting the $15,000 minimum in at Chase for 90 days and then taking it back out again? The interest on their savings account is only 0.01%, so it isn't worth keeping cash there long term. Or is there a trap that I'm not seeing?

  2. #2
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    Quote Originally Posted by Molly View Post
    I just moved out west and need to switch banks. I had a really good gig going at my bank out east. 2% cash back credit card and a variable rate savings account which generated around 1.25-1.80%.

    I found a small bank in my new town that offers a 2% cash back credit card, but dismal interest on savings accounts. However they have generous rates on their CDs, which I can ladder to have one or more come due each month.

    So no sooner did I open an account, then I received an offer from Chase Bank. I would receive $600 if I open a checking and savings account if I keep it open for 90 days.

    So my question is, is it worth putting the $15,000 minimum in at Chase for 90 days and then taking it back out again? The interest on their savings account is only 0.01%, so it isn't worth keeping cash there long term. Or is there a trap that I'm not seeing?
    Many people have done what you are talking about doing at Chase successfully, but I like to keep my banking simple, so I just bank with Ally for that kind of thing, savings and cd ladders.

  3. #3
    Senior Member kib's Avatar
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    I'm in on this one. Because my DH is a government employee, Chase has waived the checking requirements and we get a free safe deposit box. I basically open savings, keep $15K in there 3 months, move it out again to a 1.7% mma at Discover, wait another three months, close the savings account. 180 days later I'm eligible to do it all again. this keeps the rate of return on $15,000 around 2.75% for money that's available without a penalty other than the lost bonus in a pinch, I consider it part of my emergency fund.

    (ETA - your rate of return for doing it once for both accounts would be a lot higher. Because I keep checking open, I'm only eligible for the savings bonus. I haven't found a catch to it, other than you do have to keep the accounts open for 6 months and I believe there's a fee on the checking account for most folks if there's no balance in it.)

    If you don't mind online banking and using your debit card a lot, TAB bank offers checking with a 4% yield on up to $50,000.

    This is my favorite site for finding bonuses and other good deals. (ignore the Citibank at the top, it's just a sponsored ad. Citibank has some good deals going too, but that's not one of them.) And the "earn up to" is based on $5,000, how much you can actually earn depends on the deposit limit. For example, if you have $50,000 to deposit at TAB, you can earn $2,000 a year.

    https://www.depositaccounts.com/chec...-accounts.html

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    I hear what you're saying and we did it once w/Chase. Service sucked, everything was a charge except hitting their ATM. Letting them sit on that much money is a waste of $. They make a TON of $ on all the $15k deposits from this. Why do you think they give you $600 for the short term loan?

    Life is too short to play games with banking. We chose a local credit union. Personal service when needed. We keep 3m expenses there and that's it.

  5. #5
    Senior Member kib's Avatar
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    Just had to add, the guy I opened my savings account with at Chase just called to check up and be sure I didn't have any issues. No sales pitch at all, just wanted to be sure it went smoothly.

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    Gardnr - That's kind of how I'm feeling now. Sticking with the small bank and personal service. But that $600. It sure is tempting. Trying to figure out if it's worth the hassle or not.

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    Quote Originally Posted by Molly View Post
    Gardnr - That's kind of how I'm feeling now. Sticking with the small bank and personal service. But that $600. It sure is tempting. Trying to figure out if it's worth the hassle or not.
    It's a 4% return on your $15k they get for the time period. Will you benefit from that more than you will the ongoing compounding interest of that $15k in it's current location?

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    And the mental stress of having to think about it? Although that might be enjoyable for you, moving it around and making a profit?

  9. #9
    Senior Member gimmethesimplelife's Avatar
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    Here's my advice: Do you have any verifiable links to the US military? If so, try to get into Navy Federal Credit Union. I may not be a fan of the military but I must say I can recommend this credit union.....if for no other reason, 800 customer service is US based AND they always pick up within two rings and I've never waited longer than 30 seconds to speak to a human being, plus customer service is open 24/7/365, too. And their rates are not the best but my experience has been they beat any bank in Phoenix.

    Can't say my Father's side of the family did nothing for me.....it's due to an uncle that no one likes that I was able to get into Navy Federal in the first place - and I'm the only one who has sympathy/empathy for the aforementioned uncle so it's kind of cool he was able to get me into NFCU. Rob

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    We used to be in the Marine Corps Credit Union, which I really liked, which then somehow got absorbed into the Charleston Paper Hangers or Paper Makers or something. Very disappointing.

    When it was the Marine Corps Credit Union, you couldn't wear hoodies or sunglasses in the lobby.

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