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Opening checking/savings accounts for the intro bonus

little5beelittle5bee
in Other Investing
So, I've received two intriguing offers for cash...one from Fifth Third Bank: get $600 for opening a checking account and maintaining $15k balance for 90 days and one from Chase : get $600 for opening a checking account for $5k and opening a Chase savings account for $15k.

I have the cash, which I have earmarked for an investment in Q1 of 2021, but if I open these accounts for the bonus and then close them in less than a year, will it negatively impact my credit score?

Comments

  • catch22catch22
    edited August 2020
    Don't know if this applies, but if you still have taxable income in 2020, I would max a ROTH IRA first. Or other investment options........
    I suspect closing an account within one year might have a small impact upon credit rating. This should be able to be discovered with a search of the words.

    ADD: per a quick check.............
    How Closing a Bank Account Affects Your Credit Score. ... While closing a savings or checking account won't affect your credit score, closing a credit card account can. Credit card accounts are regularly reported to the credit bureaus and factor into your credit score.
  • little5beelittle5bee
    @catch22 just trying to start some non-political discussion.;)I've already maxed out the Roth.
  • msf
    It's not closing the bank account that can affect your credit score, but opening the account. A small number of banks do a hard pull on your credit report when you open an account. The hard pull in turn affects your score.
    https://www.doctorofcredit.com/bank-accounts/is-opening-a-bank-account-a-soft-or-hard-pull/

    The good news is that neither Chase nor Fifth Third appear to do hard pulls.

    I get $600 promotions from Chase all the time, via snail mail. The $5K checking requirement is a variant I haven't seen. Usually Chase does not have a dollar requirement for the checking account part of the bonus but requires a direct deposit. "Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government."

    https://account.chase.com/consumer/banking/LC92272
  • Derf
    Why don't they pay the bonus just for leaving your $$$$$$$ in their bank ?
    Derf
    P.S. Ha Ha !!
  • msf
    Seek and ye shall find. Ally Bank, loyalty reward.

    "We’re currently giving a 0.05% Loyalty Reward when you renew your CD to any CD with us. Check back 30 days before your CD matures to see what the reward is at that time."

    https://www.ally.com/bank/high-yield-cd/
  • FD1000
    edited August 2020
    I tried to do the Chase offer and went to a local branch. From the start I felt the incompetent, delays and I couldn't get specific straight answers from the local branch employees and all the way to a few phone calls I got/made. There is a good reason why I deal with banks as little as I can and prefer Schwab and Fidelity.
  • msf
    One can open the accounts online and all the terms are online. What else did you need?
    Even if one gets more information verbally, all one can safely rely on is what one has in writing.
  • Sven
    Exactly.
  • rsorden
    I used to do this all the time, only pulled credit maybe 1 or 2 times, not a super big deal. I did it for a few years, actually used the bonuses to pay my water, sewer, trash...still haven't paid those with my own $$ after like 7 years. Kept a spreadsheet with the websites, logins, terms...

    Found a website that tracks all the offers floating around out there, would pick 1 or 2 every 6 months or so, and after closing would circle back & do it over again usually after a year.

    https://www.maximizingmoney.com/category/banking-bonus-deals/
  • Derf
    @rsotden, good for you !!
    Derf
  • little5beelittle5bee
    @rsorden Love this! Do you leverage credit card offers, too? I'm still learning the ropes, but I'm a professional when it comes to shopping!
  • rsorden
    @little5bee I've done a couple credit card deals, but avoid then cuz that's a sure credit pull...

    I also do other things, like reward programs where you link your credit card & each time you shop or eat at certain places you get additional rewards. I use iDine & Dosh for this...for example, 1 restaurant I go to, when those 2 programs combine with my credit card rewards, I get 19% cash back, in addition to reward points at the restaurant (where I'm over $1500 in free food & drinks banked now)
  • msf
    Regarding debit/credit card rewards, Amex has beefed up its traditional Shop Small incentive. If you register your Amex card by tomorrow, they'll give you $5 credit if you buy $10+ at a wide variety of small businesses by Sept. 20th. You can do this 10 times.
    https://www.americanexpress.com/us/small-business/shop-small/
  • little5beelittle5bee
    I recently got an offer from my Chase Sapphire Reserve credit card to convert points into statement credit, with a 25% points bonus through September 30. It included any charges that were for food and dining..."food" included grocery stores, but also Walmart and Target. Since I'm not rushing out the door to fly somewhere, I took advantage of the offer and got an $895 statement credit. I plan to do this again before the September 30 deadline.
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