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Any 4% or more savings accounts?

XtraCredit
Established Contributor

Re: Any 4% or more savings accounts?

I was told that the $50 referral would be credited on the 1st.
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Message 41 of 51
Batsy
Regular Contributor

Re: Any 4% or more savings accounts?

I got it! Yay!!!

Message 42 of 51
satio
Frequent Contributor

Re: Any 4% or more savings accounts?

For bonuses that take affect for direct deposit, any tricks for accomplishing a direct deposit when you are self employed?

 

Beyond saving accounts in the topic, there are many banks which give bonus $ for opening an account and then having x amount of direct deposits over x number of months.

 

The kicker again is direct deposit. How can I accomplish a "direct deposit" thats not coming directly from an employer?



Message 43 of 51
Revelate
Moderator Emeritus

Re: Any 4% or more savings accounts?


@satio wrote:

For bonuses that take affect for direct deposit, any tricks for accomplishing a direct deposit when you are self employed?

 

Beyond saving accounts in the topic, there are many banks which give bonus $ for opening an account and then having x amount of direct deposits over x number of months.

 

The kicker again is direct deposit. How can I accomplish a "direct deposit" thats not coming directly from an employer?


For some ACH's count as such apparently.  I don't know how an ACH and DD would be distinguished other than the name, it's the same electronic funds transfer process.




        
Message 44 of 51
CreditGuyInDixie
Super Contributor

Re: Any 4% or more savings accounts?


@satio wrote:

For bonuses that take affect for direct deposit, any tricks for accomplishing a direct deposit when you are self employed?

 

Beyond saving accounts in the topic, there are many banks which give bonus $ for opening an account and then having x amount of direct deposits over x number of months.

 

The kicker again is direct deposit. How can I accomplish a "direct deposit" thats not coming directly from an employer?


This link focuses directly on your question:

 

https://www.doctorofcredit.com/how-to-use-our-direct-deposit-page-for-bank-bonuses-page/

 

If you become interested in the hobby of chasing bank bonuses, I suggest that you look at these articles:

 

https://www.doctorofcredit.com/a-beginners-guide-to-bank-account-bonuses/

 

https://www.doctorofcredit.com/best-bank-account-bonuses/

 

A person can typically make $1000 a year or more from a few well chosen bank bonuses (and very little cash).  Compare that with a person who has a larger amount on deposit ($5000) in an ultrahigh interest savings (5%) and you still only make $250.

Message 45 of 51
Green456
Established Contributor

Re: Any 4% or more savings accounts?


@satio wrote:

For bonuses that take affect for direct deposit, any tricks for accomplishing a direct deposit when you are self employed?

 

Beyond saving accounts in the topic, there are many banks which give bonus $ for opening an account and then having x amount of direct deposits over x number of months.

 

The kicker again is direct deposit. How can I accomplish a "direct deposit" thats not coming directly from an employer?


LMCU allows sending payments to other people as direct deposit. I used to direct deposit myself all the time.

Message 46 of 51
Batsy
Regular Contributor

Re: Any 4% or more savings accounts?


@CreditGuyInDixie wrote:

A person can typically make $1000 a year or more from a few well chosen bank bonuses (and very little cash).  Compare that with a person who has a larger amount on deposit ($5000) in an ultrahigh interest savings (5%) and you still only make $250.


Thing is, if you have the cash, if it isn't earning interest that is at minimum the going inflation rate (currently 2%) then it is actually going down in value every year. Ultrahigh interest rates are a way to preserve the value of the cash you already have and make a little extra at the same time.

Nothing is stopping anyone from doing both bonuses and ultrahigh interest accounts--the two are not mutually exclusive in the least! So if you have cash, why  not do both?

Message 47 of 51
CreditGuyInDixie
Super Contributor

Re: Any 4% or more savings accounts?


@Batsy wrote:

Nothing is stopping anyone from doing both bonuses and ultrahigh interest accounts--the two are not mutually exclusive in the least! So if you have cash, why  not do both?

Oh for sure... I am in complete agreement with you.  That's a point I made myself recently on another thread.

 

It's just that many people are unaware of the large returns they can get on bank bonuses compared to what they might get from a high interest savings.  They think that interest is their only option for making money off of savings and checking accounts.  So they often get bogged down into trying to find the best interest rate (e.g. 2.3% at bank X vs. 2.1% bank Y, say). 

 

They also can get misled by the interest rate itself.  For example, 6% sounds really amazing, right?  But it still at the end of the day ends up producing a fairly small dollar figure at the end of the year compared with (say) 1% -- unless the person has a ton of cash in the savings account (typically because he's saving for a down payment).

 

So to sum up:

 

(1)  I agree that there is nothing wrong with a hybrid approach.... i.e. (1) keep your cash in the highest interest place you can find, except for (2) the cash you are using at that moment to meet a bank promotion.  For example, I am currently grabbing the $400 Wells Fargo bonus.  The only requirement is the direct deposit.  So the day after my money materializes, I transfer it into my high-interest savings (leaving only a few dollars in the WF account).

 

(2)  Interest rates end up mattering most in practice when a person is trying to save up for a house down payment.  Here the person really does have a need for a ton of cash sitting somewhere in a safe place.  Because he has so much cash, the dollar value generated from a 5% account vs. a 2% account is not trivial.  But unless he has a good reason for keeping a ton of his money in cash, he should reassess and see whether he might be better served by placing that money in his Roth or a taxable stock account.

 

Edit: in addition to the common issue of saving for a house (huge bundle of cash) another good reason to care deeply about interest on a savings account is if you have a medium sized bundle of cash that you think will stay in the account untouched for many years -- typically an emergency fund in the event of a catastrophic event like losing your job.  You are hoping that this 5k (or whatever) will stay untouched forever (i.e. you are hoping that you'll never lose your job).  In that case finding a 5% Netspend account (say) to park it makes sense.

Message 48 of 51
DaveInAZ
Senior Contributor

Re: Any 4% or more savings accounts?


@Revelate wrote:

@satio wrote:

For bonuses that take affect for direct deposit, any tricks for accomplishing a direct deposit when you are self employed?

 

Beyond saving accounts in the topic, there are many banks which give bonus $ for opening an account and then having x amount of direct deposits over x number of months.

 

The kicker again is direct deposit. How can I accomplish a "direct deposit" thats not coming directly from an employer?


For some ACH's count as such apparently.  I don't know how an ACH and DD would be distinguished other than the name, it's the same electronic funds transfer process.


Yes, both ACH and direct deposit are electronic, but it's the name that distinguishes it so that banks know the difference. Most ACH transfers are labeled "P2P", Peer to Peer. Since you have to verify that you own an external account by verifying trial deposits or login, banks label ACH transfers as P2P as you're transferring funds to yourself. Here's an example of an ACH transfer into my Bank of the West account where I'm doing a bank SUB:

04/26 ELECTRONIC DEP MEMOBK CK WEBXFR P2P 042619 WEB 300.00

- The B of West SUB is unusual as it was called "Any Deposit Checking Bonus", 4 monthly ACH deposits of at least $250 qualifies, unlike most bank SUBs which specify the deposit must be a government benefit or payroll.

 

I'm also doing a SUB at Wells Fargo, their bonus specified government benefit or payroll DDs of at least $500/mo. So I split my payroll DD to give WF just over $500/mo.:

Cxxxxx COUNTY DIRECT DEP 190524 470050695738EBL Xxxxx,DAVID $277.33
Details Category: Direct Deposits

 

Finally, I have my Social Security DD going into BBVA Compass Bank:

CREDIT FOR SSA TREAS 310 XXSOC SEC CO REF- XXXXX0000A SSA Income

- The DD actual had the last 4 digits of my social security # after the x's, so I changed it to zeros. And yes, there is a $250 SUB for BBVA, but I'm actually keeping this account as I have their CC and want to build the relationship. Bank of the West & Wells Fargo are "dine & dash", I close the account as soon as I can without penalty after the SUB is paid. I also have a Chase checking SUB already paid, but if you close the account within 6 months you forfeit the SUB, so I'm keeping $1500 in the account to avoid fees until I can close it in July, the DD to get the SUB & avoid fees has long moved on.

 

Banks vary widely in their ability to distinguish between a govt. benefit/payroll DD and an ACH from another bank account, and after missing out on a couple SUBs where ACH didn't work I just do payroll or Social Security DDs now.

 

@satioThere are inexpensive payroll services you can use to pay yourself and qualify as payroll DDs.

Message 49 of 51
Green456
Established Contributor

Re: Any 4% or more savings accounts?


@DaveInAZ wrote: 

@satioThere are inexpensive payroll services you can use to pay yourself and qualify as payroll DDs.


Like which ones?

Message 50 of 51
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