I am currently thinking about moving my different savings accounts around to get sign up bonuses. Currently I have a decent amount of savings in Alliant and am planning to move it to Discover Savings to get their sign up bonus. It looks like the bonus will be paid by the beginning of October, no account has zero monthly fees, and I don't need to hold it there longer than that. Are there any downsides to this other than the labor required to shuffle around accounts?
I recently opened a Chase checking account to build my relationship with them to get into the Chase CC UR ecosystem but plan on keeping the money there. When the Discover Savings account returns it's SUP, I am considering to to move it to Chase. The Chase bonus is a bit more strict as you need to have the money in the account for 6 months or you return your SUP. Downside to Chase, is the interest rate is terrible on their basic savings but I plan on moving the money out the 6 months back to my Alliant or another high yield savings (unless I'm chasing another SUP).
tldr;chasing sign-up bonuses, are there any downsides? I need to be liquid in the next year or so, have stocks, and 401k/IRA retirement accounts.
Downside is that depending on how many you open, you may not be in position to do so again for a while.
Chase will report opening and closing to EWS. Other large banks that use it will eventually say no because after you do this a few times, the purpose becomes obvious. Some are willing to tolerate it, others are not.
For ones that use Chex, get enough inquries and you'll hear NO a lot, especially from CUs.
Again, they are not stupid. Bonuses are great, but losing money is not so great for them
So, slow down the rate at which you're planning to do this.
Or conversely, just go for it and see what happens. Data points are always appreciated.
Best is to pace yourself. Maybe two a year. If you leave a little bit, you'll end up paying fees as most of those accounts have requirements such as maintaining x amount, direct deposit etc in order to waive the fee. If you pay fees, there goes your bonus.
You can keep going till you get your first no, but also you need to be aware that at that point, you'll have to wait quite a bit
Chex retains inq for a long time, but most lenders are concerned with last year or two
The Chase Savings is $200 plus $100 if you do both the checking and savings. 6 months @ 2.00% is about $173. So $300-173. Worth it? Maybe not as much as I initially thought. Chase Savings requires a daily balance of $300 to avoid fees (easy) or an automatic transfer from checking to saving once a month (easy/minimum $25). Chase Checking, I am keeping regardless requires $500 monthly direct deposit (already done) or minimum daily balance of $300 or more.
However, the Discover is a month or so turnaround is while not a no brainer, a much better gain for a month of money movement. Zero fees with the Discover card.
One big limiting factor to churning bank accounts is that so many banks are sensitive to new accounts as reported by Chexsystems. In some cases 3-4 accounts opened over the last 12 months will trigger a denial.
In some cases if you're applying in-branch at a local bank they may override but in most cases a denial won't be reconsidered.
In some cases you'll be able to open an account online but upon manual review within a few days the account will be closed and your deposit returned.
It can be fun but it isn't a lucrative endeavor.
Not to mention future denials over "previous unsatisfactory relationship"
Also, you're rebuilding, with only 8 months history. Dont burn bridges over $300 before you've even walked on them.
UW at US Bank had my EWS report available during recon for my first card with them, and it was my only saving grace as I seldom open checking/savings accounts, so while my CR looks like I might be ready to rob the world, at least that one was clean as a whistle.
I think you've made up your mind already so good luck!
I think this is DaveinAZ's current cup of tea, maybe he will chime in soon!!
As for me, it has also become my latest interest. So far, for me:
Regions Bank - $400
Chase Bank - $600 (Currently in the works)
Citibank - $500 (Planned for later this month)
Fifth Third - $500 (Planned for Oct)
I do agree I am taking the risk that all the other posters have mentioned. Other than Chase, I have no intentions of having any kind of relationship with any of the banks that I churn. As with Chase, that does happen to be in 2nd player mode, and she(DW) will probably keep that account active for herself.
My current list takes me into Jan 2020, and than I will see what the new year brings me. Maybe some denials? We'll see!!!