High yield savings account plus bonus

[MTSN]

I want to put some emergency savings in a higher yield account than what Chase is paying right now - a pathetic 1 basis point (bps), and I came across this Cap One offer that pays you a $500 bonus if you park $50k in the account for 90 days which is 400 bps / 4% annualized on the bonus. The deposits also earn 75 bps which is a little lower than a few online only type banks (Syncrony and Ally are 100-105 bps). I compared the best 4 I could find and ran the math below assuming I deposit $50k which is probably what I would do to get the full $500 bonus.  Is there a better way to earn a decent return right now with virtually zero risk and complete liquidity (after 90 days of course)? The $500 bonus pushes the annual return to ~147 bps (math is below using simple IRR formula). Any ideas/thoughts are welcome.

https://home.capitalone360.com/lp-savingsbonus500?external_id=360B_SAV_AFF_2989387_3933527_12224389_...

[Anonymous]

If you open a savings and a checking account in the next few days at Discover you can get a $400 bonus ($100 for the savings and $300 for the checking).   I got a $500 bonus for doing the same thing at Chase (with 15k down).  I will be opening a Citigold checking for 50,000 Thank you points (reedemable as $500 in gift cards tax free) in a month.  Etc.

To do that you typically need to have some of your cash available for opening up the various accounts, so you can't lock up all 50k in one place for three months.  But you need far less than 50k and you make a good bit more than $500.

[MTSN]

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@Anonymous wrote:

If you open a savings and a checking account in the next few days at Discover you can get a $400 bonus ($100 for the savings and $300 for the checking).   I got a $500 bonus for doing the same thing at Chase (with 15k down).  I will be opening a Citigold checking for 50,000 Thank you points (reedemable as $500 in gift cards tax free) in a month.  Etc.

To do that you typically need to have some of your cash available for opening up the various accounts, so you can't lock up all 50k in one place for three months.  But you need far less than 50k and you make a good bit more than $500.

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Where are you seeing the Discover bonus? I'm also opening a local checking account with FirstBank for a $200 bonus, but I'm not eligible for any Chase offers since I've already taken advantage of them in the past. I have about another $25k I could spread around for bonuses even if I locked up the $50k for 90 days, so I'd be ok with exploring other options as well.

[Anonymous]

For the Discover savings account bonus:

https://dannydealguru.wordpress.com/2015/09/29/100-bonus-for-new-discover-savings-account/

Note:

*  You must apply VERY soon -- before October 31.

*  The initial funding deposit needs to be more than $10,000 to get the full $100 bonus.

*  You need to be sure to enter the correct Offer Code (see link above)

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For the Discover checking account bonus:

http://www.doctorofcredit.com/discover-checking-300-new-account-bonus/

NOTE: You need a Discover savings account or a Discover credit card in place at least a day before you apply.

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If you have a Citi Doublecash card with a big credit limit (or some other valuable rewards card of comparable power) you should really consider the latest Citigold checking deal.  If you do it right, the $500 in gift cards is just a part of the benefit.  The Citigold permits credit card funding of the account up to 100k.  Thus, if you have a 30k credit limit on a double cash card, you can fund it with 30k and get $600 in cash back right there. 

http://www.doctorofcredit.com/step-by-step-guide-to-citigold-checking-bonus/

[Anonymous]

You also might find these two online savings accounts possible places to park money.  They offer 3% and 5% as rates, though they have a maximum asset ceiling for getting that attractive rate:

5%

http://www.doctorofcredit.com/northpointe-5-interest-checking-account/

3%

http://www.doctorofcredit.com/lmcu-limits-credit-card-funding-for-checking-accounts/

[MTSN]

Awesome thank you!

[Anonymous]

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@Anonymous wrote:

5%

http://www.doctorofcredit.com/northpointe-5-interest-checking-account/

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"Must make 15 debit card purchases in the aggregate amount of $500 per statement period. (The 15 transactions must post and settle during the statement period to qualify.)"

Ouch! Looks like it's set up for someone who primarily uses debit.