Do you chase bonuses from online savings accounts?

b4freedom · #1 (**permalink**) 09-05-2006, 07:42 PM

I just opened another online savings account, this one is with Metlife. I'll get 4.25% plus $50 bonus after funding the account for 90days with $5000. Over 90 days, that works out to be about 8.2% interest ($53.20 interest plus $50 bonus = $103.20 total). This $5000 is part of our emergency funds, so we don't want to tie it up in anything long term. After 91 days or so, I'll transfer all the money back and repeat with either another bank or under my wifes name. 8.2% isn't bad.

Do you do this as well?
Are there any problem with this?
Any suggestions?
Is there a name for this?
What do you do when you run out of banks?

gavinmccallister · #2 (**permalink**) 09-05-2006, 09:26 PM

I had an account with Met-Life, I really like it I also earned my $50.00 I have since closed out mine though, but I am looking into opening up a new account.

Bluezy · #3 (**permalink**) 09-06-2006, 02:12 AM

I lost the thrill of rate chasing a few months back. I do remember that I made decent returns on what began as my $20 challenge from this forum

greedy4chips · #4 (**permalink**) 09-06-2006, 02:26 PM

I am in the process of chasing every bonus I can find...so far that is only a couple online savings accts, a couple $100 gift card offers from CCs, and a couple local bank $50 new acct offers.

I would be interested in chasing every last one of them I could find. Perhaps someone knows of a list or I can try to put one together.

b4freedom,
Did you lose or gain interest on the $5000 to receive the $50 bonus? 4.25% is lower than several savings/money market acct rates so your cost of doing the transaction may have been a loss on the interest rate, but a gain on the bonus side. If this is true what is the smallest amount you would be willing to earn to move the $5000 around from acct to acct to gain bonuses?

I myself would have no problem moving it for $10 profit, when considering the interest rate difference plus whatever bonus they are offering. $10 for a few minutes of typing is worth it for me!

b4freedom · #5 (**permalink**) 09-06-2006, 02:46 PM

The best rate I could find without a million strings attached was 5.05%. The difference in earnings between 5.05% and 4.25% over 3 months is $10.08. So, the $50 bonus makes it worth it because my earnings is roughly $40.

What is the smallest amount I would be willing to earn to move the $5000 around from acct to acct
to gain bonuses?

I figure out what is worth it based on the time it'll require. It takes 15 minutes to setup an online account. Maybe another 15 minutes to manage it over the next couple of months. So, for maybe ½ hour of work, I'll make an extra ~$40. That's worth it. If I figured that it was going to take hours and pay $10, I wouldn't do it. I generally aim for at least making $20/hour for my work. Ideally I'd like to make around $85/hour.

Snoopy2645 · #6 (**permalink**) 09-06-2006, 09:48 PM

I do it a little & I also do the cc offers for bonuses got one yesterday for $25 to disney I loved that one disney was once my favorite store these days its maybe a yearly visit if that & I was able to get beach towels & swimsuits & stuff for about $3 after the gc I paid .90 for all of it!!!

poundwise · #7 (**permalink**) 09-07-2006, 06:09 AM

Quote:

Originally Posted by b4freedom

The best rate I could find without a million strings attached was 5.05%. The difference in earnings between 5.05% and 4.25% over 3 months is $10.08. So, the $50 bonus makes it worth it because my earnings is roughly $40.

I'm not sure when you did your searching, however, there are least 5 banks offering greater than 5.05% APY with hardly a string attached if any. link

poundwise · #8 (**permalink**) 09-07-2006, 06:17 AM

Chasing bank rates and offers is one thing. Having or obtaining a rewards credit card or card bonus offer or two can also be reasonable.

However, chasing credit card bonuses is dramatically foolish. It is quite a detriment to your credit score to apply for multiple cards in a short time frame, the idea of multiple credit pulls alone is bad enough, not to mention the what having multiple open lines of credit can do, especially when it comes time to obtain a mortgage or re-fi.

I am not saying that if you receive an offer or see an application for a card and it has a good bonus offer and/or special rate and/or rewards, that you should not get it. That is your call, of course. Frankly, however, if you apply for several of these 'great deals' in a relatively short time-frame you are, IMO, acting foolishly.

poundwise · #9 (**permalink**) 09-07-2006, 06:24 AM

Chasing bank rates and offers is one thing. Having or obtaining a rewards credit card or card bonus offer or two can also be reasonable.

However, chasing credit card bonuses is dramatically foolish. It is quite a detriment to your credit score to apply for multiple cards in a short time frame, the idea of multiple credit pulls alone is bad enough, not to mention the what having multiple open lines of credit can do, especially when it comes time to obtain a mortgage or re-fi.

I am not saying that if you receive an offer or see an application for a card and it has a good bonus offer and/or special rate and/or rewards, that you should not get it. That is your call, of course. Frankly, however, if you apply for several of these 'great deals' in a relatively short time-frame or do so perpetually you are, IMO, acting foolishly.

joseblanco · #10 (**permalink**) 09-07-2006, 07:19 AM

I've chased a few savings account bonuses but I do not recommend making a habit of it. It can become a bit unmanagable. It will not impact on your credit score like chasing all the CC bonus offers as poundwise has already explained. If you must satiate your desire for bonuses/free money beyond online saving accounts and do not want to damage your credit by chasing CC bonus offers I recommend auto test drives and consumer purchase bonuses. Many car makers will give you a gift card of some sort for test driving a car. Nowadays they focus on gas cards. There are several forums/strings on this site that disclose the latest offers in this arena. Good luck.