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Recently, my husband received an enticing bank bonus offer via snail mail. The offer is for a $400 bonus for opening a checking account at Regions Bank.
I don’t dabble much in bank account bonuses, but I did open some accounts in E*TRADE last year for a decent bonus. Bank account bonuses go hand-in-hand with the miles and points hobby for many folks. It’s all about moving money and staying organized. (Check out how Mark from Miles to Memories uses bank account bonuses as a tool to earn money for his kids’ college funds).
Specifics on the Regions Offer
The mailer my husband received listed 3 steps to get the $400 bonus:
- Register for the promo with a personal invitation code
- Open a new LifeGreen Preferred Checking account and enroll in Online Banking within 30 days of account opening
- Make $1000 in new deposits within 30 days of account opening
The $400 bonus arrives within 90 days of completing those steps. That’s a 40% return on $1000. Not bad.
I like this offer because it’s easier than some bonus offers that require direct deposits or a large number of deposits.
The mailer left out some details that I discovered online:
- This particular checking account carries an $18/month fee unless you have a balance of $5000
- Regions charges a $25 early closing fee if you don’t keep your account open at least 180 days
So, if we were to simply deposit $1000, we’d have to pay 3 months of fees plus a $25 early closing fee. That makes the bonus equal to $321 after those fees. Still, not bad.
Creating the Account
We decided to park $5000 in this account for 6 months to avoid the fees and get the full $400. After all, interest rates are low right now, so we’re not missing out on much by moving the money.
I followed the directions on the mailer and completed everything online in about 14 minutes. That’s it!
Of course, I will keep checking the account to make sure the bonus appears in a few months. And, I’ll make a note on my calendar to close the account after six months.
Things to Keep in Mind…
The money earned from these bonuses is taxed just like regular bank interest.
Don’t open and close too many bank accounts in a short amount of time. Just like with credit cards, too much activity is not good. However, Doctor of Credit says you can open up to 10 new bank accounts a year without any concerns.
Speaking of Doctor of Credit, that site keeps an updated list of bank and brokerage bonuses. Also, pay attention to offers you may receive via email or snail mail.
Readers, have you been dabbling in bank bonuses lately?
Nancy lives near Dallas, Texas, with her husband and three kids. Her favorite vacations include the beach, cruising and everything Disney.