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Donna Freedman

Living With Less

Get free money from banks

Continued from page 1

Be on the lookout

How can you find out about these offers? You can do an Internet search, of course, but you should also keep your eyes and ears open. I found one offer by paging through a coupon brochure found in a university bookstore.

Banks and credit unions post these offers on their Web sites and hang up posters in their brick-and-mortar locations. They may run TV or radio ads. A few months ago I heard a radio spot touting a credit union's retro promo: a free toaster with each new account.

Offers vary widely from state to state or even region to region. One message board reader got a $150 come-on from Washington Mutual; mine was for $100. Someone sent me an e-mail about a $50 Wells Fargo incentive, but it turned out to be good only in Oregon and southwestern Washington state.

Some banks or credit unions ask for a decent-sized opening deposit; the WaMu one required $100, for example. But I just discovered a Boeing Employees Credit Union offer that does not specify a minimum deposit. I'll get $25 for opening an account (you don't have to work for Boeing) and another $25 if I refer someone else.

Get creative

The accounts I've opened were at Washington Mutual, which is poised to become Chase, and at ING Direct. (In fact, I already had accounts at both places. That didn't matter.) As a freelancer I don't have one specific employer, so I can't set up direct deposit. Instead, I'll make a certain number of debit card purchases within in the next couple of months.

That's easy enough: I'll simply use the cards instead of cash at a supermarket or a drugstore. I'll write reminders to myself to do this, because I'd hate to lose $125 because I failed to act within the allotted time frame. (For more tips on smart practices, see MSN Money's "Secrets to better banking" page.)

Suppose you have zero cash but want to take advantage of one of these offers?

  • A reader posting as "Great Arm" may use part of her income-tax rebate.

  • Borrow from a friend or relative; once the bank ponies up, give the money back.

  • Get creative about ways to make even a couple of extra bucks -- remember, some of these incentives don't require much of a deposit. For some innovative ways to scrape together cash, see "An emergency fund out of thin air."

Speaking of emergency funds: One of these incentive accounts would be a great way to open yours. Consider it a head start. Try diverting just one hour's salary per pay period or even $5 out of every paycheck, and little by little you'll build a financial cushion.

"Out of sight, out of mind -- you learn to live on what is left after an automatic savings component," says Todd Pietzsch of Boeing Employees Credit Union.

You could also use the cash incentive, once you get it, to "snowflake" a debt, to jump-start saving for a long-term goal or to start savings accounts for your children. Reader "MittenKitten" recently opened ING Direct accounts for her four kids; each received a $25 incentive, and she got $40 in referral rewards.

"I was going to (set up accounts) for them anyway," she says, "so it was a nice bonus."

Personally, I am going to make the new WaMu account the repository of all my manufacturers rebate checks, wrapped coins and other "found" money. I'm curious to see how much it adds up to in a year's time. Plus $100, of course.

Keep in mind that you have to pay income tax on the "free" funds, but what's left is yours to keep. So start saving.

Save money today

No-clip, no-print coupons: During an interview, Stephanie Nelson of CouponMom.com shared a strategy for getting manufacturers coupons without buying a newspaper or having to print them from a Web site. Learn more here.

Protect yourself online: According to Consumer Reports, 20% of online shoppers have been victims of cybercrime. Phishing, spyware and other potential threats abound as well. The Smart Spending blog gives some of the particulars.

So long, Saver: The bad news is that the Walgreen EasySaver rebates are kaput. The good news is the company is apparently beefing up its Register Rewards. Read all about it.

Save on food, groceries and dining out: You'll find more than 1,000 posts from readers here with their best tips on eating well for less. Check it out on the Smart Spending message board.

Published May 13, 2009

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Tuesday, May 12, 2009 10:02:07 PM

their marketing departments are self serving clowns.

dont they know who their best customers will be.

the ones they have now.

they should focus on service and proper care-\

right they are more challenged by other bank customers than their own  

Wednesday, May 13, 2009 7:16:52 AM
I opened an account with Chase bank and they gave me $125.00.  What they didn't tell me is that they were going to report it as interest paid to me.  Imagine my surpise when I received a 1099-Int. statement from them which was just enough to decrease my tax return $75.00!  No where in the "fine print" did it say this was going to happen.  I feel like I was scammed.  Needless to say, I closed this account and will make sure I do not get in this same situation again with Chase or any of its entities.
Wednesday, May 13, 2009 7:39:20 AM

I think you and the banks are missing the point.  For me it is not about the free money which requires opening accounts at multiple institution to gain a couple of extra bucks.  We recently closed our checking, savings investment and credit card accounts with one financial institution because for no rhyme or reason the institution decided to raise credit card fees and interest rate and lowered savings account yield.

 

When asked why the rate and fee increase and why the lowering of our interest earnings on our savings account. We listened to all kinds of reasons and excuses why they had to raise the rates and fees.  They informed us that we are great customers (12-years) and they really appreciate our continued business, but there wasn't anything that they could do at this time due to the poor economic conditions.

 

Therefore, in light of the fact that they feel it is appropriate to punish us for their inappropriate decision making process, we found it necessary to separate them from OUR significant amount of money.

 

The new reality to great customer service, at least thus far for us has been as follows:

  1. Opened a checking and savings account with one institution for every day living
  2. Open a rainy day savings account with another institution
  3. Open an investment account with a third, and
  4. Rolled over the IRA with a fourth institution.

So far the effort it took has been worth it and we periodically receive enticing offers for additional financial packages by each of these institutions.  Every time we interact with these institutions we actually feel like valued customers.  Wonder why that is?

 

As far as credit cards are concerned; our personal policy is that we don't pay over 12.9% annual interest, thus the other two remaining cards (with zero balance) are on ice.  It took a bit to adjust to all cash, but now that we are used to it we are actually better off because of it. 

 

Cheers and happy hunting for the free money 

 

Wednesday, May 13, 2009 8:24:34 AM
These offers don't atract me. If the banks would do business fairly day to day they would have all the costumers they need.
Wednesday, May 13, 2009 8:38:55 AM
A gun and a mask works even better, I've found! And no form 1099-int!
Wednesday, May 13, 2009 9:06:19 AM
Does opening multiple checking accounts affect your credit score?
Wednesday, May 13, 2009 9:30:36 AM

Banks have to charge these bonuses as interest.  It is a government regulation.  If you do not want a 1099 then you must write a letter to your local congressman or the president.  Every bank that gives you more than $20 should be reporting this as interest.

 

Multiple checking accounts does not hurt your credit as long as you do not bounce checks and have your checking account charged off by the bank.  Checking accounts are not reported to credit bureaus as they are not debts

Wednesday, May 13, 2009 10:10:25 AM

Banks are useless.  Walk-over-ya and Chaseaway being the worst offenders.  Banks want the customers that they want and that is decided before you apply.  And if your application for any product or service at any bank has the word "self" in it, particularly anywhere near the "name of employer" box, go buy your own waffle iron.  And yes, even if it is only a checking account.  If anyone, anywhere, knows any bank where this is not the case, I'm happy to listen.

Wednesday, May 13, 2009 10:14:58 AM
Gimmicks usually end up being whitewash.  Lure in someone with greed.  Wooooo $25.  Wow.   No thanks. I'll stick with my credit union.  I get a good interest rate on my checking and savings account.  I have my credit card through them, but not just for convenience.  I have direct deposit with them.  I use my credit card, which gives a month 1% rebate on the balance.  Notice! I said rebate (nontaxable) not cash back (taxable).  I use my credit card for all purchases, including some automatic charges for bill payments.  I don't use cash since I get a "free advocate" for disputes on any purchases made with the credit card.  My money sits in my account until the day the credit card payment is due and they automatically transfer enough to pay off the card.  Annual result, I save hundreds of dollars on my spending and at the same time obtain interest on daily expenditures for which I would pay cash.  Since I am self employed a dollar saved is $1.45 earned (25% Fed Tax, 15% SE tax, 3% state tax and 1.9% local wage tax).  So go open that account, I will stick with mine that pays me all year round.
Wednesday, May 13, 2009 10:25:58 AM
you were still $50.00 ahead? what the problem!
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