It seems like there's a couple grand annually just for signing up for new bank accounts. A lot are based on just getting a single direct deposit in a certain time frame. Are people doing this?
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Are there any real risks to doing this? Can it impact your credit score?
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Is it a huge hassle?
Just wondering if I can open an account and close it as soon as I get the bonus…there has to be a catch, right?
Posted by empty_w4
7 Comments
gotta read the fine print ; some common things youll need to do
* keep XXX money in account for xx time
* set up auto deposits
* spend XXX money in XXX months
* complete xx transations in xxx months
you might think its worth the time
r/churning does this a lot
The risks are a few…
You may get denied. They have a way to check how many accounts you have elsewhere, but don’t always check.
You may forget or misunderstand the fees and get hit with a fee.
You miss out on interest in a HYSA.
You do it at a bank you have CCs or other accounts at and they lock you down as they see what’s up.
I do a couple a year and yes it’s “easy” just have to stay on top of it. I also try to do it with legit payroll DDs vs other transfers.
Don’t forget bank bonuses are taxable income.
1. They are taxable income, the only risk is your CHEX score, which only determines your eligibility for more bank accounts. Just avoid some of the (mostly smaller) banks that hard pull your credit.
2. No. Did $10k last year all online, mostly during downtime at my full-time job.
Closing it as soon as you get the bonus is probably a bad idea. There is something called Early Warning System (EWS) that will flag you if you have accounts that are closed in less than 6 months. Banks use this as part of their duty to prevent and report money laundering,
If you do this, [Doctor of Credit](https://www.doctorofcredit.com/a-beginners-guide-to-bank-account-bonuses/) is your best resource.
Check out doctor of credit forum, they’ve got very detailed info on the bank account churning game. Made around $4000 a year the previous 3 years
FYI the bonuses are taxable income and it’s another form you get /have to submit at tax time.
Yeah not a bad strategy. I believe you have to wait a full year after closing an acct to try it again.
Just don’t forget to report it as income at tax time. They will send you a tax form