How To Make $$$ Churning Bank Account Bonuses

Summary

In this video, RJ explains how to take advantage of bank account sign-up bonuses, which work similarly to credit card bonuses. He walks through how banks offer cash rewards for meeting conditions like making direct deposits, often with minimal effort. RJ highlights an example using Chime Bank, showing how a simple $200 deposit can earn a $75 bonus. He also explains how bank accounts can be churned for repeated bonuses, and how these bonuses are taxable. With tips on navigating terms and conditions, the video provides practical advice on maximizing these easy, risk-free rewards.

Takeaways

• 😀 Take advantage of bank account sign-up bonuses, which work similarly to credit card sign-up bonuses, offering easy ways to earn money through direct deposits.
• 😀 Bank account bonuses typically require direct deposit of a certain amount within a specified time frame, unlike credit card bonuses which require spending a set amount.
• 😀 Chime Bank currently offers a $50 bonus for opening an account and making a $200 direct deposit within 45 days, but you can increase this to $75 by using a referral link.
• 😀 Banks offer sign-up bonuses to attract new customers and encourage cross-selling of additional financial products like loans and credit cards.
• 😀 Reading the terms and conditions carefully is crucial, as it helps you understand the deposit requirements and ensures you meet the criteria to receive the bonus.
• 😀 Bank account bonuses are often churnable, meaning you can apply for the same bank account multiple times after a waiting period (usually 6-12 months).
• 😀 Churning bank accounts allows you to earn multiple bonuses per year, sometimes with quicker turnaround times than credit card churning.
• 😀 A key advantage of churning bank accounts is that it allows you to test different banks and their features, potentially finding a better long-term banking solution.
• 😀 Always keep a copy of the terms and conditions and proof of deposit to ensure you receive your bonus and have documentation in case issues arise.
• 😀 Bank account sign-up bonuses are considered taxable income, so be prepared to report them on your taxes using the 1099 form that you will receive at the end of the year.

Q & A

What is the main focus of this video?

The video focuses on explaining how to earn money through bank account sign-up bonuses, specifically discussing how bank accounts, like Chime, offer bonuses for opening new accounts and meeting specific deposit requirements.

How do bank account bonuses work?

Bank account bonuses work similarly to credit card sign-up bonuses. Banks offer cash bonuses when new customers meet certain criteria, such as opening a new account and making a direct deposit within a specified time frame.

Why do banks offer these bonuses?

Banks offer bonuses to attract new customers. By getting people to open accounts, banks can hold onto customers' money and make money by lending it out. Additionally, banks try to cross-sell other financial products like loans and mortgages.

What example does the host provide to explain the bank account bonus?

The host uses Chime Bank as an example. Chime offers a $50 bonus for signing up and making a $200 direct deposit within 45 days. However, the host mentions that by using a referral link, the bonus can be increased to $75.

What is the key to maximizing bank account bonuses?

The key to maximizing bank account bonuses is to carefully read the terms and conditions. This includes knowing the exact deposit amount required, the deposit methods allowed, the timeframe for completing requirements, and keeping documentation for future reference.

What should you do to ensure you get the bonus payout?

You should keep a copy of the terms and conditions, especially if there’s a dispute about the bonus later. Additionally, ensure that you meet all deposit requirements within the specified time frame and use the correct method for depositing the money.

What is the difference between bank account bonuses and credit card sign-up bonuses?

The main difference is in the requirements. Credit card bonuses usually require you to meet spending thresholds, while bank account bonuses often require direct deposits. Also, bank account bonuses are taxable income, unlike credit card bonuses which are often treated as rebates.

Can bank account bonuses be churned like credit card bonuses?

Yes, bank account bonuses can often be churned, meaning you can earn the bonus multiple times by opening new accounts, closing them, and then reapplying after a certain period. Unlike credit cards, some banks allow you to churn accounts much faster.

How quickly can you churn bank accounts for bonuses?

Some banks allow you to churn accounts every 6 to 12 months, which is much faster than the rules for credit card bonuses. This means you can earn several bonuses in a year from the same bank by following the churn process.

Why is it important to use a referral link for bank account bonuses?

Using a referral link can increase the bonus you receive. For example, with Chime, using a referral link increases the bonus from $50 to $75. It also helps the person referring you earn a bonus as well.