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6% Interest Deal

May 8th, 2014 at 06:30 am

Well, I am well on my way to tripling our bank interest this year. Without any credit card rewards. Literally, just talking bank interest.

**Chase

I got a direct mail offer form Chase, that I have yet to redeem. I will probably do it this weekend. (The offer expires in July. All I have to do is open an account and I will get $200 in 10 days. The kind of offers they sell on Ebay. Fine print is I have to keep $1500 in the account for 6 months to avoid any fees and to keep the bonus. That works out to a 26% interest rate on my $1500 for 6 months. I will take it!)

So, that *doubles* the bank interest income I expect to receive this year.

**Hanscom Federal Credit Union

This one is a little more complicated, but the timing is kind of perfect for me.

The details are at My Money Blog:

[url]http://www.mymoneyblog.com/hansom-federal-cu-thrive-rev...

Check out the referral link and read his blog post. He did a fine job summing it up.

The short explanation is that this CU is offering 6% interest for 12 months. It's called a Thrive account. It is kind of like a C.D. The max you can put into this account is $500 per month.

You need to open a savings account and keep $25 in the account to be a CU member. You need to open a checking account and keep $1 in that account, because you have to fund the Thrive account with the checking account. You can then transfer up to $500/month into the Thrive account. No minimums in the Thrive account, but there is a penalty for withdrawals. These are basically no-fee accounts.

There is a $30 sign up bonus if you use a referral. On the flip side, if you don't qualify otherwise, you have to pay $35 to join some organization, to qualify as a CU member. But these two pretty much offset. & you can potentially earn additional $30 referrals.

The interest earned on the Thrive account will be in the realm of $3,000 x 6%. Around $180 total interest. Since you have to fund it slowly throughout the year. This in effect *triples* my total bank interest for the next 12 months.

At the end of 12 months, the Thrive account is swept into your savings account, I believe, and you will get a renewal notice about interest rate. Which is otherwise about 3% right now. You then start over at $0.

If I had any doubts about the PITA factor of this account, there was an extra bonus for me. My kids have a 7% interest account that cap out at a $500 balance. My elder child is well on the way to $500. SO... I figure in one year if the interest rate on this account reverts to 3% or so, it would be an excellent place to save up kids' money. & heck, 3% isn't a bad deal for myself either. But yeah, I expect it to be a long while before the kids have $6,000 ($500 x 12). So, it might be a good place just to pool some of their savings and track it in excel or something like that.

{My kids have been REALLY motivated by the higher interest rate, but are well aware they won't earn much, anywhere, after they hit the $500 cap. So, I think this will help motivate them to keep saving}.

Minors (over age 8) can also open these Thrive accounts. I didn't look into those details.

I wish I had my referral code to share, but I don't think I will receive it before this promo ends. 6% Promo ends Saturday.

8 Responses to “6% Interest Deal”

  1. Beawealthywarrior Says:

    I also took advantage of the Chase offer. I got $200 for opening and $200 for savings.

  2. MonkeyMama Says:

    P.S. I forgot to mention. You can fund up to $2,000 of this account, initially, with a credit card. MyMoneyBlog had some commentary on that. Just a tip if you are doing the Wells Fargo reward or another credit card reward. I personally would not risk the cash advance fee and consequences. MMB just said that AmEx is unlikely to categorize these as cash advances, and he chose an odd number to make it look less like a cash advance. But, there is no guarantee. So, I looked up the cash advance fees and terms on my own American Express cards and thought, "Yeah, I don't think so". I'd maybe consider it for a reward offer though - the reward would cover the fees if I got stuck with it. Cash advances also do not have a grace period, so interest accrue from Day 1. IT sounded like a whole mess I didn't want to potentially deal with since we use our AmEx cards every day.

  3. MonkeyMama Says:

    I wish my hubby would get that Chase offer too!

  4. creditcardfree Says:

    I always wish I could get the Chase bank offer, but no Chase banks in my state, therefore I'm ineligible. I did get something from Nationwide the other day about $200, I saved it and need to look closer.

  5. FrugalTexan75 Says:

    The Thrive deal sounds awesome! Hopefully they'll have a similar deal in a few months once I have a job again and can put money away.

  6. Looking Forward Says:

    Just read this about the Thrive acct.. Darn we missed it.. would've been good for my mom and some money she has saved for the kids.

    I do Thank You for telling CCFree about the WF AmEx - I got that one(Big Grin) and told my mom about it too (we both bank w/WF.)

  7. Looking Forward Says:

    PS. Still going to tell her because 3% is really pretty good! Smile Thanks!

  8. MonkeyMama Says:

    I have a referral code *finally* - Current interest rate is 3%.

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