Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments > Non-Actuarial Personal Finance/Investing
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Browse Open Actuarial Jobs

Life  Health  Casualty  Pension  Entry Level  All Jobs  Salaries


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 01-11-2020, 10:16 PM
chicken_po_boy's Avatar
chicken_po_boy chicken_po_boy is online now
Member
CAS
 
Join Date: Nov 2008
Location: 401 Poydras New Orleans, LA 70130
Studying for Nothing Ever Again
College: been there, done that
Favorite beer: You gonna finish that?
Posts: 2,121
Default 2020: Can I make 8.0% risk-free?

I started 2020 with $40,000. My goal is to make 8.0% risk-free by taking advantage of bonuses banks offer to open checking and savings accounts. I'm going to use this thread to log my progress each month.

January:

- Opened a savings account with CapitalOne with $10,000. It will pay me a $200 bonus if I hold the money there until April 4.

- Opened a savings account with Discover Bank with $25,000. Discover immediately paid me a $200 bonus, plus $2.32 in interest. Closed account.

- Opened a checking account with US Bank with $1500. It will pay me $200 for having (2) or more direct deposits that total a minimum of $2000.

- Opened a savings account with US Bank with $10,000. It will pay me a $200 bonus if I hold the money there until March 10.

- Opened a checking account with Chase Bank with $5000. It will pay me a $300 bonus for setting up direct deposit.

- Opened a savings account with Chase Bank with $10,000. It will pay me a $150 bonus for maintaining a balance of at least $10,000 for 90 days.

- I had my payroll dept change my direct deposit to 50% going to US Bank, 50% going to Chase Bank.

ETA:
- Deposited another $3,500 with CapitalOne

YTD interest received = $202.32
YTD return = $202.32/$40,000 = 0.51%

Last edited by chicken_po_boy; 01-11-2020 at 10:53 PM.. Reason: see ETA above
Reply With Quote
  #2  
Old 01-12-2020, 12:51 AM
yoyo's Avatar
yoyo yoyo is offline
Member
CAS
 
Join Date: Dec 2001
Posts: 24,408
Default

i did a little of that last year for $1650, pretty easy money
Reply With Quote
  #3  
Old 01-12-2020, 01:16 PM
fdsafdsa's Avatar
fdsafdsa fdsafdsa is offline
Member
SOA
 
Join Date: Mar 2018
Posts: 3,812
Default

Seems like a lot of work to make $200.....
__________________
If your grandfather starting raving about buying countries and being the chosen one, at the barest minimum you'd confiscate his car keys.
Reply With Quote
  #4  
Old 01-12-2020, 01:36 PM
The_Actuarial_Borg The_Actuarial_Borg is online now
Member
SOA
 
Join Date: Dec 2019
Posts: 113
Default

Quote:
Originally Posted by yoyo View Post
i did a little of that last year for $1650, pretty easy money
Better to invest said money in a dividend paying stock.

At least you get some capital appreciation with the income.
Reply With Quote
  #5  
Old 01-12-2020, 02:25 PM
Westley Westley is offline
Member
 
Join Date: Nov 2001
Posts: 29,978
Default

Despite my immense dislike for banks and the shenanigans they pull, this still feels kinda... shady.

Nevertheless, super-interesting. Subscribed!
Reply With Quote
  #6  
Old 01-13-2020, 09:06 AM
act2106 act2106 is offline
Member
SOA
 
Join Date: Apr 2010
Posts: 1,325
Default

Quote:
Originally Posted by fdsafdsa View Post
Seems like a lot of work to make $200.....
He's done the work to make $1,250, if he does nothing else for the next 90 days.
Reply With Quote
  #7  
Old 01-13-2020, 09:23 AM
Klaymen's Avatar
Klaymen Klaymen is offline
Member
CAS
 
Join Date: Oct 2001
Studying for eternity
Posts: 20,316
Default

Quote:
Originally Posted by The_Actuarial_Borg View Post
Better to invest said money in a dividend paying stock.

At least you get some capital appreciation with the income.
But there is no guarantee that you get an 8% return, the stock could plummet. Even the most solid dividend stock might pay 2%-3%, getting the remaining 5%-6% is akin to scoring an acceptable random number from the ole bell curve.

I tried the same thing in the last months of 2019 and am waiting for the accounts to run their course. I wasn't going to do anything that was less than an 8% or so return, some were definitely higher.
__________________


Reply With Quote
  #8  
Old 01-13-2020, 10:15 AM
LifeIsAPoissonProcess's Avatar
LifeIsAPoissonProcess LifeIsAPoissonProcess is online now
Member
CAS SOA AAA
 
Join Date: Aug 2010
Favorite beer: Curmudgeon's Better 1/2
Posts: 6,891
Default

Quote:
Originally Posted by chicken_po_boy View Post
I started 2020 with $40,000. My goal is to make 8.0% risk-free by taking advantage of bonuses banks offer to open checking and savings accounts. I'm going to use this thread to log my progress each month.

January:

- Opened a savings account with CapitalOne with $10,000. It will pay me a $200 bonus if I hold the money there until April 4.

- Opened a savings account with Discover Bank with $25,000. Discover immediately paid me a $200 bonus, plus $2.32 in interest. Closed account.

- Opened a checking account with US Bank with $1500. It will pay me $200 for having (2) or more direct deposits that total a minimum of $2000.

- Opened a savings account with US Bank with $10,000. It will pay me a $200 bonus if I hold the money there until March 10.

- Opened a checking account with Chase Bank with $5000. It will pay me a $300 bonus for setting up direct deposit.

- Opened a savings account with Chase Bank with $10,000. It will pay me a $150 bonus for maintaining a balance of at least $10,000 for 90 days.

- I had my payroll dept change my direct deposit to 50% going to US Bank, 50% going to Chase Bank.

ETA:
- Deposited another $3,500 with CapitalOne

YTD interest received = $202.32
YTD return = $202.32/$40,000 = 0.51%
FYI, you might run into future denials due to ChexSystems:

https://www.doctorofcredit.com/an-in...Is_ChexSystems
__________________
Quote:
And you should be the best Actuary not the worst Actuary. - Latitude 30
Reply With Quote
  #9  
Old 01-13-2020, 10:28 AM
CowboyGuy CowboyGuy is offline
Member
SOA
 
Join Date: May 2008
Posts: 2,413
Default

I've done similar runs for a number of years until I hit the ChexSystems denials due to too many inquiries. I stopped for a couple of years and planning to start doing again this year. Inquiries remain on ChexSystems report for 3 years. Note that it is calendar year, and unlike the credit reporting agencies (Transunion, Equifax and Experience), not the 2-year rolling/anniversary years that counts for inquiries.

There are some blogs that do a good job keeping track of latest/current offers for every month:

https://www.doctorofcredit.com/best-...count-bonuses/

https://www.moneycrashers.com/best-n...otions-offers/
Reply With Quote
  #10  
Old 01-13-2020, 10:29 AM
The_Actuarial_Borg The_Actuarial_Borg is online now
Member
SOA
 
Join Date: Dec 2019
Posts: 113
Default

Quote:
Originally Posted by LifeIsAPoissonProcess View Post
FYI, you might run into future denials due to ChexSystems:

https://www.doctorofcredit.com/an-in...Is_ChexSystems
Well, there goes that opportunity for arbitrage.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 04:00 PM.


Powered by vBulletin®
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.18309 seconds with 11 queries