I HOPE YOU'RE GETTING THE FREE MONEY IN 2023
Bank and Credit Card Bonuses Are Back
Be a money-plucker! Pluck the free money while it lasts.
In le Smidlap Chateau we are surely do not consider ourselves serial money optimizers. We are too lazy and too far along the yellow brick road to bother trying to capture every single penny of savings. However, every couple of years some easy money opportunity comes along and we have to grab it. I wrote the phenomenon previously in these two Pulitzer Prize winning articles:
Financial Commandment #6 for a Young Employee: Pick Up The Free Money
Is Your Cash Earning You at Least 4% in 2023?
Maybe you have cash savings in your emergency fund or maybe you're close to retirement or in retirement. Many retirees of people who are close to retirement choose to keep a couple of years worth of spending in a savings account. Well, after many years of very low interest rates in the United States yields on many savings accounts are back up to levels worthy of your attention. Unfortunately some people leave this easy money right on the table. I know one guy who has a Bank Of America savings account yielding less than 1%. He is blindly loyal and/or lazy and just keeps it there and the amount is north of $50,000! That's close to $200/month in interest just lying there waiting to be earned elsewhere.
On the other hand, I just got a message last week from my departed coworker Malevolent Missy asking for a savings account recommendation. I told her I have always been a fan/customer of Ally Bank for online savings. I keep my checking there linked with a savings account that yields 4.0% as of today. Here are my personal requirements for a bank account:
I pay zero fees. I am also on the lookout for a new checking account like the one I opened at Chase a few years ago. Most of those accounts have an account minimum so the bonuses or higher interest rates are harder to achieve. I don't want any account minimums and might willingly accept a direct deposit requirement as I am still working and getting a weekly paycheck.
I have never paid a fee to Ally Bank for either a checking or savings service. When I need replacement checks they are free and they don't play "introductory rate" games with their savings rates. They have been a problem free partner for about 7 years now.
The same goes for my Chase checking account where I got that bonus mentioned earlier. In fact, Chase is offering a $200 sign-up bonus for new checking customers. Here is my referral link if you want the $200 bonus: Freddy's Chase Checking Link.
They are free of drama and problems and are linked up on their home page with my excellent Chase Freedom unlimited card. I have never paid them a fee and I think the only requirement is direct deposit from your paycheck.
I saw some potential bank sign-up bonuses earlier this year but with banks I do not trust. Wells Fargo has proven to weasel their customers over the years so I breeze past those offers. The same goes for So-Fi which has some kind of combination checking/savings product. But... they seem like a bunch of weasels too. They remind me of crypto bro's in hooded sweatshirts.
Anyhow, no fees and no hassles are my rules of engagement for capturing a higher savings rate and any account sign-up bonuses.
I Finally Got a New 3% back Grocery Card
For 4-5 years I used a TD Bank card that paid us 2% cash back on grocery and gasoline purchases. Anyhow, the customer interface kind of sucked (I had to open a new window to pay a bill and bullshit like that) AND I found a new credit card paying 3% cash back.
The Capital One SavorOne Card also paid me a $200 bonus once I spent $1000 in a 3 month span. We made out purchases like normal and made a couple of wine purchases to hit that number in the first month. These guys were not kidding and I didn't have to wait the full 3 months for my sweet and free $200!
If you are interested in 3% cash back on groceries, dining, and entertainment with no annual fee plus that $200 bonus here is my referral link: Freddy's Capital One Referral Link.
Please note this is a different account from the regular Capital One Savor account which has a $95 annual fee but more generous cash back. The card I refer is SavorOne with no fees. In our house we loathe fees. Just keep it simple and straightforward.
We use the Capital One card for groceries and our rare dining out experience and the Chase card for everything else. There are no surprises and not much to think about and we like it that way.
These are the Smidlap rules of engagement if you are even considering opening a new credit card.
We don't even read the interest rate because we pay the card in full every month with no exceptions. If you don't plant to or can't pay in full every month I hope you do not consider any of these accounts. Dig yourself out of credit card debt first before even thinking about any bonuses!
Only open an account for stuff you were going to buy anyways. Last I checked almost everybody I know had to buy groceries. I don't recommend opening any account where you waste money just to get a bonus. Just don't do that!
That's all I have for today. I have sufficiently whored out my links and my back hurts from being on it. Anyhow, do you folks ever bother chasing any bonuses? What is the minimum amount worth your effort to open a new account? Are you getting at least 3% cash back on your groceries and at least 4% on your savings? I hope so.