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Old 11-06-2019, 08:32 PM   #41
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Are we we forgetting that this is all taxed as ordinary income? At the highest rates!
So the 2% rate is really only 1.4% if you are in the 30% tax bracket. And on small amounts of money. I don’t know if it’s worth the effort. I always think about it but rarely do it.
And you know the banks are sending the 1099InT in to Uncle Sam..
Well heck, if you don't make any money, then you won't owe any taxes at all.

As far as the 2% rate, what time frame are you making it in? 3 months? Then it's 8% APY (before tax of course). 2 weeks? Then it's 52% APY.

You're not even getting 2% for leaving your money in a savings account for a full year. If you don't think it's worth earning that amount on some portion of your money for a fraction of the time, then ignore.

Most of these require nothing more than clicking a few buttons, moving digital money around, and letting it sit. You know of an easier way to make a guaranteed risk free return on your money? Seriously - how much effort is there with these?

I'm giving you free money. If you have to pay taxes on it, are you still left with free money or not?
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Old 11-06-2019, 09:07 PM   #42
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Capital One
https://www.capitalone.com/save1000/
Open account by 12/31, deposit $10,000 within 10 days of opening account, maintain balance for 90 days, collect $200. If you have $150,000 you can do it for $1000, but getting $200 for $10,000 is obviously the better bang for the buck.
$200 over 90 days with $10K principal is 8% annual. Not shabby at all.

But man, it still takes some work.

I have been trying to make $100 with each $10K principal in one month with selling cash-covered put options. Of course it is quite more risky, but that adds spice to life.
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Old 11-06-2019, 09:14 PM   #43
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$200 over 90 days with $10K principal is 8% annual. Not shabby at all.

But man, it still takes some work.

I have been trying to make $100 with each $10K principal in one month with selling cash-covered put options. Of course it is more risky, but that adds spice to life.
NW-Bound - do the Discover - I cannot stress enough how tremendous that one is ... they give you the bonus within 2 weeks...and you are free to withdraw it all and close the account, no fees or requirements to keep it there for any period longer.
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Old 11-07-2019, 05:59 AM   #44
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NW-Bound - do the Discover - I cannot stress enough how tremendous that one is ... they give you the bonus within 2 weeks...and you are free to withdraw it all and close the account, no fees or requirements to keep it there for any period longer.
Hasn't that deadline passed on 11/04?
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Old 11-07-2019, 07:04 AM   #45
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Hasn't that deadline passed on 11/04?
See my last comment about it on prior page...gets recycled monthly.

Now:
- open by 12/2
- deposit by 12/16
- collect by 12/30

https://www.discover.com/online-bank...ng-04/?TPR=069
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Old 11-07-2019, 08:19 AM   #46
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See my last comment about it on prior page...gets recycled monthly.

Now:
- open by 12/2
- deposit by 12/16
- collect by 12/30

https://www.discover.com/online-bank...ng-04/?TPR=069
Oh this is great. So once I receive the bonus on 12/2 on my account, I can recycle the money for a new account in DH's name for another $200.
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Old 11-07-2019, 02:40 PM   #47
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Oh this is great. So once I receive the bonus on 12/2 on my account, I can recycle the money for a new account in DH's name for another $200.
Thinking the same concept here.
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Old 11-07-2019, 07:13 PM   #48
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Thinking the same concept here.
Offer not good for existing or prior customers of discover.
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Old 11-07-2019, 07:21 PM   #49
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Offer not good for existing or prior customers of discover.
Can do it for every individual in your household.

Not good if existing or prior "Discover Savings Account" customer. If you have/had a Discover credit card or any other Discover non-savings account product you are eligible.
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Old 11-07-2019, 10:59 PM   #50
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Offer not good for existing or prior customers of discover.
Did it for DGF and now will do it for me.
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Old 11-08-2019, 04:24 AM   #51
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Did it for DGF and now will do it for me.
Did it for DW and DD last year - no issues whatsoever.
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Old 11-08-2019, 09:55 AM   #52
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Wow. Just this week decided to try the Discover Bank offer. Opened the account, setup external ACH, moved the money, and today received the $200 bonus. Next I week I guess will repeat for my wife.

Might leave the money there for now as it also pays 1.8% which currently is the same as Vanguard prime.
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Old 11-08-2019, 10:04 AM   #53
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Old 11-08-2019, 10:08 AM   #54
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You might pause and ask why Discover is making such offers. I have it on good authority Discover is having trouble getting low interest loans within the industry. Instead, via these special offers they can instead get money (loans) from a large number of people, at a rate of less than 2%, and with FDIC insurance, that means their risk of default is held by all of us.
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Old 11-08-2019, 10:35 AM   #55
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You might pause and ask why Discover is making such offers. I have it on good authority Discover is having trouble getting low interest loans within the industry. Instead, via these special offers they can instead get money (loans) from a large number of people, at a rate of less than 2%, and with FDIC insurance, that means their risk of default is held by all of us.
Let me ask the obvious - do you understand how a bank operates and makes money?

Do you keep any money in any bank deposit account?

Is it any different keeping your money in a savings account paying less than 2%? How about CDs paying less than 2%? All FDIC insured with risk of default held by all of us.

Chase, B of A, Citi, and many others offer similar bonuses. Are they all in trouble?
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Old 11-08-2019, 11:51 AM   #56
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You might pause and ask why Discover is making such offers. I have it on good authority Discover is having trouble getting low interest loans within the industry. Instead, via these special offers they can instead get money (loans) from a large number of people, at a rate of less than 2%, and with FDIC insurance, that means their risk of default is held by all of us.
Obviously no idea what you are talking about. But thanks for sharing.
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Old 11-08-2019, 12:09 PM   #57
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Chase, B of A, Citi, and many others offer similar bonuses. Are they all in trouble?
Your snark is uncalled for so I have omitted that part.

So readers can make safe decisions, I'm pointing out that by giving money to Discover one is taking on more risk than may be apparent, more risk than at other financial institutions. For that level of risk, if I invested there I certainly would want more than the bonus they offer and 2%.
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Old 11-08-2019, 12:21 PM   #58
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Your snark is uncalled for so I have omitted that part.

So readers can make safe decisions, I'm pointing out that by giving money to Discover one is taking on more risk than may be apparent, more risk than at other financial institutions. For that level of risk I would want more than bonus they offer and 2%.
Not having any idea who your "good authority" is, Bauer Financial, which is a recognized independent authority on analyzing banks and credit unions, gives Discover Bank 4 Stars, which they classify as Excellent. I'll trust Bauer before your unnamed good authority.

But thanks for all your concern to help everyone understand your perceived risks. You might want to go on the CD & MM thread and post your concerns there for anyone who might be enticed for Discover's savings account rate as it is competitive with others at this time. I'm sure you would be enlightening everyone there as well.

Do you have any more posts for this thread to knock it? This is now number two, and I think everyone would just prefer that you get it all out now.
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Old 11-08-2019, 12:21 PM   #59
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So this morning Marcus showed that I had met the time eligibility on 11/7. Bonus $500 expected within 14 days. Looked again and the bonus has posted! The Gal's account shows she has met eligibility but the bonus hasn't posted yet. Marcus is paying 1.9% so I don't see moving it right this moment..

Made for nice short term earnings - not hard money loan scale, but we are down to one large loan and a couple modest ones and I don't sweat bank deposits as much.
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Old 11-08-2019, 12:27 PM   #60
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I donít have any long-term money at these low rates. In addition to our pensions we spend about $50,000/yr from our portfolio. I (well, mostly my DW) likes to have 2 or 3 years spending in banks and money market accounts.

I know there is some liquidity risk if the banks default but not worried about it with the insurance. Just goofing around mostly to get these bonuses. The extra $200 doesnít mean too much in the big picture but what the heck might as well pick the low hanging fruit.
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