Free Money When You Open a Checking Account

I remember a couple of years ago when all the rage was getting a free iPod when you opened a checking account. Now, thanks to the economy, banks are offering cold, hard cash. When my auto loan statement came in the mail today, it was accompanied by a special offer: Open a Chase (or WaMu) checking account, and get $125 free. Of course, there are limitations to this special offer:

1. The account must be opened with $100 not connected to Chase in any way.
2. I have to set up direct deposit for payroll, pension, Social Security or government benefits within 60 days of opening the account. The money will not be deposited into the account until 10 days after the initial direct deposit.
3. The account has to remain open for 6 months, or the cash is debited from the account when you close it.

It’s an interesting offer, and one that I might take advantage of — if they will accept a direct deposit from a different savings account I have, or from my PayPal account. There is also an alternate offer for $100 in free cash, provided you make 5 debits from the account each month in lieu of direct deposit. There are also local promos, such as this $50 promo from FirstBank in California. Realize, though, that these bonuses are reported as interest to the IRS, and you will have to report it on your tax return.

The key is to shop around town — and on the Internet — and see if you can find some good promo offers. Also, it is worth looking at this list of 13 banks offering higher interest yields from Get Rich Slowly. With banks looking for customers, now is a good time for you to take advantage of what’s out there. Sure, the return rates are piddly compared to what they were a year ago, but if you do a little research, you should be able to find a good deal. Free money is always good.

Image source: TheAlieness GiselaGiardino²³ via Flickr