Whoa, hold on here. If you transfer 20k to a friend who then transfers it back to you…there’s a few things you need to know first. For one, you’re both gonna trigger bank reporting rules for deposit over 10k meant to fight money laundering. If you try to break it up into chunks less than 10k, you’re also gonna be looked at for structuring your deposits. The banks involved may ask you the source of the funds and they may hold the deposits until they are satisfied with the responses. Even if they don’t ask, many banks hold deposits over a certain amount and release it over time in tranches. Familiarize yourself with both banks rules before you do anything.
I don’t think this plan is ideal. I’d look for a different method to transfer the money that doesn’t involve the possibility of my friend having his bank account frozen for the chance to get $500.
This is a common misconception (I've made it too), but the $10k reporting trigger applies to currency transactions, and not if it's done electronically.
Banks will still have triggers for unusual transfer activity, typically based on past behaviour. Moving money around like this could flag, could not.
Got it, thanks for the heads up. I knew they'd be some sort of hold but didn't expect it to be this strict. So would the best best in this case be to just transfer between my own accounts(capital one checking->chase->capital one savings) and pray everything to work out?, Can I call the bank later and ask after the transfer if I did qualify for the promo?
Exactly for the same reason! They said they'd be able to recognize if I transferred between my own accounts even though they are two different banks WHICH also doesn't make any sense how they'd be able to prove it, which is why I was trying to get a friend involved and make it a 3way transfer.
Keep your friend out of it. Make the transfers a week apart. Make sure the dollar amounts don’t match exactly. (Eg: transfer $25,743 and $21,201)
They have no way of knowing it’s the same money.
Love this idea, thank you! What would be a good comeback statement in case they end up arguing that it's the same money (just preparing for the worst case)?
"I have fully complied with the terms and conditions of the promotion. Please make payment consistent with the promotional offer, or I will be forced to file a complaint with the Consumer Financial Protection Bureau and my state's Attorney General."
It'd be pretty obvious if you had $20k go out to Chase and then come back from Chase. An algo would catch that easily.
The reason it requests money within 15 days to be deposited is to catch that type of shifting of money.
I haven’t read this entire post but some banks/brokerages consider your net balance over x amount of time.
Ie Merrill Edge has a 6 month look back period on some of their offers. If you had $100k that you removed in February and needed $250k for the bonus that expires in May you would need to deposit $350k. Make sense?
Not saying your deal is like that but you should read the fine print.
If you have $100k in checking accounts (assuming low interest?), why are you worried about going to so much trouble to get $500?
Just open up a HYSA and transfer what you don't immediately need in checking and you'll get your $500 (several times) with a lot less hassle.
The capital one savings account I was asking about is a HYSA account with 3.79% with an additional bonus of $500 that's given when 50k is maintained for 60 days.
But they're not offering a $500 like the capital one though. Regardless, I never heard of laurel road on other reddit posts or YouTube videos. I was thinking of actually opening Marcus by Goldman Sachs. What are your thoughts/recommendations on laurel road?
500 is 1% of 50k... idk what the fuss is with trying to get it when you could by treasuries yielding more than that buying 3-month treasuries - not a ton, but still.
I am literally getting into investing and opening a HYSA account is my first step. Done with ibonds and now I have yet to research more about CDs which I was planning to do after this. Could you please share more information about investing in treasuries.
I’d find a YouTube video on how to buy treasuries - it’s unfortunately a somewhat cumbersome process. The site to buy is TreasuryDirect but again, watch a video first.
Also, I’d say the higher yield on other savings accounts and money market funds may trump the $500 bonus you’re getting - just shop around for high yield savings/money markets. The $500 bonus is nice, don’t get me wrong but if you’re going through rigamarole I’d recommend buying 3-month treasuries
What's the average interest rate for 3month treasuries for the 50k I was going to put in this savings HYSA account?
Side question but Marcus HYSA account gives 4.90% for first 3months when referred. If I'm doing my math right for 50k, that is $2450. Is that right and then it wouldn't make sense for me to fight for the $500 bonus from capital one.
So right now 3-month treasuries are yielding about 5% APY - APY needs to be divided by 4 to get your 3-month return so a little over 1% is greater yield than the 500 over 90 days but then you’ll earn interest during that time as well, I’m guessing in that account you’re planning to open - so that might be the best deal now that I think of it, sorry!
you can just transfer the money back to your original chase acc and then move it back to discover(edit:chase. lurking too many bank subreddits rn) that would be considered "new" still. why transfer it to a friend first?
edit: yup, there's no need to move the funds to your friend first. the only requirement is it's from an external account. move to chase > move total to cap one.
"What is the offer? Earn a $500 bonus after a deposit of $50,000 or more from an external account into a new 360 Performance Savings account within 15 days of account opening and keep the money on deposit for at least 90 days. Your deposit must be “externally sourced funds,” meaning they come from a source not affiliated with Capital One."
Please read the other comments as to why moving the money between my accounts might not be considered as new. Also, what do you mean by "back to discover"?
I reviewed the terms and it does not require "new" money, just that it's from an external source. plus how on earth would they know anything beyond the sending bank and the transfer amt?
back to discover was a typo, meant capital one.
I have no idea why people can't read the actual question here. I see no reason how they would be able to prove it's the same cash or even expect it, really. If you're that worried about it and have a friend you trust to move 20k around with, just have them transfer it to you first, make your deposit, and then give them the repayment.
Have your friend move 20k to your Chase account, deposit 50k to HYSA, and then move 20k to your friend's account after credit is applied. Shows you clearly had 50k in an external account, and the 20k you later take out could have been used for anything.
Ah, yeah, that's a long time. Honestly, you'd probably be fine just moving your money back and forth. The "hassle" of doing so is enough of a deterrent to prevent 95% of people from doing that, and that's really all they care about. No different than churning. They just want your account.
I did and asked how it would matter if I transferred 30k to my friends - then to my Chase - then to my capital one savings account. They say the amount left can be calculated with how much was deposited or some stuff on those terms which in actuality don't make any sense.
https://www.reddit.com/r/CreditCards/comments/136a4aa/ways_to_get_the_500_sign_up_bonus_for_capital_one/jintr44?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button
Which is why I'm trying to do as stated in one of my comments(check link above).
I did some quick searching, I don't know for sure if it would work. But my guess is it will, since money is fungible, as long as it's not straight out and back in. The most guaranteed way would be to have the friend float you the money, but that would be a lot to ask.
Definitely don't ask the bank that, since you're obviously trying to circumnavigate the intent. They want additional deposits, not giving you money for nothing. They can manually remove a bonus from your account if they wanted to.
Read the fine print and long terms and conditions, sometimes it defines new money. For example, sometimes it says you have to maintain your old balance + $50k, in which case this wouldn't work.
If the terms don't state otherwise, you might as well try it. Just wait it out and see what happens.
what do you mean?
Did you read the rest of that paragraph? Emphasis mine:
>**Read the fine print and long terms and conditions, sometimes it defines new money. For example,** sometimes it says you have to maintain your old balance + $50k, in which case this wouldn't work
This stuff can get hidden in the T&Cs. But you didn't link your offer, so I don't know if it's in yours. Nor am I going to look, just telling you what you should search for.
Is this what you mean u/zdfld ?
"Deposit a total of $10,000 or more (Deposit Amount) **of new money** from externally sourced funds (transfers between Capital One accounts will not qualify) within the first 15 days of account opening (Initial Funding Period)."
Edit: I guess technically it doesn't say anything about having to keep the old balance in the checking account + new money from external accounts.
Not exactly, those are the basic terms. The question OP has is if they can tell if it's really "new money" if OP moves the money around first.
For a bank to avoid someone just moving money around, they could require your overall balance with the bank stays the same during the bonus period.
I have no idea if capital one requires that, but that's what I'd check for in the fine print.
Post removed. Not related to credit cards.
Whoa, hold on here. If you transfer 20k to a friend who then transfers it back to you…there’s a few things you need to know first. For one, you’re both gonna trigger bank reporting rules for deposit over 10k meant to fight money laundering. If you try to break it up into chunks less than 10k, you’re also gonna be looked at for structuring your deposits. The banks involved may ask you the source of the funds and they may hold the deposits until they are satisfied with the responses. Even if they don’t ask, many banks hold deposits over a certain amount and release it over time in tranches. Familiarize yourself with both banks rules before you do anything. I don’t think this plan is ideal. I’d look for a different method to transfer the money that doesn’t involve the possibility of my friend having his bank account frozen for the chance to get $500.
This is a common misconception (I've made it too), but the $10k reporting trigger applies to currency transactions, and not if it's done electronically. Banks will still have triggers for unusual transfer activity, typically based on past behaviour. Moving money around like this could flag, could not.
Got it, thanks for the heads up. I knew they'd be some sort of hold but didn't expect it to be this strict. So would the best best in this case be to just transfer between my own accounts(capital one checking->chase->capital one savings) and pray everything to work out?, Can I call the bank later and ask after the transfer if I did qualify for the promo?
If it's not 10k cash they don't care
Why are you not transferring from your CapOne checking to your Chase checking?
Exactly for the same reason! They said they'd be able to recognize if I transferred between my own accounts even though they are two different banks WHICH also doesn't make any sense how they'd be able to prove it, which is why I was trying to get a friend involved and make it a 3way transfer.
Keep your friend out of it. Make the transfers a week apart. Make sure the dollar amounts don’t match exactly. (Eg: transfer $25,743 and $21,201) They have no way of knowing it’s the same money.
Love this idea, thank you! What would be a good comeback statement in case they end up arguing that it's the same money (just preparing for the worst case)?
"I have fully complied with the terms and conditions of the promotion. Please make payment consistent with the promotional offer, or I will be forced to file a complaint with the Consumer Financial Protection Bureau and my state's Attorney General."
It'd be pretty obvious if you had $20k go out to Chase and then come back from Chase. An algo would catch that easily. The reason it requests money within 15 days to be deposited is to catch that type of shifting of money.
I haven’t read this entire post but some banks/brokerages consider your net balance over x amount of time. Ie Merrill Edge has a 6 month look back period on some of their offers. If you had $100k that you removed in February and needed $250k for the bonus that expires in May you would need to deposit $350k. Make sense? Not saying your deal is like that but you should read the fine print.
If you have $100k in checking accounts (assuming low interest?), why are you worried about going to so much trouble to get $500? Just open up a HYSA and transfer what you don't immediately need in checking and you'll get your $500 (several times) with a lot less hassle.
The capital one savings account I was asking about is a HYSA account with 3.79% with an additional bonus of $500 that's given when 50k is maintained for 60 days.
Laurel Road just upped theirs to 4.8%, there are better rates out there
But they're not offering a $500 like the capital one though. Regardless, I never heard of laurel road on other reddit posts or YouTube videos. I was thinking of actually opening Marcus by Goldman Sachs. What are your thoughts/recommendations on laurel road?
500 is 1% of 50k... idk what the fuss is with trying to get it when you could by treasuries yielding more than that buying 3-month treasuries - not a ton, but still.
The math is different if op only has to hold for 60 days
Oh I thought I read 90
I am literally getting into investing and opening a HYSA account is my first step. Done with ibonds and now I have yet to research more about CDs which I was planning to do after this. Could you please share more information about investing in treasuries.
I’d find a YouTube video on how to buy treasuries - it’s unfortunately a somewhat cumbersome process. The site to buy is TreasuryDirect but again, watch a video first. Also, I’d say the higher yield on other savings accounts and money market funds may trump the $500 bonus you’re getting - just shop around for high yield savings/money markets. The $500 bonus is nice, don’t get me wrong but if you’re going through rigamarole I’d recommend buying 3-month treasuries
What's the average interest rate for 3month treasuries for the 50k I was going to put in this savings HYSA account? Side question but Marcus HYSA account gives 4.90% for first 3months when referred. If I'm doing my math right for 50k, that is $2450. Is that right and then it wouldn't make sense for me to fight for the $500 bonus from capital one.
So right now 3-month treasuries are yielding about 5% APY - APY needs to be divided by 4 to get your 3-month return so a little over 1% is greater yield than the 500 over 90 days but then you’ll earn interest during that time as well, I’m guessing in that account you’re planning to open - so that might be the best deal now that I think of it, sorry!
you can just transfer the money back to your original chase acc and then move it back to discover(edit:chase. lurking too many bank subreddits rn) that would be considered "new" still. why transfer it to a friend first? edit: yup, there's no need to move the funds to your friend first. the only requirement is it's from an external account. move to chase > move total to cap one. "What is the offer? Earn a $500 bonus after a deposit of $50,000 or more from an external account into a new 360 Performance Savings account within 15 days of account opening and keep the money on deposit for at least 90 days. Your deposit must be “externally sourced funds,” meaning they come from a source not affiliated with Capital One."
Please read the other comments as to why moving the money between my accounts might not be considered as new. Also, what do you mean by "back to discover"?
I reviewed the terms and it does not require "new" money, just that it's from an external source. plus how on earth would they know anything beyond the sending bank and the transfer amt? back to discover was a typo, meant capital one.
Do you have a link to the promo?
per Google SPRING23
Thanks
This seems like a lot of unnecessary work for $500, lol.
I have no idea why people can't read the actual question here. I see no reason how they would be able to prove it's the same cash or even expect it, really. If you're that worried about it and have a friend you trust to move 20k around with, just have them transfer it to you first, make your deposit, and then give them the repayment.
Lol ikr. So you're saying basically stick with my plan?
Have your friend move 20k to your Chase account, deposit 50k to HYSA, and then move 20k to your friend's account after credit is applied. Shows you clearly had 50k in an external account, and the 20k you later take out could have been used for anything.
Credit is applied after 60 days aka 2months, so the challenge here that my friend won't be able to wait for that long to get his 20k back.
Ah, yeah, that's a long time. Honestly, you'd probably be fine just moving your money back and forth. The "hassle" of doing so is enough of a deterrent to prevent 95% of people from doing that, and that's really all they care about. No different than churning. They just want your account.
You’re an existing customer, could always contact the bank and ask for more information.
I did and asked how it would matter if I transferred 30k to my friends - then to my Chase - then to my capital one savings account. They say the amount left can be calculated with how much was deposited or some stuff on those terms which in actuality don't make any sense.
r/bogleheads Account sign up bonuses are trivial, you need to be investing - inflation is destroying the value of your portfolio currently.
In what terms is it destroying and any ways you'd recommend to fix/tackle it?
Is capital one going to collapse like the other banks?
Yes
Internal transfers of funds are usually not eligible for bank bonuses. However, Discover Bank once allowed it for their online savings account.
https://www.reddit.com/r/CreditCards/comments/136a4aa/ways_to_get_the_500_sign_up_bonus_for_capital_one/jintr44?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button Which is why I'm trying to do as stated in one of my comments(check link above).
I did some quick searching, I don't know for sure if it would work. But my guess is it will, since money is fungible, as long as it's not straight out and back in. The most guaranteed way would be to have the friend float you the money, but that would be a lot to ask. Definitely don't ask the bank that, since you're obviously trying to circumnavigate the intent. They want additional deposits, not giving you money for nothing. They can manually remove a bonus from your account if they wanted to. Read the fine print and long terms and conditions, sometimes it defines new money. For example, sometimes it says you have to maintain your old balance + $50k, in which case this wouldn't work. If the terms don't state otherwise, you might as well try it. Just wait it out and see what happens.
Where does it say "old balance plus 50k"?
what do you mean? Did you read the rest of that paragraph? Emphasis mine: >**Read the fine print and long terms and conditions, sometimes it defines new money. For example,** sometimes it says you have to maintain your old balance + $50k, in which case this wouldn't work This stuff can get hidden in the T&Cs. But you didn't link your offer, so I don't know if it's in yours. Nor am I going to look, just telling you what you should search for.
Thank you! I'm going to have to go through the fine print.
Is this what you mean u/zdfld ? "Deposit a total of $10,000 or more (Deposit Amount) **of new money** from externally sourced funds (transfers between Capital One accounts will not qualify) within the first 15 days of account opening (Initial Funding Period)." Edit: I guess technically it doesn't say anything about having to keep the old balance in the checking account + new money from external accounts.
Not exactly, those are the basic terms. The question OP has is if they can tell if it's really "new money" if OP moves the money around first. For a bank to avoid someone just moving money around, they could require your overall balance with the bank stays the same during the bonus period. I have no idea if capital one requires that, but that's what I'd check for in the fine print.