I recently moved some cash around for a bonus worth about $150 and it took me just a few minutes to make it work . If you have stable finances right now, here's what you need to know to find a good savings account deal and take advantage during the coronavirus outbreak.
Bank signup bonuses can be lucrative
I used to be on the fence about bank account bonuses. While they often appear like a quick way to earn cash, you have to go through the work of signing up for a new bank account and often have to meet specific terms to get the bonus.
However, I've changed my thinking. While many checking accounts require certain direct deposit minimums to earn a bonus and new credit cards can impact your credit score, there are few challenges or downsides to opening a new savings account for a bonus . You might even find you like the bank enough to stick around for other banking needs, which could be a positive for your money.
Bonuses are still around during coronavirus
Some banks and other financial companies have pulled back on new customer deals and retention offers to save cash while the economy gets back on track. But that doesn't mean there are no deals to be found .
In fact, just about a month ago I had a deal arrive from Capital One in my inbox. It offered a bonus of $150 to $450 for making a large deposit and keeping cash in an account I already have.
A large emergency fund makes it easier to earn a savings bonus
While about 40% of households don't have enough cash on hand to cover a $400 emergency, according to the Federal Reserve , a hefty emergency fund makes it much easier to meet the minimum thresholds for a savings account bonus.
The deal that landed in my email inbox required at least $20,000 in cash savings to earn the starting $150 bonus or at least $50,000 to earn a bigger $450 bonus. While I didn't have the cash available to get the $450 bonus, my emergency fund gave me the opportunity to get the smaller bonus.
Because I already had the account open and have my savings spread around a few different banks, it took only two quick ACH transfers with my bank's mobile apps and I was all set for the bonus.
High-yield savings account rates are still well above average
Savings account interest rates have dropped along with Federal Reserve interest rates and mortgage rates. But they are still much better than you'll get with a typical savings account at a traditional bank.
Some of the biggest banks in the country pay just 0.01% interest for savings accounts. That compares to well over 1% on the best high-yield savings accounts . If you can earn 100x more, and get a bonus at the same time, that's a serious win for your finances.
While the economy and future of the virus in the United States are uncertain, keeping your cash in an FDIC-insured savings account isn't a bad idea. Adding on a bonus and getting a top interest rate at the same time make it an easy decision.
If you are sitting on a pile of cash savings or are working toward a long-term savings goal , choosing the right accounts can add a little extra to your savings. That's something any saver can get excited about.
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