Finding the Best Online Bank Deals
January 29, 2009
A faltering economy has pushed the Federal Reserve to lower interest rates to close to zero in the United States. In response, banks across the country have lowered their rates on money market accounts, checking accounts, savings accounts, and CDs. However, banks are still hungry for deposits and are searching for new ways to bring in new customers and new dollars. Many online banks in particular are offering great incentives including cash or free gifts to new customers for opening a new account or activating an account feature like direct deposit. Online banks are also running reward programs which credit customers with points for normal banking activity which can then be redeemed for travel, merchandise, or gift cards. Because these banks are running their promotions online, they are typically available to anyone in the country and do not require a branch visit.
Online banks, Capital One Bank and BankDirect, are two of the larger well-established banks running reward programs for their banking customers. The Capital One Bank Reward Money Market Account awards points each month based on the average balance or any new deposits to a customer's money market account. Points can then be redeemed for travel tickets, merchandise, or even cash. Customer with larger balances will earn more points in this program. BankDirect, based in Dallas, Texas, is rewarding customers with American Airline AAdvantage airline miles for checking account activity, money market activity, new account referrals, or for the purchase of a Mileage CD from BankDirect. You could earn as many as 50,000 AAdvantage miles by banking with BankDirect, which could then be used for travel on American Airlines.
It is important to consider the impact that a cash bonus or a free gift like an iPod can have based on the low level of interest rates currently offered on bank deposit products. For instance, the $200 cash bonus offered from Metropolitian National Bank in New York City on their checking account is the equivalent of a 2% interest rate on a $10,000 average daily balance or even 4% on a $5,000 average daily balance. In some cases the free iPod or other gift may have a value greater than the interest earned by opening an account at a bank with one of the highest interest rates. While some of the bank deals like the one from Metropolitian National Bank require recurring direct deposit, most of the offers allow you to keep your primary bank account and only open up the new account as an auxiliary account.
The best online bank deals are listed daily at Money-Rates.com and come in a wide variety. DVD players, iPods, airlines miles, and free cash are all available to consumers willing to open a new bank account. While there are savvy online banking aficionados who make hundred or even thousands of dollars a year by constantly taking advantage of the latest bank deal, it just one great offer to make you feel like you got the best of your bank. Check the deals today to find one that fits your banking needs.
