Stupid marketing gimmick alert!
My friend Ian sent this to me today: A Capital One Account that gives you a $25 bonus…if you have $10,000 in it. (Plus, $10,000 minimum required to get the high interest.)
Wow!! Amazing!! Thank you Capital One!!
Listen up. If your bank account’s best incentive is $25 for locking up $10,000, your bank sucks. Not only could that money be invested, the very fact that this bank is trying to trick you into giving you high interest only if you keep $10,000 — if you don’t keep that amount in your account, your interest drops to 2.5% — shows you what kind of bank they are: A Big, Worthless Bank.
Two things to be aware of:
1. If your bank offers you some fantastic rate but has a catch (minimum rate, first 6 months, etc), ignore the offer and ignore the bank
2. Don’t be a moronic rate jumper, who says, “ZOMG! HSBC/ETrade/Capital One is offering 3.25% compared to 3%! I better switch!!” Run the numbers and you’ll realize that, even on a balance of $5,000, that’s about $1 more per month. Find a great bank with no catches, that offers you great customer service, and stick with it — even if another bank offers a .25% higher interest rate.