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Opening high yield savings accounts for bonuses?

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  • Opening high yield savings accounts for bonuses?

    I'm sitting on some cash right now that isn't needed for at least a year or two, about $50k in a savings acct getting approx. 1%.  I'm reading accounts on bankrate that get closer to 2-2.4%.

    Does anyone have experience opening up multiple high-yield savings accounts for bonuses?  Would it be easier to just transfer it to a higher yield account?  What are your experiences?

    Thank you!

  • #2
    depends on the size of the bonus and how much you need to wait.

    you still need to move to a higher paying account. VMMXX is paying 1.9% so thats your minimum.

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    • #3
      Aren't these bank bonuses considered taxable income, as opposed to the credit card sign up bonuses which are generally treated as rebates?

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      • #4
        Yup.

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        • #5
          I've done a few of those bonuses.  If the question is just to transfer the money and get the bonus, go for it.  However, if you have to jump through hoops like setting up direct deposit and have to make a certain number of transfers or whatever it is too much work.  Especially if you are trying to do it with multiple accounts at once.

          And you will get a 1099 for those bonuses, making them less attractive

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