Last year I made about $1000 from bank bonuses. It looks like I will probably make about that much from them again this year. This is easy money since banks pay you just for opening a bank account. Their hopes are that once you sign up you will remain a customer.
Since I usually open these bank accounts just for the bonuses and then close them as soon as allowed under the terms of the bonus some feel that I am being unethical. I feel that since I am meeting the terms the bank made that there is nothing wrong with what I am doing. Sometimes I open an account for the bonus but end up keeping the account because I like it. ING Direct is an example of that. I opened the account for the $25 bonus and have kept it for years. Also, I have referred over 100 customers to ING Direct. I suppose some of those customers were also only opening the account for the bonus but I do not feel responsible for their motives. I feel like I have earned my bonus from ING Direct.
What do you think? Is opening a bank account just for the bonus unethical or just taking an opportunity the bank is offering?
{ 12 comments… read them below or add one }
Both sides are voluntarily entering into an agreement and honoring the terms. Nothing unethical about that at all.
Glad to see others think this way.
You managed to use the word “bank” and “ethical” in a sentence. Congrats. But you forgot “politician”.
Seriously, if you can figure (and please, tell us!) a means to make $1K / year in bank bonuses with no downside, you have no need to apologize.
Some would suggest this has a negative effect on your credit score (too many accounts, closing your accounts). If you’re not applying for a home loan (“good debt”), I’m not sure it matters.
Ha, I know many banks aren’t ethical but I would still need to be ethical in my behavior towards banks. I don’t think opening bank accounts affects your credit score. My number of open accounts does show up on Chex Systems and it is possible I could be turned down for an account because of that.
Nothing unethical about it! They’re offering your accepting their terms. Great job! We can all use a little extra cash, I haven’t thought too much about this, but the extra effort of opening and closing seems worth the time. I probably look a little more into this.
I’m not very good at promotion. I should have mentioned in the blog post that I publish the site BankBonuses.info which is all about bank bonuses. If you have any questions about any of the bank bonus deals feel free to ask me.
I find what you do borderline unethical. Im sure you have been doing this a long time but to brag about it. You are no better than Goldman Sachs IMO.
I knew somebody would think it is unethical. I don’t think so but I can understand how someone would think so.
I don’t think it’s unethical to open an account knowing that it will be closed later. The bank is paying you to try them for a specified period. There is no obligation after the trial period.
However, it’s not worth the effort for me to open, manage, and close multiple accounts just for the bonus
Did it for 3 accounts and quit after that. Actually, I kept two of the accounts after the trial period.
I haven’t found it to be much trouble. And I have kept some accounts after the trial period. In fact the accounts I have other than my reward checking were ones I opened for the bonus.
I don’t think your being unethical at all. As long as your following the banks terms its fine by me. It dose sound like alot of work keeping track of all those accounts though.
By offering you these bonuses, the bank is hoping that some people will try them *just because* of the bonuses. They are saying “we will pay you X, or give you this toaster (or whatever) if you just give us the chance to impress you, no strings attached (other than the ones we specify).” This is not only totally ethical, it is exactly what the bank expects.