Dedicated to Deposits: Deals, Data, and Discussion

$100 Bonus for 5.25% 12-Month CD at Netbank

POSTED ON BY

Update 9/28/07: NetBank closed by the FDIC. See post more details.

Netbank has updated their Drugstore.com promotion. Previously, the most you could get by opening a 1-year CD was a $25 Visa gift card. With the new promotion, you can now get up to a $100 Visa Gift Card. This requires opening a Netbank 12-month CD with a minimum deposit of $15K. You also have the choice of a $50 Visa gift card for a minimum deposit of $10K or a $20 card for a $5K minimum. The current APY of Netbank's 12-month CD is 5.25% APY.

Here's the Drugstore.com page with the Netbank link, and here's the Netbank promotional page. Be sure to sign up through this promotional page.

If you convert these bonuses into extra interest, the resulting APY would be approximated as follows:

Deposit Standard Bonus Bonus Total APY
APY Amount Interest with Bonus
$15K 5.25% +$100 +0.67% 5.92%
$10K 5.25% +$50 +0.50% 5.75%
$5K 5.25% +$20 +0.40% 5.65%

In addition to this $100 bonus, you can also get another $150 bonus by opening a Netbank money market account and checking account for a total of $250 bonus. This is the same as before except that you now only need to maintain a balance of $1000 in the money market account for one month to receive the bonus $75. The checking account bonus is the same as before: $75 signup bonus for opening a checking account with a $50 minimum deposit and maintaining a balance of $500 for at least one month. As before, you can choose any combination of these bonuses.

For the money market and checking accounts, be sure to review the fees. I would recommend against the SuperValue Checking Account. It has a $3/month service fee for balances over $2.5K and a $9/month fee for balance under $2.5K. the interest rate for this account is only 2% APY. The NetValue Checking's APY is 0.75% without any balance requirements or monthly fees.

The money market account has a $5/month fee for balances under $500. Netbank's money market accounts have never had competitive rates. Currently, the standard money market account has an APY of 2.90%. You can increase this to 3.52% APY with some extra requirements, and up to 4.05% with an auto loan.

There's a $25 fee if you close either the checking or money market account within 6 months. After the first months there's still a $7.50 account closure fee.

Also beware of the online bill payment inactivity fees for the checking account. They charge $5/month after 3 months of inactivity or for balances under $3K.

Credit for finding this latest Netbank promotion goes to this FW thread.


Comments
14 Comments.
Comment #1 by Anonymous posted on
Anonymous
Is the $100 gift card counted towards 1099-INT? You saved at least 15% tax!

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Usually any bonuses given by banks are counted like interest and included on the 1099-INT. However, I can't find any mention of this in the promo page.

1
Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
There's also another CD bonus that only requires a $1K deposit. The CD bonus is less, but still not too bad at $25 (Visa Gift Card).

Here's this promo page.

This results in a combined APY of about 7.75% for a $1K deposit (5.25% + 2.50%).

1
Comment #4 by Anonymous posted on
Anonymous
Does Netbank do a hard pull?

1
Comment #5 by Banking Guy (anonymous) posted on
Banking Guy
According to some FW members on that FW post I listed above, Netbank does do a hard credit inquiry.

1
Comment #6 by Anonymous posted on
Anonymous
A far better promotional for Net Bank can be found on the following link: http://www.netbank.com/pro408.htm?PM1=expro374#

$75 bonus for checking $500 for one month and
$75 for money market $1000 for one month.
rod

1
Comment #7 by shrazzy (anonymous) posted on
shrazzy
Netbank is coming on top big... maybe since they got a 1star rating on bankrate?

6-Month CD 5.26% 5.40%
1-Year CD 5.31% 5.45%
18-Month CD 5.31% 5.45%
2-Year CD 5.31% 5.45%
3-Year CD 5.26% 5.40%
4-Year CD 5.26% 5.40%
5-Year CD 5.26% 5.40%

1
Comment #8 by shrazzy (anonymous) posted on
shrazzy
6M now 5.45%
1Y now 5.50%

1
Comment #9 by Anonymous posted on
Anonymous
Is this deal for new Netbank customers only?

1
Comment #10 by Banking Guy (anonymous) posted on
Banking Guy
Yes, it's available only to first-time Netbank customers according to the promotion's small print.

1
Comment #11 by Anonymous posted on
Anonymous
Netbank charges $7.50 each to close accounts. This fee has no 'end date' so it's on-going no matter how long the accounts are open.

1
Comment #12 by Anonymous posted on
Anonymous
I just opened accounts at Netbank and made my initial deposits, then I noticed that your 'post' for a sign-on bonus (total of $250)was posted on May 19th, 2006. I think I goofed! Moved money from a savings bank that is paying 6% interest to Netbank! My advise to readers - Check the date(s) of postings before you sign up for anything!

1
Comment #13 by Banking Guy (anonymous) posted on
Banking Guy
These bonuses are still being advertised at Drugstore.com (see my Drugstore link in the post). So these bonuses should still be available as of June 2007.

1
Comment #14 by Anonymous posted on
Anonymous
I opened a Netbank checking and money market account through the Drugstore.com advertisement on May 28, 2007. My $75 bonus for both accounts (total $150) posted on July 19, 2007 without any phone calls being made.

1