Dedicated to Deposits: Deals, Data, and Discussion

iPod nano Checking Account Bonus at KeyBank


KeyBank is offering a free iPod nano for opening a checking account by September 9, 2006, and either signing up for direct deposit or obtaining a Key credit card. The Key Free Checking Account is one of the checking accounts that can be used to meet the bonus requirements. This account has no monthly service charges or minimum balance requirements.

Some other of the important details of this deal include: You must have a direct deposit transaction or obtain a KeyBank credit card by October 31, 2006. You will receive your iPod within 60 days of meeting requirements. You must not already have a KeyBank checking account to be eligible. Value of iPod nano will be reported as interest on Form 1099-INT. If you close the checking account within 180 days of account opening, you'll receive a $25 early closure fee.

From the small print it appears that you may only need one direct deposit transaction. Sometimes an ACH transfer initiated from your online bank can count as direct deposit. It depends on the specific bank. This FW thread lists many of the banks that do and don't count ACH transfers as direct deposit. KeyBank doesn't seem to be mentioned.

I'm not sure if they do a hard credit pull when you open the account. It's probably likely if you apply for the credit card. Refer to this FW hard pull thread.

TCF Bank has been offering an iPod nano bonus for much of this year, however, the last one appears to have expired on June 30th (see post). Last month I posted on several other bonuses for iPod Video and iPod Shuffles. Some of these may still be available.

Beware of KeyDirect's Money Market Account

KeyDirect, the online unit of KeyBank, has a money market account that currently pays 5.10% APY on all balances (but it requires a $25K initial deposit and there's a $22 monthly fee for deposits below $25K). It's called the Ultra Money Market Savings Account. In May, a reader informed me that KeyDirect tends to create new money market accounts with new names that offer the high rates. The old money market accounts are no longer promoted, and the rates are quietly reduced. Customers are allowed to switch to the new money market account, but they need to make a specific request.

When I reported on this in May, KeyDirect's high yield money market account was the Optimum Money Market Savings Account which was offering an APY of 4.75%. As expected, there's no longer any mention of this account on the website now. The only one marketed is the Ultra Money Market Savings Account.

Comment #1 by Anonymous posted on
I am in Maryland and apparently I dont qualify to open this account....

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Looks like you need to live in a state where KeyBank has branches. Here's the list of states: Alaska, Colorado, Idaho, Indiana, Kentucky, Michigan, New York, Ohio, Oregon, Utah, Vermont and Washington State.

Comment #3 by Anonymous posted on
This is the second time they have done this. When you request the higher yield they usually give a bit of a hassle. Not what i call a pleasant experience.