Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Avoiding Monthly Fees By Faking Direct Deposit

Tuesday, September 4, 2012 - 1:48 PM
Last year I described how a friend is avoiding the monthly fee on his Chase checking account by having a monthly ACH transfer from an internet bank into his Chase checking account. My friend says that Chase continues to count this ACH as a direct deposit which allows the checking account to be free of monthly fees.

Using ACH transfers to fake direct deposit was recently described in this US News My Money article. As the article says, it can be useful to freelancers who can't receive a payroll direct deposit and want to maintain a free checking account at a big bank. One thing the article didn't mention is that it can also be useful in qualifying for new-account bonuses which often require direct deposit.

The success of fake direct deposits can be a "your miles may vary" (YMMV) situation. This giant thread at Fatwallet keeps track of which banks will count ACH transfers as direct deposit.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634