Bank of Internet USA Rewards Checking $50 Bonus (Nationwide)

POSTED ON BY

Availability: Nationwide (internet bank)

For a limited time only, Bank of Internet USA (BofI) is offering a $50 bonus when opening a new Rewards Checking Account.

The Rewards Checking Account currently earns up to 1.25% APY on qualifying balances up to $150K. The 1.25% APY has been in effect since the account was introduced in July 2011.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.25%-$150kBank of Internet USARewards Checking
Accounts mentioned in this post. Rates as of July 26, 2016.

$50 Bonus Requirements

  • Offer valid for a limited time only
  • Minimum opening deposit is $100 new money
  • An average daily balance of $1K for 90 days is required.
  • If the account is closed with 180 days of opening, a $50 early closure fee may apply.
  • The $50 bonus will be credited after 90 days of account opening.

Rewards Checking Account Specifics

The Rewards Checking Account is a tiered, interest earning, variable rate account. There are no monthly maintenance fee, no monthly minimum balance requirement, and no overdraft fees. In addition, there are unlimited domestic ATM reimbursements.

According to BofI’s website,

Rewards Checking Account allows you to control your interest rate reward based on the products/services used during the month.

The fine print details the three ways to control the variable rate:

Your interest rate can be as high as 1.25% based on the following combined rate rewards:

Direct deposits (not including intra-bank transfers from another account) totaling $1,000 or more each month will earn .4166%

At least ten (10) point-of-sale transactions per month using your Rewards Checking VISA Debit Card for normal everyday purchases with a minimum of $3 per transaction will earn .4166%

Fifteen (15) or more point-of-sale transactions per month using your Rewards Checking VISA Debit Card for normal everyday purchases with a minimum of $3 per transaction will earn .4166%.

The first time I read the fine print details concerning the point-of-sale transactions (POS), I was perplexed. Was it 10? Was it 15? Was it 25? After a lengthy (and somewhat confusing) conversation with CSR, I was able to determine that,

  • The first 10 POS transactions per month will earn .4166%.
  • When an additional 5 POS transactions are completed (for a total of 15 month POS per month), the second .4166% will be triggered.

I wrote about the Rewards Checking Account in July 2014 to coincide with its 3rd anniversary. I discussed what had remained the same (APY) and what had changed (balance cap introduced, monthly requirements with an emphasis on debit card purchases, removal of online bill payment requirement).

One aspect I didn’t mention was BofI’s somewhat weak external transfer service. While Bofl does not limit the number of fund transfers, there are dollar limits:

Maximum per day in or out $2,000.00

Maximum per month $5,000.00

While this may not be important to every DA reader, if you are considering depositing a large amount, you need to weigh the importance of the daily/monthly dollar limits.

Availability

As an internet bank, Bank of Internet USA is able to offer its product line to all U.S. citizens and resident aliens (18 years or older), who have a valid government ID and a valid address (P.O. Boxes addresses are excluded). Opening a Rewards Checking Account (or any other BofI account) and applying for the $50 bonus must be done online.

Bank Overview

Bank of Internet USA has an overall health rating of "B+" at DepositAccounts.com, with a Texas Ratio of 5.91% (excellent), based on June 30, 2015 data. In the past year, Bank of Internet USA has increased its total deposit by $1.43 Billion, an excellent annual growth rate of 46.97%. Please refer to our financial overview of Bank of Internet USA for more details.

Founded in 2000, Bank of Internet USA (FDIC Certificate # 35546) is one of the first banks worldwide to offer banking services (specifically deposit accounts and loans) exclusively on the Internet. Headquartered in San Diego, Bank of Internet USA currently has assets in excess of $5.8 Billion and recently placed 6th in TopTenReviews.com’s Top 10 Online Banks Review.

How the Rewards Checking Account Compare

This is a difficult comparison that draws no concrete conclusions. Out of the 33 nationally available Rewards Checking Accounts tracked by DepositAccounts.com, the Bank of Internet USA Rewards Checking Account’s APY currently ranks 13th, but the qualifying balance cap of $150K far outstrips the other 32 accounts.

The above rates are accurate as of 11/18/2015.

To search for nationwide Reward Checking rates and Reward Checking rates in your state, please refer to the Rewards Checking rates section of DepositAccounts.com.

Comments
Anonymous
Anonymous   |     |   Comment #1
So you have to do a bunch of debit card purchases to qualify??? $50 is not worth the trouble
Anonymous
Anonymous   |     |   Comment #2
Wait........ Do you have to do direct deposit and these debit purchases to get the $50??? .....Or just open the acct and hold $1k for 6 months.Thanks.
Ken Tumin
Ken Tumin   |     |   Comment #3
Yes, it’s only necessary to maintain  $1K for 6 months to qualify for the bonus and to avoid the early closure fee. You only have to use your debit card to qualify for the top rates. The bonus is small, but I consider it like “icing on a cake”. It’s one small extra benefit to a nice checking account that pays higher interest rates than most internet savings accounts.
Anonymous
Anonymous   |     |   Comment #5
Thanks Ken
RJM
RJM   |     |   Comment #4
Too much crap.
Anonymous
Anonymous   |     |   Comment #6
Lots of work for $50 so.. no thanks.

But... you know.. they're probably not trying to attract customers who want an easy $50 only to leave as soon as they can close the account.     
RJM
RJM   |     |   Comment #7
Silly banks, trying to attract actual customers who will use their accounts as primary checking accounts and use debit cards for actual purchases.
But, I imagine there are still a number of people who use brick & mortar banks who would benefit from such an account.
Thats not us.
3-Year Anniversary of Bank of Internet USA's Rewards Checking

It has been just over three years since Bank of Internet USA launched its Rewards Checking account with a top yield of 1.25%. During these three years, the yield has held. That’s not common in this interest rate environment. There have been a couple of changes over the last two years. In early 2013, the bank introduced a balance cap of $150,000. The portion of a customer’s balance over $150,000 does not earn interest. Another change was made just recently. The bank slightly changed the monthly requirements making it a...

Continue Reading
BofI Federal’s Affinity Group Rate Premium Ends - Rewards Checking Still a Good Deal?

I first reported in April of several good deals that were offered by BofI Federal Bank’s affinity groups. One of the best deals was a rate premium of the Rewards Checking account. It paid 1.50% APY on balances up to $150K. The standard yield is 1.25%. That premium has recently ended. There’s no longer any advantage of opening the accounts through the affinity groups.

Even though the 1.50% yield has ended, the standard 1.25% APY on balances up to $150K remains a good deal compared to internet savings accounts and other...

Continue Reading
Two Year Anniversary of Bank of Internet USA's Rewards Checking

It has been just over two years since Bank of Internet USA launched its Rewards Checking account with a top yield of 1.25%. During these two years, the yield has held. That’s a nice record in this awful interest rate environment. There have been one change, however. The bank introduced a balance cap of $150,000 last January. The portion of a customer’s balance over $150,000 does not earn interest.

When the Rewards Checking account was first launched in July 2011, it didn’t look that attractive since there were several savings and...

Continue Reading
Bank of Internet USA's New Rewards Checking Balance Cap

Bank of Internet USA has just added a balance cap to its Rewards Checking account. For new accounts, balances greater than $150,000 will not earn interest. For existing accounts, this balance cap will take effect on March 1, 2013. Before this change, all balances qualified for the top rate, which is currently 1.25% APY. Thanks to DA member ekat who posted on this news in the forum.

I'm sorry to see the balance cap, but at least it's still large in comparison to other reward checking accounts. Most reward checking accounts...

Continue Reading
One Year Anniversary of Bank of Internet USA's Rewards Checking

It has been about one year since Bank of Internet USA launched its Rewards Checking Account. I first reviewed the account on July 12, 2011. At that time I was disappointed by the low top yield of 1.25%. That yield has held for the last year, and it has become more competitive as rates at other banks have fallen. Unlike the typical reward checking account, this top rate applies to all balances. So that also makes it a better deal.

The downside of this Rewards Checking account is that it has...

Continue Reading

More Past Offers