As rates fall on savings accounts, a cash bonus is a good way to offset the lower interest rates. For banks, a bonus can be a good way to attract new savings account customers without having to pay a high rate. The latest bank to offer a cash bonus on its online savings account is CIBC Bank USA (CIBC). It’s offering a cash bonus of up to $400 to new Agility Savings account customers. To apply for the account and bonus, please see the DA bonus page. A summary of the bonus requirements is listed below:
- Open a new CIBC Agility Savings account by March 16, 2020
- Make your deposit within 15 days of opening your account:
- Deposit at least $25,000 to earn a $200 bonus
- Deposit at least $50,000 to earn a $400 bonus
- Sign up for eStatements within 15 days of opening your account
- Keep the money in your account for 120 days
Below are the important excerpts of the promotion’s small print:
- Offer is subject to change, and may be withdrawn, at any time without notice.
- If you have or have had an Agility Savings account on or after May 1, 2018, you will not be eligible for this promotion.
- An account application is deemed complete when you are provided an account number on the confirmation screen.
- Deposit at least $25,000/$50,000 of new money from an external bank within the first 15 calendar days from the date of the completed account application (Initial Funding Period).
- The minimum daily balance on the account must be at least $25,000/$50,000 for 120 days from the last calendar day of the Initial Funding Period.
- Enroll in Online Banking and change the Statements Delivery Method to "Online" during the Initial Funding Period and continue enrollment for 120 days from the last calendar day of the Initial Funding Period.
- Once you have qualified for a bonus, your bonus payment will be paid no later than 60 calendar days after you have completed all the requirements listed above.
- Bonus is considered interest for income tax purposes and will be reported to the IRS.
My Take on the Agility Savings Account and This Bonus
This might be an online savings account that you’ll want to keep for the long run. Since CIBC launched the Agility Saving account in June 2018, the rates have remained very competitive. The APY reached a peak of 2.39% in December 2018, and this APY held for almost eight months. Its APY as of March 6th is 1.85%, which has held since November 2019.
The Agility Savings account minimum initial deposit is $1,000, but after it is opened, there is no minimum balance required to earn the top APY. The maximum allowed balance is $1 million. There is no monthly service fee. Please refer to my review of the Agility Savings account for more account information and features.
Earning $400 by maintaining a $50k balance for 135 days is equivalent to a 2.16% yield. If you assume the current rate (1.85% APY) remains for the 135 days, the equivalent yield would be close to 4%. This is a compelling offer when you combine the cash bonus with a history of competitive rates.
Thanks to DA reader pinkterror for first posting on this bonus in this DA Forum thread, and thanks to the DA readers who have shared their experience on this offer.
Headquartered in Chicago, CIBC Bank is currently offering its new Agility Savings account to any adult who has a current U.S. address, a Social Security number, and a valid U.S. driver’s license or state identification number.
In the application process CIBC will access information about you from Chexsystems and Experian to verify your identity and confirm that you’re eligible for an account. According to a CSR, there is no hard credit pull. It’s only a soft pull.
Accounts can be held in the name of one or more people, “either individually or as a joint tenancy with right of survivorship.” Accounts cannot be owned by a trust or established as a fiduciary or custodial account. Accounts can be established as Payable-On-Death (POD) Accounts after the account has been opened by filling out and mailing a form. The form currently has spaces for up to six beneficiaries.
Funding the account can only be done by an electronic funds transfer or by check. There’s no credit card funding available.
While CIBC has “personal banking centers” in Illinois, Michigan, Missouri, and Wisconsin, the Agility Savings account must be opened online.
CIBC Bank USA has assets in excess of $33 billion. It has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 2.92% (excellent) based on September 30, 2019 data. In the past year, CIBC Bank’s total deposits have increased by $4.02 billion, an excellent annual growth rate of 21.43%. Please refer to our financial overview of CIBC Bank USA (FDIC Certificate #33306) for more details.
DA readers may remember that CIBC Bank USA used to be The Palladian PrivateBank, a division of The PrivateBank and Trust Company. Established in 1991, The Palladian PrivateBank was acquired in 2017 by the Canadian Imperial Bank of Commerce. According to this 2018 Bloomberg article,
A year after buying Chicago-based PrivateBank in its biggest ever acquisition, Canadian Imperial Bank of Commerce’s U.S. foray is already exceeding its expectations.
CIBC’s U.S. head Larry Richman -- the veteran Chicago banking executive who migrated with the $5 billion acquisition completed in June 2017 -- said he’s driving a “strong and steady" expansion under the wings of Canada’s fifth-largest lender by assets.
Other Bank Bonuses
Be sure to check out our full list of the best savings and checking account bonus offers.
The above rates are accurate as of 3/6/2020.