What is Bank churning?
It’s the process of opening bank accounts for sign on bonuses. And you would repeat the process over and over again, year after year, to increase your income. Bank Churning is an easy way to earn some income with little to no effort.
Is Bank churning worth your time? Let me show you how much I’ve made in 2020.
I HIGHLY recommend you read my full article on Bank churning. There are some downsides, nuances and most importantly the RISKs of Bank churning, if you are not careful this sweet money can backfire on you.
Watch the video on other platforms.
How much I made with Bank Churning in 2020
So I’m not going display everyone single account because of privacy issues and I don’t want to make this article needlessly long by displaying every single account. So here is a summary of each one.
|Bank Name||Account Type||Bonus Amount||Requirements|
|BBVA||Checking||$200||Direct Deposit 1 x $500|
|BBVA||Savings||$50||Maintain $300 balance|
|Fifth Third Bank||Checking||$250||Maintain $500 balance for 2 months|
|Suntrust Bank||Checking||$200||Direct Deposit $500 for 2 months in a row|
|Bank of America||Checking||$300||Direct Deposit $4,000 within 90 days|
|Sofi||Invest||$100||Direct Deposit $1,000|
|South State Bank||Checking||$200||Direct Deposit $250 + make 15 Debit purchases|
|Wells Fargo||Checking||$400||Direct Deposit $4,000 within 90 days|
|Chase||Checking||$300||Direct Deposit $500 within 90 days|
|TD Bank||Checking||$200||Direct Deposit $500 within 60 days|
|Hometrust||Checking||$150||Direct Deposit $250 per month for 2 consecutive months|
|Regions Bank||Checking||$200||Direct Deposit $500 within 60 days + 10 Debit card purchases|
|Southern Bank||Checking||$300||Sign up for Online Banking, e-statements, mobile app and any amount of direct deposit|
Which gives me a grand total of $2,850 dollars in just bonus money! But just imagine what you do with that money… imagine the posibilities…
You could put a down payment on a new car or you could help someone in need or donate to your favorite charity.
You can use it to secure your emergency fund or you can do what I do and start your own business. If that’s the case, then check out my other articles that’ll show you how you could put your money to good use and build your business.
This was a slow year for me but here’s the breakdown.
- $2,850 in cold hard cash
- 13 accounts open
- 12 different banks
I just want to point out that I did not open all the accounts all at once. This was spread throughout the year of 2020. I don’t think I make enough money to afford opening all the accounts in one shot but even if I did I would not do it because there is a system that tracks your bank accounts called the CHEX system. If you open and close too many at once it’s going to flag you in their database that banks used to approve your eligibility. So don’t open up a ton of bank accounts all at once because you’ll eventually get denied by the next bank.
Keep in mind that some of these banks only offer bonuses in my area. So you are going to see offers other then the ones on my list.
So in order for me to receive all the bank bonuses that year. There was a certain about of revolving money that I could not touch if I wanted the bank bonuses. It’s still your money though you can take it out whenever you want but you might lose the sign on bonus so you kind of need to budget carefully.
- About $3,000 of my direct deposits went to bank churning accounts every month
- I could not touch $5,000 of my money that was sitting in accounts for 4-6 months (staggered) through out that year. This is because I want to meet the requirements to NOT have to pay monthly fees and requirements for the bonus.
That may seem like a large amount but If you read my FULL BANK CHURNING Tutorial then you’ll understand that it’s not as much as it looks since it’s spread fairly evenly through out the year AND this is still your money, it’s not like that take it from you once you get your bonus. For the most part you can still use it like any other bank account that you normally have.
I showed a colleague of mines about Bank Churning and he was able to earn double my amount. And between him and his wife they were able to earn around $9,000 dollars in just one year!
But there’s a Catch(s)
The bank bonus money is technically not free. The banks are paying you in exchange for something they want. For instance:
- They may require you to have your money be directly deposited to their bank
- They may require you to deposit your money into their bank and leave it there for a certain amount of time like 60 days or so. If you take the money out then you forfeit the bonus
- They may require you to use their services like a debit card purchase or online bill pay
- It cost your TIME. More on that later so keep reading.
And there are many other types of requirements but these are the most popular ones. And some banks may even require you to do a combination of the items above to get the sign on bonus.
Things You NEED to Know about Bank Churning
Yes, Bank churning is a taxable event. That means you need to keep some accurate information to do your taxes every year that you bank churned because not all Banks will give you documentation for you to claim but for the most part they are pretty good about it.
Reality is, after taxes, that $2,850 dollars I earned from bonuses isn’t really what I’m left with. On average, my taxes are around 30%, yours may vary depending on your tax situation. So if you take 30% off of $2,850, I’m only left with, give or take, $2,000 dollars.
Credit and Eligibility verification
They will pull your information when you open an account. Sometimes it may even be a Hard Inquiry on your credit report. Do not let them do that, ask them if they will accept other forms of verification methods. For the most part banks will only need to do a soft credit pull to open a basic account, which does not hurt your credit.
TIME is money my friends and that holds true for bank churning as well. I spent about 1hr and 30 mins on each bank account. From the time I created the account, setup my direct deposits and transfers, keep track of the account and close the account.
So I spent a total of 18 hours to open all the accounts above to net $2,000. Doesn’t it mean that $111 dollars an hour? We’re talking about after taxes mind you. In real world work hour terms, it’s more like getting a job at $158 per hour. That’s just hypothetically speaking though, it doesn’t reflect real world jobs.
I don’t know about you guys but that’s a nice chunk of change for only 18 hours of work for the entire year. And obviously I’ve gotten a lot faster at churning since I’ve been doing it for awhile so it might take you a bit longer when you first start out but once you get the hang of it, it’s easy money.
Generally, this alone is not going to make you rich but it’s super easy side income. This may not seem much at first but if you combine this with other churning methods, which we’ll cover in detail later, it can really add up!
Between me and my wife, we’ve earned thousands of dollars, year after year! And it’s a really nice to have in case of emergencies or whatever we choose to do with the money. And Yes, more than one person in a household can open an account with the same bank, just be careful that some banks will only allow ONE sign-on bonus per household.
I think it’s worth it but you never know if it’s worth it for you unless you try it out for yourself. Once again please read the FULL ARTICLE before starting your bank churning journey.
Also there is a very good Churning group on Reddit if you want to follow but some of the suggestions there are for people will deep pockets but still valuable information.
Banks with Nationwide Offers for Bank Churning
Here are a list of some banks in the U.S. that offer nationwide bank sign on bonuses or at least available in most states.
Chase is one of my favorite banks to do bank churning. It’s easy to recommend since they seem to always have a sign on bonus every year and it’s usually available nationwide.
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This is not Financial or Tax advice. If you have any concerns regarding your finances or taxes, please reach out to an expert on the subject matter. This article is for entertainment purposes only.
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