Bank Churning

Bank Churning is the act where you open bank accounts to obtain bonuses they give to allure customers to their banks.

You may find it weird that banks are paying people to use their service, for for them it’s a long term investment.

They are fantasizing you borrowing money from them, so they can make interest off of you.

Obviously, you don’t want to do that. Your goal with bank churning is to open an account to reap the benefits they advertise and just leave it alone, assuming they don’t have monthly fees.

Is Bank Churning Really a Good Idea

Yeah, it is, you don’t have to pay anything, banks want you to open an account with them because it looks good on open rates, and personal bankers get incentives for opening an account.

Everything is just a matter of time, you need to wait for your benefits to be given. I’ve done it through a few banks myself and I’ve made 1.05 from a bank.

When I opened an account through CIti they had a deal to open an account for $500,

Along with some credit cards and it surmounts to me earning 1.05k in a span of three months.

I’m amazed how people are not willing to open accounts when banks are throwing money right at you like this.

There’s Gotta Be A Bad Side To This Right?

Sure, nothings perfect.

You may have more things on your mind, you have to consider where your money is at, and the date where your bonuses come.

You may forget about some minor rules that might incur a fee, if you forget to tend to your account.

Spending Addiction

This is the touchy part, as I know people that has a money borrowing problem. I know folks that would borrow and mortgage their homes because they have a spending addiction.

My teacher had to cancel her bank account because she keeps opening credit cards and just obliterate money she doesn’t have.

Her spending addiction went on for 20 years, and the only way for her to stop is to close her account, no debit, just cold turkey.

Money Constraints

Majority of these banks require you to put a certain amount of money in the account for a duration in order to qualify for the bonuses.

If you have a small amount of money, you might face limitations.

When I opened a bank account with Citi, they offered me 500 for 30k in my checking, it could’ve been 1.5k, but I will have to put 200k, which were in my brokerage account.

Overall, $500 is better than nothing.

Credit Cards

This is a little off topic as there is a whole system to this, but as you open bank accounts, you will be prompt to open credit cards as well.

Credit cards are a little funny, as it’s not just opening, but you have to spend money on them to reap the benefits.

A example would be, spend $1000 in 3 months and you can earn $300 dollars.

This is a no brainer, if you see credit cards with these benefits, you should get it asap. You can literally spend your card on anything, like bills, groceries, Netflix subscription, anything as long as it cost money, and you earn a bonus in the end.

Why Are Banks Offering bonuses

To get your money in the long run, they think you have the potential to borrow money from them if you have a spending problem, so they can make money off of the interest.

Or, they can use your money to lend to other borrowers. Granted your 30k is pocket change to them. However banks like cushion, the more the better, they will kiss your ass for your 30k.

That is why the banking industry makes so much money, because they don’t discriminate the poor when it comes to taking money.

I Will Never Borrow Money

You may think you will never borrow money from banks, because paying interest is insanity.

However there are times where you just have to borrow, and you happened to have an account with Wells Fargo that you opened 3 years ago for their $200 bonus.

Your spouse decide to buy a house because he/she doesn’t want to live with your mom anymore and demand to move out, even though you can’t afford it. This is your future are you going to risk it to not pay interest, or you go to the bank to borrow some money with interest.

Disasters happens, and banks are camping for your vulnerabilities, when you least predict it.

Would I Do It

I’ve been, it’s super chill, you walk into a bank, and you have a guy kissing your ass, until you take a seat.

The money can’t be anymore easier than this, and I love talking about it. If you think this helped you find your new money method, please share this with your loved ones so they can earn a little income on the side.