Posted by William Charles on October 21, 2019
Deals

Published on October 21st, 2019 | by William Charles

82

PNC Investments: Invest $20k-$750k And Get A $125-$5,000 Bonus

Update 10/22/19: This is for a managed account, so not really that useful unfortunately.

Update 10/21/19: The tiers are actually much better than before and the maximum bonus is $5,000. Hat tip to reader Charles Mann for pointing this out.

Update 10/20/19: Deal is back and valid until December 31st, 2019. Hat tip to reader Jonathan W. 

Update 6/2/19: Offer is back through June 30, 2019. We’ve added this to our list of Best Brokerage Bonuses. (hat tip reader arizonapv)

[Update: Removed state restriction as apparently you can open over the phone.]

Contents

The Offer

Direct link to offer

  • PNC Investments is offering a sign up bonus when you open a qualifying PNC investments account. The bonus is tiered depending on how much you invest:
    • Invest $25,000-$49,999 & get $125
    • Invest $50,000-$99,999 & get $250
    • Invest $100,000-$179,999 & get $500
    • Invest $175,000-$249,999 & get $1,000
    • Invest $250,000-$374,999 & get $1,500
    • Invest $375,000-$499,999 & get $2,250
    • Invest $500,000-$749,999 & get $3,250
    • Invest $750,000+ & get $5,000
  • You must maintain the net deposit amount (less market losses) for at least 12 months otherwise they claw back the bonus

  • Previous bonuses were:
    • Invest $20,000 and receive a $50 bonus
    • Invest $50,000 and receive a $100 bonus
    • Invest $100,000 and receive a $200 bonus
    • Invest $250,000 and receive a $600 bonus
    • Invest $500,00 and receive a $1,500 bonus

 

The Fine Print

  • Valid until December 31st, 2018
  • Account must be opened in branch
  • Deposits must be completed within 30 days of account opening.
  • The net deposit calculation for the cash bonus will be calculated and the cash bonus will be credited to your account within 90 days of confirmation of your total qualifying net deposit.
  • The cash bonus will be applied only to the brokerage account for which the net deposit was calculated.
  • You must maintain the net deposit amount (less market losses, if any) in your account at PNCI for at least 12 months or PNCI may charge back the value of the cash bonus.
  • If opening more than one account, each account will be considered individually for payment of the bonus.
  • The value of the cash bonus may not exceed $3,000 per client.
  • This offer is not transferable, saleable or valid in conjunction with certain other PNCI offers.
  • This offer is available to U.S. residents only

Our Verdict

A few readers have asked us to post these types of investment deals when we see them. This seems similar to other offers on the market (e.g Ally Invest) but the $500,000 tier is $1,500 instead of the standard $1,200. I’d be happy to post these types of deals more often, but I’m interested to hear from readers that find these posts helpful. What type of things are important when it comes to investment bonuses (e.g with bank account bonuses we care about the bonus, direct deposit requirements, soft pull, credit card funding, fees etc). If I’m going to post these types of deals it’s useful to know what I should be looking for and why.

Hat tip to reader Neil C



82
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Knight
Knight

+1 on posting brokerage deals. Your format is wonderful ! Thanks !

Parkerthon
Parkerthon

0.25-0.3% bonus. Is it even worth the trouble of moving big money around temporarily for such a small return? What am I missing here?

Mike
Mike

Yeah sometimes I wonder about the Amex deals also. Spend $2000 and get 1000 points. That’s $10 (0.5%)! Can’t even think of a MS spend situation (which I don’t do) where this would be a useful deal.

Frank

. If you value MR points over 1cpp (which you should) then 1k points is more like .75% back. It’s not a lot but it swings the math on if paying rent with a CC is worth it. Sure you won’t get rich doing it but it’s in addition to the point you already earn

Avi
Avi

I agree that the smaller dollar value bonuses aren’t worth it, but if you’re eligible for the $1500 bonus, who wouldn’t do that? $1500 is $1500.

Parkerthon
Parkerthon

Because we’re talking about moving over 500k to get that and keeping it there for a whole year. Surely there’s other things you can do with that much money that top the list of easy safe returns. Maybe if you’re looking to switch to PNCI as your broker already, this is good to know. Considering the fees and other intangibles that come with choosing a broker, this is an awfully small incentive otherwise. To break it down to smaller terms, would you park 20k in an investment account for 12 months for $50?

Obviously people are asking for these offers to be mentioned though, so I’m legitimately asking why a deal like this would be worth it being someone that doesn’t do much investing.

Avi
Avi

I think what you’re missing is that nothing has to be bought or sold when switching brokerages, and it doesn’t really affect much on your end if it’s money that’s just going to be parked in investments. The only expenses are your time and the closure fee from your current brokerage. If the bonus is greater than the value of your time for completing the transfer plus closure fee, you’re coming out ahead.

Too often people think of deals in terms of %, when really they should be thought of in terms of $. See this:

http://www.aaronsw.com/weblog/percentagefallacy

DoC touches on this when posting savings account deals that have limited velocity where it may not be worth the hassle because the 5% interest is on a limited balance.

Dan
Dan

youre completely missing the point. you dont have to give up any returns to pursue these bonuses. you dont even have to sell the securities. you transfer the securities directly via ACATS. if youre in a positon of just holding securities or index funds and doing automatic dividend reinvestment, then its easy cash for essentially doing nothing. if you actively trade, then you have to learn the ins and outs of new trading platform including any possible different fees etc but still worth it. your 2000 shares of apple become 2000 shares of apple + $1500. these bonuses are a no brainer, some people seem to think the burden is a little bit higher, but in my experience its not.

Parkerthon
Parkerthon

See that’s the part I didn’t understand. That you could transfer all your shares without buying/selling. Good to know and yes, makes 1500 seems a lot more attractive from a time investment perspective.

mcafeeee
mcafeeee

Even if you couldn’t transfer your shares it is still likely worth it. This is not a checking account where you earn zero interest. This is a brokerage account and 100% of the funds are investable just like any other brokerage account at your current brokerage.

Dan
Dan

i would agree with you, but it really is case dependent. a minor con is getting your taxable dividends spread out among multiple brokerages so youll have more tax forms to worry about (but that’s not much of a hassle as long as you are organized and make sure you get all the forms come tax time). the major con is if you have significant capital gains and in the case you mention, you have to sell and realize those capital gains in order to switch brokerages. that could be a significant tax bill that comes due far before necessary (and we all know time is money and deferring taxes is money gained). think of the scenario where somebody owns 4000 shares of apple that they bought in 1990. thats like $218/share of capital gains taxed at 20% long term capital gains rate if you sell. you’ll lose 20% of your shares to get $1500 bonus and the loss in dividends alone far outweighs that bonus amount. would be incredibly foolish. the ideal scenario is if you have enough in an IRA and you can just move it around with zero tax consequences (even if forced to liquidate)

Parkerthon
Parkerthon

So 401k rollovers would count? Obviously that requires taking your money out of market while you transfer. Interesting though.

Dan
Dan

depends on the promotion, for Merrill edge IRAs counted (looks like Roth, traditional, rollover are all good for this one as well). and right, in that case yes and that’s a good example where liquidation would be required (but no tax consequences). if you happen to have IRA already, doing IRA to IRA is easy. i was more so talking about on the off chance that a brokerage doesnt support in-kind ACATS transfers (rare these days) and so you would have to sell assets and possibly realize gains or losses. that’s the case where i would really think twice about doing it

Snorlax
Snorlax

“the major con is if you have significant capital gains and in the case you mention, you have to sell and realize those capital gains in order to switch brokerages.”

No, no you don’t, don’t spread falsehoods. You can transfer securities without realizing capital gains.

I get 1099s from four (4) different brokerages every year and it’s really not difficult or complicated at tax time.

Sulaya
Sulaya

So to simplify this … you are just changing the management of your existing securities from one broker to the next – and you get the bonus based on the current value of the existing securities?

If so, then the considerations would be – are you willing to commit to PNC for a year to manage your securities? and will the cost to move management to these securities be compensated by the new broker?

Dan
Dan

these arent for actively managed accounts (although they probably have an option for that). they are for self-managed accounts. so PNC isnt really managing them, they are just holding your investment. there is a small consideration for trading fees, but based on normal trading frequency, the cost difference from other brokers is negligible. if you are a high frequency trader, you likely just care about whatever option minimizes trading cost (so you probably wouldnt even consider an option that charges a per trade fee, cause there are options out there that allow unlimited trades under certain conditions)

Snorlax
Snorlax

If you got a chunk of change sitting in a brokerage, and you got nothing but ETFs, it doesn’t “cost” anything to transfer the ETFs to another account for a year or more. The only thing you have to worry about is 1) transfer fees on both sides and 2) fees to close the second account and 3) minimum balances (these are pretty rare). If you’re carrying nothing but ETFs it literary doesn’t matter at all if it’s sitting in one brokerage or another, they are the same financial instrument no matter where they are sitting. You can transfer ETFs without tax implications. Especially if you use an IRA to get the bonus because most people who have been in the workforce for a few years are going to have a big chuck of change in an IRA and you aren’t going to be touching an IRA for more than a decade anyway, unless you’re closer to retirement.

Most of these bonuses aren’t really worth doing if you have less than $100k. They *definitely* aren’t doing if you are planning on spending the money in <5 years. They also almost certainly aren't worth doing if you're an active trader. They are aren't for everyone, but they are for many people.

I'll give you an example, I moved a small amount of my securities to a USAA brokerage account (the minimum balance, like $4,000). USAA's brokerage accounts are horrible compared to the competition, so I'd never use USAA for my "main" brokerage, but the securities sitting there give me a nice discount on my car and homeowners insurance.

Steve
Steve

The “minimum balance” thing is becoming more of an issue now, since I keep a certain amount in Merrill Edge to get Preferred Rewards for better CC rewards, free trades, etc; Chase is now trying something similar with Sapphire Banking. If I want to leave balances in my old accounts to keep benefits, I don’t have a lot left over to move to another brokerage for a bonus.

Anthony
Anthony

I don’t think you can look at these types of bonuses in a MS view and say it’s only a 0.3% bonus so it’s not worth it. You’re not actually spending to get the bonus, you’re (presumably) moving money you already have into a new account. So I look at it as, “how much time, effort and inconvenience will this involve”? If it’s going to take an hour and I don’t care what account features I may be losing, then I’m basically getting $1,500 for an hour of effort. To me, that’s easy money. 🙂

Parkerthon
Parkerthon

Move AND leave it. “You must maintain the net deposit amount (less market losses, if any) in your account at PNCI for at least 12 months or PNCI may charge back the value of the cash bonus.” That’s a BIG catch. Seems like you gotta be ready to commit to PNCI as your broker for a year. Are brokers really that interchangeable from a standard fees and services perspective?

Anthony
Anthony

Yes.

Alex
Alex

Nice to see those brokerage deals. It would be better to provide fee schedule including fee for closing the account in the future.

J Ro
J Ro

Yes, this. Fee for closure and servicing is relevant.

Dan
Dan

not gonna mention by name, but there are multiple brokerage services that cover account closing fees. you can use them as an intermediary

mcafeeee
mcafeeee

+1

Josh
Josh

Where are you seeing the state restrictions mentioned in the title? Would definitely do this if those state restrictions don’t apply. Thanks.

Billy
Billy

I’d like to see these continue to be posted.

Frito Pendejo
Frito Pendejo

I appreciate these deals, please continue!

GDUP
GDUP

My take on brokerage deals is they are rarely worth it. Take the top tier – 500,000. Invested in an Ally Savings account at 1.85% that is $9,250 vs the $1500 bonus. Or even for just 90 days (which many brokerage bonuses are) would be $2,312 (Savings Account) vs $1500 Bonus. If you have the money, better to just leave it in a Savings Account. The only way I would think it is worth it, if you are opening your main brokerage account and plan on converting cash to stocks and investments. Alternatively, if you are switching brokerages from a high trade fee to a low trade fee brokerage that includes a bonus. Outside of those two scenarios, not worth it.

Snorlax
Snorlax

> If you have the money, better to just leave it in a Savings Account

No, these bonuses are not for people with the money currently in savings accounts, these bonuses are for people who already have the money invested in securities.

You don’t miss out on any interest or capital gains, $QQQ is the same exact thing in PNC as it is in Fidelity.

ann
ann

GDUP..which savings account would you consider best for higher amounts.. over 200K? Just looking to park some money for about 6-9 months.. maybe a little more.. not sure. TIA

Bob
Bob

If you are going to be charged a fee to leave one place, insist the new place refund the fee in addition to the bonus. They will almost always do this if you ask.
I would say 12 months is a long time, most offers have shorter tie ups. The best way to do these is to churn them as often as possible.

Neil
Neil

(edit – how the heck to I put in paragraph breaks, this was not a huge runon paragraph! I’ve added /////////////////// to indicate breaks) Yes Will. these are very useful and should continue to be posted (I’m the one who sent this over). ////////////////////////////////// Every time these kinds of things are posted there are people who don’t understand these bonuses are valuable to a subset of people who have stable long term investments, whether ETFs, mutual funds, long term stock positions etc. /////////////////////////// If you have long term investment assets just sitting in a brokerage account, you are earning $100/$600/$1500 to transfer funds from one brokerage account to another. Many times it can be done fully electronically (i.e. transfers between the big brokerage companies such as Fidelity, TD Ameritrade, Schwab etc). Sometimes a bit of paperwork is involved (i.e. scanning in your last statement, simple stuff). Your cost basis will transfer (always go back and check) and that’s it, you’ve earned $100/$600/$1500. No require to conduct trades, no require to do anything other than park the assets for the required period of time. You were already going to park them somewhere else, now you are getting paid a bit for that. ///////////////////////////////// I’ve also found you can request retention bonuses from your brokers. One national brokerage firm offered me $400 after 6 months if I left my holdings in an account with them. (Others have refused but basically said if you move stuff out you’ll almost certainly be able to move them back in again and take advantage of a new money incentive offer). Free cash for doing nothing. //////////////////////////////////// Again remember, we aren’t talking leaving cash in a 0.01% brokerage account when instead you could earn 2.0% in a no penalty CD. That’s obviously absurd. These incentives are more like someone saying to you “if you don’t sell your house for the next six months I”ll give you $500.” Great if you have no intention of selling your house! (And if plans change, all that means is you don’t get your $500). ////////////////////////////////////// So Will, if you get too much flax on these kinds of things from people who don’t understand why they are valuable to others, consider some way to post them totally separately. Or put some kind of disclaimer at the top so people understand you aren’t writing about some crappy manufactured spending or bank bonus deals.… Read more »

Snorlax
Snorlax

Great post, Neil! Agreed 100%!

“how the heck to I put in paragraph breaks, this was not a huge runon paragraph!”

Your paragraphs show up when you click “read more” at the bottom.

bax
bax

Yawn. I’m not even going to roll out of bed for such a small return.

Lrdx
Lrdx

It’s an infinite percent return..
It’s a brokerage account, not a deposit account.

Roger
Roger

I just called PNC , they told me the offer was valid in all 50 states of the US. I dont know where you get the fact that the offer was only valid for few states.

fST
fST

Reading a couple of these comments, it certainly does seem that there are some who don’t fully understand how to take advantage of these and why they’re worth it. Please continue to post these! Thanks!

Lrdx
Lrdx

I’d absolutely love to see regular brokerage bonus posts.

Some points I’d like to be included:
– the bonus (duh 🙂 )
– requirements: amount, holding period before bonus deposit, holding period after bonus to avoid clawbacks.
– fees: monthly fees, commissions, closing fees, partial and full ACATS transfer fees. (Sometimes one needs to pay only if you transfer out all shares; if you leave even one, it’s free.)
– if they reimburse transfer and/or account closing fees of the originating account. (It’s pretty common, but not every broker does it.)
– Available account types: taxable / IRA / Roth IRA / SEP-IRA / HSA / trusts / UTMA (or UGMA) / ESA / 529s + what state is their 529 sponsor. (Did I miss something?)
– if they support buying partial shares, DRIP, and/or options.
– If bonus is available for multiple (types of) accounts. (i.e. ME bonus is available twice: one for taxable one for IRA)
– number of commission free trades or list of available commission-free mutual funds and/or ETFs, probably as a link, because it’s often in the hundreds. If no such list is available, if they give access to mayor index funds / ETFs (like SPY, VTSAX, BND, etc.). (AFAICT E-Trade fails on this big time…)

I know the list is huge, you can probably leave figuring details to readers 🙂

Frugal Nellie
Frugal Nellie

Mind the % bonus. If you have 60K to transfer, it looks like three 20K accounts will give you $150, instead of one 60K account giving $100.
The bonuses are at 2.5%/2%/2%/2.4%/3%

And thanks Doc! I’m definitely planning some of these in my future.

I will want to know if they take trusts & custodial accounts, if the bonus is 10-99, and I prefer ones that are more churnable than this long 1 year time frame.

zrzhu
zrzhu

+1 on investment deals.

Wes
Wes

I like seeing these kinds of deals.

Back to Top ↑