Posted by William Charles on January 20, 2020
Recaps

Published on January 20th, 2020 | by William Charles

37

Recap: PNC Learns Downside Of Cash Bonuses, Get Capital One Business Cards Off Personal Report & More

 

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Novacat05
Novacat05

As part of the fight for the low-cost deposits they need to fund their loans and other investments, banks will often offer bonuses of up to $500 to new account holders who set up a minimum direct deposit or swipe their new debit cards a qualifying number of times. But Demchak told analysts on the bank’s fourth-quarter earnings call that a fair number of customers are “going through the motions” to get the bonus but then never use their accounts again.

“There’s a lot of mischief in that,” Demchak said, adding that cash bonuses have become “less attractive to us than some other things we’re doing.”

Das not good….

Dan
Dan

“Our customers have better options than our shitty accounts, so they don’t stick around”

Translated that for them.

Chimpo Chee
Chimpo Chee

Some Hooligan companies are offering Stock. Can’t compete with that….lol.

N
N

“Our customers need to go through similar motions to get more bonuses from our competitors so they pulled their deposit, stopped their “dd”s, and in some cases even closed their accounts with us.”

“Further more, our industry needs stop this kind of bonus in sync like what have been done on the CC side (all issuers increaseing fees and dropping “benefits” at the same time).”

MrObvious
MrObvious

“Until the economy turns, and then we’ll be giving away the house to get any new deposit accounts.”

Frank

“It’s unbelievable that after we stop giving customers a reason to bank with us that they stop banking with us. Sure you earn 0% interest and pay fees for most basic privileges but come on.”

Potatoslayer
Potatoslayer

Frank +1

Steve

PNC’s Virtual Wallet Growth savings account actually pays a decent rate (1.85% (or 1.90% with DD or 5 debit purchases); not sure if available in all states). Or their High Yield Savings pays 1.75%.

Though, there’s still some banks higher than them, and the Virtual Wallet is a little weird with 3 accounts and you need to DD into the checking and then move to savings if you want the higher rate. But if someone wanted to use them as their main account, they’re not terrible.

Bobby
Bobby

Good find. Thanks. Appears changes are coming in the DoC market.

I’ve always wondered what’s in it for the banks with these offers, esp with some of us churners. One thing I try to do is to open CDs with the banks after their promo payday.

DaveInAZ
DaveInAZ

Well, there’s probably solid market research that shows that cash bonuses are more cost effective than advertising to gain new deposit accounts. It’s just that bank bonuses have become so widespread it’s become a competitive sport to cash in and move on. Or, as the CEO of PNC puts it “There’s a lot of mischief in that”. Guilty here, I do $1500-$2k in bank bonuses yearly..

Rob

PNC should also look in the mirror and recognize that while many of their bonus seeking customers stop using their account after “going through the motions” to get the bonus, they themselves also stop rewarding customers after they set up their account. Solution seems very obvious to me. Offer annual bonuses, longevity bonuses or basically some incentive to conduct the kinds of activity they are wanting to see.

debit
debit

Yup. This.

Citi bank savings pay 0.02%. Who would keep money there. These idiots are delusional. The mischief is these idiots think it’s their birth right to get peoples money.

The best is have a sign on bonus, very competitive rates and limit the bonus to once every 5 years othe lifetime to reduce c churn. They don’t reward loyalty but expect to see loyalty. Very lazy and sloppy bankers.

Dan
Dan

Lots of people do. People still living in 90s.

L
L

Rob Good point! Pull us in with the bonus, keep us with decent interest rates even if they are short-term (maybe a year).

Brandon
Brandon

For many years I paid countless fees and interest to banks before I became financially frugal & aware . These sign up bonuses and rewards are just me getting my money back the way I see it. Thanks PNC & dOc

Kevin
Kevin

“There’s a lot of mischief in that.”

Yeah, not unlike how their $36 overdraft fee on a -$20 balance for a week would be something like a 9,000% APR loan.

Frank

Oh, you’re fifth debit card swipe of the day put you at a negative balance since we didn’t clear your check, well we’re going put that one through first so the other 4 get charged overdraft fees.

Andy
Andy

Oh whoops, you didn’t have enough money in your account to pay your overdraft fee. We’re going to have to charge you an overdraft fee for that.

Parts Unknown
Parts Unknown

Net income $1.2 billion, the struggle is real.

bax
bax

Is that why PNC closed my idle VW account, without asking, months shy of 6 months, after I collected the $300 bonus?

MIck
MIck

As others have pointed out, I’m happy to leave my deposits and keep an account active if the bank has good offerings. The way I look at these bonuses, it is a bank is saying “Hey, try us out and here is some $ for your troubles.” My accounts only go dormant if the bank or credit union have nothing to offer: no high yield checking, no good CD rates, no credit card offers or lousy customer service. PNC has this three account virtual wallet that just strikes me as kind of odd and a higher balance in savings doesn’t net me a better checking account.

Steve

Is that Capital One trick mainly just for real businesses, not “businesses”? I wonder what kind of numbers they need to see to give you a $150,000 limit.

Duke I.
Duke I.

Chase sent me an email today saying my account would be closed for inactivity if not used within 60 days. That’s the first time I’ve ever received said notice. Im not sure if they’re referring to my business checking or personal checking. When I went to website didn’t see a notice. I have $1500 in the business account to keep it fee free but I guess now they starting to want to see activity.

Charles Mann
Charles Mann

PNC screwed me on a checking bonus and I will remember that for a very long time.

Chimpo Chee
Chimpo Chee

You were deemed a Deplorable.

MrObvious
MrObvious

Sounds like their CEO will really care….

Charles Mann
Charles Mann

Actually I complained to an investment counselor of theirs who kind of made up for it by inviting me to a conference and giving me a $200 gift card. So it was not a total loss, but the checking account hoops were a PITA and unnecessary.

King Kong
King Kong

Credit union pays a dividend of $25-$75 every year depending on what you do.

Ted
Ted

PNC is the only bank that has ever straight up rejected me for a CK account. And that’s saying something.

abraham f
abraham f

Days of churning bank bonuses are coming to an end.

Chimpo Chee
Chimpo Chee

Give the new customer a Toaster 😁. I don’t get offering $1,000 for a 90 day deposit.

Chimpo Chee
Chimpo Chee

I thought Ally was going to arrest me for being a Thief……lol. I’m waiting on my $1,000 at Capital One….similar kind of idiotic deal.

Baked
Baked

What $1k deal(s) are you referencing?

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