Posted by Chuck on July 7, 2015
Checking Accounts

Published on July 7th, 2015 | by Chuck

25

Santander Extra20 Gets Even More Difficult

Santander Direct Deposit

As you may know, Santander offers a checking account which pays out a $20 bonus per month when certain conditions are met, including a qualifying direct deposit of $1500+.

We reported that Santander is cracking down on what counts as Direct Deposit and that ordinary ACH transfers no longer work to trigger the bonus. At that time, a few options things were still working: Alliant, Chase, Capital One, Serve, and Paypal. The key was that if it didn’t come up as ‘P2P’ it would  work.

Since then we noted that Santander added into the terms that deposits made by an individual will not work. They specifically note Paypal as an example of something which will not qualify as a direct deposit.

Now Enforced

At the time, we didn’t have confirmed reports of the change. Now, a report came in that Capital One is no longer working to trigger the bonus. They’re actually enforcing the updated terms and Paypal probably won’t work either.

Note that not only will you lose the bonus by not having a real direct deposit, you’ll also get hit with a $10 monthly fee as a result. Use it or close it.

Other Options

One upside of the new terms is that they explicitly allow other types of business payments to qualify as a direct deposit. Very technically, a direct deposit is payment from an employer. Payment from Amazon to an Amazon seller, for example, wouldn’t be included. (Although this has always worked in practice, it may not be included in the actual terms.) They now specifically mention that such transactions should satisfy the requirement.

Direct deposits include deposits made by your employer or a federal or state government agency or retirement benefits administrator and generally payments made by corporations or other organizations. It does not include deposits to your Account that are made by an individual using online banking or an Internet payment provider such as PayPal.

Using these terms, Amazon sellers should be okay with payment from Amazon. Likewise, those who sell to gift card exchanges and get paid via direct deposit (usually bulk sellers), would be able to use those deposits to satisfy the requirement.

I actually want to use this myself. As a bulk seller on Raise, I get my sales direct-deposited to Santander and this should work to trigger the bonus.

Does it actually work? I’m not sure yet. It comes up as ‘WWW.RAISE.COM TRANSFER’ which does not sound good. We’ll have to wait and see….



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Oren

I’ve been charged to many fees at this point to keep trying. I closed my account. I might open again one day when I have an actual direct deposit available. Thanks for the update.

Oren

Also, as a data point. I was able to get my fees refunded on one account and 60 more days fee free because I threatened to cancel and then offered to set up DD. I told them I needed 60 days to set up the DD. I set up Serve transfers. I got $80 refunded. Probably going to close that account now as well if Serve doesn’t work.

Fiby

Has anybody tried deposits from Vanguard? As in, buy $1500 of a money market such as VMMXX and then sell it, directing to proceeds to Santander?

joE
joE

I used my chase checking for transfers and I just received my June bonus on 6th of July. Will see if it works next month or not.

Raulf
Raulf

Used C1 360 for transfers, and just got the bonus this month.

Jeremiah
Jeremiah

Chase worked for the June bonus. We’ll see about July…

DD
DD

Anyone received bonus for July by using Chase?

Eric
Eric

Chuck,

I know that the first 2 months of the monthly fee is supposed to be waived. I received the bonus my first month (in June). If I don’t have a qualifying direct deposit in July my fee should be waived since it’s the second month, correct?

Matthew
Matthew

CO 360 worked for June bonus so im not sure who said it wouldnt work going forward.

S Nack
S Nack

I actually have my legitimate paycheck hitting my Santander extra20, so far I have not missed any bonus.

J T
J T

Alli@nt worked for June DD, posted 7/7.

Debt Hater

I’m still just using a standard direct deposit from my employer for this deal. Have not had any fees or missed a bonus yet.

William Charles

Yeah if you’re using a real direct deposit, you shouldn’t have any issues. That’s what I’ve switched to as well, then I can set & forget.

Win
Win

Just applied and was approved, application being processed. Was only able to fund $99.00 with credit card – the application would not take three digits. Am going to try direct deposit from a Chase business checking account. We’ll see in a few months.

Matthew
Matthew

I can confirm that I have pending $10 for using CO360 as DD of $1500 into the account for July.

bn
bn

Paypal in July still worked. Received bonus Aug 4.

Al
Al

Transfer from Sallie Mae savings triggered the bonus at the end of August.

Just as a warning, don’t have a misstep or they have no hesitation about fees. I accidentally overdrew the account by $9 and got a $35 overdraft fee. When I took eight days to correct it, then they added another $35 fee because I didn’t correct within seven days. After I again added funds to get back above zero, the phone CSR refused to reverse either fee. Bonus still seems to be worth it but just be aware.

joE
joE

Chase ACH transfers continue to act as DD’s, just received my August bonus.

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