Someone who can deposit 150k cash is someone worth paying to have around
When banks run these temporary promotions, it causes them to experience two problems: (1) a higher-than-normal cost of funds, (2) and greater uncertainty about future deposit level stability when the deal-seekers pull their deposits for the next promotion offered by some other institution. Heck! Druff even mentions in the OP that the smart move would be pull the funds after earning the combined higher-than-market interest rate plus deposit bonus!
It only makes economic sense for bank managment to run such a promotion if the bank risks having to shrink its loan portfolio for failing to meet regulation-driven risk capital levels for year-end reporting. If I were a large shareholder in this bank, I’d be on the horn to top management to find out what the fuck is going.
You're a fucking idiot. Like literally a fucking idiot. This is not the only reason to do this and the least likely avenue to solve the problem you mention. There are many reasons why to do this, the simplest and most likely answer is cross selling. Your bullshit "It only makes sense to do this" is the type of shit you find on google link #4 and not based on reality. You REALLY think that if they have to go down this path that people would have not known quarters ago that they are having issues with balancesheet issues?
Also, before you counter the cross selling response, I give you the chase reserve card. Chase has gotten smoked sooo hard on this card when looking at the top line but are killing it.
"I GOT NO TOE"
#FreeFluffler #FreeThisGuyIsCreepy #lockupGarrett
mumbles, think about this...if they're so hard up for liquidity/funds or whatever to meet regulatory requirements why the hell would they offer a promo in which somebody could withdrawal 99% of their $150,000 within 60 days? so great they meet their liquidity requirements for their next reporting period...then what happens in 90 days when they have to file a quarterly report? they then have to find more individuals who will give them $150,000 so that they can meet their financial requirements...later, rinse, repeat...how many people do you think they can find with $150,000 in cash just lying around so that they can make sure their regulatory numbers are met every quarter?
handicapme is right...you think if they had these kinda funding issues, that people on the street wouldn't have known about it months before they even had those problems...wall street is a trillion dollar industry, if somebody could make money off of capital one having liquidity issues they would have been shorting that fucker down to $0...
Just credit card whore a few times imo.
I've had this card for over 5 years now and the one before it until they switched to this but I never got all of these amazing perks when I signed up.
https://slickdeals.net/f/11403699-ch...ed-24295-33171
No you don't have to own a business to get this.Chase offers the Chase Ink Business Cash Card with $500 Bonus Cash Back after making $3,000 in purchases during the first 3 months from account opening. Thanks Cappy123
Card Features:
Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening
Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
Earn 1% cash back on all other card purchases with no limit to the amount you can earn
0% introductory APR for 12 months on purchases and balance transfers
Employee cards at no additional cost
No Annual Fee
I just looked into this, and it has some problems.
Here is a good writeup on it: https://thepointsguy.com/news/faqs-c...phire-banking/
The problems I see:
- You need to get a Chase Sapphire credit card first, and then get invited (it's not like this one I posted where anyone can sign up)
- You do not earn interest during the time the money is there
- The $75k has to be there for 90 days
- The account has to be open another 3 months after those 90 days, and you will be charged $25 for every month the balance isn't averaging $75k
So let's say I can earn 2% interest on the 75k (I can do a little better, but let's just stick to 2%).
In 6 months, that's $750.
If I were to put this money into the Chase Sapphire account, with no interest, and leave it for 6 months, I would earn 60k points (supposedly worth $1000-$1200, but not as good as cash obv), but then lose $750 from the interest.
I could pull it after 3 months, lose only $375 in interest, and then eat the three $25 fees for another $75, but that's still not clearing enough profit on the 60k points to be worth the hassle.
Is there something I'm missing here?
But why have the offer expire at year-end? Why not run it continuously as a loss-leader that is covered by the higher profit cross-selling? If Capital One’s management is acting rationally, there’s a reason the offer expires at year-end that is unrelated to the prospect of generating cross-selling profits on the new customers. Especially when the kind of customers such a limited-time offer will attract are penny-pinching bonus whores who will jump
at moving their money after the 60 day vesting period. And how likely are they going to be able to cross-sell to those cheapskates?
It probably expires at year's end so people feel a sense of urgency to do it, rather than just throwing the flyer aside and figuring they'll get to it sometime later.
They are obviously aware that this will attract some bonus whores (as do all bank account and credit card offers with bonuses like these), but they also figure that bringing high-value customers who aren't bonus whores is probably worth the hit.
This one is unusual and interesting because it's targeted, yet not restricted. So they're only inviting the customers they really want to have, yet they're accepting anyone who hears about it through word-of-mouth who has the $150k (or alternatively, the $10k).
Usually offers like these are either public or targeted AND restricted.
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