$300 Bonus For $500 Deposit (net): The Optimized Schwab Churn

I rewrote this article once I called Schwab Promotions at (877) 807-9240 to clear up some questions. Turns out MR point transfers does not count for the minimum deposit of $1,000 nor the tiered bonus between $10,000 to $100,000. You need to really deposit at least $1,000 in cash for the bonus, but are free to take out any invest with MR rewards money as long as you maintain the initial $1,000 real cash deposit.

We applied Sunday night during the Oscars, but this triggers a computer hold since there is no one at the office for approvals. I did log in here and see this:

Success! However we did not get a temp card, but the real one should come in a few days. We had the Card approved by Monday morning and had it funded. She could have used “SchwabWelcome11” for a $100 to $500 bonus for $10,000 to $100,000 deposit, but we stuck with using code “REFER” for $100 to keep at least $1,000 held for a whole year.

For my account, I ended up putting in $25k for $200 bonus which now I am stuck keeping in Schwab for an entire year, but they let me stack another offer, I also get another $100 to keep the same money in there. The $100 for $1,000, my friend, is the better offer since it only locks up $1,000 for a year to get $100.

For the tiered offer of $100 to $500, they calculate the money deposited as any deposit or inflow minus any outflow in 45 days from account opening. Only real money coming in counts as inflows. This is unique calculation, because lets say I triple the money (never going to happen) in 45 days and transfer out $1,000 or more to my USAA account, then this would give Schwab an excuse to claw back the bonus. They could say your outflow subtracted deposits would be negative or less than $10,000, even though I had $10,000+ balance in the account.

The $1,000 offer doesn’t have this calculation language in the rules. I made a list because there are so many  rules of Schwab. Schwab states the terms of the $100 offer are:

Minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details.

New clients who do not have a Charles Schwab & Co., Inc. (“Schwab”) account (other than a Stock Plan Services account), open an eligible retail brokerage account, and enroll in the offer can earn a $100 Bonus Award. The Bonus Award will be credited to the enrolled account within approximately one month of account open. For taxable accounts, the account must be maintained at Schwab for at least one year or Schwab may charge back the Bonus Award.

Schwab reserves the right to change the offer terms or terminate the offer at any time without notice. The offer is limited to one per account, with no more than one account enrolled per client. The offer does not apply to accounts managed by independent investment advisors, the Schwab Global Account™, ERISA-covered retirement plans, certain tax-qualified retirement plans and accounts, or education savings accounts. The offer is not transferable, saleable, or valid in conjunction with certain other offers and is available to U.S. residents only. Employees, contractors, or persons similarly associated with Schwab or a Schwab affiliate; their spouses; and employees of any securities regulatory organization or exchange are not eligible. Schwab may decline requests to enroll in the offer at its discretion. Other restrictions may apply.

Consult with your tax advisor about the appropriate tax treatment of the Bonus Award before enrolling in the offer. Any related taxes are your responsibility. For taxable accounts, the value of all Schwab offers received will be reported as Other Income on your Form 1099-MISC if, when combined with Other Income earned, the value totals $600 or more during the calendar year. Recent IRS guidance may impact your ability to make more than one IRA to IRA rollover in a one-year period.

This is more the reason to stick with the $100 for $1,000 offer. I am planning to use any cashed in MR points in both accounts to open the Morgan Stanley AmEx Platinum Card which may be offering 50,000 MR points for a mere $1,000 spend in 3 months. Every official site has been shut down that comes up on Google searches. I called American Express Morgan Stanley at 1-877-263-9607 and they said they could not even discuss the details of any offer since I did not have an eligible account. There is lots of talk about it online, and on reddit, but wasn’t sure of the current offer.

Update: Called the Morgan Stanley Branch in Lake Forest, IL. Bunch of dicks! I asked to open a 529 for college savings, starting with $2,000 and they instantly dismissed the possibility that I could even get approval for the AmEx Platinum being such a basic bitch. He reiterated that I could not afford the annual fee of $450. Just a note for future reference, avoid them! They suggested I go to a discount broker with the rest of the untouchables. That a relationship with Morgan Stanley would be a waste of both of our times.

The upside of the current Charles Schwab churn is the $450 annual fee for the Schwab card is waved per the SCRA. This means that the 40,000 MR bonus for the $3,000 spend in 3 months would be $500 in free money into Schwab or for $800 in flights. Again my only option is to transfer $1,000 real dollars for the $100 bonus, but we can look at the deal overall as one of points redemption. I would get an additional 40k, when the $3k minimum spend hits. I would then also get another $200 to use on United Gift registry for a total of $300 bonus on top of the 40k points meaning $800 to $1,100 in value. Every year I get the $200 United Credit as well.

In a year from opening I would be free to take out the $1,000 we initially put in to open the account, If we took the 40k bonus and cashed it out for $500, then that initial deposit is really only $500 in which we got $300 in value for the 60% return on money.

I was searching around and before if I used the code “FIELD” I would of gotten a free year membership to the Chicago Field Museum by a simple $25,000 deposit. Too bad the deal was only valid 4/1/16 through 9/30/16. I am sure more offers will come to entice us in moving more money.



2 thoughts on “$300 Bonus For $500 Deposit (net): The Optimized Schwab Churn

  1. 4th yr lyfe says:

    Quick question, how long after funding does the bonus typically appear in your account? TIA.

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