You also have to keep the account open for 6 months or they take the money back.
Also, if you don't keep the direct deposit set up or make 5 debit card purchases a month they hit you with a service fee.

Of course you need to realize:

1) They'll likely pull a credit report

2) There's probably fees and gotcha in the fine print

3) That $100 is taxable income they're definitely going to report

4) Chase is scumbag-dirt

I know a lot of banks use ChexSystems or a comparable program when opening up checking/savings accounts. It is my understanding that this is not a hit on a credit report but rather a different, exclusive report. Would I be correct?

Who here thinks this offer is worth doing? I do not have a branch near me, but I will ass-u-me that this offer will be honored online as well.

The fine print also states that the account has to remain open for 6 months or the credit will be revoked.

DONT DO IT! My wife is currently working on closing all of her former WAMU account now become chase. She recently deposited a large sum local business check (written against B of A) and they put a hold on it for 9 days, now mind you my wife has been with WAMU for 12 years!

Dont bank with Chase. Trust me you will not be happy.

@catnapped:
Agreed, Chase sucks and is not worth $100 dollars of your time.

@catnapped:

1. The credit report is something I was thinking too, but it might just be ChexSystems.

2. There is a $6.00 minimum fee (for the lowest tier checking) if a direct deposit is not set up, or you have to make a minium of (5) debit transactions per month. As I said below, the account has to be open for (6) months so (30) debit transactions.

3. Yep, as stated in their fine print, the $100.00 will be reported to the IRS.

4. Nail, meet head.

Is it really a free $100? I was under the impression that you had to pay it back if you used it (one of my friends was sent to collections over a similar promotion).

@PeterBetts: True, you need to read the fine print on these things to make them work, but there is a way to make it profitable:

1) Don't buy their checks -- say you are getting them somewhere else

2) Set up a small direct deposit from work (assuming it doesn't cause any problems) - $10 or $20 a pay period might do it - and treat it like a savings account. Perhaps save up for some of the after-Christmas sales.

>you have to either make 5 debit card purchases

Ah, the old 'debit card purchases with a signature as credit', which forces the merchant to pay Citi exorbitant fees for each transaction.

Too bad theres not a Chase within 50 miles of me.

@RandomHookup: Yeah, this means you have to have a job that does direct deposit.

Or... have a job....

@PeterBetts: Some banks will definitely hit your credit report to have a look (this in addition to the ChexSystems report).

This is only good if you actually want to use them as your main bank. $100 isn't worth having to make five debit purchases a month for six months on a non-primary account. :/

Something for nothing. That's what lures in the suckers.

@ahwahoo2006: It looks like this offer works for online accounts as well.

Um, High-yeils savings accounts are probably still better. Mine gets 2.00% on a minimum $1000 deposit.

Does anybody know if this can be used with opening the “College Checking” account (with no fees as long as you´re in school)?

@bikeoid:

Cost of a debit transaction with a simple merchant acocunt setup with a PIN used: 19 cents. Citi Probably gets 5 cents.

--

Cost of a debit transaction processed as credit: 1.09%, citi probably gets .25% and the network(V/MC) probably gets .15%.

wow- they made this offer a year ago when I was shopping around for a new bank, and the offer was $125. I enrolled in direct deposit, and have no complaints. well, yet. but has anyone actually signed up for this and had a bad experience?

@Red_Eye: They do that here with my credit union all the time. I don't think this is Chase specific.

@flapjackfx:

Except that I already have an online bank and I need a local one.

@PeterBetts: Ugh... ChexSystems. *shudder*

I did this whem WaMu offered a similar deal back in late 2007. they did credit me $100.00, but it was after the 5 debit card (not credit, you have to use your pin) went through and cleared the bank. I started with Sumitomo Bank, which then became Great Western Bank, which then Became WAMU, which then became, Chase.

They do run a credit check (in person or online), asking you if you've lived in a certain address in the previous 10 years, what kind of car you have purchased and how much is your monthly payments.

I would beware however, about their ridiculous service fees. before they (wamu) officially become CHASE, I am cancelling my account. stick with a better bank, or credit union. Remember, "Free" money always has a catch to it.

-dave

Ditto. I've been a wamu client since I was 9 and now that I'm switching to chase my card rarely works with them. They've been slack to send me a new chase card even though I keep asking and the service fees are ridiculous. Stick with a credit union...it's better in the long run.

Its basic business math. If Chase is giving $100 to get your business, it means they're pretty confident that they'll be making more than a $100 off of you.

So translation: Chase offers to charge you more than $100 in fees within 6 months.

Keybank is also giving away a free Ipod nano with a new student checking account.
[www.key.com]

Wow- I hate to be disagreeable, but I did this promotion about 8-9 months ago when the offer was for $200. I set up a direct deposit of $25 out of each paycheck (every two weeks). I've never had a problem, never had a fee, received the $200, and it's not my primary account (another bank is). I don't see any problem with pursuing this, at least in my experience. It's helped me form a nice little Christmas fund...

I signed up for a similar promotion with Chase about a year ago (it was $125 or $150 if I recall). I had no problems with it - most of my paycheck is direct deposit with HSBC but I funnel a small amount into Chase to satisfy their requirement. Right now, however, I'm angry with Chase... back in November they had a promotion where you could get $10 if you paid two insurance bills with your debit card using online bill pay. I satisfied all the requirements and they refused to cough up the $10 telling me first that I didn't make the required payments, and then, when I sent them dates and confirmation #s, telling me I never "registered" for the promotion (I had, but of course did not have a screenshot). Oh well.

@ahwahoo2006: Wow, I envy that. You can't go more than 3 ft in Chicago with out bumping into a Chase bank or ATM and their awesome $3 fees.

Wasn't there a post just yesterday about Chase sucking? And now you're advertising for them. You might at least link the various negative reports on Chase that this site has posted, or list among the caveats: 4. You have to do business with Chase.

You know when people ask about how you like your local Credit union?

They have my checking, my savings, our mortgage and a nice low-interest credit card. I've never had a problem cashing a check. Their customer service phone center is staffed with actual Americans who are interested in helping you resolve your issue and are empowered to do so. And will.

So Chase: You can take your $100 and stuff it so far up your Six that you have to cough it out again. Fark you, Fark your $100 and Fark your thrice-damned credit cards.

That is all.

@Red_Eye: if it was a large check, this is totally standard. i've had it happen on a couple of large checks. once with bank of america (and the check was even a cashier's check!) and once with WAMU, so it isn't something that is specific to Chase.

I did this about 1.5 years ago, and have had no problems except one VERY minor one... if you plan to just transfer the money out into another account each time you get a paycheck, don't do it, they charge you fees. Instead, find the cheapest checks you can order and use those (I got some for $5). Or, just use it as your primary checking account for 6 months.

Great deal if you're willing to do a little paperwork and need $100.

I would think that if you don't activate direct deposit or do 5 purchases then you just wouldn't get the $100 but they would still keep you as a customer.
But Chase has to spoil the party and start introducing fees so early in the relationship.

@catnapped: I got a mailer like this for $125 for opening an account. I have recently checked my credit and there was not an inquiry from Chase. Also, I have not had any funky fees or anything else show up. Granted they do want you to either have direct-deposit or a minimum number of charges per month. But really, big whoop. I appreciated the $125 and I have not had any problems with their service as of yet. Much better than my previous bank.

@scubachris: Yeah, I saw all that when I got the offer in the mail, and I tossed it.

To me, giving Chase my email address, $100 of my money, and the opportunity to mess up either the debit-card purchases or the eventual withdrawal/account-closing process ... that is a pretty high barrier.

I was glad to see a number of readers haven't had any problems with this offer, and I hope that continues for them. It's just not a chance I was comfortable taking.

@PeterBetts: If it's not $600 it's not taxable.

@NotChoinski: $20 a year vs 200% return on a $100 deposit... I mean really?

@starrion: By American you mean non-broken english speaking. Some Americans don't speak English. don't hate. Glad you like your credit union too.

@catnapped: 5) Mandatory Binding Arbitration.

They can change the terms at any time, screw you over, and you cannot sue. They will just take the case to their arbitration partner that considers the partnership worth keeping for all the business it brings in (because they are screwing over a lot of people).

@miss_roxxan: Just because there are also other banks bad enough to avoid does not mean it's OK to bank at Chase. Find a small local bank.

@catnapped:

Chase *IS* scumbag dirt.

@ahwahoo2006: Consider yourself lucky. There might actually be a decent locally owned and operated bank near you. Most of those banks are actually doing well while the national banks are failing, because they didn't blow their credit offerings based on greed. And these banks know that a bad reputation can hurt them more severely. Ask around and find out what banks have what reputation.

I did a similar promotion but it was $150 about 4 months back. No problems so far.
Plus with Chase ATMs you don't need an envelope for checks or cash, and you get a copy of the check on the ATM receipt.
Get the $100 offer but don't use it and they will keep upping the amount.

All banks take your money. Sigh. I'm missing the days of Cal Fed.

@engstewart: Same here. I got the $200 with no problems. I took the option of using their online bill paying to pay two bills a month. I pay $1 on my electric bill and $1 on my cell phone bill each month through that account, and I've never been hit with a fee for anything.

@Dethzilla: No, $1000 is a minimum. I put in 10 times that.

@Dethzilla: Interest of $10 or more (which is what this is considered) is reported on a 1099-INT.

@Dethzilla:
By actual Americans, I meant people who can speak the language they were hired to speak when working customer service. That would include the Spanish speaking Americans and the Cambodian speaking Americans too.