Update 9/11/24: I was recently approved for this account. I’ll be investing $20k for 75 days for $1,000 SUB which results in an effective APY of 26.8%. See end of article in the Updates section for more details.
Update 7/11/24: DoC just posted about this deal today. Many comments there on how the deal is going. For the time being I might just go with the BMO Business Checking deal, and consider this BofA deal later. I haven’t quite made up mind yet though.
Originally posted 7/10/24:
The Wednesday Morning Weekly — July 10, 2024
Normally I write an in depth article for the weekly Wednesday morning post, but haven’t been feeling that well the past several days. So instead, today I’ll share this incredible deal I just now found from Danny the Deal Guru’s web site.
Am I reading this correctly? $1000 sign up bonus for $20k deposit for a little over 60 days?! I’m salivating!
Punching this into my Effective APY Calculator I am getting around a 26.8% effective APY with 15 days of cushion. https://cashbackcow.io/calculators/effective-apy-calculator/?invest=20000&sub=1000&daysreq=60&daysbuf=15&fees=0&interest=0
I was just about to do the BMO Business Checking deal — literally tomorrow — for $750 sign up bonus, depositing $25K for 60 days, which comes to around 14.3% eff APY with 19 days of cushion. But this BofA deal has deterred me for the moment. I have a local Bank of America branch here so I can sign up in person for this $1000 BofA deal if they give it to me. If this deal is good, and I am reading it correctly, I will do it instead of the BMO deal — and do the BMO deal later.
The $1500 deal. In my opinion, the $1500 deal for $50k is a great deal as well, I just don’t have $30k extra to spare right now. For the extra $500 sign up bonus we need to invest an extra $30,000; this comes to an effective APY of around 8.4% on that extra $30,000 which beats the current typical 5% we might be getting otherwise — we still get the 26.8% or so effective APY on the first $20,000. https://cashbackcow.io/calculators/effective-apy-calculator/?invest=30000&sub=500&daysreq=60&daysbuf=15&fees=0&interest=0. If I had enough of a bonus hunting bankroll, I would totally take advantage of this offer. Overall it’s over 15.5% effective APY on the entire $50k.
The $3000 deal. The $3000 deal appears to be in my opinion not very lucrative at all with an effective APY of around 2% on that extra $480K invested. https://cashbackcow.io/calculators/effective-apy-calculator/?invest=480000&sub=2000&daysreq=60&daysbuf=15&fees=0&interest=0
Updates
September 2024. I was approved for this in early September. I was referred to an SMB Banker at BofA by a gentleman at Merrill Lynch. The SMB banker and I did the application over the phone after they called me at our scheduled appointment time. I was fast tracked for Business Preferred Rewards — aiming for Plat tier status, so $50k will be in there briefly to attain this.
I am going to do the $20k for 75 days for $1k deal, with an effective APY of 26.8%. I’ll be applying for BOA Business Unlimited Cash (BUC) and BOA Business Customized Cash (BCC) soon to take advantage of the Plat tier status, giving me 2.25% CB and 4.5% CB respectively. These business cards are nice because they are 0% APR for 9 months, combined a single hard pull, no Chase 5/24 hit and no hit to personal credit utilization. I’ll be signing up for the elevated SUB of $500 per card.
Great analysis! Can you please share the calculations that go behind calculating effective APY?
var interest_earned = invest * (1 + interest_rate/100)**((daysreq + daysbuf)/365) – invest;
var total_earned = (sub – fees) + interest_earned;
var effective_apy_overall = (((total_earned/invest) + 1)**(1/((daysreq + daysbuf)/365)) – 1)*100;
Thanks so much for this info and your APY calculator. Do you keep tabs on average checking account APYs? Would love to have that historical info to gauge when something is better than normal and help me decide what to go after.
Thank you for the reply Katie; you are very welcome!
I do roughly know the eff APY of various bank account deals off the top of my head but I haven’t compiled them yet. Thanks for the great idea for a future article!
When I do write about the bank deals I am currently working on I do specify the effective APY I calculated for them in the article. You can click on “Bank Accounts” category from the Categories widget to see all articles on my blog related to Bank Accounts.
Off the top my head the Bank of America Business Advantage eff APY is around 26.8% or so. Same with a similar Huntington Bank deal — if you are in a state they service. You can check out Best Bank Account Bonuses on Doctor of Credit as well — link to that article is in my Favorites page (accessible from menu).
What sorts of questions did the banker ask you to open the account?
Let’s see. They asked the type of business it was. Btw, I applied as sole prop SSN no issues. They asked for gross income figure. That’s all I can remember. Was super easy.