Chase's $125 for Banking Promotion

Web sites like Slickdeals and banking forums are abuzz about Chase's relatively generous $125 cash bonus for anyone who signs up for a new personal checking account using the promotional coupon.

These coupons are distributed in areas where a Chase branch is nearby, and to people who have recently moved into new apartments and homes. It appears at this time that "transferring" the coupon to a friend or family member is prohibited; so if you get the coupon in the mail you need to use it yourself.

The details of the offer are surprisingly simple: open a Chase personal checking account, present the coupon at time of opening (or enter the coupon code online), and a one-time $125 bonus will be deposited into your account ten days following the first direct deposit you place into your new account. A direct deposit can come from your employer, another account, and so forth.

Chase says they will waive all fees so long as you have a minimum opening deposit of $100 US, make at least 5 debit card transactions per month or do at least one direct deposit transaction each month into your account.

So, in essence, this is a relatively hassle-free and easy way to make $125 for only five minutes of effort. As far as I can tell, the promotion appears to not have much in the way of fine print or red tape; it appears legitimate.

Remember that you need to actually receive the coupon in the mail to be eligible; using a friend's coupon may lead to trouble or termination of the offer for you. Also remember to make at least 5 debit card transactions each month so that no maintenance fees are imposed.

Switching to Chase is something I have considered doing for some time, because they have the most ATMs of any bank in New York City, which means I will pay ATM fees less often. This $125 bonus offer has convinced me; I plan on visiting my local Chase branch on Broadway first thing tomorrow morning before work.

The promotion ends on March 31, 2009, but from searching online I see that previously Chase offered a similar promotion for $100 -- so it is entirely possible a new, similar promotion will emerge in April or May. It is also possible, of course, that Chase will end its promotion altogether.

For New Yorkers, switching to Chase probably makes more sense than in other areas, simply because of their heavy ATM presence (as mentioned earlier). This presence is attributable to two strategic benefits the bank brand enjoys: 1) they do have a lot of brances in NYC and 2) there is a Chase-branded ATM machine in every Duane Reade in the Manhattan area (Duane Reade is the largest and most prevalent pharmacy chain in the city).

With non-bank customer ATM fees ranging from $2 to $4, not including the $2 or more most banks charge as a non-bank "ATM transaction fee" it makes sense to limit the number of expensive ATM transactions you initiate. This is another reason why I think the $125 promotion will be successful in convincing New Yorkers to switch banks, or at least place some of their money in Chase. The 5 debit card transactions per month sounds like a bit of work (you will actually have to use the account), but it hardly seems draconian or unreasonable given the fact that $125 is deposited in a reasonable amount of time (some banking and credit card promotions can take 60 to 90 days to clear; an eternity by comparison).