WT Direct Promotion Code, Up To $150 Opening Bonus

The online division of Wilmington Trust Bank, WT Direct, is running another promotion for new customers. You can get up to $150 cash bonus on top of the standard interest rate (currently 1.76% APY) if you open a new account and maintain a certain balance from 7/31 to 10/31. Here are the balances and corresponding bonuses:

The fine print:

This offer is available to new WTDirect clients only. Primary account holder must not have held a WTDirect account in the past 12 months. To receive the bonus, a valid promotion code starting with the letters “WFIT” must be present on the application at the time of account opening. WTDirect account must be funded via electronic (ACH) transfer received by 7/31/09. Account must remain open and in good standing through 10/31/09, the end of the promotion period. There is no minimum balance to open the account but the bonus is determined by the account balance at the time of initial funding, which must be a minimum of $10,000 and must remain on deposit through the end of the promotional period. Bonus will be credited to client’s WTDirect account on or about 11/20/09. WTDirect reserves the right to cancel or modify this promotion at any time without notice.

If you click through the bonus link above, the promotion code of wfitc32_1760738 or similar should already be filled in for you.

The Numbers: 2.75 to 3% APY 3-month CD
How does the bonus work out when converted to an interest rate? To start, you are already getting 1.76% APY, or about 1.75% APR. On $10,000 for 3 months, that’s 10000 x 0.0175/12 x 3 = $43.75 in interest. Since the bonus is $25 for a $10,000 balance, this works out to about 2.75% APY. On a $50,000 balance, the bonus is $150 and works out to nearly 3% APY.

Therefore, you can treat this bonus as a 3-month CD paying 2.75 to 3% APY, which is more than 1% higher than any other available 3-month CD.

Application Process and Setup

I’ve already opened a WTDirect account for a previous bonus, so here a quick summary of what to expect when applying. First, they gather the personal info. Second, they use the now-popular Equifax ID check questions to verify your identity. Third, you can fund electronically with account and routing numbers, although you must come back and verify trial deposits later. Finally, you can electronically sign the application and disclosures. There were no physical forms to send in, although a welcome packet does arrive by mail. They state explicitly that there is no credit check.

As for practical matters, WT Direct’s online transfer system allows unlimited linked banks, and transfers to external accounts are free both in and out with a 2-3 day transfer time.

Comments

  1. Is it just me or does anyone else wonder how they can afford to pay these? If they value $50k that much they know they are going to make more than that back.

    Banks aren’t non profits though many of them have been unprofitable for years. While your money is protected by FDIC insurance, it is a good idea to check the safety of the bank before opening an account there.

    I have no idea about WT Direct so don’t take this as an issue with this bank specifically.

  2. Scott,

    They loan out money for a lot more than 3% interest and keep the difference. Heck, the rules will allow them to make about a half million in loans based on that $50K deposit.

  3. Exactly, they are depending on people to move $50k++ there, and then leave it there. I’d happily pay 1.76% for some money and loan out a *multiple* of that at 6% (thanks to fractional reserve banking).

    Banks have been unprofitably recently because they weren’t happy with their old-school cash machine – they wanted it turbocharged!!! …and blew the engine.

  4. I opened a WTDirect account about a year ago and wish I had known about this $150 offer!

    For anyone who doesn’t know WTDirect, they’re part of Wilmington Trust which is a solid bank in Delaware. Their interest rate has always been very competitive and they don’t offer a real high rate for a little while and then kick the floor out from underneath you like some other banks do. And the service has been super.

    I would definitely recommend.

  5. That’s a decent rate (for these days), 1.76 — my credit union is only giving me 1.6 on the money I recently cashed out by refinancing — and charging me 5% to borrow it. I keep wondering if I was dumb by doing this — but I really love having almost $70K in the bank. I’ve never had that much money sitting in an account (besides my retirement) in my life. But, I don’t think $150 would be worth the headaches of moving it around. I’m happy to stay put for now.

  6. Is the math right on this?
    $150/$50,000 = 0.003 = 0.3%APY

  7. RC – I’m afraid not. APY is annual percentage yield. If you get $150 for only keeping your money for 3 months, the annual yield is for just that amount is 4 times higher. So the contribution of the $150 itself would be about 1.2% APY. Add in the 1.76% APY for about 2.96% APY total.

  8. Ken Feyl says:

    Why do these WTDirect deals get worse every run? I remember that last time, you could get $250 for $50k. The time before that, you could get $250 for $25k. At the rates in the current promotion, I really have to question whether the lost days of interest on both ends of the transfer are worth the 0.75% increase over a 2% online savings account. Generally I say these promotions have to be worth $100 for me to waste my time. That is why I do not think this particular promotion is worth it.

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