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.