Bank of America Offers $200 Bonus With Small Business Checking

Bank of AmericaHere is a new promotion from Bank of America offering a $200 bonus for opening a new Small Business Checking account. To qualify for this offer you have to open a new account without having an opened account in the past 90 days with Bank of America.

Some bank bonuses have strict requirements that have to be met before they will pay you the bonus, but BofA makes this promotion easy to obtain.

  • You will earn $150 of the bonus just by depositing at least $750 per month into your new business checking account, for 3 consecutive months. Promo ends 11/21/2010
  • Earn an additional $50 when you pay 2 bills during the same 3 months through their Online Bill Pay. Their bill pay option allows you to pay anyone, anytime, anywhere in the United States.

When you open your new business checking account use this code – SBESP10. Click here for the promotional page.

Like most business checking accounts, there are fees if you do not meet a few additional requirements. To avoid the $12 monthly maintenance fee you have to do one of the following:

  • Enrolling in Business Fundamentals and making a monthly qualifying purchase with your Business Check Card.
  • $3,000 minimum balance.
  • $10,000 average balance.
  • $7,500 combined minimum balance with other accounts.
  • $15,000 combined average balance with other accounts.

Be sure to read the fine print, otherwise this is an easy way to make an extra $200, especially if you are looking at opening a new business account. Be sure to check out our checking account promotions page for more great offers from other banks.

Bank Of America Cuts Long Term CD Rates

Bank of America dropped some of its certificate of deposits this past week to follow a trend of cutting rates.

Bank of America, out of Charlotte, N.C cut its rates on the following CDs.

  • 5 Year CD dropped by 0.50% to 1.75% from an average of 2.25%.
  • 4 Year CD rates dropped from 1.75% to an average of 1.45%.
  • 3 Year CD rates dropped to an average of 1.1% from 1.5%.

The falling rates not only on CDs but also on money-market rates are leaving people with fewer places to stash cash and actually make a decent return. Money Market rates have dropped to 0.75% nationally, not making it more attractive to investors. Nationally CD Rates are at all time lows with bank institutions. Credit Unions are popping to the top of the charts, offering the highest CD rates for just about any term.

When the Nation’s largest bank lowers their long term CD rates, this could signal that other banks will follow in their footsteps. Now might be the best time to get into a long term CD with a decent rate, before other banks follow the coming trend. Large banks can offer lower rates because they have other products that can grab the attention of new customers, such as many different types of checking account promotions.

For the average person looking to stash their cash for a short amount of time, the options are limited. Cal Brown, vice president of planning at the Monitor Group in McClean, VA is advising clients to put their extra cash into short term bond funds. Bonds are currently yielding more than 3%, much higher than some of the highest CD rates.

BofA To Impose Credit Card Annual Fees By Next Year

bank of america nycEven though new credit card reforms are sweeping the industry, which is scheduled to go into effect as early as December 1st, Bank of America customers have not yet seen the last of the credit card fees and charges that are costing them their hard earned dollars.

Charlotte, N.C. based Bank of America said last week that they will not raise credit card interest rates before the implementation of the new credit card laws, but that announcement did not state that it will not charge ‘new’ credit card fees. This is a move by Bank of America to gain back the anticipated revenue loss caused by the new credit card laws. Bank of America revealed that they are making plans to impose annual fees on a number of their cardholders as soon as next year.

According to BofA spokesperson Betty Reiss, the annual fees would range from $29 to $99, and the proposed fee would initially affect about 1% of the bank’s credit card customers. “We’re testing this to see what the feedback is. In terms of any plans going forward, we haven’t made any decisions yet,” said Reiss.

Bank of America is one of the largest credit card companies in the country with about 80.2 million cards issued and in circulation. BofA is third only to Chase with 119.4 million cards and Citibanks with 92 million cards.

So who will be affected by the annual credit card fees? The customers that could be the first affected are being selected based on their risk and profitability, which means, those cardholders who are in good standing, never pay late and almost never get charged with interest fees could be the first ones hit by the new annual fees. I guess it does not pay to be a good customer anymore, or you have to pay because you are a good customer.

Customer complaints of the steep interest rate hikes and the sudden cut in credit card limits prompted congress to take action against some banks’ practices. The new credit card consumer protection laws include how and when a bank or credit card company can raise interest rates and fees, the reason why banks are changing their policies now, before the law takes effect, as early as December 1st of this year.

Bank of America states that their decision to charge the additional annual fee is “in response to market changes, new federal laws and regulations, and the increasing cost of providing unsecure credit.” If a customer is affected by the new changes and is required to pay the annual fee, they will have the option to reject it, but by rejecting the fee the card company can have their account closed.
Does this sound fair? I know when I get those new terms I’m rejecting it as I have a credit card from Bank of America and would fall under the ‘good customer’ category.