Banks Giving Away Free Money?!?!

With the economy the way it is, excessive amount of loan defaults, foreclosures, etc, many banks are now luring potential customers by flashing the “green”.  In a recent article on SmartMoney.com, several banks were mentioned as “givers” of free cash. But with every good thing comes a bad thing. SMH. Check out what some banks are diveying out:

1. CitiGroup will shell out up to $300.
2. Capital One is giving you $200.
3. JP Morgan Chase says it will give up to $125.
4. WTDirect.com will drop up to $300.

But as a smart consumer, as we know you are, there’s always a catch. There’s never a real sale without some annoying interest rates or tax charges on the back end.   So as you compare these bank offers, make sure to pay close attention to fees that can be added on if certain policies aren’t followed to a “T”.  For instance…

To get the $300 at Citi, which is available through the next two weeks, you’d have to open a Citigold interest checking account (which offers a meager interest rate of 0.15%) and deposit $1,000 by Nov. 18. Then, you’ll have to maintain an average daily balance of $1,000 through the end of the month. You’ll also have to sign up for three more Citi products — like a savings account, certificate of deposit or a credit card — within two months of opening the account. And when you finally get the money, expect a bill come tax time. All of these cash bonuses (like other promotions) will be taxed as regular income. If you’re in the 25% tax bracket, that $300 award will drop to $225.