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James August 14, 2013 at 3:57 pm

I called BBVA and asked about withdrawing cash once you are enrolled in the program (based on similar analysis as Christian). They made it pretty clear that any withdrawal would turn off the Build My Savings bonuses not already paid and turn the account into a regular savings account. I think I will do 4 accounts anyways (2 for me and 2 for my wife which is the max and tweak the deposit/transfer amounts to the lowest combined amounts that yield $250). The payoff is still good over 3 years. You could sign up for 3 years upfront, and shut it down after 1 or 2 since the returns decrease as the balance increases….

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Christian August 13, 2013 at 7:41 am

The key to getting a good profit off this is taking the $10 hit they charge you for withdrawing from your savings — and doing it multiple times. Let’s say you wanted to do the most cost-effective option of:
-$3000 opening deposit
-$380/mo recurring deposits
-36 mo term
For a $250/yr bonus for 3 years. You’d be looking at somewhere around a 4% annual ROI (depending on how you want to calculate it) if you just didn’t touch the money until your term was over. But if you withdraw your opening deposit immediately, then withdraw every time you have $1200 in there (4 months), you’re only looking at a $1200 investment. Subtracting $40 for those 4 fees, you get 17.5% ROI annually.

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Hu$tler August 14, 2013 at 4:45 am

That’s a great plan Christian! Thanks for contributing.

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