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http://content.schwab.com/web/retail/public/apple/apple_retail/i...

Make a qualifying net deposit of $50,000 or more into a Schwab brokerage account—and we’ll thank you with a $200 Apple® Gift Card.
valid from September 17, 2012, to June 28, 2013


http://content.schwab.com/web/retail/public/m/kindle/index.html

Get a Kindle Fire HD with a qualifying net deposit of $50,000 or more into a Schwab brokerage account.
valid from October 29, 2012, through April 30, 2013

Member Summary
Most Recent Posts
My Schwab rep confirmed that I could complete multiple offers successively, but not simultaneously.

phitchow (Jan. 13, 2013 @ 4:16p) |

Datapoint --

Enrolled existing account by phone on Feb 1, made qualifying cash deposit next day. Received email on Feb 2... (more)

tuphat (Feb. 20, 2013 @ 8:01a) |

Does anyone know how much will show up on 1099 for the Kindle HD.

"Schwab covers the sales tax, shipping, and handling o... (more)

kickerstarter (Feb. 20, 2013 @ 10:54a) |

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You must maintain the net deposit amount (less market losses, if any) in the account for at least 12 months or Schwab may charge back the value of the Apple Gift Card.

Naaah

not very attractive unless you were going to invest 50k anyways

this is useful if you can transfer some shares that you anyways hold and will keep for a while (dividend paying ones).

Also, note that ETrade is giving $200 apple gift card after transfer of 75k of cash/stock.

sunspotzsz said:   not very attractive unless you were going to invest 50k anyways

Can existing customers just put more money in?

prastogi said:   this is useful if you can transfer some shares that you anyways hold and will keep for a while (dividend paying ones).

Also, note that ETrade is giving $200 apple gift card after transfer of 75k of cash/stock.



Can existing customers just put more money in?

it seems to be ok for existing brokerage customers (Read fine print). must call and confirm though.

sunspotzsz said:   not very attractive unless you were going to invest 50k anyways

You don't get it - you don't have to "invest" a dime. IRA's BTW don't qualify for either promotion.

Not much of a deal. 50K...at ING for 12 months at 0.85% APY is about $425. Let say you live in a high income tax state with 50% in taxes combined federal/state/local. That works out to $212. ally bank is paying 0.95%.

seawolf21 said:   Not much of a deal. 50K...at ING for 12 months at 0.85% APY is about $425. Let say you live in a high income tax state with 50% in taxes combined federal/state/local. That works out to $212. ally bank is paying 0.95%.

Banks in India, for which you can open an account online and create a fixed deposit for 1 year and you get minimum 7-8% interest.

Maheshkk said:   seawolf21 said:   Not much of a deal. 50K...at ING for 12 months at 0.85% APY is about $425. Let say you live in a high income tax state with 50% in taxes combined federal/state/local. That works out to $212. ally bank is paying 0.95%.

Banks in India, for which you can open an account online and create a fixed deposit for 1 year and you get minimum 7-8% interest.


What consumers protections are there against a bank failure? And which currency are they paying interest in?

seawolf21 said:   Not much of a deal. 50K...at ING for 12 months at 0.85% APY is about $425. Let say you live in a high income tax state with 50% in taxes combined federal/state/local. That works out to $212. ally bank is paying 0.95%.

This comes up every time in these threads. This only makes sense if you have a security (stock, bond, mutual fund, ETF) that you intend to hold on to. You can do a transfer-in-kind to Schwab and continue to hold it there. This is not a taxable event and the law requires the tax basis information for the security to be transferred to the new broker so it does not make your taxes any more complicated.

A possible problem is that some brokers charge fees to transfer assets out. If that is the case, you may be able to get Schwab to pay the fees. Call them and see. Also, I think Schwab charges a fee to transfer the asset out if you want to do this again to get a bonus at another broker. You can try to get the destination broker to compensate the fee also.

Maheshkk said:   seawolf21 said:   Not much of a deal. 50K...at ING for 12 months at 0.85% APY is about $425. Let say you live in a high income tax state with 50% in taxes combined federal/state/local. That works out to $212. ally bank is paying 0.95%.

Banks in India, for which you can open an account online and create a fixed deposit for 1 year and you get minimum 7-8% interest.

Apples and Oranges.

Onenote said:   seawolf21 said:   Not much of a deal. 50K...at ING for 12 months at 0.85% APY is about $425. Let say you live in a high income tax state with 50% in taxes combined federal/state/local. That works out to $212. ally bank is paying 0.95%.

This comes up every time in these threads. This only makes sense if you have a security (stock, bond, mutual fund, ETF) that you intend to hold on to. You can do a transfer-in-kind to Schwab and continue to hold it there. This is not a taxable event and the law requires the tax basis information for the security to be transferred to the new broker so it does not make your taxes any more complicated.

A possible problem is that some brokers charge fees to transfer assets out. If that is the case, you may be able to get Schwab to pay the fees. Call them and see. Also, I think Schwab charges a fee to transfer the asset out if you want to do this again to get a bonus at another broker. You can try to get the destination broker to compensate the fee also.



True it only makes sense if you intent to invest (or keep the investment). Even then, there's some uncertainty involved especially if the gift card gets reported to the IRS.

The value of all Schwab offers received will be reported as Other Income on your Form 1099-MISC if, when combined with Other Income earned on your retail brokerage account, the value totals $600 or more during the calendar year.

nosaurus said:   sunspotzsz said:   not very attractive unless you were going to invest 50k anyways

You don't get it - you don't have to "invest" a dime. IRA's BTW don't qualify for either promotion.


Of course, I know you can have 50k sitting there for 12 month to collect 200 gift card.

that's 0.4% return!

sunspotzsz said:   nosaurus said:   sunspotzsz said:   not very attractive unless you were going to invest 50k anyways

You don't get it - you don't have to "invest" a dime. IRA's BTW don't qualify for either promotion.


Of course, I know you can have 50k sitting there for 12 month to collect 200 gift card.

that's 0.4% return!


What I said - you profit from deals cannibal brokerage houses offer by re-parking dormant non-cash assets. The bonus is riskless profit even if ultimately taxable. Of course, they're hoping to bag you as a client and reap commissions, but because you're not trading, that's irrelevant. A drawback might be transfer-out costs which are typically less than the bonuses and may be waived depending on the portfolio size/broker. Get it?

Would it be possible to open an account for the kindle and then add to it for the apple gift card?

Does anyone know if the $200 shows up as taxable income say on a 1099-int?

Found it in the T&Cs: The value of all Schwab offers received will be reported as Other Income on your Form 1099-MISC if, when combined with Other Income earned on your retail brokerage account, total $600 or more during the calendar year.

prastogi said:   it seems to be ok for existing brokerage customers (Read fine print). must call and confirm though.

I called and the lady told me new accounts only...but I don't see it in the terms....

Try another phone rep, they have a dedicated team for these promotions. The promo is available for established accounts.

Thanks OP !
This is a great place to park some of my Vanguard ETFs for 12 months.
I would have preferred some air miles but I'll be ok with the Kindle fire.

wish it was for a real tablet, i.e. 10 inches.

So you have to transfer the 50k (or whatever the requirement is) in and then not transfer it out (but ok if the value drops)?

shallot said:   wish it was for a real tablet, i.e. 10 inches.
Then there are ETrade offers, fidelity offers and occasional td ameritrade or schwa offers for apple gift cards with account deposits or transfers. several previous threads on FW.
Of course these offers make sense for those who have stocks in other brokerage firms.

Does this plan make sense? I currently have Vanguard mutual funds at Vanguard and a nearly empty Schwab account.

(1) Transfer $50,000 in mutual funds from Vanguard to Schwab for Apple GC. Transfer $50,000 in mutual funds from Vanguard to Schwab for Kindle. "Vanguard Brokerage Services does not charge fees for incoming or outgoing transfers."

(2) After 12 months, transfer all mutual funds at Schwab, except for one share, back to Vanguard. Partial ACAT fee is $25 (instead of full ACAT fee of $50).

(3) Sell the one remaining share at Schwab without a transaction fee.

Total cost: $25 partial ACAT fee, capital gains on one share, possible 1099 on Apple GC and Kindle

phitchow said:   Does this plan make sense? I currently have Vanguard mutual funds at Vanguard and a nearly empty Schwab account.

(1) Transfer $50,000 in mutual funds from Vanguard to Schwab for Apple GC. Transfer $50,000 in mutual funds from Vanguard to Schwab for Kindle. "Vanguard Brokerage Services does not charge fees for incoming or outgoing transfers."

(2) After 12 months, transfer all mutual funds at Schwab, except for one share, back to Vanguard. Partial ACAT fee is $25 (instead of full ACAT fee of $50).

(3) Sell the one remaining share at Schwab without a transaction fee.

Total cost: $25 partial ACAT fee, capital gains on one share, possible 1099 on Apple GC and Kindle

Sounds like a good plan, though the thing I would do differently is that at around month 11, I would purchase a couple of shares of a Schwab ETF and keep them there until the Vanguard mutual funds are transferred out. Once the mutual funds are transferred out, I would be free to sell the Schwab ETF and withdraw the money in cash.

Schwab ETFs can be traded commission-free.

prastogi said:   this is useful if you can transfer some shares that you anyways hold and will keep for a while (dividend paying ones).

Also, note that ETrade is giving $200 apple gift card after transfer of 75k of cash/stock.

According to this link ( https://us.etrade.com/e/t/jumppage/viewjumppage?PageName=apple_g... ) this does not apply to existing customers -- only for new accounts. How about opening a second account if you have already one?

FYI, most brokerages will reimburse transfer fees, so you can probably transfer everything back to your brokerage account after the 12 months and submit the transfer fee for reimbursement. At least that works for E*Trade and TD Ameritrade, not sure about Vanguard.

dippy943 said:   FYI, most brokerages will reimburse transfer fees, so you can probably transfer everything back to your brokerage account after the 12 months and submit the transfer fee for reimbursement. At least that works for E*Trade and TD Ameritrade, not sure about Vanguard.
If this is the case, then you can transfer assets back and forth and stack up bonuses because ETrade has frequent offers for asset transfers.

I just called to enroll in the offer and was presented with another one that apparently came out yesterday:

"Deposit $50,000 and get $200 cash and 150 free trades for 180 days"
Link

YMMV

socrates9 said:   I just called to enroll in the offer and was presented with another one that apparently came out yesterday:

"Deposit $50,000 and get $200 cash and 150 free trades for 180 days"
Link

YMMV

I wished they would match ETrade 's $500 for $100k asset transfer offer.

These deals look attractive. Perhaps the original poster could change the title to cover the new Schwab offer, since there are many who might be attracted by cash, but not by $200 in an Apple gift card (worth $200 only if planing to spend that much anyhow on Apple products)

I talked to my Schwab representative who mentioned the $600 deal (to me better because cash is more valuable than $200 to be spend on Apple products from their store).

Obviously these deal only make sense if you have the assets and find the brokerage firms can provide you with the services and investment opportunities you want. The Schwab 150 free trades could be valuable if you are an active trader in stocks or ETF. I was told it did not cover their fees on mutual funds.

For a buy and hold investor, you can probably find mutual funds or stocks at any of these large firms that meet your needs, and the spare $600 could justify moving a large position, or cash to them to then be invested. If you cannot get them to pickup expenses of moving positions, you might be able to sell and then rebuy, but you should check the tax consequences.

If you are moving say IRA funds there may be no direct costs, but there is a good chance the funds will be idle for at least a few days in between. At best, one firm cuts a check and Fed Expresses or mails it to the other. Firms have been known to take several days between when you liquidate something, and when the actual check goes out. A 1% move on $250,000 in stocks is $2500, which exceeds the $600 you may get from Schwab.

There was a recent class action case CREF vs. Link where CREF had to pay for having not done these things fast enough, and they may be faster in the future. (My check from this class action exceeded $40,000)

An issue I am trying to get an answer to from Schwab relates to how the Schwab bank is handled. I normally move uninvested funds at Schwab out to the bank side, and sometimes to the Alliant or a higher yielding place, rather than leaving them idle on the brokerage side. If by Schwab they mean the brokerage (which I suspect is what is meant since it and their bank are legally different, although I am trying to clarify this.), keeping the funds there could mean they stay idle at 0% interest when not invested. Otherwise you might earn at least a little interest by moving them to the Schwab bank, and more interest by wiring them to somewhere that paid higher interest.

I was told they took a snapshot 45 days after you brought the fund in to see if they were still there. By marking your calendar, you could probably be sure the funds were there 45 days later,but what would happen later if you moved the funds in and out to the banking side, or to somewhere like Alliant.

I presume a similar issue arises at E Trade.

socrates9 said:   I just called to enroll in the offer and was presented with another one that apparently came out yesterday:

"Deposit $50,000 and get $200 cash and 150 free trades for 180 days"
Link

YMMV


It is interesting that the bonus for $250,000 is only $600 (and no more free trades). My Schwab representative pointed out that multiple accounts per family were possible (subject to a $5,000 limit per family in bonuses). It might pay to open separate accounts for you and a spouse, and possibly others for trusts, etc.

ProfessorEd said:   
An issue I am trying to get an answer to from Schwab relates to how the Schwab bank is handled. I normally move uninvested funds at Schwab out to the bank side, and sometimes to the Alliant or a higher yielding place, rather than leaving them idle on the brokerage side. If by Schwab they mean the brokerage (which I suspect i what is meant since it and their bank are legally different, although I am trying to clarify this.), keeping the funds there could mean they stay idle at 0% interest when not invested. Otherwise you might earn at least a little interest by moving them to the Schwab bank, and more interest by wiring them to somewhere that paid higher interest.

I was told they took a snapshot 45 days after you brought the fund in to see if they were still there. By marking your calendar, you could probably be sure the funds were there 45 days later,but what would happen later if you moved the funds in and out to the banking side, or to somewhere like Alliant.

I presume a similar issue arises at E Trade.


I'm interested in the answer to the Schwab bank idea. I had just assumed it wouldn't fly.

My impression is that they monitor the flow of funds into/out of the brokerage account and the net inflow must be e.g. greater than or equal to the qualifying requirement e.g 50K by the end of the 45 days and must remain that way for a year. If this is true, then if you bring in e.g. 50K but withdraw internally generated funds (like interest, dividends), you could violate the net inflow requirement.

I was just looking at this, and because the bonus is limited to up to two IRAs and two taxable brokerage accounts it may be to one's advantage to break up, say, $100,000 into two pieces to get two $200 bonuses instead of one $300 bonus, and 300 trades total instead of 150. Overall I am still on the fence because I like Vanguard's easy to use interface and their low fees for my IRA. I use Schwab for my 457 self directed account and am considering moving my Vanguard IRA over to Schwab. I am Vanguard Voyager but that is pretty meaningless since they don't offer much there.

The trades are not worth much to me since I don't trade my retirement account (I use IB for my trade account), although trading an IRA seems intriguing because of the reduced tax documentation needed, although may not be such a good idea since at least I know my IB account is speculative capital, while the IRA is not. I have an Optionshouse account for medium term positions and would consider moving to Schwab except their margin rates are atrocious. With a base rate of 6.5% it makes writing a credit card balance transfer check look awesome. Optionshouse at 3-4% is marginally reasonable (no pun intended), while IB at 1.6% is great except for their lightning fast liquidations once something is out of whack.

kaneohe said:   ProfessorEd said:   
An issue I am trying to get an answer to from Schwab relates to how the Schwab bank is handled. I normally move uninvested funds at Schwab out to the bank side, and sometimes to the Alliant or a higher yielding place, rather than leaving them idle on the brokerage side. If by Schwab they mean the brokerage (which I suspect i what is meant since it and their bank are legally different, although I am trying to clarify this.), keeping the funds there could mean they stay idle at 0% interest when not invested. Otherwise you might earn at least a little interest by moving them to the Schwab bank, and more interest by wiring them to somewhere that paid higher interest.

I was told they took a snapshot 45 days after you brought the fund in to see if they were still there. By marking your calendar, you could probably be sure the funds were there 45 days later,but what would happen later if you moved the funds in and out to the banking side, or to somewhere like Alliant.

I presume a similar issue arises at E Trade.


I'm interested in the answer to the Schwab bank idea. I had just assumed it wouldn't fly.




They got back to me, and Schwab bank is not included. Moving uninvested funds from the brokerage side to the bank side (which they make it easy to do) to earn a little more interest, would mean you had moved the funds out. Thus for a moderately active trader, one of the cost of taking this deal is keeping uninvested funds in the brokerage and losing interest.

It would be nice if the original poster changed the title to reflect the more attractive monetary offer, and possibly other brokerages offers.

Anyone considering this offer should know that other brokerage firms have similar or better offers. These should be considered as alternatives if you have a spare quarter million or so sitting in retirement accounts (for the students here, this is actually fairly common for those who have been working a while, and are frugal), or even $50,000. It may pay to take several offers even.

While $600 for $250,000 is at several I believe, Ameritrade has $1,000 for $250,000 (see the thread). As I commented in that thread, it might be possible to take the Ameritrade one, and then later bring the funds over to Schwab, collecting both.

As Calwatch points out (above), each firm has pluses and minuses, and details such as margin rates, interest paid on uninvested funds, selection of investment opportunities etc. can make a difference that is greater than the incentives paid.

If one has to sell a position to get liquid funds, the taxes paid should be calculated and considered. Schwab tells me they do not charge on partial transfer out, and they will pick up another funds transfer fee when bringing securities in, so you may be able to avoid selling if the tax considerations would be adverse (causing you to take an unwanted capital gain, or producing a short term gain which would have been long term if held for longer, for instance).

Schwab rep told me that you cannot have both $200 apple GC and Kindle, even if you move in $100k. You can only have one of them.


Does this plan make sense? I currently have Vanguard mutual funds at Vanguard and a nearly empty Schwab account. (1) Transfer $50,000 in mutual funds from Vanguard to Schwab for Apple GC. Transfer $50,000 in mutual funds from Vanguard to Schwab for Kindle. "Vanguard Brokerage Services does not charge fees for incoming or outgoing transfers." (2) After 12 months, transfer all mutual funds at Schwab, except for one share, back to Vanguard. Partial ACAT fee is $25 (instead of full ACAT fee of $50). (3) Sell the one remaining share at Schwab without a transaction fee. Total cost: $25 partial ACAT fee, capital gains on one share, possible 1099 on Apple GC and Kindle

qwu said:   Schwab rep told me that you cannot have both $200 apple GC and Kindle, even if you move in $100k. You can only have one of them.

My Schwab rep confirmed that I could complete multiple offers successively, but not simultaneously.

Skipping 2 Messages...
Does anyone know how much will show up on 1099 for the Kindle HD.

"Schwab covers the sales tax, shipping, and handling of the Kindle Fire for this promotion"

To me, it means anywhere from $200 to $250. It would suck to pay tax on $250 for a $170 item (w/ AMEX offer).



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