Free Kindle Fire HD from Charles Schwab for New Brokerage Accounts
If you are looking for an incentive to open a new brokerage account, Charles Schwab has a promotional offer which will give you an Amazon Kindle Fire HD (the latest version) for free, providing that you can set enough money aside for the new account. Here’s how the offer works:
- Open a Charless Schwab brokerage account before April 30, 2013;
- Fund the account with $50,000 or more within 45 days of account opening;
- After the confirmation of the deposit, you will receive a redemption code for the 7″ Kindle Fire HD with 16GB of memory, which can be redeemed for the device ($199 value);
- Keep the money in the account for at least 12 months; otherwise you will be charged for the value of the Kindle.
The Schwab accounts eligible for this offer are the so-called retail brokerage accounts that exclude IRA accounts, tax-qualified retirement accounts, and education savings accounts, etc. For qualifying deposit that’s required for the free Kindle, the assets must come from outside of Schwab. If you are only going to move money between your existing Schwab accounts and the new brokerage account, then you will not receive the free Kindle. Note from the fine print that net deposit is just that, net deposit, which means it could either be cash or securities held at other institutions. As long as the deposit is transferred from outside Schwab, then it’s good for this offer.
Now is this deal worth it? Well, I think it depends on what you want to transfer into the new account and what you plan to do with the assets. If you are going to fund the account with cash and just want to get the Kindle, then it’s probably not worth the trouble. The reason is that if you, instead, put $50K in an online savings account, such as Ally Bank Savings Account (0.95% APY) or Sallie Mae Money Market Account (1.05% APY), you would receive about $500 in interests after one year, comparing to a $199 Kindle that you would get from this offer(I assume that brokerage account doesn’t pay much interests, from my own experience).
If, on the other hand, you have already planned to get a Schwab brokerage account, then this really is an incentive for the move, though trading with Schwab isn’t the cheapest options. With the current commission rates, you will pay $8.95 per trade for an online order, regardless the number of shares of stocks or ETFs. However, if you are interested in Schwab ETFs, then you won’t pay any commission for buying or selling these ETFs. Currently Schwab offers 14 ETFs in the domestic equity, bond, and international equity category that are commission-free for Schwab customers.
Use this link to find out more about this offer from Schwab.
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