Online Bank Checking Account

With the new year in full swing, many of the nation’s top banks are aggressively offering their best checking promotions for 2012 in hopes of landing your business. And I’m not just talking about giving away cheap ceramic mugs or ice scrapers. No, these offers include healthy cash bonuses ranging from $50 to $300 or sometimes more. Or, for gadget lovers, some banks even offer valuable gifts like an iPod, Kindle, or a GPS unit.

To be certain, though, there is a catch on all of these offers. Usually you have to deposit a certain amount of money when opening up an account in combination with a variety of other banking transactions. There are still good deals to be had, but it is important that you read the fine print on every checking account promotion you are considering in order to know what you are signing up for.

Another thing to consider is that many of these checking account offers are only good for a limited time. So always be sure to check the expiration date associated with the bonus. Also, some of the deals are for residents of certain states only. And most importantly, never choose a bank based solely on the type of bonus you will receive. There are some lowbrow banks that will try to lure you in with a juicy checking account promotion and then end up charging you high fees down the road.

Below I have listed some of the top checking account promotions for 2012. Keep in mind that some of the best offers take place at the beginning of the year. Many of the ones below are only good for a certain amount of time. I will do my best to keep the list up to date with any new deals that I find.

Best Checking Account Promotions For 2012

Anchor Bank – You can receive up to $150 in bonuses. Three separate actions will earn you $50 each: opening up a checking account, setting up direct deposit, and making three debit card purchases. This offer is only open to residents in Illinois, Iowa, Minnesota, and Wisconsin. Two requirements for receiving the bonus are that you must deposit $100 when you sign up for the account, you must initiate a direct deposit, and your account must stay open for six months. Anchor bank offers a number of different types of checking accounts to choose from.

Chase Bank – You can receive a $125 cash bonus by meeting a few simple requirements. This includes a minimum deposit of $100 within 60 days of opening the account and setting up a direct deposit. You can apply online or print out the offer online and take it in to a local Chase branch. It is only valid for new customers only and can only be done once per customer in 2012.

First Bank – If you are a current resident of Arizona, California, or Colorado then you are eligible. You receive an Apple iPod Touch, Amazon Kindle, or a Garmin GPS when you open up a checking account. To receive one of the three gifts you also must either make one direct deposit of $300 or more or make three bill payments to three separate companies using their bill pay service. This must be completed within the first sixty day after opening the account.

I have been a Netspend account holder for less than a year. In that time,  I have seen some of the blog posts and forum threads on Google about Netspend being a scam or a rip off. But I had never paid them much attention. Since signing up for the debit card, I had never experienced any problems. Sure, the fees were high compared to most other prepaid debit cards I’d seen, but not high enough for me to go through the trouble of canceling my account. So, like most people, I ignored the numerous warning signs I saw. But, that all changed this past week.

My Story

I awoke early last Thursday morning. I was expecting a deposit to reach my Netspend bank account that day and I was planning to head to Walmart to pick up a few household items. Before leaving I turned on my laptop to check my e-mail and then my Netspend account, expecting to see the deposit that should have cleared, in addition to the money I already had in there.

When I attempted to log in to my Netspend account I received a message that I had entered the wrong password or username. I didn’t think I had, but I tried again. Same thing. Right then, I knew something was wrong. This had never happened before, but I just knew something was not right. I called the number on the back of my Netspend account to check my balance. The recorded voice informed me that my balance was negative $7.52. How could this be? I didn’t have any pending transactions. My card had not left my possession. Ever.

If this has happened to you before, you know the sickening feeling that you get immediately after. Anger, disappointment, confusion all mixed into one. Since the Netspend customer service office wasn’t open for two hours, I had nothing to do, but sit there and wait. I could not do anything, since I had no money.

I sat there and thought about a number of things including the items that I needed and could no longer buy, as well as the plans that I had made for the weekend, which I could no longer do. Needless to say, it was a pretty miserable two hours.

Netspend Customer Service

Finally when the Netspend customer service office opened, I called them to try and find out what had happened. Before making the call, I was expecting the worst. While waiting, I had read a several other horror stories online from customers describing money also being stolen from their accounts and how unhelpful and terrible their customer service is.

So, I made the call and it went pretty much as expected. I was placed on hold several times and required to answer the same questions over and over. I had to speak with three different customer service agents, two of which had trouble speaking English. None of them were particularly helpful to my situation, nor did they seem to care that I had been ripped off and money had been stolen from my account. They acted like this was an everyday occurrence, which apparently with Netspend it is.

What I did find out was that an unauthorized “cardholder transfer” had taken place. I had never used a cardholder transfer, nor did I know that they even existed. Netspend customer “Monica Williams” (no, I don’t know her nor have ever heard of her) had transferred all of the money out of my account. In order to complete a cardholder transfer, the Netspend customer needs the card number and security code on the back of the card. The card has never been out of my possession.

One of the most ironic parts of my call was the numerous security questions I had to answer in order to inquire about my account. I found that quite amusing, since the person who scammed money out of my Netspend account did not have to answer any.

The last Netspend customer service person I was transferred to was a “Disputes Investigator” (Netspend is aggressively hiring for this position via their Twitter account, since this problem is clearly on the rise). He spoke clear English and was well trained at his position. Speak calmly and firmly at the emotionally distraught person who has just had money taken from their online account. Repeat the same instructions over and over.

Basically, he told me I needed to file a police report, have it notarized, supply some more details, and then fax the information to them. Then you might get your money back in a couple of months. Here it is in their words:

After we receive the required documentation from you it will be reviewed within 10 business days. The claim will be reviewed to determine if we have enough information and documentation to prove your case against the merchant. A determination will be made if a credit will be applied to your account pending the completion of your dispute claim investigation through the Visa/MasterCard Associations. (Average 45-90 day timeframe).

The whole process they require is a joke. It’s as if they try to make it as inconvenient for you to complete the steps in hopes that you won’t do it. Go to the police station and file a police report? For an online fraud case? Right. Fax the information in and have it notarized? You’ve got to be kidding.

After getting off the phone with them, I realized I still couldn’t access my Netspend account online. Being so preoccupied with trying to find out what had happened to my money, I had forgotten to ask. So, unfortunately I had to call them back. Again, I was transferred three times, placed on hold, and asked several security questions.

The last set of questions was a true delight. The customer service agent I spoke with had the poorest English of all of the reps I had talked to that day. I had to answer five personal credit questions dating back to 2004. If I did not answer four of them correctly, I would not be able change my password and could try again in 24 hours.

After I answered the random questions, I was pretty sure I had failed. I could hardly understand the guy. Fortunately, I passed and was emailed a new password. Before I hung up with the rep, he asked me one more security question for good measure. It was getting comical.

Is Netspend A Scam Or A Rip Off?

I don’t think the Netspend company is a scam or a rip off. What I do think is they have major security issues and that they are completely negligent. Consequently, your money is not safe in their hands. Unauthorized account transfers are happening more and more. Customers’ bank accounts are being completely wiped out and Netspend is putting the onus on the victim. Not themselves, not the criminal.

Why do they even allow customer to customer transfers when there is clearly a security breach in their system? Why do they not give you an option to turn off these types of transfers? I have never used them and never would.

Why do you not receive an email confirmation when your password has been changed? Why did I not receive an email that money had been transferred out of my Netspend account? There are simple steps that could be taken by Netspend in order to avoid this from happening in the future. But, they are not being taken.

So what should you do? If you are a Netspend customer, I would close your account as soon as possible. Your hard earned money is not safe. You never think this can happen to you until it does. Believe me, I know. It’s a horrible feeling and a terrible predicament to be put in.

And for those thinking about signing up, don’t. There are several other prepaid debit card companies to choose from. Banks who can handle and manage your money much better than Netspend.

If  anything like this has happened to you, please share your story below in the comments section.