It wouldn’t surprise me in the slightest if most of you already know about this high yield savings account offer through Wachovia. They began running this bank promotion almost exactly one year ago and pumped it heavily (according to BusinessWeek, Wachovia spent well into eight figures to pump this offer) and apparently they are running it again.

Here is what they advertise:

1. Sign up for a Way2Save account.
   (and any Wachovia Checking account) and start saving. We’ll transfer $1 from your checking account into your Way2Save account when you:
   • Use your Wachovia Check Card to make purchases
   • Pay a bill online, including through Online Banking with BillPay²
   • Set up automatic debits
2. Get paid to save with Way2Save.
   • 5.00% Annual Percentage Yield (APY)³
   • 5 percent first year bonus—you could receive up to $300 the first year.
3. Save even more.
   Set up automatic, recurring transfers up to $100 to the account every month for even more savings and added interest.

Here is what you must also take into consideration:

• Must have a Wachovia checking account (but those are free)
• Limit of one Way2Save per checking account (but you can have more than one free checking account)
• The only way to fund the savings account is through automated monthly debits from your Wachovia checking account (and those have to be set up in branch or over the phone)
• Maximum monthly transfer amount is $100, so the most you can add to the account in a year is $1200 (see note 4)
• The savings account has a variable rate and it not guaranteed to stay at 5% over the course of the year; and it is already scheduled to decline to 2% in years 2 and 3
• The bonus in year 2 and 3 falls to 2%
• A hard inquiry is posted to your credit bureau when opening a new checking account
• After the first year, the savings account has a $5/mo fee if there are no automated deposits

This deal is a tad tricky, I’m not sure whether I should be excited or weary. At first glance this deal seems money (5% APY plus a 5% bonus) but make sure you dig into the fine print to fully understand your potential benefits.

This deal also reminds me of Bank of America’s “Keep the Change” promotion.

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