Open a Bank Account With a Credit Card

Disclosure: We get a commission for links on the blog. You don’t have to use our links, but we’re very grateful when you do. American Express, Barclaycard, Chase, and US Bank are Million Mile Secrets advertising partners. Opinions expressed here are the author's alone, and have not been reviewed, approved or endorsed by our partners. Here’s our Advertiser Disclosure.

Are you 1 of the folks struggling to meet the minimum spending requirements to get the sign-up bonuses on your credit cards now that Vanilla Reloads can’t be bought with a credit card at CVS anymore?

Folks are being more creative in finding ways to spend money on their cards to earn miles and points.  You can still buy gift cards to reload your Bluebird account at Walmart, or use Evolve Money to pay bills you can’t normally pay with a credit card.  And I’ve written about 40+ other ways you can meet minimum spending requirements.

Via View From the Wing, did you know you can open a bank account and fund the initial deposit with a credit card?

Fund A Bank Account With A Credit Card

Don’t Fund Your New Bank Account With Cash – Use a Credit Card!

How Does It Work?

When you open a new account at SOME banks, they’ll let you use a credit card to fund the initial deposit.  Depending on the bank, you can fund $100 to $2,000 using a credit card.

Note:   Don’t try this method with a Citi card, because it will be coded as a cash advance.  So you will NOT earn points and WILL be charged cash advance fees and interest right away!

Other cards probably won’t code this as a cash advance, but to be safe, it’s a good idea to call the credit card company and set your cash advance limit to zero before trying this.  That way, if it’s coded as a cash advance, the transaction won’t even go through.

Also, keep in mind that some accounts may require you to maintain a minimum balance to avoid fees.  In that case, it would NOT be worth it.  Unless you need to open a new account anyway!

Fund A Bank Account With A Credit Card

Some Banks Will Let You Use Credit Cards for Your Initial Deposit!

Here’s are some of the banks (according to Doctor of Credit) that allow you to do this:

While you can’t really repeat this method over and over (and besides, who wants to keep track of so many accounts?), this could be useful for those who are really struggling to meet the minimum spending on their cards.

Some of these banks are having sign-up bonus promotions, so you could come out ahead on the deal.  For example, BMO Harris will give you up to $200 when you open a checking account and set up a direct deposit.  Not bad!

Fund A Bank Account With A Credit Card

Open a Checking Account With BMO Harris and Get up to a $200 Bonus

Are There Drawbacks?

Definitely.

Some banks (like First Citizens) will do a credit inquiry when you open a new account.  So this could affect your credit score negatively in the short term.

Some accounts may have monthly fees attached to them.  And you might be obligated to keep the account open for a certain time.  It’s NOT worth paying monthly fees to generate a few extra miles and points!  But it could be worth it if it’s your only way to meet a big minimum spending requirement.

And there’s some time and effort involved in signing-up for new accounts and keeping track of balances.

You may want to 1st read my list of 40+ ways to meet credit card minimum spending requirements!

Bottom Line

You can use a credit card to fund the initial deposit into a new account at some banks.  This could be a good way to help meet credit card minimum spending requirements.

But don’t use a Citi card (it will be coded as a cash advance) and perhaps set your credit card cash advance limit to zero before you try this out.

Opening a bank account for the sole purpose of spending money on your credit card might not be worth the effort.  But if you’re currently looking to open a bank account anyway, you can fund your initial deposit with a credit card at some banks.

There are probably other banks not on the list that allow this.  Does your bank allow initial deposits to be funded with a credit card?  If so, please let me know in the comments!

* If you liked this post, why don’t you join the 16,000+ readers who have signed-up to receive free blog posts via email (only 1 email per day!) or in an RSS reader …because then you’ll never miss another update!

* If you liked this post, why don’t you join the 25,000+ readers who have signed-up to receive free blog posts via email (only 1 email per day!) or in an RSS reader …because then you’ll never miss another update!

Editorial Disclaimer: Neither the responses below nor the editorial content on this page are provided or commissioned by the bank advertisers, and have not been reviewed, approved or otherwise endorsed by the bank advertisers. Opinions expressed here are the author’s alone, not those of the bank advertisers. It is not the bank advertisers’ responsibility to ensure all posts and/or questions are answered.

Leave a Reply

Your email address will not be published. Required fields are marked *

20 responses to “Open a Bank Account With a Credit Card

  1. Thanks for the useful post that opens an avenue I didn’t know about.

    I do however find this awfully confusing:
    “Note: Don’t try this method with a Citi card, because it will be coded as a cash advance. So you will NOT earn points and WILL be charged cash advance fees and interest right away!
    …But it could be worth it if it’s your only way to meet a big minimum spending requirement like the $10,000 spending in 3 months on the Citi American Airlines Executive card.
    …But don’t use a Citi card (it will be coded as a cash advance) and perhaps set your credit card cash advance limit to zero before you try this out.”

  2. Thanks for the link, Darius. I try to keep the following post updated with the latest banks that do & do not allow bank account funding: http://www.doctorofcredit.com/does-funding-a-bank-account-with-a-credit-card-count-as-a-purchase-or-cash-advance/

    I also include which card issuers do & don’t count it as a cash advance.

    @Slow Roller

    Don’t use it with Citi, otherwise you’ll be charged a cash advance fee. Personally I don’t think it’s EVER worth it to be charged this fee (usually 3-5%) – even if you’re meeting a minimum spend requirement.

  3. Watch out for Chex systems – if you get sloppy here and close an account before a fee goes through and you leave a negative balance behind you could be blacklisted.

    Also this is one step closer to actual money laundering, which raises more red flags.

    Spammy stuff.

  4. “But it could be worth it if it’s your only way to meet a big minimum spending requirement like the $10,000 spending in 3 months on the Citi American Airlines Executive card.”

    “But don’t use a Citi card (it will be coded as a cash advance)…”

    Uhhhhhhhh…

  5. Take your blog and die.

  6. You cannot load BB anymore with gift card in most of the places. I said this last month when only hand full of walmarts in my area were implemented this but now it looks like almost on every state people are having problems and only very are still able to do even that would be closed very soon if not already. So writing about this I don’t think is a good idea

  7. @BlackHill, once again…what proof do you have that BB cannot be loaded with gift cards? The Flyertalk thread indicates none of that, other then some folks dealing with broken money loading machines, or the occasional employee who doesn’t know how (or just plain lazy) to load BB. Lol, “almost every state”? Yea, every state except for mine (loaded 2k again today, 1k on mine, 1k on SO), and all the states represented on FT, of people indicating success.

    Move on with your scare tactics.

  8. Last week Barclays Arrival charged me 5% (I think with a $10 minimum) for funding my Suntrust Savings account 🙁

  9. Are there banks that allow a higher deposit then 2K?

  10. There sure are Tony, I know at least 5, although some have geographic restrictions. Happy fishing.

  11. I opened an account at PENFED CU that took a visa payment(I believe I used my Capital One card). I only did $30 so not sure of the limits but another institution to look into if in a pinch.

  12. Hi,

    Which card(s) can I use for funding a new Chase Checking account? Also, if I want to fund a new Chase Savings account, can I do it with a Credit Card (w/o incurring c.a. fees)?

    Thanks,
    A

  13. islandgoddess

    I loaded 5 $200 Visa gift/debit cards onto my BB yesterday at WM in Hawaii with no problem.

  14. This is really old, yet useful info. Why wait this long to further commercialize it? Other blogs covered this in previous years…

  15. Thanks for summarizing in one post why no one should ever follow your advice. Funding a bank account is almost always coded as a cash advance by the bank being funded. In those rare instances where the bank being funded codes it as a purchase, the credit card company flags it and charges a cash advance fee Even if it initially shows as a purchase, there are numerous reports of citi, chase, and others changing it to a cash advance. The result: A 5% or more fee and NO REWARDS FOR THE TRANSACTION because cash advances don’t earn rewards! A ten second google search would have told MMS this but he posts it anyway because he is lazy and just regurgitates things he finds elsewhere without testing himself.

  16. @redmill .. slow the hate man. Did this with WF a few weeks ago using UA card. No harm done. A nice 500 miles earned. But I am keeping the account open and will use it.

  17. I had heard of cash advances but never did one and never wanted to. Why pay fees for money? But then I used my Barclay Arrival Plus card to purchase Bit Coins for my son and to open a bank account. Both incurred cash advance fees and interest. The total was ~$25 but I called and got it all removed, pleading (legitimate) ignorance.

    Then I read other bloggers and Daraius who said (above), “call the credit card company and set your cash advance limit to zero.” Good advice, but I have not found it to be easy. I called Barclay and US Bank and they hardly knew what I was even talking about, and said things like, “We’ve never been asked about this before.” And Chase said they could not do it any lower than $100. I have not tried it with Citi yet. But Amex was the most helpful (or the most oblivious.) The rep assured me that the ONLY way to get a cash advance fee with an Amex is if I used it at an ATM with a PIN, so I could relax. I since loaded my Serve card with an Amex and so far no cash advance fee. But I am not relaxed.

    Has anyone had any success with any card(s) in getting the cash advance limit down to zero?

  18. @Gaston – I opened an account at USBank (while they were running a promotion) with Barclays Arrival+ (max $500) and did not get charged for anything at all. Could it be depend on the bank instead of CC company, or maybe both?

  19. Citi and Chase? whoever wrote this is full of s***. it has absolutely nothing to do with the card issuer and everything to do with how the merchant (bank) processes it. Thats like saying you go and buy something and run it as debit with a pin and then your bank runs it as credit. they have no control over that. For further proof ive just in the past week funded 2 new account with 1 chase and 1 citi card. it is wholly dependent on how the bank itself runs the transaction. A good way to protect against this is lower your cash advance limit to 0. Problem solved!
    -source — i work for a bank