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Open a Bank Account With a Credit Card

Open a Bank Account With a Credit Card

Million Mile SecretsOpen a Bank Account With a Credit CardMillion Mile Secrets Team

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

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!

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Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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Does key bank open a account with a credit card

It would b nice to open an account with a credit card to deposit a larger
Amount of money

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

@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?

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?

@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.

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