Free Money - $100 Sign-Up Bonus Plus A Superb 4.5% APY From First Horizon Bank!

This week's Free Money deal is a great sign-up bonus offer of $100 from First Horizon Bank for opening a Relationship First Savings Account. The sign-up bonus is the not the only attractive part of the deal, they are also offering a great APY of 4.50% for the savings account.

  • Deal: Link
  • Bonus: A $100 incentive when you arrange a monthly direct deposit or ACH. $25 will be deposited each quarter during the first year the account is open and a monthly direct deposit or ACH is maintained.
  • Benefits:
    • Free enrollment in Banking Online that allows you to quickly transfer funds between your First Horizon and other deposit accounts.
      • Transfers from First Horizon accounts to accounts held at other financial institutions will incur a service charge.
    • May be linked to a Relationship First Checking account to provide 24-hour access to funds through ATMs.
    • Monthly check-writing privileges and free ATM withdrawals.
      • Account offers a total of six transactions each month, of which three may be checks.
      • Federal law requires that savings accounts exceeding six transactions each month will be converted to a checking account.
      • First Horizon will not charge a fee for withdrawals from any ATM nationwide and will refund any transaction fee charged.
    • FDIC insured up to $100,000.
  • APY:
    • Relationship First Savings Account offers a generous 4.50% APY rate when you open a Relationship First Checking Account (3% APY).
    • 4.5 % APY rate is subject to change and will be available for six months, after which the rate will be tiered based on account balance.
      • First Horizon Savings Balance--------------------------------APY*
      • $0-$9,999---------------------------------------------------3.03%
      • $10,000-$24,999--------------------------------------------3.56%
      • $25,000-$49,999--------------------------------------------3.82%
      • $50,000-$99,999--------------------------------------------4.07%
      • $100,000+---------------------------------------------------4.33%
    • All rates and fees apply to savings accounts opened online or by calling (800) 489-2111.
    • Customers without a First Horizon home loan and a Relationship First Checking account with a minimum balance of $1,000 will receive a 4.00% APY rate.
    • Rate not available in GA, TN, or VA and offered with limited availability in TX.
  • Minimum Opening Deposit:
    • Minimum Relationship First Savings opening deposit is $5,000.
  • Monthly Fees:
    • There is no fee for Relationship First Savings for customers who also have a Relationship First Checking account in good standing.
    • For other customers, the monthly fee for Relationship First Savings is $9.00 if you have less than $5,000 in combined balances.
    • If the combined balance meets or exceeds $5,000, the Relationship First Savings monthly fee will not be charged.
  • Analysis:
    • Principal = $5000.00
    • First 6 months at 4.5% APY - Simple Interest Earned = (4.5/100)*5000*(6/12) = $112.5.
    • Next 6 months at tiered rate of 3.03 % APY - Simple Interest Earned = (3.03/100)*5000*(6/12) = $75.75.
    • At end of year, bonus earned = $100.
    • Total Earnings = $112.5+$75.75+$100 = $288.25.
    • Effective APY is 5.765%.
    • Note: To keep things simple, we have computed Simple Interest. In reality the principal will earn compound interest. Also note that every quarter they are going to give $25 as the bonus instead of $100 at the end of the year. So earnings will be higher every quarter since the principal will increase by the bonus and previous earnings.
  • Conclusion:
    • If we take a look at the Rates for 1year - CDs, we see that the highest available rate is 5.70% APY.
    • So we conclude that:
    • If we do not need to keep the money in a liquid form i.e. easily available when needed, we would rather go for the 1 year CD at the rate of 5.70% APY. The reason for doing so is the fact that the CD's APY rate would be locked for 12 months. First Horizon's APY for the Relationship First Savings account might change during the 12 months.
    • If we need to keep our principal for emergency funds which implies immediate access, then we would open a Relationship First Savings at First Horizon. Why ? It is giving us an effective APY which is slightly higher than the current highest rate for a 12 month CD along with easy access to our funds any time.
We hope this attractive offer from First Horizon along with the $100 sign-up bonus will be very helpful for our readers. If any of our audience has already availed this deal we would be extremely grateful if you could kindly leave comments for others who are thinking about checking out this deal.

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