Costco Sharebuilder bonuses hit our accounts this morning

December 11th, 2008 · No Comments

Back on November 11th, I wrote about how my wife and I had each opened a ShareBuilder account specifically to take advantage of the Costco bonus.  Well, the $60 bonuses were deposited into our accounts this morning.

A small money tree is better than NO money tree

A small money tree is better than NO money tree

Here’s the e-mail ShareBuilder sent us:

Dear David,

Thank you for participating in our promotion. We have just credited your ShareBuilder Account.

You can invest this extra money in your Money Market Cash Balance by modifying your Automatic Investment Plan. Within the Automatic Investing Plan page click on the link to change Funding Source; then select the “Money Market Cash Balance” option. Be sure that the total investment amount is not more than the available cash balance in your account.

To invest with your Automatic Investment Plan, visit the Trade tab, click on Automatic Investing and select Edit Status.

I think the wording is confusing above.  To me it implies your ShareBuilder account has an option for cash that isn’t in a Money Market Cash fund (BDMXX) and that you need to take some action to get it there where it will earn interest.   But this isn’t true as I just logged in and there it is in BDMXX already.  Instead, they’re saying that you can invest the money FROM your money market cash balance by using your Automated Investing plan options.

Anyway, we’ve earned $120 in bonuses this year by parking $100 in ShareBuilder accounts for 30-days.  Our qualifying purchase transactions cost us $8 out of pocket, but the Costco program will get us $2 back in rebates at the end of the quarter on this.  Our qualifying transactions were to buy TIP, which has gone up by 1.6% from the date of our purchase through this morning, so we actually came out slightly ahead there.  And, while we haven’t done it yet, selling out the TIP investment would incur transaction costs of $19.90 — or $14.93 after the Costco program’s rebate.   That works out to ending up with $200.67 from an initial $100 investment.  I think that’s a pretty good yield rate, too bad I can’t get that on larger investment amounts. 🙂

And yes, we did put more in the accounts than we needed too — it was only after I decided to write it up here on the blog that I tracked down that the minimum opening balance required to earn the reward was only $20 per account.  If I had been smart enough to find that and use just the minimums, we would have had $139.71 from our initial $40, both freeing up $80 for other investments and increasing the yield from 101% to 249%.

If you are at all interested in doing the same thing we did, remember that the existing reward offer of $90 for executive Costco members, $70 for non-executive members, both via the code ‘COEXSTOCKUP’ when opening an account, expires in only 4 more days on 12/15/2008.  And you must complete the qualifying trading transaction by 1/31/2009.

Tags: Brokerage · Rewards Programs

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