I don't know what is up with ING Direct, they are selling to Capital One yet there have been all sorts of deals from them lately. I just received an offer from Sharebuilder (owned by ING Direct) and I am unsure if I should take it, though I am leaning towards it.
The deal is deposit $100 per month from September through December and get $50 in January. Sounds like a great deal, right? Problem is that I would have to pay $4/month to deposit the money into the S&P fund I have plus an additional $4 to remove the money. This would amount to $20 that would be coming out of the $50 bonus. The $50 is not tax free, however and I would have to pay an additional $5 in tax on the $20 fees so really for depositing $400 I would get $25 before taxes. That is a 6.25% return which is great however it is not without risk. I would depositing the money in a S&P fund which is risking and I could lose that 6.25% bonus in day.
Then again, if I did not use this deal, the $400 would be going in my Roth IRA and would be in the stock market anyway. The only differences are what fund the money is in and taxable vs tax free accounts. Are those differences worth not getting the $25? What does everyone think? What should I do?