Plynk is a standalone brokerage app that’s quietly a subsidiary of a subsidiary of Constancy Investments. It appears to be a spot the place they’ll experiment with a youthful target market with instruments like computerized recurring investments, simulated buying and selling, instructional instruments, and so on. They’ve additionally provided a couple of worthwhile bonuses within the app. Plynk simply underwent one other design reboot, and – shock! – the interface now seems to be much more like Robinhood.
Plynk additionally simply added a brand new promotion referred to as Dividend Match (hat tip DoC), which pays you a bonus of 25% of the dividends your taxable brokerage account holdings earn every calendar month, as much as $250 max per 12 months. Necessary highlights:
- Dividend match is out there to each current and new clients. No opt-in required.
- Eligible shares. For frequent inventory and non-daily accrual mutual funds and ETFs, it’s essential to maintain for a minimum of 30 calendar days previous to the ex-dividend date to obtain the Bonus. For mutual funds and ETFs that accrue each day curiosity and usually pay a dividend on the finish of every month, there isn’t a required holding interval.
- System: Eligible_Shares × Dividend_Per_Share × 25% topic to the $250 annual cap on Bonus quantity.
- The annual cap resets on January 1 of every 12 months.
An attention-grabbing bonus that would appear to incentivize clients to keep up their (dividend-paying) holdings at Plynk. The S&P 500 dividend yield is simply round 1% now, however for those who moved over round $100,000 and usually would get $1,000 in annual dividends, now you may get an additional $250 in dividends.
iShares 0-3 Month Treasury Bond ETF (SGOV) is a each day accrual ETF that holds short-term Treasury payments and generally is a helpful approximation of money. Proper now, SGOV has a 30-day SEC yield of three.54%. Should you bought a 25% bonus on that yield, you’d be getting 4.43%.
You would additionally do that with Vanguard 0-3 Month Treasury Invoice ETF (VBIL) which has a barely decrease expense ratio and thus barely greater SEC yields, however a tiny bit greater bid/ask unfold at instances (though it’s just about one cent like SGOV).
You’d have to carry just a little over $28,000 in SGOV/VBIL as a way to attain the $1,000 in annual dividends to max out this promo.
I’m guessing the cash could be reported as 1099-MISC, so the tax charge would even be greater than regular curiosity.
This could be good if it was a everlasting or assured characteristic. I’m contemplating it particularly as I have already got an open account, however I’m afraid Plynk will finish the promo shortly regardless that it’s meant as an ongoing provide with no set expiration date.