Banks Are Offering Hundreds of Dollars to Open a Checking Account. What's the Catch?
- The Share of Homes for Sale With Price Cuts Hit a 6-Year High
- Young Job Seekers Are Falling Victim to a ‘Money Mule’ Scam
- When Will the Fed Cut Rates? Cooling Inflation Builds Hope for September
- To Save Money on Insurance, Drivers Are Agreeing to ‘Incredibly Intrusive’ Monitoring Technology
- Why People Are Giving up on Buying Vacation Homes
- The Average Tuition Discount at Private Colleges Hits 52%, a Record High
- Federal Student Loan Interest Rates Are About to Increase
- FAFSA Update: What to Do if You're Still Waiting for a College Financial Aid Letter
- FAFSA 'Crisis' Continues With Delayed Financial Aid Letters, Fewer Students Applying
- Some Student Loan Borrowers’ Payments Paused Due to Billing Errors
The battle of bank bonuses is heating up. As financial institutions compete for deposits in a high-interest rate environment, they have increased their cash bonus offers for customers who open new checking accounts.
The average checking account promo is now just over $400, up from about $300 in 2021, according to Curinos, a financial data company.
Intended as a hook to attract customers, these bank bonuses can be an easy way to make extra cash. But before you bite, there are also some potential risks you should know about like unexpected fees, taxes and the possibility of being denied on future account applications.
Ultimately, you should choose a bank to use for your checking needs based on factors like ATM locations, fees, overdraft protection and money transfer options — not a one-time bonus.
Bank account bonuses: How they work
To cash in on bank bonus deals, new checking customers need to satisfy specific requirements, which vary from bank to bank but can be as simple as creating an account and receiving a couple direct deposits. (Two paychecks for a typical worker would satisfy many banks' requirements).
However, the highest-dollar promos have significant deposit minimums. For example, Wells Fargo is running a $2,500 bonus for opening a Premier checking account and making $250,000 in deposits. The bonus is paid after 90 days if you meet all the requirements.
Even if you can't drum up that kind of cash (or an amount anywhere near it), you can still qualify for decently large bank bonuses in 2024.
