Determine the Best Bonuses for a New Bank Account

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Most banks have always had incentives to lure new customers. In the old days, it was a giveaway like a toaster or a blender to sway you into opening an account. But today, banks use cold cash. How much money they will hand over depends on the amount deposited.

Finding the right offer can be challenging. How do you determine a good deal when choosing a bank for savings? Knowing the right criteria for deciding is important.

Choosing Bank Bonuses

Familiarize yourself with the bank’s qualifying requirements to ensure you'll earn the bonus. Check for other bank perks, such as another bonus or lower fees for opening multiple accounts.

Other requirements you should know include:

• deposit amount
• need to maintain an average daily balance
• make a certain number of transactions

Although most credit unions and banks offer online banking, if brink and mortar banking is essential to you, ensure there are branches in your area.

Resist the urge to switch all your accounts over to the new bank. Try to feel out the new bank and see if it’s a good fit for your financial plans before committing all of your money.

Pros and Cons to Savings Account Bonuses

There are pros to switching banks for a bonus. Most banks have simple requirements. You keep a minimum balance, and you receive your bonus.

Moving your savings account to another bank for the bonus could protect it against you dipping into it, which helps you save. And this also allows you to try a new bank.

One large con to switching banks for a bonus is the tax liability. The bank will issue a 1099-INT at year-end for the interest you’ve earned and the bonus. You could be required to pay taxes on it.

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You also have to make a large dollar commitment sometimes, which ties up your money. Many complain that it’s only available to new customers.

Use Alternatives to a Savings Bonus

If you’re open to higher risks and rewards, you may want to invest your money instead of stashing it in a savings account. But since it won’t be Federal Deposit Insurance Corporation (FDIC) insured, you could lose it, so discuss this with a financial advisor.

High-yield savings accounts are also a viable alternative. Some credit cards also offer bonuses if you spend a specified amount in one year.

If you want to investigate a bank offering bonuses, here are a few examples. These have been randomly selected, and you are encouraged to look online to find a bank that aligns with your financial plans.

Wells Fargo Checking Account Bonus

Up to $300 can be earned at Wells Fargo. You must open an Everyday Checking account through Wells Fargo’s checking offer website. You can also open one at a branch.

You must have a cumulative direct deposit of at least $1,000 within the first 90 calendar days of opening this account.

To be eligible, deposit at least $25 by Jan. 9, 2024.

SoFi Bank Checking and Savings Bonus

New SoFi customers can earn a bonus by setting up a direct deposit. The bonus amount is determined by the dollar amount deposited.

A direct deposit between $1,000 and $4,999.99 earns $50.

If you deposit at least $5,000, you'll earn $250. This promotion ends at 11:59 p.m. EST on Dec. 31, 2023.

Citi Priority Account Bonus Based on Deposit Amount

When you open an account, you‘ll have up to 20 days to deposit the minimum amount. You’ll also need to maintain that minimum balance for 60 consecutive days past the twenty-first day. If you fall below the minimum amount, your bonus changes.

All bonuses are paid within 30 days after the 60 consecutive days.

The bonuses increase based on the balance. For example, $10,000–29,999 earns a $200 bonus. The bonus increases as the deposit goes up. The highest bonus you can earn is $2,000 for a balance of $300,000 or more.

Discover Bank Offers Bonus

Open your first Discover Online Savings account and receive a $150 or $200 bonus based on your balance. When applying on their website, enter code WH923.

You can earn $150 for a deposit of at least $15,000 and $200 if your deposit is at least $25,000.

The bonus will be credited to the account within 60 days of qualifying.

This is only for new Discover Bank customers, and the offer ends Dec. 14, 2023, at 11:59 p.m. EST.

Is a Bank Bonus Worth It?

A bonus can seem lucrative, but make sure you understand the requirements. You’ll also want to check what the bank’s fees are.

Sometimes, sign-up bonuses come with stipulations. They might be geared toward adopting products and services that drive transactional behavior.

Although most offers are legitimate, check the nuances and ensure the account requirements align with your banking needs.

Bonuses look good, but a long-term savings plan is imperative. You'll want to make sure your savings account earns a high annual percentage yield.

Look beyond promotions and determine what income your money could generate on an ongoing basis.

The Epoch Times copyright © 2023. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.