Banks Are Offering Bonuses Of Up to $2000 for New Accounts

Banks are having a tough time right now. With rising interest rates, consumers aren't taking out as many loans and aren't applying for credit cards-especially the ones with astronomical interest rates that are still rising. Banks need a way to incentivize people to open new accounts or move money into savings and checking accounts. To incentivize new and existing customers, banks are offering anywhere from $100-$2,000 to people who open an account and add funds, and people with existing accounts switch to different savings or checking accounts.

Jumping Through Hoops

Like many of these “too good to be true” offers, you will need to jump through plenty of hoops to claim this money. To get some of these bonuses, you may need to move thousands (or sometimes tens of thousands) of dollars into the new account and leave it there for a set amount of time before you will earn the money.

You may also need to make certain deposit amounts every month for a specific amount of time and keep a minimum amount in the account at all times. “If you miss the requirements, you went through all that hard work for nothing,” says Brian Schmehil, managing director of wealth management at the Mather Group.

“The opportunity cost to earn a few hundred dollars versus going through the hassle to set-up everything with a new bank just usually isn’t worth their time,” says Caleb Pepperday, a certified financial planner at JFS Wealth Advisors in Pittsburgh.

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Don't Just Do It for The Money

When choosing which bank to entrust your money to, the bonus should only be part of the decision. In many cases, bonuses are a one-time thing, and the long-term investment may not be worth it. You may have chosen a bank or account that gave you that $2,000 bonus, but now you're stuck with a high annual fee for holding the account, or even worse, a high-interest rate that will change based on the Fed, and right now, interest rates are only rising.

Instead of just taking a one-time payout, consider placing your money in a high-rate savings account where it can grow over time.

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You've Got Options for Savings

MarketWatch put together a list of the five best offers for both checking and savings accounts if you're looking for a good bonus.

Alliant Credit Union

You are eligible for $100 after holding an Ultimate Opportunity Savings Account for a year and making deposits of at least $100 every month for one year. Current Alliant members are not eligible, so this offer is only a one-time deal.

BMO Harris

You can earn $5 per month or $60 per year by opening a Savings Builder account and depositing $200 every month for the first year.

Discover

You can earn a $150 bonus if you deposit at least $15,000 and $200 when you deposit at least $25,000 in a Discover Online Savings Account. The offer is not available to existing or former Discover savings customers, so this is a one-time deal. Accounts must be held for 30 days for you to qualify.

CIT Bank

You can receive one year of Amazon Prime, a $139 cash value offer, for free when you open a money market account using promo code AMZN22. There are caveats, though. You must have a consistent account balance minimum of $15,000 that must be reached in 15 days and held for 60 to qualify. The offer is available until March 24, 2024.

Regions Bank

If you set up the automatic transfer feature from your checking account to your LifeGreen Savings account, you can earn an annual bonus of up to $100. Regions bank is only available in certain states and the program requires some hoops to jump through, so do your research.

You've Got Options for Checking

Citi

You can earn $2,000 when you deposit and maintain a $300,000 balance and $1,500 for maintaining a $200,000 balance. This may seem like a lot of money, but you can also earn $200 for a $10,000 balance, and there is a sliding scale in between that includes other offers.

BMO Harris

New customers opening a checking account could receive $200 to $350 bonuses by opening a Smart Advantage Account, Smart Money Account, or Premier Account. The deal is one account per customer, and it must be opened between October 1st and December 1st.

SoFi

If you register and set up direct deposits, you can earn up to $250 after the money hits your account. Customers who deposit between $1,000 and $4,999.99 are eligible for a $50 bonus, and those who deposit more than $5,000 could earn up to $250 if completed within the 25-day evaluation period.

TD Bank

If you are a new TD Beyond Checking customer, you could be eligible for up to $300 when you make $2,500 in qualifying direct deposits within 60 days and before October 31, 2023. Existing checking account holders and those who had an account within the previous 12 months are not eligible.

Huntington National Bank

If you make the minimum deposit of $25,000, you can earn $300 when you open a Platinum Perks Checking account. Apply by February 23, 2023, to qualify.

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