Depending on your age, you can receive up to $500 in a bank account bonus. While it may seem like a small amount, bank bonuses are important for attracting new customers. These incentives allow financial institutions to attract new deposits.
Some banks even offer referral links that allow existing customers to receive a bonus. If you are new to a particular bank, there are ways to increase your chances of getting a bonus. However, many of these bonuses are only offered to new customers. Here are 9 tips that may help you qualify for a bank account.
1. How does It Work?
First, you should understand how bank account bonuses work. Some banks only give a bonus on checking accounts, while others offer savings account bonuses. When it comes to obtaining checking account bonus offers, you must meet certain requirements before you can claim them.
Most banks require that you keep your account for a specific number of months in order to receive a bonus. If you don’t keep your account for the required time, you risk clawing back your money.
2. Minimize Fees
You should try to find a bank that won’t charge you any fees for opening an account. Some banks offer accounts with no minimum balance requirements, while others waive monthly maintenance fees if you sign up for direct deposit or paperless statements.
Even though the deposit is small, it helps to be aware of these little details in order to receive the full bonus.
3. Establish a relationship with your bank
Whether you work in banking or not, it is important for you to establish a relationship with the customer service representative when opening an account. If you manage several accounts, it is likely that one of them has poor service or hidden fees.
You should consider moving your money to a bank with better service. However, if you do not have the funds to transfer your account(s), you may want to get in touch with your financial institution for help.
4. Undergo a ChexSystems Check
If you made several mistakes in your banking history, you risk qualifying for checking accounts that offer deposit bonuses. However, you will likely have to undergo ChexSystems check in order to open an account with these types of banks.
This means that if you were ever declined or canceled a checking account due to numerous overdraft fees, it is unlikely that you will qualify for bonuses again.
5. Understand the Fine Print
Finally, make sure that you understand the fine print before opening a bank account. For example, some banks offer $200 for signing up for direct deposit within 60 days of opening an account.
However, these same companies may charge you $10 per transaction over the limit if your checking account is linked to savings or other accounts. You should carefully read any promotional details about high-interest rates and promotional offers before the signup process.
6. Check Terms and Conditions
When shopping for a new bank, be sure to check the terms and conditions of each bank’s bank account bonus. You should be able to easily find a good bank account bonus on the internet.
It’s essential to check out the fine print on the bank’s website to be sure that you’re signing up for the right deal. Some banks offer free cash for opening a checking account, while others require a minimum deposit.
If you don’t need the money immediately, you might be better off choosing a bank with a lower minimum deposit requirement.
7. Tax Implications
The other important thing to consider when comparing bank account bonuses is the tax implications. Any bonus that’s worth more than $10 is likely to be reported as Net Investment Income, which is taxed like interest.
You’ll have to pay Net Investment Income tax on it, and this will be reported to the IRS. But a bank’s bonus is still a great sign-up incentive for new customers. Nonetheless, it is important to check the terms of the offer before signing up for any new account.
8. Consider the Interest Rate
When you’re looking to open a bank account, you should consider the interest rate. While a bonus may not seem like a lot, it’s important for you to maximize the potential of your money.
You may even get a bank account bonus for doing a certain activity, such as a certain number of transactions. When you have more money than you need, it’s worth it to use it in other ways.
9. Check Requirements Carefully
It’s crucial to check a bank’s bonus requirements carefully. A bank can have different requirements for new customers. A bank may require an initial deposit, while others will require a direct deposit.
Some banks will offer a bonus for new customers who set up an account online. But you’ll need to read the details of the bonus to make sure you’re getting the best deal. This is an added benefit, and it’s worth taking the time to find out more about it.
A bank account bonus is nice, but it’s not the most important factor. The more accounts you have, the more work you’ll have. Adding a bank account, however, can also increase your responsibilities. A large bonus could cost more than the extra cash you’ll earn.
Hence, it’s important to compare the features of different banks before you decide on one. It’s worth noting that most banks’ bonuses are usually akin to a monthly maintenance fee, but the latter is a good indicator.
When you have a bank account for a certain period of time, you can increase your chances of getting a larger bonus. It’s worth opening a bank account with a large and reputable bank. One reason is that some financial companies will only partner up with banks from specific areas. So choose carefully.