What Is a Bank Bonus?
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How Do Bank Bonuses Work?
Why Do Banks Give Sign-Up Bonuses?
Checking Account Bonus Pros and Cons
Account holders can often still use other banks and credit unions. Sometimes it’s necessary to transition all of your financial activity over to a new bank, but many times it’s not. A one time deposit is sometimes all that is needed to receive a bank account bonus, so you may be free to stay with your financial institution of choice. They are often quite simple to qualify for. Even though money is often involved, receiving a bank account bonus may not take too much effort. It depends on the bank, but you may only need to make a small deposit or leave your money in an account for a few months (much like a certificate of deposit). You may realize you like the new bank more than your old one. While many banks are able to offer the same amount of features, it’s possible some bank accounts with bonus perks offer things your old one can’t (such as a larger ATM network). If this happens, you may decide to switch over all of your banking activity.
Opening too many may affect your ability to open a bank account in the future. Just as credit card companies keep track of your history with debt and revolving accounts, banks and credit unions maintain records of your banking history. If you open up too many accounts to take advantage of bank bonuses, you may not be able to open an account when you sincerely need to. Banks may charge fees even though it offers bonuses. Many banks have monthly fees, so it’s important to keep track of the monthly cost of opening a new checking account. The fees may eat too much into the bonus to warrant doing it. Money may be tied up for a few months. You may be required to leave money in the checking account for a period of time to receive the sign-up perk. Should you need to spend your money, you may not receive the bank sign-up bonus.
Savings Account Bonus Pros and Cons
The bonus will help you build your savings. The bank bonus may help you boost your savings and reach your financial goals sooner. Perks may be an ongoing incentive to stay. Some bank bonuses are not just a one-time thing. Some of them can happen on a routine basis provided you continue to meet the eligibility requirements. May not have to leave the money in the savings account for long to receive the bonus. Some financial incentives can take a few months to qualify for, but others don’t. You may only need to make a one-time deposit to automatically qualify for a bank bonus.
Fees can eat into profits. As with checking accounts, some banks charge savings accounts fees. You may be able to parry the fees by having a minimum balance, but it depends on the institution. Before you sign up with any bank, make sure you understand what fees you’ll be charged month to month. May require more money than you routinely have. Once again, it varies on the financial institution, but to receive a bank bonus you may need to deposit more money than you’re currently able to. You may be better off finding a high interest savings account. Some banks only offer perks one time to new clients who are able to meet very specific requirements. Even if you meet those requirements, you may get a better return by parking your money in a high interest savings account. Unlike perks, high interest savings rates last forever.
How to Find Bank Accounts With Bonuses
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