How Do Bank Account Bonuses Work?

Bank bonuses are essentially an incentive with strings. If you follow all the requirements carefully, the bank will pay you the advertised bonus. But miss on any one of the rules, and the bank is entitled to scrap your bonus. The onus is on you to make sure you check off all the required boxes. This doesn’t mean bonuses are hard to earn. They generally have two types of rules: a direct deposit requirement and a required minimum balance for a set time period. Occasionally a bonus will require both of these, but more often, it’s one or the other. If direct deposit is required, the offer will generally specify the minimum amount that needs to be deposited and within how many days of first opening your account. Balance requirements also specify a dollar amount—in this case, how much you have to keep on account—and a time duration. Most typically, they require the minimum balance to be held at the bank for 60 or 90 days. After you meet the requirements, you are entitled to your bonus. That doesn’t mean you’ll receive it instantly. Most bank bonus offers will indicate an outside date (e.g., within 30 days of meeting the bonus requirements) by which they will credit the bonus to your account.

Are Bank Bonuses Worth It?

Scoring a bank bonus is like massively turbocharging the interest you can earn on your cash in the bank. The typical savings account pays less than 0.10% APY, and even the very best high-yield savings accounts in the country are paying far below 1%. In other words, it is really hard to earn much from your money right now. Earning a cash bonus can change that, by sending your annual percentage return into the mid to high single digits, or even double digits. Take a bonus offer of $300 on a $5,000 balance: that’s a 6% return earned in just a month. Or a $700 bonus earned on $50,000: that’s 1.8% over just two months, and is more than double what you can earn in the best savings account over a full year’s time. Also lucrative are the bonuses that don’t require a minimum balance, and instead focus solely on direct deposit. With no requirement for the cash that’s been deposited into the account to stay in that account, you can earn a bonus simply for the effort of changing your direct deposit instructions. The offers from Chase and HSBC are both good examples of earning free cash simply for setting up a new direct deposit routing.

Why Do Banks Offer a Bonus for Opening an Account?

You might wonder why banks are willing to pay this much to attract your business. The answer is really two-fold. First, the competition is tight in consumer banking, and banks and credit unions are almost always hungry for new customers. That’s because having enough consumer deposits on hand enables the bank to make more loans, which is where it likely makes the lion’s share of its profits. Second, the banks know that, in the end, they won’t have to pay that bonus amount for every customer they acquire. While you may personally be careful enough to follow all the bonus requirements successfully, others will in some way miss the mark on their end of the deal and thus be denied the bonus. So while the bank may sign up thousands of customers with a bonus offer, it will ultimately only pay bonuses to some fraction of those customers.

Are Bank Bonuses Taxed?

When banks pay you a bonus, they treat that payment just like any other interest payment on your account. And when the year ends and tax season rolls around, they will send you a 1099-INT form reporting the total amount of interest and bonus you received. To the IRS, there is no distinction between these two types of payments from the bank. On your tax return, all of that bank income will count as interest income, which is taxed at the same rate as all of your wages and other income.

What Is a Bank Account Bonus?

A bank account bonus is a reward that banks typically use to woo new customers into opening new checking and savings accounts, but banks offer bonuses for opening other deposit account types too. Bonuses have certain requirements and limitations which you’ll need to meet, such as depositing a certain amount of money for a pre-set period of time.

What Banks Are Offering Bonuses for New Accounts?

Banks that are trying to grow in size frequently offer bonuses as a way to bring more customers through the door. It’s similar to how an employer might offer signing bonuses to attract quality new employees. See our list of banks above for the best new account bonuses.

Can You Switch Bank Accounts for a Promotion?

Yes, you can switch banks to get a promotional offer. Once you’ve earned the bonus, it’s yours to keep and you can close your account at any time after that if you wish.

The Best Bank Account Bonuses for 2024

When you’re in the market for a new or additional checking or savings account, it can be lucrative to consider available bank bonuses. That’s because banks are so hungry for new customers that they aren’t just paying token gestures to win your business—many are offering hundreds of dollars to new customers. To help you earn as much as you can from a new account that meets your needs, we’ve rounded up our top picks for checking and savings account bonuses. We looked not only at bonus amounts, but how easy or difficult the requirements are to meet, how long you’ll have to wait for your bonus, what fees you might face, and all the other details you need to make a smart decision. Just be sure to read the bank’s fine print carefully. Scoring bank bonuses means following the rules, and you’ll want to make sure you follow everything to the letter because missing a requirement means missing your bonus. But don’t worry, our list of winners will arm you with the information you need, which can add a hundred or more free dollars to your bank balance.

The Best Bank Account Bonuses for 2024

Best Overall: Associated Bank
Best for a Modest Balance: Chase
Best for Building a Savings Habit: Alliant Credit Union

Best Overall : Associated Bank

188betLiên kết đăng nhập — Associated Bank

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For those who can set up direct deposit for their paycheck, pension, or Social Security benefits, Associated Bank offers one of the largest bank bonuses around, as well as one of the easiest to earn, making it our overall winner.

Pros

Bonuses of $300, $400, or $600 all represent a substantial return on your money
Very minimal direct deposit requirement
Gives you 90 days to make your direct deposits
Free checking option, plus two additional account choices

Cons

Direct deposit is required to earn the bonus.
Paper checks don’t come with the free checking account.
Very low interest rates on their other accounts (savings, money market, CDs)

If you don’t live in the upper Midwest, you may not have heard of Associated Bank, but don’t let that stop you from taking a look at their generous bonus offers of $300, $400, and $600. All you have to do is receive at least $500 in direct deposits during the first 90 days your checking account is open, and maintain an average daily balance of at least $1,000 during the second and third months. These easy requirements and the substantial reward earn it top marks for overall best banking bonus.

That minimal balance will earn you $300 cash back. But you can maximize your bonus by simply boosting your average daily balance to $5,000 during days 31-90, earning $400, or to $10,000 to reap the top bonus of $600.

This is a great return on your money. If you score the $600 bonus on a $10,000 balance, you’ve earned a 6% return. And the return on investment for the smaller balances is even better: 8% on $5,000, or a whopping 30% on $1,000.

To make the decision even more appealing, Associated offers three different checking account types, one of which is free, and the others with waivable monthly maintenance fees. The ability to conveniently send and receive money with Zelle is included, as is free access to more than 30,000 MoneyPass network ATMs across the country.

Best for a Modest Balance : Chase

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Chase’s current checking account bonus is one of the easiest to earn. And because its requirement for holding funds in the account is minimal, we’ve chosen it as the best bank bonus for those with modest balances.

Pros

Only direct deposit is required; no minimum balance is needed to earn the bonus.
The required direct deposit is only $500 in 90 days
If you live in a state where Chase operates, in-branch banking is possible.
The bonus will be paid within a short 15 days after meeting requirements.

Cons

The account charges a $12 fee, though it can be waived.
Other bank bonuses are higher if you can meet the requirements.

As the country’s largest bank, Chase hardly needs an introduction. It offers a full complement of virtually every type of bank account, loan, or credit card, and a well-honed website and mobile app for digital banking. It also operates over 4,800 branches across the country, more than any other bank. Add to that Chase’s minimal bonus requirements and we’ve got our winner for best bonus on smaller balances.

Earning Chase’s $200 checking account bonus is very straightforward. Simply have a direct deposit or deposits totaling at least $500 hit your new account within 90 days of opening. This stands out from most direct deposit bonus offers, because $500 across 90 days is very easy for most people to reach, making Chase a good option for those receiving smaller payroll or benefits checks. It’s also well-suited to those who don’t want to keep a lot of money in the account, as there is no balance requirement to earn the bonus. That said, the account does charge a $12 monthly maintenance fee, and one of the ways to have it waived is to hold a $1,500 minimum daily balance in this account, or $5,000 across multiple Chase accounts. There are fees if you withdraw from a non-Chase ATM: $3 fee per withdrawal in the U.S., Puerto Rico and the U.S. Virgin Islands, $5 fee per withdrawal at a non-Chase ATM outside of the U.S., Puerto Rico and the U.S. Virgin Islands. Surcharge Fees from the ATM owner/network still apply.

Fortunately, you can also waive the fee with electronic deposits of any kind. If your direct deposits and any other ACH deposits to the account total at least $500, your monthly fee will be waived.

Read our full Chase Bank review.

Best for Building a Savings Habit : Alliant Credit Union

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With its bonus paid at the end of a year of regular savings deposits, Alliant Credit Union earns our top award for best bank bonus aimed at helping you build a savings habit.

Pros

Very low balance requirement, and no direct deposit needed
The bonus amounts to more than an 8% return on your money
The account earns a competitive interest rate
No monthly maintenance fees on the account.

Cons

Smaller bonus than other offers
Must become a member of the credit union (though it’s easy and free)
Must wait a year to receive your bonus

Suze Orman wants you to get in a habit of saving every month, and she’s put her name behind a special savings account at Alliant Credit Union that rewards you for doing just that. It’s called The Ultimate Opportunity Savings Account and it’s a great choice for those who simply want to slowly accumulate savings, all while being rewarded with a little something extra after achieving that goal for a year. This earns it our top honor for best bank bonus for those building a savings habit. The way it works is you make a deposit into the savings account of at least $100 every month for 12 months. You need to keep that amount in the account so that at the end of the year, you still have at least $1,200 on deposit. At that point, Alliant will add its $100 bonus to your account.

This is a great return, though since it’s a small balance amount, the bonus is also small compared to other bank offers. But the account also pays a competitive high-yield savings rate on your balance and is completely fee-free, even providing free access to a network of 80,000 ATMs nationwide.

Joining Alliant is easy, and free as well. If you don’t meet one of their standard eligibility requirements such as working at a participating company or living in the Chicago area, you can still join by agreeing to a membership in their affiliated nonprofit, Foster Care to Success, which serves thousands of foster teens across the U.S. Alliant will even pay the $5 membership fee on your behalf.

Bottom Line

This list of winning bank bonuses should set up almost anyone looking for an account that matches their banking needs while also providing a significant cash infusion in exchange for following some basic requirements. For those who can manage a direct deposit, Associated Bank’s three bonuses are top-paying options, offering a generous bonus for a minimal direct deposit threshold and a modest minimum balance. It also scores high marks for requiring the minimum balance for such a relatively short time (60 days). Direct deposit is not possible for everyone, however. And for some, it’s simply not an appealing option. Our list of best bonuses for no direct deposit, for high earners, and for those carrying a low balance should provide something for everyone.

Compare Providers

Financial Institution	Why We Picked It	Key Benefit
	Best Overall	High return for a modest direct deposit and balance
	Best for a Modest Balance	Very minimal direct deposit and balance requirements
	Best for Building a Savings Habit	Be generously rewarded for monthly savings deposits

In the News: The Federal Reserve raised interest rates numerous times throughout 2022 and 2023 to cool high inflation. For its last four meetings, however, the Fed has held the federal funds rate steady, and signaled on Jan. 31 that the committee’s rate-hike cycle has almost certainly ended. While most Fed members expect two to four rate decreases will occur in 2024, the Fed has cautioned that it could be some time before the first cut is implemented.

After looking for a good bank account bonus, check out the institution's high-yield savings accounts and CD rates. These are directly impacted by the Fed's rate hikes. Depositing money into multiple accounts at the bank may help you maximize the amount of money you can earn on the cash you keep there.

Pros and Cons of Bank Account Bonuses

Pros

Can earn substantial sums
Access to new bank benefits
Requirements may be easy to meet
Good way to “test-drive” a new bank

Cons

Can be a hassle to switch
Some people are excluded
May require a substantial deposit
Bank account bonuses are taxable

Pros Explained

Can earn substantial sums: The best bank account bonuses are worth hundreds or even thousands of dollars, all for relatively little work on your part.
Access to new bank benefits: Many banks offer special benefits for customers, such as discounts with certain retailers or access to car-buying programs.
Requirements may be easy to meet: Some bank account bonuses don’t have too many requirements beyond just opening a new account and keeping a certain amount of cash there for a set period of time.
Good way to “test-drive” a new bank: If you’ve been thinking about switching all of your accounts to a new bank, this gives you a chance to see how it operates without committing all of your cash over just yet.

Cons Explained

Can be a hassle to switch: Bank account bonuses require you to meet certain conditions, which you’ll need to meet while still maintaining your current account (if you’re not switching entirely).
Some people are excluded: New bank account bonuses are generally only available to new customers that are depositing “new money” to the bank—i.e., cash that’s previously been stored at another bank.
May require a substantial deposit: The best bank account bonuses are frequently offered for people making the largest deposits, often ranging into thousands of dollars. Not everyone has that kind of money lying around.
Bank account bonuses are taxable: The IRS treats bank account bonuses the same as interest payments, meaning you’ll owe income taxes on them. The bank will issue you a 1099-INT at the end of the year for this.

If you’re not switching banks entirely it’s a good idea to develop strategies to maintain multiple bank accounts at once, such as by using budgeting apps or adding a task on your to-do list to check all your accounts regularly.

Alternatives to Bank Account Bonuses

You can earn a lot of extra money relatively easily with bank account bonuses, but there are other ways to put your money to work for you as well. Here are a few choices:

Investing: Although you won’t earn guaranteed returns like with an FDIC-insured bank account, it’s easy for anyone to get started investing.
Credit card bonuses: Many banks offer credit card bonuses if you sign up for a new account and spend a certain amount of money within the first three months.
Savings account bonuses: Many banks also offer bonuses if you sign up for a new savings account and meet the requirements to earn the reward.
Passive income side hustles: The whole blogosphere is full of passive income ideas and how-tos that can show you how to develop small income streams with a minimal amount of effort.
High-yield savings accounts and CDs: Many banks—especially online banks—offer very high rates on these two types of accounts. It’s not a bonus per se, but your returns could be even higher, especially over the long term. See the best high-yield savings accounts and the best CD rates to see what you could earn.

Frequently Asked Questions

How Do Bank Account Bonuses Work?

Bank bonuses are essentially an incentive with strings. If you follow all the requirements carefully, the bank will pay you the advertised bonus. But miss on any one of the rules, and the bank is entitled to scrap your bonus. The onus is on you to make sure you check off all the required boxes.This doesn’t mean bonuses are hard to earn. They generally have two types of rules: a direct deposit requirement and a required minimum balance for a set time period. Occasionally a bonus will require both of these, but more often, it’s one or the other. If direct deposit is required, the offer will generally specify the minimum amount that needs to be deposited and within how many days of first opening your account.Balance requirements also specify a dollar amount—in this case, how much you have to keep on account—and a time duration. Most typically, they require the minimum balance to be held at the bank for 60 or 90 days.After you meet the requirements, you are entitled to your bonus. That doesn’t mean you’ll receive it instantly. Most bank bonus offers will indicate an outside date (e.g., within 30 days of meeting the bonus requirements) by which they will credit the bonus to your account.
Are Bank Bonuses Worth It?

Scoring a bank bonus is like massively turbocharging the interest you can earn on your cash in the bank. The typical savings account pays less than 0.10% APY, and even the very best high-yield savings accounts in the country are paying far below 1%. In other words, it is really hard to earn much from your money right now.Earning a cash bonus can change that, by sending your annual percentage return into the mid to high single digits, or even double digits. Take a bonus offer of $300 on a $5,000 balance: that’s a 6% return earned in just a month. Or a $700 bonus earned on $50,000: that’s 1.8% over just two months, and is more than double what you can earn in the best savings account over a full year’s time.Also lucrative are the bonuses that don’t require a minimum balance, and instead focus solely on direct deposit. With no requirement for the cash that’s been deposited into the account to stay in that account, you can earn a bonus simply for the effort of changing your direct deposit instructions. The offers from Chase and HSBC are both good examples of earning free cash simply for setting up a new direct deposit routing.
Why Do Banks Offer a Bonus for Opening an Account?

You might wonder why banks are willing to pay this much to attract your business. The answer is really two-fold. First, the competition is tight in consumer banking, and banks and credit unions are almost always hungry for new customers. That’s because having enough consumer deposits on hand enables the bank to make more loans, which is where it likely makes the lion’s share of its profits.Second, the banks know that, in the end, they won’t have to pay that bonus amount for every customer they acquire. While you may personally be careful enough to follow all the bonus requirements successfully, others will in some way miss the mark on their end of the deal and thus be denied the bonus. So while the bank may sign up thousands of customers with a bonus offer, it will ultimately only pay bonuses to some fraction of those customers.
Are Bank Bonuses Taxed?

When banks pay you a bonus, they treat that payment just like any other interest payment on your account. And when the year ends and tax season rolls around, they will send you a 1099-INT form reporting the total amount of interest and bonus you received. To the IRS, there is no distinction between these two types of payments from the bank.
On your tax return, all of that bank income will count as interest income, which is taxed at the same rate as all of your wages and other income.
What Is a Bank Account Bonus?

A bank account bonus is a reward that banks typically use to woo new customers into opening new checking and savings accounts, but banks offer bonuses for opening other deposit account types too. Bonuses have certain requirements and limitations which you’ll need to meet, such as depositing a certain amount of money for a pre-set period of time.
What Banks Are Offering Bonuses for New Accounts?

Banks that are trying to grow in size frequently offer bonuses as a way to bring more customers through the door. It’s similar to how an employer might offer signing bonuses to attract quality new employees. See our list of banks above for the best new account bonuses.
Can You Switch Bank Accounts for a Promotion?

Yes, you can switch banks to get a promotional offer. Once you’ve earned the bonus, it’s yours to keep and you can close your account at any time after that if you wish.

How We Chose the Best Bank Bonuses

We searched the web for all the current bank bonus offers we could find, digging up almost 30. We then prioritized nationwide offers and those from banks serving a large number of states. From there, we compiled each offer’s bonus amount, direct deposit requirement, minimum balance and duration, and account fees, ultimately comparing the options to select our winners in each category.

188bet

The Best Bank Account Bonuses for 2024

Best Overall : Associated Bank

Best for a Modest Balance : Chase

Best for Building a Savings Habit : Alliant Credit Union

Bottom Line

Compare Providers

Pros and Cons of Bank Account Bonuses

Pros Explained

Cons Explained

Alternatives to Bank Account Bonuses

Frequently Asked Questions

How Do Bank Account Bonuses Work?

Are Bank Bonuses Worth It?

Why Do Banks Offer a Bonus for Opening an Account?

Are Bank Bonuses Taxed?

What Is a Bank Account Bonus?

What Banks Are Offering Bonuses for New Accounts?

Can You Switch Bank Accounts for a Promotion?

How We Chose the Best Bank Bonuses