GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
However, switching banks can have a significant financial benefit even with the added work involved.
The reason is the massive incentives many banks offer to attract new customers.
Here are some tips tohelp you take advantage of these bank incentives.
How Do Bank Bonuses Work?
Banks will offer incentives to attract new consumers and businesses to open accounts.
Plus, some banks also offer referral bonuses to their existing customers who refer friends and family.
The requirements will fluctuate from bank to bank depending on the incentive being offered.
Bank bonuses are great for customers for a multitude of reasons, said Matt Bundrick, co-founder ofBankBonus.com.
Many allow consumers and businesses to get some extra cash rewards for completing relatively simple tasks.
Savings accounts will typically require you to make a deposit into your new account.
Smaller $100 bonuses might come with fairly easy requirements.
However, larger bonuses can have a lot of strings attached.
There have been $1,500 incentives to new customers that require deposits totaling $200,000.
Thats not going to be possible for most people.
Banks have very specific requirements for how to go about earning the bonus, Bundrick said.
One wrong move and you could be disqualified.
Some banks are also going to have early termination penalties.
They dont want someone opening a new account, getting the bonus and leaving.
Understanding these fees early can help you avoid mistakes.
While the bonus might be attainable, there might be terms on the account that dont work for you.
Many bank accounts at traditional brick-and-mortar banks charge monthly maintenance fees.
While there are usually ways to waive these fees, it might not be feasible for your situation.
Keep in mind that not all accounts are created equal, Bundrick said.
Be sure you factor this into the equation before jumping on a bonus.
That means its important to set aside enough of the bonus to cover the taxes owed.
However, its important to keep detailed records of the account.
This is going to help ensure you complete all the requirements needed to receive and keep the bonus.
This helps me keep track of everything so there arent any surprises.
Earning a bank bonus can be a great way to earn a little extra cash for switching banks.
However, its important to do your due diligence before signing up.
More From GOBankingRates
Share This Article:
