Banks are offering cash bonuses to open checking accounts, but the terms change month to month

In May 2026, several major banks and online banks are running promotions that pay you cash when you open a new checking account and meet their conditions. These bonuses typically range from $50 to $500, depending on the bank and how much you deposit or how long you keep the account open. The catch is that each offer has specific requirements—minimum deposits, direct deposit setup, or a waiting period—and the offers themselves shift regularly. What's available today may be gone next month, and new offers may appear in their place.

The bonuses are real money, not credits or discounts. The bank deposits the amount directly into your new account once you've met the stated conditions. However, the conditions matter more than the bonus size. A $200 bonus that requires a $25,000 deposit for 90 days costs you opportunity cost in interest you could have earned elsewhere. A $75 bonus with no deposit requirement and no waiting period is often the better deal.

Key Takeaways

  • Checking account bonuses in May 2026 typically require you to meet one or more conditions: a minimum deposit, setting up direct deposit, or keeping the account open for a set number of months.
  • The bonus amount does not reflect the quality of the account—a smaller bonus with fewer strings attached is often worth more than a large bonus with expensive conditions.
  • Banks publish their current offers on their own websites and through comparison sites, but the terms change frequently and vary by your location and account type.
  • The bonus is taxable income, so you will receive a 1099 form from the bank if the bonus is $10 or more, and you must report it on your tax return.

How to find what banks are offering right now

The best source is the bank's own website. Major banks like Chase, Bank of America, Wells Fargo, and Citibank post their current checking account offers on their homepage or in a promotions section. Online banks like Ally, Charles Schwab, and Discover also list their offers prominently. Comparison sites like Bankrate, NerdWallet, and DepositAccounts aggregate current offers, but they update at different speeds, so cross-check with the bank's website before you open an account.

Location matters. Some banks run different promotions in different states or regions. If you see an offer on a comparison site but cannot find it on the bank's website, call the bank's customer service line and ask whether the promotion is available in your state. Regional banks and credit unions may have offers that do not appear on national comparison sites at all.

What conditions banks typically attach to bonuses

The most common requirement is a minimum deposit. This can range from $500 to $25,000, depending on the bonus size. The money must usually be in the account within a set window—often 10 to 30 days after opening. Some banks count transfers from other accounts; others require the deposit to come from an external source (a paycheck, a wire transfer from another bank, or a check deposit). Read the fine print carefully, because depositing your own money from another account you own may not count.

Direct deposit setup is another common condition. The bank may require you to set up at least one direct deposit (usually a paycheck) and have it post to the account within 60 days. Some banks require the direct deposit to be a certain amount—$500 or $1,000 per month—to count. If you are self-employed or do not receive regular paychecks, this condition may be difficult to meet.

A holding period is less common but still appears in some offers. The bank may require you to keep the account open and maintain a minimum balance for 90 days or six months before the bonus posts. If you close the account early, you forfeit the bonus. A few banks also require you to make a certain number of debit card purchases or transfers within the first month.

The real cost of a bonus with strings attached

A $300 bonus sounds large until you realize it requires a $20,000 deposit for 90 days. If you could have earned 4% annual interest on that money elsewhere, you've given up roughly $200 in interest to get a $300 bonus—a net gain of $100, but only if you were not going to use that money during those three months. If the $20,000 is money you need to spend, the bonus is not worth the friction of keeping it locked away.

Compare the bonus to what you would earn in interest at the same bank. If the checking account pays 0.01% interest and requires a $15,000 minimum balance, and you have to keep $15,000 there for six months to get a $150 bonus, you're earning roughly $0.75 in interest plus $150 in bonus—$150.75 total. That's reasonable. But if a different bank offers a $100 bonus with no minimum balance and a high-yield savings account that pays 4.5%, you might come out ahead by opening the savings account instead and skipping the checking bonus altogether.

Tax treatment of checking account bonuses

The IRS treats checking account bonuses as taxable income. If the bonus is $10 or more, the bank will send you a Form 1099-INT (or sometimes a 1099-MISC) in January of the following year, showing the bonus as interest income. You must report this on your tax return, even if the bank does not send a form.

The tax impact is usually small. A $100 bonus adds $100 to your taxable income for the year. If you are in the 22% federal tax bracket, that's roughly $22 in additional federal tax. State taxes vary. Some states do not tax this income; others do. Check your state's rules or ask a tax professional if you are unsure.

Red flags and things to avoid

Be skeptical of any offer that requires you to pay money upfront or that promises a bonus before you open the account. Legitimate bank bonuses are free. If a website asks you to pay a fee to "unlock" a bonus or to verify your identity beyond what the bank itself requires, it is a scam.

Avoid opening multiple accounts at the same bank in a short time to chase bonuses. Most banks have rules that disqualify you from a bonus if you've opened an account at that bank within the last 12 months (or sometimes 24 months). The bank will not tell you this until after you've opened the account and failed to meet the condition, so you'll lose the bonus and be stuck with an account you did not want.

Do not assume a bonus offer is still active just because you saw it advertised. Banks end promotions without notice. Always check the bank's website directly before opening an account, and read the terms carefully. A promotion that was active in April may be gone by May.

How bonuses compare to other ways to earn cash from banks

Some banks offer referral bonuses—you refer a friend, they open an account, and you both get paid. These typically range from $25 to $100 per referral and have fewer conditions than account-opening bonuses. However, you need friends or family willing to open accounts, so this is not an option for everyone.

Credit card sign-up bonuses are often larger than checking account bonuses (sometimes $500 or more), but they come with the risk of overspending and carrying a balance. A checking account bonus has no spending requirement and no interest charges, which makes it lower-risk but also lower-reward.

High-yield savings accounts sometimes offer bonuses too, though they are less common than checking bonuses. The advantage is that your money earns interest while you wait to meet the bonus conditions. The disadvantage is that savings accounts have withdrawal limits, so the money is less accessible than in a checking account.

Frequently Asked Questions

Can I get a bonus from the same bank twice?

Most banks have a rule that disqualifies you from a bonus if you've opened an account at that bank within the last 12 to 24 months. Chase, for example, typically requires 12 months between bonuses. Check the bank's terms before opening a second account, because the bank will not refund the bonus if you violate this rule.

What happens if I close the account before the bonus posts?

You will lose the bonus. If the bonus has a holding period (for example, 90 days), closing the account before that period ends means the bank will not deposit the bonus. Some banks will refund the bonus if you close the account after the holding period but before the bonus actually posts, but this varies. Ask the bank in writing before you close the account.

Do I have to keep money in the account after the bonus posts?

No. Once the bonus is in your account, it is yours. You can withdraw it or close the account when ready. However, if the bank's terms require a minimum balance to avoid monthly fees, you may want to keep some money in the account to avoid being charged. Read the account's fee schedule before opening it.

Will a checking account bonus hurt my credit score?

No. Opening a checking account does not trigger a hard credit inquiry and does not affect your credit score. Banks may do a soft pull to check for fraud, but this does not show up on your credit report and does not lower your score.

What if the bank changes the bonus terms after I open the account?

The terms that applied when you opened the account are the ones that explore to you. If the bank lowers the bonus or changes the conditions for new customers, your account is grandfathered under the original offer. However, if you close the account and reopen it later, the new terms explore.