Banks offer cash bonuses for opening new accounts, but the amount and the conditions vary widely
Some banks will deposit money into your new account within a few weeks of opening it — usually between $50 and $500, depending on the bank and the type of account. This is called an opening bonus or new account bonus. The bank is paying you to bring your business there, betting that once you have an account, you will stay and use their other services.
The catch is that almost every bonus comes with conditions. You might have to keep a minimum balance, set up direct deposit, make a certain number of transactions, or keep the account open for a set period. If you do not meet the conditions, you do not get the money — or the bank takes it back. Reading the fine print before you open the account is the only way to know whether a bonus is actually worth your time.
Key Takeaways
- Bank bonuses range from $50 to $500 but require you to meet specific conditions, such as setting up direct deposit or maintaining a minimum balance.
- Most bonuses are paid within 30 to 90 days of opening the account, but only if you have completed all the requirements.
- If you close the account before the required holding period ends, the bank will usually take back the bonus money.
- Checking accounts and savings accounts have different bonus structures — checking bonuses often require direct deposit, while savings bonuses usually require a minimum deposit.
- You can compare current bonuses on bank websites or financial comparison sites, but the terms change frequently.
What conditions come with the bonus
The most common requirement is direct deposit — your employer or benefits provider sends your paycheck or payment directly to the bank account. Some banks require the deposit to be a certain amount, like $500 or more per month. If you do not have direct deposit set up, you may not receive the bonus, or you may receive a smaller amount.
Other banks require you to make a minimum deposit when you open the account — often $500 to $2,500. This is money you put in yourself, not a paycheck. Some banks also require you to keep a minimum balance in the account for a set number of months. If your balance drops below that amount, you lose the bonus.
A third type of requirement is a minimum number of debit card transactions — for example, 10 purchases using your debit card within 60 days. Some banks count ATM withdrawals; others do not. A few banks require you to open a savings account at the same time or link accounts together.
Almost all banks require you to keep the account open for a set period, usually 90 days to six months. If you close it earlier, the bank deducts the bonus from your final balance.
How much money are we talking about
The bonus amount depends on the type of account and the bank's current promotion. A basic checking account bonus is typically $50 to $200. A premium checking account — one with higher fees but more features — might offer $300 to $500. Savings account bonuses are usually smaller, between $25 and $100, because the bank is not expecting you to use the account as actively.
Online banks sometimes offer higher bonuses than brick-and-mortar banks because they have lower overhead costs. You might see $200 to $300 for a checking account at an online bank, while a traditional bank offers $75 to $150 for the same type of account.
The bonus is not taxable income in the way a paycheck is, but the bank will report it to the IRS if it is $10 or more. You may owe taxes on it depending on your total income, so it is worth asking your tax preparer or the bank about the tax treatment.
When you actually receive the bonus
Banks do not deposit the bonus when ready. Most wait 30 to 90 days after you open the account, and only after they have confirmed that you met all the conditions. If you set up direct deposit, the bank will wait for that deposit to arrive and clear before counting it toward your requirement. If you need to make a minimum number of debit card transactions, the bank will wait until those transactions post to your account.
Once the bank confirms you have met the conditions, it deposits the bonus into your account. You will see it as a credit on your statement. Some banks send you an email or notification when the bonus is deposited; others do not. Check your account statement 90 days after opening the account to see if the bonus has appeared.
Banks that currently offer bonuses
Many large banks offer opening bonuses, including Chase, Bank of America, Wells Fargo, and Citibank, though the amounts and conditions change frequently. Online banks like Ally, Charles Schwab, and Discover often have higher bonuses. Credit unions sometimes offer bonuses too, though they are less common.
The best way to find current bonuses is to visit the bank's website directly and look for a "New Customer" or "Promotions" section. Financial comparison websites also list bonuses, but they may not be updated in real time. Call the bank's customer service line if you are not sure whether a bonus is still available — promotions end and start throughout the year.
Before you choose a bank based on the bonus, make sure the bank itself meets your needs. A $200 bonus is not worth it if the bank charges high fees, has poor customer service, or does not have branches or ATMs near you.
What happens if you do not meet the conditions
If you do not complete the requirements — for example, you do not set up direct deposit or you close the account too early — the bank will not deposit the bonus. You straightforward do not receive it. Some banks will deduct the bonus amount from your account if you have already received it and then fail to meet the conditions, so your balance could go negative.
If your account goes negative because of a bonus clawback, you will owe the bank that money. They may charge overdraft fees on top of it. This is why it is important to read the terms carefully before you open the account and to keep track of what you need to do to earn the bonus.
If you are unsure whether you will meet the conditions — for example, you do not have direct deposit yet — it is better to wait until you do before opening the account. The bonus will still be there when you are ready.
Comparing bonuses across banks
When you are looking at bonuses from different banks, do not just compare the dollar amount. Calculate the real value by considering the conditions and how long you plan to keep the account open.
A $300 bonus that requires direct deposit and a $2,500 minimum balance is worth less to you if you do not have direct deposit set up yet or if you cannot afford to keep $2,500 in the account. A $100 bonus with no conditions might be more valuable because you will actually receive it.
Also consider the account itself. Some banks charge monthly fees unless you maintain a minimum balance or set up direct deposit. If you do not meet those conditions, the fees will eat into the bonus. A bank with no monthly fees and a $50 bonus might be a better deal than a bank with a $200 bonus and a $15 monthly fee.
Frequently Asked Questions
Do I have to pay taxes on the bonus?
If the bonus is $10 or more, the bank will report it to the IRS on a Form 1099-INT. You may owe federal income tax on it, depending on your total income. State income tax rules vary. Ask your tax preparer or the bank whether the bonus counts as taxable income in your situation.
Can I open multiple accounts at the same bank to get multiple bonuses?
Most banks allow you to open more than one account, but their bonus terms usually say you can only receive one bonus per person within a certain time period — often 12 months. If you open a second account before that period ends, you will not receive a second bonus. Check the bank's terms before you open a second account.
What if the bank closes my account before the bonus is paid?
If the bank closes your account for any reason before the bonus is deposited, you will not receive it. Banks can close accounts if they suspect fraud, if you violate their terms of service, or for other reasons. This is rare, but it is why you should avoid any suspicious activity on a new account.
Can I withdraw the bonus money right after I receive it?
Yes, once the bonus is deposited into your account, it is your money and you can withdraw it. However, if the bank's terms say you must keep the account open for a certain period, closing it early may trigger a clawback. Read the terms to see whether there is a holding period after the bonus is deposited.
Are online bank bonuses real, or is it a scam?
Online bank bonuses are real. Online banks are regulated by the same agencies as traditional banks and are required to honor their promotions. However, make sure you are visiting the bank's official website, not a third-party site. Scammers sometimes create fake bank websites to steal information.