Are those bank account opening bonuses worthwhile?

[BAD]

I got a flyer for $350 from a bank as long as I direct deposit $500 in 90 days.

that seems neat

downside is I love my current bank... it's on my way home, my credit cards are with the same bank, their app is good, and I'm trying to simplify.

but man $350 is awesome! That would snag me an upgrade on my Apple Watch next month in my budget range.
Do these usually work out? Are they worth it?

I have seen these in my mail before but never this high

 

[Tremagus]

Yep. I did it and it worked great for me since I needed the cash when my car was busted last year. Signed up for Chase during a $300 promo

 

[Ziltoidia 9]

Only do it when you are looking for a new account and read to see if there is a monthly deposited minimum.

 

[AxeVince]

Read the fine lines, usually, it's an amount at the opening, but you must stay for a certain time, and pay fees for your account that usually amount to the offered money on opening, or monthly deposit or stuff like that (at least where I am).

 

[cupcakeunicorn]

Do you have to switch from your current bank, or can you just open a new account without closing your existing account?

 

[SpottieO]

I wouldn't do it just for the $350. If you like your bank I would say it's probably worth staying.

$350 is what I have been seeing from Chase lately.

 

[RecRoulette]

Yep. I did it and it worked great for me since I needed the cash when my car was busted last year. Signed up for Chase during a $300 promo

Click to shrink...

Shit, I looked in this thread because I just got the same chase promo thing. No minimum, just have to have work direct deposit to it (which isn't a big deal).

Don't really have a problem with my current bank and but I'm not attached to it either

 

[cyress8]

You sure the account does not come with a maintenance fee? If it does, that extra amount will just be eaten by that fee.

 

[ThreePi]

Kind of like with credit card churning, I think there are people that take advantage of this and keep track of what banks they're opening an account with.

I've never done it and i should have years ago because my company used to offer the ability to split up your paycheck into two different direct deposit accounts but they stopped doing that about a year ago.

You sure the account does not come with a maintenance fee? If it does, that extra amount will just be eaten by that fee.

Click to shrink...

I think the fine print usually requires a minimum account balance and it has to be opened for a certain amount of time or they'll claw back the bonus.

 

[Katamari]

I've done it. I set up automatic payment to leave the account after it direct deposited the minimum to get fees waived.

I also do credit card signup bonuses once a year. I'm such a degen.

 

[SpottieO]

You sure the account does not come with a maintenance fee? If it does, that extra amount will just be eaten by that fee.

Click to shrink...

It's just a front end bonus on a standard checking account so yeah there would probably be a monthly service charge but it's usually waiveable.

I think the fine print usually requires a minimum account balance and it has to be opened for a certain amount of time or they'll claw back the bonus.

Click to shrink...

Obviously might vary but a lot of times the cash bonus is not given until after the conditional period.

 

[Drowner]

Yeah I did this with Chase Bank. Like people said, check the requirements- on mine I have to direct deposit 500 a month to not pay the monthly fee and keep the account open for I want to say 6 months to not have the bonus amount charged back. I closed the account then about a year later opened up another Chase account and got the bonus again. They won't let you close your account and immediately open a new one for the bonus, but I guess after a year I was considered a new customer. And Chase was pretty quick to get the money to me. It was I want to say no more than 3 weeks after I set up the direct deposit. I recently opened a 3rd checking account with a different bank for a bonus and this one is taking far longer. They're supposed to pay me within 5 months of opening the account. Anyway that info should also be on the flier/email.

 

[onadesertedisland]

You have to pay income taxes on the bonus

 

[Netherscourge]

Annual fee, taxes, minimum balance, under-minimum penalty, etc...

read the fine print

 

[BAD]

You have to pay income taxes on the bonus

Click to shrink...

 

[ConanEd]

Yeah I do 3-4 new accounts every year between me and my wife.

 

[Deleted member 16365]

I heard a story once about a woman who went in with her nephew to open a new account because they'd get a free toaster. This bank teller who was kind of a comedian, denied her toaster even after she opened an account because she didn't put enough money in.

To make matters even worse, a guy tried to rob the bank while they were in there. Her nephew ran off, but fortunately Spider-Man showed up.

 

[Deleted member 11985]

Meh, it doesn't really seem worth it with the potential for hidden fees and whatnot. Plus, I think it would lower the average age of all your accounts, which affects your credit score.

 

[SpottieO]

Meh, it doesn't really seem worth it with the potential for hidden fees and whatnot. Plus, I think it would lower the average age of all your accounts, which affects your credit score.

Click to shrink...

Age of checking accounts is not a component in credit scores.

 

[Deleted member 11985]

Age of checking accounts is not a component in credit scores.

Click to shrink...

Oh, nevermind about the credit score part, then. It still sounds not worth it to me, in my opinion.

 

[Endymion]

Kind of like with credit card churning, I think there are people that take advantage of this and keep track of what banks they're opening an account with.

Click to shrink...

Yep, my fiancee and I got into doing bank account bonuses recently after churning credit cards for a while. As long as you can afford to have money sitting around in different accounts and pay close attention to the terms, it's absolutely worth it.

 

[gaugebozo]

Every once in awhile, Chase offers me $1,250 if I put $250,000 in an account. It's like, you fuckers know how much I earn!

 

[Deleted member 4574]

I left the commercial banking sector where most of these offers come from but can echo that you'll absolutely want to check the terms on those accounts before opening-- check for minimum balances, direct deposit requirements, paper statement fees, etc etc. Also, depending on how the bank sets up its offer, there may be a 1099 associated with it. Again, not the biggest deal in the world but something to keep in mind.

As far as the credit score bit goes-- Chexsystems (the closest analogy to a credit check for a bank account screening) will show if there have been a substantial number of inquiries in recent times. Would we have ever turned down an account due to those inquiries? No, but it could lead to some additional verification especially if opened online.

 

[CatAssTrophy]

I would only do it for a savings account. I already have a Chase checking account with a savings account tacked on, but it's good to have multiple savings accounts if you're needing to separate emergency fund savings to "real savings".

My gf is super smart with all of that stuff and is very solid financially so I'll see if she can help me find a good bank for my savings account and hopefully there's a promo.

 

[Deleted member 4574]

I would only do it for a savings account. I already have a Chase checking account with a savings account tacked on, but it's good to have multiple savings accounts if you're needing to separate emergency fund savings to "real savings".

My gf is super smart with all of that stuff and is very solid financially so I'll see if she can help me find a good bank for my savings account and hopefully there's a promo.

Click to shrink...

The reason you'll very rarely (if ever) find any substantial promos for opening a savings account is because there's very little for the bank to make on that. Checking accounts are the revenue driver—usually interest-free, they drive fee income from debit card transactions, etc.

It's also the general banking assumption that you're less likely to close out your primary checking account. So the goal of those promos is to entice you to make their checking account your primary.

If you're looking for savings promos, I'd say look for membership offers at credit unions where you'd qualify for membership. Given the CU structure, your main share is what determines your membership so the checking account is more of an add-on.

Hope that helps to those reading this thread.

 

[Detective Loki]

I just did one with chase and it was the easiest ever.

opened account for free
Got direct deposit of a little bit of money (paycheck) within a week I had $300 immediately

 

[CatAssTrophy]

The reason you'll very rarely (if ever) find any substantial promos for opening a savings account is because there's very little for the bank to make on that. Checking accounts are the revenue driver—usually interest-free, they drive fee income from debit card transactions, etc.

It's also the general banking assumption that you're less likely to close out your primary checking account. So the goal of those promos is to entice you to make their checking account your primary.

If you're looking for savings promos, I'd say look for membership offers at credit unions where you'd qualify for membership. Given the CU structure, your main share is what determines your membership so the checking account is more of an add-on.

Hope that helps to those reading this thread.

Click to shrink...

This is actually very helpful, thanks!

 

[staedtler]

way too much work for $350, i wouldn't even wake up in the morning for $350

 

[BAD]

Ok I read the fine print real hard and this bank charges $21 a month for a checking account!!!!!

and the way you get it waived costs thousands so I'm out. This offer isn't worth it. After the tax on the bonus and their maintenance fee it would be like nothing.

I will stay with my current bank until a better offer comes

 

[Landy828]

Ok I read the fine print real hard and this bank charges $21 a month for a checking account!!!!!

and the way you get it waived costs thousands so I'm out. This offer isn't worth it. After the tax on the bonus and their maintenance fee it would be like nothing.

I will stay with my current bank until a better offer comes

Click to shrink...

Haha, yeah. There's always a catch.

Chase bank recently offered me $900!@#@ in a bonus to open an account. Fine print said there was a $28 a month fee and I had to keep $15,000 in the bank to waive the fee.

Hilarious.

 

[Graefellsom]

Best one I ever had was getting a gameboy pocket for free with a £50(I think) deposit in Halifax. I don't remember there being any catches tho.

 

[ReAxion]

ya read all the find print and absolutely take advantage of free bank money.

funny that this thread's here when yesterday i read a junk mail (rare thing to do) that was offering me $750 if i kept an average of $75,000 in my account! oh boy!

 

[The Albatross]

There's always a catch, but if you're looking for a new bank and would meet all of the requirements, sure, may as well chase the bonuses.

The reason you'll very rarely (if ever) find any substantial promos for opening a savings account is because there's very little for the bank to make on that. Checking accounts are the revenue driver—usually interest-free, they drive fee income from debit card transactions, etc.

It's also the general banking assumption that you're less likely to close out your primary checking account. So the goal of those promos is to entice you to make their checking account your primary.

If you're looking for savings promos, I'd say look for membership offers at credit unions where you'd qualify for membership. Given the CU structure, your main share is what determines your membership so the checking account is more of an add-on.

Hope that helps to those reading this thread.

Click to shrink...

Yep, for savings account bonuses my credit union offers a 7% APR for the first $1,000 of your savings account, and then the normal, nominally low APR (~0.25% or w/e) for any amount after that. Nobody's getting wealth on 7% of $1000, but it's a good bonus to get people to start a savings account.