More about bank bonuses: checking account bonuses, bank sign-up bonuses and more
What does the Fed rate announcement mean for bank account bonuses?
In July, the Federal Reserve announced it would not raise the federal funds rate (the rate which commercial banks use to borrow and lend money to one another). The Fed last increased the rate in July 2023. Before these latest pauses, the Fed had increased the rate 11 times in two years. While changes (or no changes) don’t directly affect bank bonuses, it could still be a good time to open a new bank account because previous Fed rate increases have resulted in higher savings account interest rates. So you could take advantage of both a bank bonus and higher APYs in a new savings account.
» MORE: See what the Fed rate means for savings accounts
Are bank account bonuses worth it?
Bank promotions can be worth the effort of opening a new account and adding money if the reward is substantial enough and the requirements aren't too difficult to meet. Before signing up for a new account to earn a bank bonus, understand the details including what fees might be incurred and how long you might have to wait for the bonus to be paid. If earning a bank sign-up bonus requires depositing more than $250,000 (which is the standard amount that’s insured by the Federal Deposit Insurance Corp.), you’ll need to employ certain strategies to make sure that all your money — including funds over $250,000 — is protected.
Our Nerds say:
"A cash bonus is appealing, but many checking accounts don’t earn interest, so you could miss out on thousands of dollars (much more than the maximum bonus) — which you could earn by putting that money in a high-yield savings account instead.
"Earning the highest bonus amount offered on this list requires at least $500,000. Depositing more than $250,000 would put you over Federal Deposit Insurance Corp. coverage limits, so you’d need to consider a strategy to protect all your money."
- Ruth Sarreal, NerdWallet banking writer
Check out more things to look out for when considering a bank sign-up bonus.
» Prefer an account that offers rewards beyond a sign-up bonus? Check out our favorite rewards checking accounts
What do the best bank bonuses have in common?
The best bank promotions offer the opportunity to earn a significant cash bonus for signing up for a new account with no fees or fees that are easy to get waived. The best bank bonuses for you are ones that have requirements you're comfortable with, including the amount of time you'll have to keep your money in the account to earn the bonus.
Are bank bonuses taxable?
If you’ve earned a cash bonus for opening a new bank account, it's usually taxable. You are responsible for covering any tax liability. Learn more about taxes on bank bonuses.
» Churning through accounts to get bonuses? Find out whether closing a bank account hurts your credit
Should I have more than one checking or savings account?
It can be helpful to have multiple bank accounts — as long as you can meet the requirements and minimums in order to avoid fees.
The number of checking and/or savings accounts you should have depends on your individual situation. Married or partnered people, for example, might each want to have their own accounts in addition to one or more shared accounts. You might want to consider having accounts at different financial institutions for different purposes — such as having an account with a bank that works well for international travel if you’re frequently abroad, or with the bank that handles your mortgage or other loans for more seamless payment transfers. (Learn the pros and cons of keeping multiple bank accounts at different banks.)
» Looking for the right place to keep your savings? Check out NerdWallet's picks for the best savings accounts
Frequently asked questions about bank promotions and sign-up bonuses
Keep reading to find out answers to commonly asked questions about checking account bonuses and other bank promotions.
What bank gives you a bonus for opening an account?
Various banks and credit unions offer cash sign-up bonuses for opening a new account. You can find the best opportunities available by checking out our list of the best bank bonuses and promotions, updated monthly.
What bank gives you money for opening a checking account?
Banks that offer a checking account bonus to new account holders include Bank of America, Chase, Citibank, PNC Bank, SoFi Bank, TD Bank, U.S. Bank and Wells Fargo. See this page each month to find the best checking account promotions available.
What banks are paying $500 to open an account?
Currently, this is the best bank bonus that pays $500 or more:
Chase Private Client checking account bonus.
How can you get $200 from Chase?
A previous bonus offered new checking customers the opportunity to earn a $200 Chase checking account bonus by opening a Chase Total Checking® account and meeting requirements. The bank now offers a Chase Total Checking® bonus of $300.
What is the $3,000 bonus at Chase Bank?
Chase Private Client Checking offers a bonus of up to $3,000 for opening a new account. Read the promotion details above to understand all the rules and requirements to earn the checking account bonus, including a super steep minimum transfer amount that may not be worthwhile.
The information related to Citi checking accounts has been collected by NerdWallet and has not been reviewed or provided by the issuer or provider of this product or service.
