A bank account bonus is a reward that you can earn when opening or switching to a new bank account. Online banks typically offer these bonuses, but they’re also available at some brick-and-mortar institutions.
What is a Bank Account Bonus?
A bonus is a sum of money given to you by a bank. In the context of bank accounts, it’s usually referred to as an “account opening bonus” or “sign-up bonus.”
There are many different types of bonuses, but they can be broadly categorized into two main groups: Checking account bonuses and savings account bonuses.
The first group includes checking accounts that offer some sort of rebate (or cash reward) on certain balances held in your account. For example, if you have $500 in your account at any given time, they may give you an extra $50 to say thank you for using their services!
This type of incentive, like a $300 checking account bonus, makes it easier for people who have very low balances above their minimum deposit requirement. There’s no need for any extra effort like meeting spending requirements or keeping high balances over time like with credit cards – just use wisely with no additional risk involved.
Why Do Banks Offer Bonuses?
This is simple: to attract new customers, retain existing ones and increase customer loyalty. This is a practice that banks use to promote their brand as well as increase their market share. The Bonus also increases the bank’s profitability by generating revenues from new customers and increasing the balance size of existing customers.
SoFi professionals say, “Get a $300 bonus with qualifying direct deposits.”
When Can You Expect to Receive Bonus?
With your new bank account, you’ll be able to enjoy the perks of having a checking account. Keep in mind that some banks offer higher bonuses for opening a savings account instead; if you’re looking for something more than just a checking account, check out this guide to savings accounts.
If you want to know when the Bonus will hit your account after opening it, they’ve got good news: it usually happens within a few weeks of signing up and is paid quarterly or annually (depending on the bank). So the next time your Bonus hits depends on how long it’s been since your initial sign-up date. If it has been more than one year since then, expect another $300 in three months.
What Are the Potential Drawbacks of Taking a Bonus?
The reason that banks will offer you a bonus is that they have some type of extra capital available and they need to put it to work somewhere, or else it will go unused, which would be bad for business since the bank would instead lend out money than keep it in a vault somewhere collecting dust (and probably not earning any interest).
Bank account bonuses are a great way to boost your savings, but you should be aware of the potential pitfalls. They’re worth considering if you’re looking for extra money to put toward a goal, pay off debt, or even just enjoy having a little more disposable income each month.
Author : Alisha