How You Can Earn Thousands Just By Opening a High Yield Savings or Checking Account
The world of personal banking is a competitive one. Most people don’t switch banks often, so luring someone away from their current banking situation takes an enticing sign-up bonus or a super-competitive interest rate. There have been some interesting bonuses given out to new customers recently, but as with everything in life, there’s a catch.
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According to MarketWatch, the catch is often the obligation to significantly fund a new account, by transferring over a minimum deposit requirement. To receive a large sign-up bonus, you might have to deposit tens of thousands of dollars, or in the case of a recent promotional offer, at least $7 million to get a $20,000 bonus in return.
“One of the primary reasons there are large balance requirements is that the more money a bank has in deposits, the more money they can lend out to other customers, which is one way they can make money,” said Adrianna Adams, a certified financial planner (CFP) and head of financial planning at Domain Money. “By offering cash bonuses for large deposits today and increasing their overall deposits, the banks can lend out more money to borrowers and increase their own revenue.”
The $20,000 was offered by M1 Financial, which isn’t a bank but rather a technology company that offers brokerage accounts to those who want to invest in securities. Although this offer expired on Mar. 31, 2024, the tiered bonus was available to investors who transferred over eligible assets like brokerage account funds, an IRA, a 401(k), 403(b) or 457(b) to a new M1 taxable investment account.
The minimum rollover of a substantial $100,000 sum would have landed you a slight $250 promotion credit or bonus from M1. Transferring $1 to $2 million (or a penny under $2 million) would land you a $4,000. To get the maximum bonus of $20,000, you would have had to transfer at least $7 million.
Recent bonus offer accounts advertised by TastyTrade (up to $5,000/$1 million deposit), Citi Personal Wealth Management (up to $5,000/$2 million deposit), HSBC Premier (up to $4,000/$500,000 deposit), Chase Private Client Checking (up to $3,000/$500,000 deposit) and Citi Checking (up to $2,500/$300,000 deposit) required hefty deposits into high-yield for cash perks.
Forbes suggests keeping an eye on Citi for bonus trends in 2024, as they consistently offer some of the most significant bonuses (but often for those willing to make larger deposits). Bear in mind that for many new account sign-ups, clients need to maintain balances for a number of days and adhere to promotional rules before receiving bonuses.
If you’re an average saver who hasn’t the means required to qualify for a new account bonus from the banks listed above, there are bonuses available to those with more modest bank balances. However, instead of transferring big balances, you might need to jump through a few account activity hoops to get your promotion money.
Boasting that you’ll earn more in five weeks with them than you would in a year with a big bank savings account, SoFi is offering a 4.60% average percentage yield (APY) and a $300 bonus if you open a direct deposit savings or checking account. You must sign up for direct deposit or deposit $5,000 or more every 30 days to earn the highest interest rate.
Opening a Truist One Checking account can earn you a $400 bonus, if you receive at least one qualifying direct deposit of $500 or more and complete at least 15 qualifying debit card purchases within 90 days of account opening. This one’s open only to residents in 15 states (Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Maryland, Massachusetts, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia or Washington D.C.) and has to be opened online.
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A big bonus often means a lower APY and lower interest earnings, so calculating whether you’ll earn more through interest or by receiving a bonus is essential before you jump at what initially looks like a steal of an account transferring deal. But if you can get both a good bonus and high interest rate, you’re laughing.
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