Many banks compete for customers by offering cash rewards for opening new checking accounts. These offers can be a great way to earn extra money when switching banks or opening an account for the first time. But knowing where to look, how to qualify, and which banks have the best offers can make a big difference. In this article, we'll break down different types of account bonuses, typical requirements, benefits, and some of the best cash offers currently available.
Read MoreTypes of Checking Account Cash Offers
Not all cash bonuses from checking accounts are the same. Banks usually structure their offers based on how much money you deposit, how long you keep your account open, or if you meet other specific requirements. Here are some common types:
- Direct Deposit-Based Bonuses: Many banks require that you set up a qualifying direct deposit (like your paycheck) within a certain time frame to earn the cash reward.
- Minimum Balance Bonuses: Some banks will offer a bonus if you keep a set balance in your new checking account for a specific period, like 60 or 90 days.
- Activity-Based Bonuses: These offers require a certain number of debit card transactions, online bill payments, or mobile deposits in your account to qualify.
- Referral Bonuses: You'll earn money by referring a friend who opens an account and meets all the offer requirements. Both you and your friend get a cash reward.
Best Cash Rewards for New Checking Accounts in 2024
Different banks offer different promotions throughout the year. Here are some of the top checking account cash rewards you can find right now:
- Chase Total Checking®: Earn a $200 bonus after you open an account and set up direct deposits totaling $500 or more within 90 days. There’s a $12 monthly fee, but it can be waived by meeting certain requirements.
- Wells Fargo Everyday Checking: Get a $300 bonus when you open a new account and receive $1,000 in qualifying direct deposits within 90 days. The monthly fee is $10 but can be avoided by having 10+ debit card transactions or a $500 balance.
- HSBC Premier Checking: Offers up to $500 as a welcome bonus for new customers who transfer large balances from other banks. The requirements are stricter, usually intended for high-net-worth individuals.
- PNC Virtual Wallet: Get up to $400 when you meet certain direct deposit and balance conditions, depending on the account type you open (Standard, Performance, or Performance Select).
- Huntington 25 Checking®: Earn $600 by depositing $25,000 in new money and keeping it in your account for at least 90 days.
What to Watch Out for With Cash Bonus Offers
While cash rewards are attractive, it's important to read the rules and understand potential downsides:
- Account Fees: Many checking accounts charge a monthly maintenance fee. These costs may cancel out the bonus if you don’t meet waiver criteria like balance minimums or direct deposits.
- Minimum Deposit Requirements: Some bonuses require you to deposit a large amount of money you might not be ready to commit, especially for higher-end accounts.
- Time Frames: You often only have a short window (like 30 days) to meet the bonus requirements. Miss the deadline and you lose the reward.
- Account Closure Notice: Some bonuses require you to keep the account open for 6 months or more, or you’ll forfeit the reward when you close it early.
- Tax Reporting: Any bonuses you receive over $10 in a year must be reported as income to the IRS. You’ll get a 1099-INT form for tax purposes.
How to Maximize Cash Rewards from Checking Accounts
To get the most out of checking account bonuses, plan ahead. Here are some strategies to help you:
- Compare Multiple Offers: Use websites like Bankrate, NerdWallet, or The Points Guy to see a list of account bonuses side-by-side. Look for ones that match your banking habits and income.
- Know the Bonus Timeline: Mark essential dates, such as when you need to make a deposit or how long the account must stay open to avoid losing the bonus.
- Request Direct Deposit Transfers Early: If the bonus depends on direct deposit, contact your employer as soon as possible so everything is set up in time.
- Keep a Record of All Activity: Save emails, confirmation messages, and screenshots showing that you've completed all required actions.
Does Opening Multiple Bonus Accounts Hurt Your Credit Score?
Your credit score isn’t directly affected by opening or closing checking accounts. However, many banks will do a soft pull (or rarely a hard pull) on your credit report. Too many hard inquiries in a short time can hurt your score. If you’re applying for a large loan, like a mortgage, it may be best to wait before opening many bank accounts for bonuses.
It's also a good idea to not open too many accounts at once, as it may seem suspicious to banks and could raise questions about your financial activity if you close them too quickly.
What Happens After You Earn the Bonus?
Once you’ve completed the requirements, it usually takes anywhere from 7 to 90 days to receive the bonus. The bank will deposit the money directly into your checking account. After that, you may choose to keep the account if it suits your needs, or close it depending on fees and features.
Just remember, if you close the account too soon—especially before meeting the minimum hold period—you may have to return the bonus or never receive it.
Benefits Beyond the Cash
While the reward money is a good bonus, new checking accounts also give you a chance to explore better banking options. Here are some added benefits to consider:
- Modern Mobile App Features: Many banks offer free budgeting tools, mobile check deposits, and money tracking to help you manage spending.
- ATM Access and Fee Reimbursements: Some online banks refund fees charged by ATMs, which is great if you're always on the go.
- Overdraft Protection: Depending on the account, you might get free overdraft transfers from savings or linked credit accounts.
- Financial Tools and Advice: Larger institutions often offer free consultations with financial advisors and access to investment platforms.
Conclusion: Make Smart Banking Choices
Finding cash rewards for new checking accounts is a great way to earn money, but it's important to choose the offer that works best for your financial situation. Look for low-fee accounts, make sure you understand and meet the requirements, and always weigh the rewards against the effort. Whether you want a simple $100 bonus or something more, switching your checking account can be a smart financial move if done wisely. Keep track of your options, take note of timelines, and enjoy the bonus when it rolls into your account.
Sources:
- Bankrate – Best Checking Account Bonuses and Promotions
- NerdWallet – Checking Account Bonus Offers
- The Points Guy – Best Bank Offers
- Chase, Wells Fargo, HSBC, PNC public account offer pages