Which banks offer money for opening an account

Several large banks and online banks offer cash bonuses when you open a checking or savings account and meet their requirements. The banks that currently offer these bonuses change frequently, but they typically include Chase, Bank of America, Wells Fargo, Ally Bank, Charles Schwab, and various regional banks. The bonus amounts range from $50 to $500 depending on the bank and account type.

The catch is that bonuses come with conditions. You usually have to deposit a minimum amount of money (often $500 to $25,000), keep that money in the account for a set period, or set up direct deposit. Some banks require you to make a certain number of debit card purchases or transfers. If you close the account before the conditions are met, you lose the bonus and may owe a fee.

Online banks tend to offer higher bonuses than brick-and-mortar banks because they have lower overhead costs. However, online banks have no physical branches, so you cannot deposit cash in person or speak to someone face-to-face. This matters if you handle cash regularly or prefer in-person banking.

Key Takeaways

  • Bank bonuses typically require you to deposit a minimum amount and keep it there for 30 to 90 days, or to set up direct deposit within a set timeframe.
  • Online banks usually offer larger bonuses ($200 to $500) than traditional banks ($50 to $150) because they have fewer physical locations to maintain.
  • Closing the account before the bonus conditions are met usually means you forfeit the bonus and may be charged an early closure fee.
  • The bonus is taxable income and will be reported to the IRS on a 1099-INT form if it exceeds $10, so plan for a small tax bill the following year.

How to find current bank bonuses

Bank bonuses are not advertised equally across all channels. The best places to check are the bank's own website (look for a "promotions" or "offers" tab), comparison sites like Bankrate or DepositAccounts, and financial blogs that track these offers. Bankrate and DepositAccounts update their lists regularly because bonuses change monthly.

When you find a bonus that interests you, read the full terms before you open the account. The terms document will spell out the minimum deposit, the timeframe to meet conditions, which account types may have access to, and what happens if you do not meet the requirements. Some bonuses apply only to new customers who have not had an account with that bank in the past 12 months.

Do not rely on a bank representative's verbal explanation of the bonus. The written terms are what the bank will enforce. If the terms say you need $5,000 deposited for 60 days and you deposit $4,000, you will not receive the bonus.

Minimum deposit and holding period requirements

Most checking account bonuses require a minimum deposit between $500 and $2,500. Savings account bonuses often ask for $10,000 to $25,000. The bank holds this money in your account for a specified period—usually 30, 60, or 90 days—before the bonus is credited. During this time, you can use the money normally; the bank just wants to see that you are keeping funds there.

Some banks waive the minimum deposit requirement if you set up direct deposit instead. Direct deposit means your paycheck or government benefit payment goes straight into your account. If you set up direct deposit and keep it active for 30 to 60 days, you may get the bonus without depositing your own money upfront. This is useful if you do not have a large lump sum available.

A few banks require a certain number of debit card transactions—for example, 10 purchases within 30 days—instead of or in addition to a minimum deposit. Read the terms carefully to understand which conditions apply to the specific bonus you are considering.

When the bonus is credited to your account

The bonus does not appear immediately. Most banks credit the bonus 30 to 90 days after you open the account, once they have verified that you met all the conditions. Some banks credit it sooner if you meet the requirements early. For example, if the terms say you need to maintain a $1,000 balance for 60 days, and you deposit $5,000 on day one, the bank may credit the bonus on day 61 rather than waiting the full promotional period.

When the bonus is credited, it will show up as a deposit in your account. You will receive a receipt or confirmation email. The bank will also send you a 1099-INT tax form at the end of the year if the bonus was $10 or more, because the IRS treats bank bonuses as interest income.

If you do not see the bonus within the timeframe stated in the terms, contact the bank's customer service. Bring your account opening confirmation and the promotional terms. Banks sometimes make errors in tracking whether conditions were met, and customer service can investigate and correct them.

Tax implications of bank bonuses

A bank bonus is taxable income. If you receive a $200 bonus, you owe federal income tax on that $200 as if it were interest earned. The tax rate depends on your overall income and tax bracket. At a 22% federal tax rate, a $200 bonus costs you about $44 in taxes. State income tax may apply as well, depending on where you live.

The bank will report the bonus on a 1099-INT form and send it to you and the IRS if the bonus is $10 or more. You will receive this form by January 31 of the following year. When you file your tax return, you report this income on your 1040 form. If you do not report it and the IRS notices the 1099-INT, you may face penalties and interest.

Some people open multiple accounts at different banks to collect several bonuses in one year. This is legal, but each bonus is taxable. If you collect $500 in bonuses across four banks, you owe tax on all $500. Factor this into your decision about whether the bonus is worth the effort.

Risks of opening an account just for the bonus

The main risk is that you close the account before meeting the bonus conditions and lose the money. If the terms say you must maintain a $1,000 balance for 90 days and you withdraw it after 60 days, you forfeit the bonus. Some banks also charge an early closure fee—typically $25 to $100—if you close within a certain period. The fee can wipe out the bonus entirely.

Another risk is that the account has monthly fees that reduce the bonus value. A $100 bonus sounds good until you realize the account charges $12 per month in maintenance fees. After one year, you have paid $144 in fees and received $100 in bonus, netting a loss of $44. Read the fee schedule before you open the account.

A third risk is that opening many accounts in a short time can lower your credit score slightly. Each account opening triggers a hard inquiry on your credit report. Multiple inquiries in a short period may signal to lenders that you are desperate for credit, which can affect your ability to borrow later. The impact is usually small and temporary, but it is worth knowing.

Comparing bonuses across different account types

Banks offer different bonuses for checking accounts, savings accounts, and money market accounts. Checking account bonuses tend to be smaller ($50 to $200) because checking accounts generate less profit for the bank. Savings account bonuses are often larger ($100 to $500) because the bank can lend out the money you deposit and earn interest on it.

Some banks offer a combined bonus if you open both a checking and savings account at the same time. For example, Chase might offer $200 for a checking account and $200 for a savings account, totaling $400 if you open both. This can be a better deal than opening accounts separately, but make sure you can meet the conditions for both accounts simultaneously.

Money market accounts sometimes offer the highest bonuses because they require larger minimum deposits and longer holding periods. If you have $25,000 to deposit and can leave it untouched for 90 days, a money market bonus might be worth more than a checking account bonus. However, money market accounts have limited withdrawal rights, so understand the rules before you commit.

Frequently Asked Questions

Do I have to keep the bonus money in the account after the holding period ends?

No. Once the holding period is over and the bonus is credited, you can withdraw the money. The bank only cares that you maintained the minimum balance during the promotional period. After that, the account is yours to use normally.

What happens if I do not meet the minimum deposit requirement?

You will not receive the bonus. The bank will not penalize you otherwise; you simply forfeit the promotional money. Your account remains open and active, and you can continue using it without the bonus.

Can I get a bonus if I already have an account at that bank?

Most banks limit bonuses to new customers only. The terms usually state that you are ineligible if you have had any account with that bank within the past 12 months. Some banks are stricter and require you to have had no account for 24 months. Check the terms before you apply.

Do online banks require me to verify my identity before opening an account?

Yes. Online banks verify your identity by asking for your Social Security number, date of birth, and address, then checking this information against credit bureaus and government databases. This process usually takes a few minutes. You will need a valid government ID and a phone number on file.

If I open an account online, can I deposit cash later?

Most online banks do not accept cash deposits because they have no physical branches. However, some online banks partner with ATM networks or allow you to deposit checks by photograph using their mobile app. If you handle cash regularly, a traditional bank with physical branches may be a better fit than a purely online bank.