Bank Bonuses for Beginners: Your Path to Extra Cash
If you’re anything like how I used to be, you don’t spend much time thinking about banking. Maybe you’ve used the same bank for years and figure it’s good enough. All banks are basically the same, right? Wrong.
Did you know there are banks that will actually pay you to bank with them? I’m not talking about earning interest. Some banks will give you a cash bonus just for opening an account with them. This can be your path to extra cash and a way to help fund a free theme park vacation.You Have Choices
Just because you bank with one institution, that doesn’t prevent you from banking with another. As long as you’re a good banking customer with a decent credit history, you should be able to open another account.
You may think it’s too much trouble to open a new bank account. I disagree. In this digital age, it’s easier than ever, and you don’t even have to leave the comfort of your home. Most banks allow you to open an account online or through a simple phone call. Of course, if you’d rather open an account in person, you can certainly do that as long as the bank has a physical location, and the terms of the bonus allow it.
Begin with an Online Search
There are some great websites that list current bank promotions. Two that I’ve found helpful are Doctor of Credit and Hustler Money Blog. You can also search for promotions on the websites of the banks in your area or on those of online banks.
Check the Rules
Once you’ve identified a promotion that looks good, read the rules of the offer carefully. Make sure you read the terms on the bank’s own website, or the literature the bank provides, and don’t just rely on the information given on another website that described the bonus. The terms are important. Many bonuses only apply to new customers. Some require direct deposits or have balance minimums. Most require you to keep the account open for a certain number of months.
Make sure that you not only know the terms of the bonus, but the terms of that specific type of bank account. Are there any monthly fees or requirements? If an account requires a large minimum balance to avoid fees and it’ll be a struggle to meet that minimum, then the bonus is probably not worth pursuing. Similarly, if it’s a relatively small bonus and you have to keep a large amount of money in the account for six months earning little interest, then you may want to pass.
Evaluate Feedback
Before opening an account at a bank you’re unfamiliar with, read reviews. Some banks are easier to deal with than others. Ask friends or family if they’re customers. You can get their opinion of the bank and possibly even help them out. Some banks offer incentives to existing customers for referring new customers. I currently have a referral link for Chase. Referal offers are not always the same as the best current promotion, so please do your research before using them.
Apply for the Account
Once you’ve done your research, you’re ready to open the account. Always keep a screen shot or printout of the terms of the bonus and terms of the account. You may need to refer to it later. If you’re opening the account online, begin at the offer page, click through the link, and follow the prompts. For the initial deposit, you can usually transfer funds directly from another bank account. Fund the account and set up direct deposit, if required. If you apply in person, the bank representative will explain what needs to be done. If you apply online, you’ll receive communications by email and regular mail. Some banks also require a phone call. Keep in mind that not all banks allow for automatic account opening. It can take several days to get your new account opened.
Stay Organized
Since bank bonuses have specific requirements, it’s important to stay organized. You want to make sure that you’re fulfilling the terms of the bonus and of the account. Keep track of the date that you open the account, the number of deposits you make and their amounts, and your balance.
Get Rewarded
Bank bonuses take time. Some bonuses will pay out soon after you meet the terms, but others take longer. The terms of the offer will tell you when to expect your bonus. It will show up as a deposit in your account within the specified time-frame. Once your bonus shows up, don’t close your account. You agreed to keep your account open for a set period of time, and you need to do that. The bank has the right to revoke the bonus if you violate the terms. Personally, I like to keep accounts open unless there’s a good reason to close them.
Don't Go Overboard
Once you’ve received your first bank bonus, you may get excited and want to get another one from a different bank. Don’t go overboard chasing bonuses. Some banks don’t like it if you open too many accounts in a short period of time and will deny you. It can also become difficult to keep track of multiple accounts.
Conclusion
Bank bonuses are a great way to earn some extra cash and experience different banking relationships in the process. I’ve found some great banks that I would never had known about had there not been an incentive to open an account. Now go find that bank bonus!