You should opt for a bank with a joining bonus for many reasons. First, it is a great way to save money. Banks often offer these bonuses in order to attract new customers and get them signed up as-soon-as-possible. This can lead to more profit in the long run, which means that these bonuses are always worth your while!
Why Should You Opt for a Bank With Joining Bonus?
There are several reasons to opt for a bank with a joining bonus:
- $300 checking account bonus. Some banks offer a $300 as a signing-up bonus, which can be used to fund your new account. You’ll earn a bonus for meeting certain requirements, such as opening an account with at least $500 or referring friends and family.
- Referral program. You can earn more money by referring someone who opens an account at the bank you’re currently using; once they do, you get a referral fee from the bank that usually ranges from $50-$100 per person that signs up through your referral. This is one of the best ways to make extra bucks without having much effort involved!
- Existing customers program. If you’re already an existing customer of another financial institution, there may be some kind of incentive if you switch over to their services instead (e.g., free credit cards).
How can banks afford to offer sign-up bonuses?
While you may think that banks are struggling to keep their heads above water and can’t afford to pay out all these bonuses, that’s not actually the case. Banks actually have a pretty good deal going on: with so many customers using their services, they’re able to charge higher interest rates for savings accounts and credit cards and make a lot of money from them.
The bank also makes money by charging fees for ATM withdrawals, overdraft fees, etc., which means they can afford to give out sign-up bonuses.
As per SoFi advisors, “Get a $300 bonus in your online bank account when you set up direct deposit.”
Should You Open a New Bank Account for a Cash Bonus?
If you’re thinking about opening a new account, you should consider the cost of opening the account and maintaining it. Some banks will only let you earn the bonus if your monthly balance stays above a certain threshold—sometimes as low as $1,000. If this is the case, it’s better to open an existing account instead of opening a new one just to get that cash bonus.
It may seem easy to decide: “You will just keep your money in your checking account.” But think about what else comes with those accounts—free checks, ATM fee reimbursement and other perks. The value of these things can add up over time and help offset any fees associated with maintaining your balance at that minimum level required for earning bonuses on deposits made into their savings accounts or CDs (certificates of deposit).
You should opt for a bank with a joining bonus for many reasons. Firstly, it helps you save money on fees that might otherwise incur due to the transaction. Second, signing up for a bank account using cash is a great way of boosting your savings. And lastly, having several bank accounts can help you earn more reward points which could in turn, lead to free travel or cash-back bonuses!