When the Great Recession hit, banks of all sizes simply struggled to attract businesses and new account holders because of the Federal Reserve’s new limitations on interest rates. Savers weren’t seeing any gains from their deposit products and nobody was interested in opening new accounts.
Rewards For Opening New Accounts
When the 2019 World Retail Banking Report came out, it was surprising to find that barely half of the surveyed bank customers were satisfied with their retail banking services. This means that the other half was disappointed with what their banks were offering to them. In an effort to offset this, banks have relied heavily on a nifty perk called cashback rewards. Banks found that cashback rewards deals attracted customers and provided customers with an incentive for spending their money healthily.
To give you an example of how this works, say you put $100 into a new checking account and it receives a $200 bonus in return. This equals a 300% return on investment, (also known as ROI.) With gains like these, such an idea sounds too good to be true, so below we’re going to break it down more for you and give you a closer look at how it works.
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The Costs Behind The Rewards.
Banks and several other financial institutions have many sources of revenue. The Wall Street Journal says that some of this revenue is from over 30 possible fees on checking accounts. Some are common; maintenance fees, dormant account fees, overdraft protection fees, and so on. A cashback promotion is different, however. The aforementioned fees obviously do not benefit the account holder at all, but with cashback promotions, it’s a win-win for banks and customers. This mutual incentive does depend heavily on the consumer being aware of the dangers that could harm their deposits.
Available New Account Bonuses 2019
Recently, the 50 biggest banks by a deposit in the United States were surveyed using FDIC statistics. The survey was held by GOBankingRates and they wanted to see how their cashback incentives stacked up for opening a new account. Here are 10 of them for you to look at.
#1. BBVA Compass Bank
Customers who open a checking account with a Compass For Your Cause or Workplace Solutions code can earn a $150 bonus between Sept. 1 and Dec. 31, 2019.
To be eligible for this bonus, you cannot have had a BBVA Compass checking account within the past 90 days. Customers must direct deposit a paycheck, government benefits or a pension totaling $500 within the first 90 days of opening the account. Throw in another $50 bonus when you add a credit card or an express personal loan.
#2. BMO Harris Bank
Customers who open a BMO Harris Bank personal checking account online can qualify for a cash-back incentive. Depositors earn $200 for opening a Smart Money, Smart Advantage or Premier account.
There are a few things you’ll have to do to qualify for the bonus. First, the customer must have a minimum of two direct deposits of a paycheck, pension payment, Social Security payment or other government benefits within the first three months of opening the account. Second, the customer must also make at least 10 debit card purchases from the account. Once the customer completes these steps, they will be entitled to their bonus.
It’s important to note that the bank’s Smart Money Checking account comes with a $5 monthly maintenance fee, and Portfolio Checking charges a $30 fee monthly unless one of a list of requirements is met to waive the fees. Smart Advantage is the cheapest as it has no monthly fee.
#3. Capital One
Capital One is one of the heavyweights on this list. They are a very popular bank with consumers and their bonuses are a top contender. Those who open a 360 Checking account with an initial deposit of $250 and make a total of three debit card purchases or Person2Person payments, or any combination of the two, within 15 days of opening the account qualify for a $250 bonus that will automatically be deposited into their accounts on day 50 of the account’s opening. This account comes with no overdraft, ATM surcharge or monthly fees, and rewards depositors with tiered interest based on the deposited amount! That’s a pretty fantastic benefit!
#4. Chase Bank
Chase Bank is also a well-known bank throughout the country and many consumers rely on their services. Through Jan. 14, 2020, new customers who open a Chase Total Checking account with $100 and set up direct deposit will receive a direct deposit of $200 from the bank. This deal is not available to current Chase checking customers, those who have closed their accounts within 90 days, closed with a negative balance or have fiduciary accounts (statements of all of the receipts and disbursements of an executor, trustee, or other fiduciary.)
This checking account includes a $12 monthly service fee ($0 in California, Oregon, and Washington) that can be avoided if an account holder either makes a direct deposit of $500 or more to the account or keeps a minimum daily balance of $150 or more in the account.
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#5. First Republic Bank
First Republic Bank is giving $25 to customers who download Trusteer Rapport for free. This is an online banking protection software that helps protect confidential information that could be jeopardized when banking online. To eliminate this threat and help protect customers’ personal information, First Republic Bank is providing a cash incentive just for being extra secure with your money.
Claiming this bonus is super easy. Customers must sign in to their accounts after downloading Trusteer Rapport and send a secure email to the bank letting it know which account to credit the cash bonus to. Then boom! You get your incentive for being safe with your account.
This financial institution will credit depositors’ accounts with $200 if they open a new Key Express Checking. To qualify, depositors must open their checking accounts before Nov. 11, 2019, and make at least $500 in direct deposits in the first 60 days of account ownership. Direct deposits can include payroll, Social Security, pension and government benefits, PayPal, Schwab Brokerage, Discover, and ACH.
Those looking to open a checking account with KeyBank will need to enter promo code MASE0618 upon signing up to be eligible for the $200 bonus.
#7. PNC Bank
Those who open a new account with PNC Bank could earn up to $300 for opening a new PNC Virtual Wallet. The Virtual Wallet is basically a suite of online tools that depositors can use to help manage their money.
Opening a new, standard Virtual Wallet earns depositors $50. By opening a Virtual Wallet with Performance Spend, depositors get $200. Those who open a Virtual Wallet with Performance Select get $300 deposited into their accounts.
Direct deposits must be $500 for the Virtual Wallet, Performance Spend, and Performance Select, respectively, to qualify for the reward.
#8. Santander Bank
Until Dec. 31, 2019, Santander Bank is offering a $225 bonus to customers who open a Simply Right Checking, Basic Checking, or Premier Plus Checking. With a minimum opening deposit of $25 or more within the first 90 days, customers can earn $225 to be paid within 30 days.
#9. Wells Fargo
Open a new Wells Fargo Everyday Checking account online or in-branch by November 27, 2019, to qualify for a cash bonus of $400. In order to qualify, customers must open a new Wells Fargo Everyday Checking account online or in-branch and make the minimum required an opening deposit of $25. Next, within 150 days of opening the account, receive cumulative direct deposits totaling $3,000 or more each month for three consecutive months.
Once you meet at least one of these requirements, you’ll receive a $400 cash bonus in your account within 45 days. Your account must remain open to receive the bonus. Note that qualifying direct deposits include salary, pension, Social Security, and other qualifying income. Direct deposits must be electronically deposited via ACH. Your account must have a balance of at least $1 during the entire qualification period.
#10. SunTrust Bank
New customers can take “advantage” of a $300 cash bonus opportunity when they open a new Suntrust Advantage Checking account and complete the qualifying activities. They are as follows: First, open a new SunTrust Advantage Checking account by September 30, 2019, with a minimum opening deposit of $100. Complete at least $3,000 in cumulative direct deposits each statement cycle for two consecutive statement cycles within the first three full monthly statement cycles. Qualifying direct deposits include wage or salary, pension, Social Security, or other regular monthly income.
Once you complete the offer requirements, you’ll receive your $300 bonus within eight weeks.