Money Management Tips
Are Bank Bonuses Worth It? Pros, Cons, and Tips to Consider
Over the past few years, I’ve reviewed plenty of bank and banking (the latter typically meaning FinTechs that partner with “real” banks for their offerings) services. In doing so, I’ve occasionally earned bonuses for setting up a new account and performing different tasks. This free money is always welcome — especially since I’m doing it for work anyway — but would I recommend bonus chasing to most people? Let’s take a look at the pros and cons.
Reasons Why Bank Bonuses May Be Attractive
Free money
Let’s start with the most obvious perk: the free cash. While the amount of money you can earn from a banking bonus can vary, it can seem pretty attractive on paper. Personally, I’ve earned bonuses as small as $5 and as large as $400 — as well as some American Airlines miles in one particular case. Sure, these weren’t life-changing amounts of cash but they were certainly welcome additions to my account nonetheless.
No spend required (typically)
Another benefit to most banking bonuses is that they don’t typically require you to actually spend anything. This stands in contrast to most credit card welcome bonuses that issue your points or cashback only after you put hundreds if not thousands of dollars of purchases on the card. Granted, in the case of some checking accounts, you may need to make at least a few debit card purchases to earn a bonus. However, more often than not, bonuses issued for savings accounts are unlocked by the amount of money you’re holding, not what you’re spending.
FDIC insured
When it comes to earning bonuses, bank account bonuses are typically pretty safe thanks to the peace of mind that comes with FDIC insurance. As you probably know, FDIC insured bank accounts cover up to $250,000 in funds per depositor, protecting them from bank failures. Therefore, moving money to a new account in order to score a bonus shouldn’t be too big of a deal as long as the institution is a member of FDIC. On that note, you can always consult the FDIC BankFind tool to ensure that your institution is indeed insured.
Could introduce you to better options
Last up in terms of the key benefits is the fact that you may well discover your new favorite banking option by pursuing a bonus. This is somewhat similar to how I’ve come across some truly interesting and innovative platforms while seeking review targets.
Furthermore, as you find features you enjoy, you may even be able to recommend that the companies behind your primary accounts add such functionality (hey, they might just listen). Alternatively, you may find that you prefer one account for one function while keeping the bulk of your cash elsewhere. This is something I personally do all the time and is a great side effect of my checking out so many accounts.
The Downsides of Banking Bonuses
Moving lots for little
Topping the list of reasons why bank bonus hunting may not be for you is that you may be required to deposit much larger amounts of money than you’re prepared for. In my experience, I’ve found some bonuses to be downright laughable — such as earning a $20 bonus for depositing at least $20,000. No, thank you!
That said, these unfavorable ratios are more common among more traditional banks that may not even offer bonuses all that often. Meanwhile, if you’re willing to take a risk on FinTech (more on that in a moment), you may be able to find much more interesting and lucrative rewards with far smaller deposit requirements.
Possible fees
Even in 2025 when there are plenty of free banking options, not all accounts are free to all. Because of this, as you sign up for a banking bonus, you’ll want to see what fees your new account may have — and how to avoid them. Typically, monthly fees are waived if you maintain a certain balance, make a certain number of debit transactions per month, and/or receive direct deposits each month.
That said, even if it is easy enough to avoid these fees at first, doing so long term may prove to be untenable (or just get to be a hassle). With that in mind, there’s another downside to be aware of before opening a new account in pursuit of a bonus.
Time requirements
In addition to depositing a certain amount of money into an account in order to earn a bonus, you’ll often also need to hold said money in your account for a given period of time. This could not only mean needing to wait a few months to get your bonus funds but you could also run the risk of seeing your bonus clawed back if you try to close your account (or deplete it of funds) within a certain timeframe after the bonus is paid.
The bottom line is that you’ll want to read the fine print carefully and know the full timeline. Also keep bank holidays in mind if you truly are counting down the days and err on the side of caution.
Unproven companies
While FinTech offerings may boast the bigger bonuses, these opportunities do also present some risk. Although most startups do partner with FDIC-insured banks to hold customer deposits, this might not protect you if the company in question goes under and leaves you without access to that FDIC-insured account (technically, this insurance only covers you in the event that the bank holding your deposits closes).
This is a scenario that was made all too real when Synapse collapsed, locking users of Yotta, Juno, and some other apps out of their cash. Nevertheless, when dealing with startups, it can be hard to know just how safe your money is, so proceed with some caution.
Direct deposit requirements
In addition to or in place of needing to deposit loads of cash in order to unlock a bonus, some banking offerings will require customers to set up direct deposit and have a certain amount of money delivered to their account with this medium within a certain timeframe. If you’re not familiar, direct deposits are most commonly made via payroll services.
As a result, you may find that the hassle of getting your employer to reroute your paychecks to another account exceeds the benefit you’ll get from them doing so. Then again, thanks to services like ADP that allow employees to log in and update their information themselves, this might not be as bad as it once was. Still, some consumers may not be too keen on experimenting with new bank accounts when their paychecks are in play.
Could lead to ChexSystems issues
Finally, by opening so many bank accounts in order to claim bonuses, you could accidentally raise red flags with ChexSystems. You can think of Chex as the banking equivalent of credit bureaus such as Equifax, TransUnion, or Experian. In this case, the company tracks some of the bank accounts you open and whether they’re in good standing. Even if you don’t have any actual derogatory remarks on your report, some banks and credit unions may decline your application if they see that you have too many accounts already.
The good news is that not every account you apply for or use will report to ChexSystems, so this may not be too big of an issue. But, if you’re curious to see what’s on your report, you can follow these steps to request a look at it.
Some of My Recent Bank Bonus Success Stories
Commerce Bank
To my surprise, one of my best banking bonuses came from a local bank rather than a FinTech. Upon moving into my house, I got a postcard from Commerce, inviting me to open an account and earn up to $300. In this case, I just needed to keep a balance above $300 for 90 days and make at least 10 debit card transactions within 60 days.
Sure enough, as promised, completing these tasks made me $300 richer. Plus, it is nice having an account with a local branch where I can grab some quick cash if I need (since my main bank, Wells Fargo, doesn’t have any locations in my state).
Chime
This one has a couple of tips that go with it: 1) Try referral links from friends. 2) Check cashback portals such as Rakuten or others for potential bonuses (sometimes in addition to regular bonuses!).
I mention these because, from what I can tell, you can open a Chime account and get nothing for it. Meanwhile, going to Rakuten currently will earn you $50 — although this does fluctuate. But, as of this writing, you can earn a $100 bonus using a referral link from a friend or, well, anyone.
In my case, I happened across an offer for a $400 bonus! And, all I need to do is direct deposit $200 within my first 30 days. That should happen any day now and then I’m excited to see my bonus post. However, since I have to fully explore the app that presented me with this deal, I won’t be plugging them just yet. But, if this bonus comes through, I’ll be much more inclined to do so.
For as great as free money can be, the proverbial juice may not always be worth the squeeze when it comes to bank bonuses. And while there are many great aspects of this line of obtaining extra money, there are also some drawbacks and even risks. Ultimately, those hoping to chase banking bonuses will need to assess their opportunities on a case-by-case basis and decide which makes sense for them. Good luck!
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