A FINANCIAL planner has revealed that there are banks that will give you a bonus of $2,000 if you open a new account.
Many banks are offering cash for those who open high-yield savings accounts, which are now paying much more compared to last year.
“There are some favorable promotions in the market for opening a new account or making an initial deposit,” said financial planner Kevin Barr.
“These vary from $100 up to $2,000 as long as certain requirements are met.”
However, Ted Rossman, senior industry analyst at Bankrate, said that he would urge consumers to “peruse the fine print and think through the total cost of ownership.”
Think about what you might have to do in order to earn the bonus other than opening the account.
In some cases, you may also have to arrange direct deposits ranging from hundreds to possibly thousands of dollars per month.
Other factors to consider are possible fees associated with the account.
“As nice as a short-term bonus might be, that doesn’t necessarily mean the account is the best fit for you over the medium or longer term,” said Rossman.
“Let’s say you get an intro bonus of $200, but the account doesn’t pay any interest; instead, you might be better off moving your money to a savings account that doesn’t offer an introductory bonus but does pay a hefty interest rate on your deposits.”
It’s easier to qualify for bank account bonuses that are between $100 to $300, but if you really want that $2,000 bonus, such as the CitiBank Citigold Checking account offer, you’re gonna need a big balance.
To qualify for this account and receive the max offer, you’ll need a balance of $300,000 or more to qualify.
The balance on the 20th day after opening will determine the maximum eligible cash bonus.
You must maintain the minimum balance for 60 days after the 21 days.
“Most of the banks with the best rates aren’t household names, so insurance provided by the FDIC and NCUA represents important peace of mind,” said Rossman.
Also, bank bonuses are usually considered taxable income, so be sure to set aside some of the totals for tax season.
Read More:I’m a financial planner – some banks give you a $2,000 bonus if you open a new account with them – this is how it works
2022-09-16 20:35:02