Banks Are Offering $300 in ‘Free’ Money – Here’s How to Get It

A handful of national banks are offering hundreds of dollars in cash bonuses just for opening new accounts.

Banks want to encourage as many Americans as possible to put their money with them and prevent customers from turning to higher-yielding accounts or money market funds during times of high interest rates.

Competition for customers is intensifying and banks are willing to offer decent bribes.

Chase and Wells Fargo are leading the way, as they are currently offering a $300 bonus to customers who open a new checking account and set up direct deposits.

“We have successfully used promotion and retention-focused strategies to retain and acquire new balances in our consumer and small business banking businesses,” Wells Fargo Chief Financial Officer Mike Santomassimo said of that strategy earlier this week.

Bank of America is also offering a $200 cash bribe to new customers.

“Our instructions to our team are to grow our deposit base a little faster than the economy,” Bank of America Chief Financial Officer Alastair Borthwick told analysts on a call this week.

“That means you have to price globally to achieve that,” he explained.

Meanwhile, Citi is offering a 5% promotional rate on new savings accounts for the first 90 days.

According to data from Curinos, the average cash bonus offer for opening a new checking account jumped to $400 earlier this year, up from $130 in 2016.

However, before switching banks, it may be worth doing the math and determining whether it’s the best deal for you in the long run.

For example, some banks offering deals now require customers to maintain a higher balance in order to withdraw money, or face fees.

Chase requires customers to make a monthly direct deposit of at least $500 to earn the bonus and not have to pay a $12 monthly maintenance fee on the new account.

Any cash bonuses generated from an account switch are reported to the IRS and taxed as interest.

It’s also important to consider the benefits you get from your current bank account, such as mortgage savings or useful tools for traveling abroad.

Likewise, if your checking account offers a decent interest rate, it may not be beneficial in the long run to switch to a cash offer.

However, “if you could put $300 in your pocket tomorrow, that would be more attractive to some people than the delayed gratification of a 4% interest rate,” Adam Stockton, chief executive of Curinos, told the Wall Street Journal.