Maybe you should think twice before investing your money for the bonus.
- Most bank bonuses require you to meet minimum deposit requirements for a set period of time.
- This can become a problem when you need large amounts of money that are better spent elsewhere.
I recently earned a $450 bonus for a new bank account I opened in June. Good news for me, isn’t it? not enough. Bank bonuses are one of my favorite ways to make extra money, but when I waited for them I had mixed feelings.
When you see a bonus that you could qualify for, it’s easy to attribute it to yourself. After all, it sounds like free money. And while it’s true in a way, it’s also a good idea to make sure the bonus requirements work for you. In my case, I regretted tying up so much money that I could have put to better use elsewhere.
How does the bank earn bonuses
The bank bonus is an incentive that banks offer to attract new customers. The basic idea is that you receive a bonus when you open a bank account and meet certain requirements. Bonus requirements vary by bank, but here are some common examples that work:
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- Maintain a minimum balance for a specific period of time. For example, keep a balance of at least $50,000 in the first three months that you have an account.
- Get a minimum direct deposit amount. For example, receive $5,000 as a direct deposit in the first three months.
- At least shop with your debit card. For example, make $1,000 of purchases with your debit card in the first two months.
Before signing up for a bank bonus, check if you can meet the requirements. If you can’t deposit enough to get the bonus then there probably is no point in opening an account unless you really want that account anyway.
Even if you think you can collect the bonus, take some time to think about how it will affect your financial situation and if this is the best way to use your money. That’s where I went wrong and why I stopped kicking myself after that.
a missed opportunity
The bonus I chose required a large amount to be blocked for three months. After that, the bank pays me $450. It was just what I love. And while it was a huge financial commitment, I felt there was no reason to turn down the $450 free.
But about two months later, I questioned my decision. The market value had fallen significantly since the beginning of the year. Investing in a bear market like this can be a great opportunity to buy quality stocks while prices are down.
I would have preferred to increase my investment to take advantage of these low prices. However, I added it to meet the bonus requirements of my new bank account. I still had a few weeks before I could withdraw my money without missing the bonus.
It’s not the end of the world but it was a great learning experience for me and can be helpful when looking for a bank bonus. My general financial approach is to invest as much as possible in the stock market. I went against it to make a quick buck, although I probably would have outdone myself long enough to invest.
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