In the world of banking, you’re supposed to get a checking account in your teens and then just stay with that bank for life. But times are changing. There are some amazing offers out there for people who have opened up a new checking account with a different institution. Are these offers worth it? What can you expect?
What is a checking account offer?
Checking account bonus offers new customers to open a checking account with a particular bank. The incentive may be as simple as cash back on your first $50 of debit card purchases each month, or it could be as complex and lucrative as cash deposited to your account by a third-party company. For instance, as per the SoFi experts, you can “get a $300 bonus with qualifying direct deposits.”
The best way to find the right offer is by using our comparison tool, which lets you compare offers from hundreds of banks in one place. The tool will show all checking accounts that fit your criteria and make it easy for you to see how much money each option will make or cost over time.
How do banks benefit from offering checking account bonuses?
Banks can benefit from offering checking account bonuses in several ways. First, they can attract new customers and increase their customer base. Second, they can increase their revenue by attracting customers who may not have opened an account at that bank. Third, offering a checking account bonus allows banks to generate more loyalty among existing customers, who are likely to stay with the bank when they open additional accounts in the future (and thus continue generating income).
Regulation D and its application to checking account offers
Regulation D is a set of rules issued by the Federal Reserve and other federal agencies to ensure that financial institutions treat customers fairly. These regulations apply to all types of financial institutions, including banks and credit unions.
Regulation D applies primarily to a bank’s transactions with its existing customers—whether they’re checking accounts, mortgages or any other type of account at the institution. For example, Regulation D prohibits banks from offering new customers higher interest rates on their deposits than they’ve offered in the past (unless there’s been some major change in market conditions).
Are Checking Account Offers Worth It?
If you plan to use a checking account for a long time, then checking account offers can be worth it. For example, if you have been with your bank for years, built up a relationship with them, and opened multiple accounts, the benefits of having an offer may be enough for you to stay with that bank. However, if you are just going to open an account for a short period of time (a few months) or only plan on using an offer once or twice before closing it, there is little reason to get one.
Checking account bonuses can be a great way to earn some extra money, but they are not the only way. Before you decide if this is right for you or not, it’s best to do some research and make sure that this bank’s offer fits your financial goals. You should also consider the other alternatives available out there in order to find something that works best with what type of person you are (or want).
