Economy
$300 for a New Checking Account? Banks Offer Bonuses to Attract Customers.
Facing competition for business, banks are offering incentives to switch. But as one expert put it, “You have to read the fine print.”
If you’ve been thinking about switching banks, this may be a good time to look around. Many institutions are offering cash bonuses to people opening new checking or savings accounts.
But examine the details carefully, experts said, because there are usually hoops to jump through to get the cash. Make sure, they added, that the bank overall makes sense for you. Otherwise, you could be setting yourself up for costly fees or lower interest rates after the introductory period.
“You have to read the fine print,” said Marguerita Cheng, a certified financial planner in Gaithersburg, Md.
Banks have been extending the offers as they face competition for deposits and seek new long-term customers. As interest rates have risen over the last two years or so, savers have shifted cash to low-risk money market mutual funds and to high-yield accounts at online banks, said Greg McBride, chief financial analyst at the money site Bankrate.
Banks have long used bonuses to lure new business, said Adam Stockton, head of retail deposits and lending at Curinos, a bank data analytics and consulting firm. Years ago, he said, $100 was typical, but now, “$100 isn’t really moving the needle.”
An online search this week for bank account bonuses turned up a variety of incentives, from big national banks as well as regional institutions, with one-time payments of $200 or more for opening accounts.
