Maximize Your Earnings with High Yield Savings or Checking Accounts
The personal banking sector is highly competitive. Most people don’t change banks frequently, so attracting new customers often requires offering an appealing sign-up bonus or a highly competitive interest rate. Recently, some banks have offered interesting bonuses to new customers, but there’s usually a catch.
MarketWatch reports that the catch often involves a requirement to significantly fund a new account by transferring a minimum deposit. To receive a large sign-up bonus, you might need to deposit tens of thousands of dollars, or in some cases, at least $7 million to get a $20,000 bonus.
Adrianna Adams, a certified financial planner and head of financial planning at Domain Money, explains that banks require large balance deposits because the more money they have in deposits, the more they can lend out to other customers, which is a way for them to generate revenue. By offering cash bonuses for large deposits, banks can increase their overall deposits and, consequently, their lending capacity and revenue.
M1 Financial, a technology company offering brokerage accounts, recently offered a $20,000 bonus, though this promotion expired on March 31, 2024. The tiered bonus was available to investors who transferred eligible assets like brokerage account funds, IRAs, 401(k)s, 403(b)s, or 457(b)s to a new M1 taxable investment account. A minimum rollover of $100,000 would earn a $250 bonus, while transferring $1 to $2 million would get you $4,000. To receive the maximum $20,000 bonus, you needed to transfer at least $7 million.
Other recent bonus offers include TastyTrade (up to $5,000 for a $1 million deposit), Citi Personal Wealth Management (up to $5,000 for a $2 million deposit), HSBC Premier (up to $4,000 for a $500,000 deposit), Chase Private Client Checking (up to $3,000 for a $500,000 deposit), and Citi Checking (up to $2,500 for a $300,000 deposit). These offers require substantial deposits to earn the cash perks.
Forbes suggests keeping an eye on Citi for bonus trends in 2024, as they often offer significant bonuses for larger deposits. However, many new account sign-ups require clients to maintain balances for a certain number of days and follow promotional rules before receiving bonuses.
If you don’t have the means to qualify for these large bonuses, there are still options for those with more modest bank balances. For example, SoFi offers a 4.60% average percentage yield (APY) and a $300 bonus if you open a direct deposit savings or checking account. You must sign up for direct deposit or deposit $5,000 or more every 30 days to earn the highest interest rate.
Opening a Truist One Checking account can earn you a $400 bonus if you receive at least one qualifying direct deposit of $500 or more and complete at least 15 qualifying debit card purchases within 90 days of account opening. This offer is available only to residents in 15 states and must be opened online.
It’s important to calculate whether you’ll earn more through interest or by receiving a bonus before deciding on an account transfer deal. However, if you can find an account that offers both a good bonus and a high interest rate, you could benefit significantly.