‘Read the fine print’: US banks are offering up to $500 to get you to open a checking account — but you may have to jump through hoops to get the cash. Here’s what you need to know

Why banks offer bonuses

Like most businesses, banks are always looking for ways to attract new customers, and offering cash incentives is an easy way to get people in the door.

A new customer brings the potential for other banking services, like credit cards, savings accounts, or loans, which are far more lucrative for financial institutions over time.

By offering significant dollars upfront, banks hope to establish long-term relationships that pay off down the line. But these bonuses aren’t just gifts: banks often require you to take specific steps to earn them, and the process can sometimes be more complicated than advertised.

Here are some conditions banks may impose.

1. Direct deposit requirements

Some banks require a customer to deposit a minimum amount via direct deposit, often ranging from $500 to $2,000, within a specific time frame — usually within 60 or 90 days of account opening.

For example, Huntington’s offer above of a $600 bonus requires a minimum of $25,000 in deposits within 90 days. That’s a significant amount of cash, which some potential customers could find difficult to uphold.

Some banks also require customers to make a certain number of deposits or reach a cumulative total before qualifying for the bonus.

2. Minimum balance maintenance

Many promotions require customers to maintain a minimum balance for several months.

If your balance drops below the specified amount, you could lose the bonus and face monthly maintenance fees — a tricky condition for those who don’t consistently have a large amount of money in their checking accounts.

3. Transaction requirements

Some banks require new customers to make a certain number of transactions with their debit card, such as purchases or bill payments, within a set period.

This tactic ensures that you use the account actively rather than simply opening it for the bonus and moving on.

4. Waiting periods

Even after meeting some other requirements, the reward isn’t always immediate.

Some banks take weeks or even months to deliver the bonus after you’ve completed the conditions, so don’t count on your “bonus” money coming quickly.

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What to consider before switching banks

Extra cash is tempting, but it’s essential to approach these offers with caution. Here’s what consumers should consider before switching banks for a bonus promotion:

1. Ease of account management

Consider whether the new bank’s services, such as online banking, mobile apps, and customer support, are easy to use. If they aren’t, a cash bonus may not be worth the hassle.

2. Accessibility of funds

Evaluate the bank’s ATM network and whether they charge fees for using out-of-network ATMs.

Some banks also have branch limitations, which might be problematic if you need in-person banking services.

3. Interest rates

Checking accounts typically offer very low or no interest, so don’t expect your money to grow much while sitting in one.

However, some banks do offer significant interest rates. If interest rates are important to you, consider pairing it with a savings account that adds value.

4. Future banking needs

Beyond the sign-up bonus, what other services does the bank provide? Will you need a credit card, loan, or savings account down the road? If so, does the bank measure up?

A well-rounded financial institution could save you the hassle of managing multiple accounts across different banks.

The bottom line: before jumping into an offer, read the fine print, assess the requirements, and consider whether the bank truly fits your long-term financial needs.

In many cases, the peace of mind from having an account that aligns with your lifestyle may be worth more than a one-time bonus with lots of asterisks attached to it.