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Common Mistakes to Avoid When Earning a Bank Account Bonus

When you’re exploring options for opening a bank account, enticing bonuses from banks or credit unions can be very appealing. For example, a bank might offer a $250 cash bonus for opening a checking or savings account. However, these offers often come with specific requirements, such as making at least one direct deposit within a certain period.

At O1ne Mortgage, we want to ensure you make informed decisions. Here are some common mistakes to avoid when trying to earn a bank account bonus:

1. Not Making Direct Deposits

Many financial institutions require a certain number of direct deposits, such as paychecks or government benefit checks, within a specified period to qualify for a bonus. The bonus amount might vary based on the deposit amounts. Failing to make the required direct deposits can result in losing the bonus or a higher annual percentage yield (APY). Ensure you make a qualifying direct deposit within the time frame set by the financial institution. Note that some deposits, like mobile deposits or ATM deposits, may not qualify for the bonus.

2. Failing to Maintain a Minimum Balance

To earn a bank account bonus, some institutions require maintaining a minimum balance. For instance, a bank might offer a $200 bonus for a $10,000 minimum balance, a $500 bonus for a $30,000 balance, or a $1,000 bonus for a $75,000 balance. The bank may also require maintaining this balance for a set period, such as 60 days. If your balance drops, your bonus might decrease. Ensure you can maintain the necessary minimum balance or find a financial institution that doesn’t have this requirement.

3. Failing to Make a Minimum Number of Transactions

Some credit unions offer high APYs for checking accounts, but only if you make a minimum number of transactions each month. For example, you might earn a 6% APY on balances up to $10,000 if you make 15 or more monthly debit card transactions of at least $10 each. If you don’t meet this requirement, the APY could drop significantly. If you don’t frequently use your debit card, consider a financial institution that doesn’t require a minimum number of transactions for a bonus.

4. Opening an Account Only for the Bonus

While a bonus for opening a bank account is attractive, it shouldn’t be the sole reason for choosing an account. Consider the following:

• What fees will you be charged, such as monthly maintenance fees and ATM fees? Will the bonus offset these fees?
• How accessible is the financial institution’s ATM network?
• What is the account’s APY?
• Does the financial institution offer a user-friendly online portal and mobile app?
• How is the customer service? Seek recommendations and check online reviews.

The Bottom Line

Many banks and credit unions offer bonuses to attract customers. However, it’s crucial to do your homework before opening an account. Requirements like maintaining a minimum balance or making direct deposits can impact your ability to earn the bonus. If you’re unsure about meeting these requirements, consider other options, even if it means forgoing the bonus.

For any mortgage-related needs, feel free to call O1ne Mortgage at 213-732-3074. We’re here to help you make the best financial decisions.

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