Opening a new account with a bank often comes with a cash bonus. Even the most basic bank accounts offer such bonuses to an array of individuals. As someone who is looking to open an account with a new bank, you want to know what bonuses you can expect. These bonuses vary depending on the type of account you are opening as well as how much money you are putting into the account. While a bonus may seem like a great incentive for opening a new account, there could be hidden terms you agree to. We will teach you how to choose the right banks with bonuses for opening accounts.
Know Why Banks Offer Bonuses
If you want to open a new account, you should know why banks offer bonuses. Banks offer bonuses to attract new customers. Bonuses for opening new accounts distinguish a bank from its competitors. Though they cannot afford to offer existing clients higher yields, offering a bonus is one way banks generate satisfaction with their customers. These bonuses are usually offered only to customers opening new savings or checking accounts. If you understand why banks offer bonuses, then it is easier to choose the right banks with bonuses for opening new accounts.
Do Your Homework
Before opening a new account, do your homework on the bank and the bonuses they offer. Keep in mind that you can open a virtual bank account or a traditional one. Evaluate both to find the best deals. Some banks offer bonuses per new account you open. However, most only offer a single bonus per new customer. Find out if existing customers are happy with the bank. If a bank has a low customer satisfaction rating, then you should consider looking elsewhere. Some bonuses may appear great at face value, but the fees could be higher than what you are already paying elsewhere. Doing your homework by researching which banks and bonuses are best for you allows you to make the right choice.
Opening an account with a new bank means new conveniences. Your day to day spending will change. While you might get a huge cash bonus for opening a new checking account, you may have to drive miles to find the bank’s closest ATM. The fees are another thing to watch out for. Many banks offer checking accounts with low or no monthly fees. Find banks with bonuses for opening new accounts that also promise little to no fees. When opening a checking account with a new bank, know what conveniences you could be missing out on and what fees to expect.
Investigate The Interest
Opening a new savings account might offer a great bonus, but could change the interest your account accrues. When shopping for a new bank, investigate the interest your money will be collecting. The bank might offer you a high cash bonus up front, but the interest rate could be so low that a switch just does not make sense. Owning savings accounts has become more expensive over the past decade. Find a bank that offers a bonus without sacrificing lower fees or higher interest rates. This is a crucial step to take when comparing bank bonus offers and choosing a bank to open an account with. If you are looking for banks with bonuses for opening new savings accounts, ensure the switch makes financial sense.
Read The Fine Print
Though the bonuses may appear ideal, read the fine print before opening a new account. A new account might come with high minimum balances. Even though a bank offers a cash bonus, you might not take that money out without going below the minimum. Many banks have high monthly or annual fees for maintaining new accounts. Others have heavy penalties for closing accounts. When choosing the right banks with bonuses for opening new accounts, read the fine print to ensure you are getting a good deal.
There are numerous banks with bonuses for opening new accounts. But before you make the switch, understand why banks offer these bonuses and do your homework on the banks you are interested in. Compare conveniences and investigate the interest before agreeing to enticing cash bonuses at the expense of higher fees or lower interest. Above all, read the fine print before opening any account with any bank. Keep all this in mind and you will know how to choose the right banks with bonuses for opening new accounts.