How bank sign-up bonuses work

A bank sign-up bonus is a cash reward for opening a new checking or savings account and completing a specific action, usually within a set window. The offers are real and often worth a few hundred dollars an hour of effort. They are also full of small print that decides whether you actually get paid. Here is how they work.

The basic structure

Almost every bank bonus has three parts:

1. Open a new, eligible account, sometimes with a promo code.
2. Do the qualifying thing within a window: usually receive a direct deposit, sometimes make a number of debit-card purchases, or hold a minimum balance.
3. Get paid, typically a few weeks to a few months after you qualify, as long as the account is still open and in good standing.

The reward and the requirement are stated together on the offer. For example, Chase Total Checking pays a flat bonus for a qualifying direct deposit, SoFi Checking and Savings tiers the bonus by how much you direct-deposit, and Capital One 360 Checking has its own code and window. Always read the specific offer page for the exact figure and terms.

The requirements you will actually see

• Direct deposit. The most common trigger, and the one people trip on most. What counts is defined per bank, and a transfer from your own account usually does not qualify. Read what counts as a direct deposit before you rely on one.
• Debit-card transactions. A count of purchases (say, 10 or 15) within the window. Small everyday purchases count; check whether the bank excludes ATM withdrawals.
• Minimum balance. Hold a stated balance for a period. Watch for the difference between an average balance and a daily minimum.
• Keep-open period. Many banks claw the bonus back if you close the account within a few months to a year.

The fine print that matters

• Cooldowns and one-per-lifetime rules. Many banks only pay new customers, or customers who have not had the bonus (or an account) in the past 12 to 24 months.
• ChexSystems. Some banks check ChexSystems and decline applicants with a rocky banking history. If that is you, favor banks known to be lenient.
• Taxes. Bank bonuses are interest income. The bank reports them on a 1099-INT, and you owe tax on them.
• The bonus posts later. Payout often lags the requirement by weeks. Do not close the account the day you qualify.

How to pick one worth your time

Compare the bonus against the effort and the money you have to move, not just the headline. A $300 bonus for a $500 direct deposit is a better use of your time than a $400 bonus that needs a $250,000 balance. Our biggest bonuses and easiest to earn lists rank offers by exactly those two metrics, and the deadline calendar shows what is ending soon.

A clean workflow

1. Pick an offer and read its full terms on the offer page.
2. Confirm you meet the eligibility rules (cooldown, state, ChexSystems).
3. Open the account, using the promo code if one is required.
4. Set up the qualifying activity early in the window, and confirm it coded correctly.
5. Keep the account open through the keep period, then decide whether to keep or close it.

Every offer we list shows the exact requirement, the fine print, and the date we last checked it against the bank. Start from the board and read before you rely on anything. This is reference information, not financial advice.