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Fulfill the criteria and you could see an extra $5,000 in your bank or investment account. This is the enticing offer that some financial institutions are currently making. While the top 10 sign-up bonuses for May 2024 can certainly pad your wallet, only a handful will be eligible for the most lucrative deals.
Jason Rericha, a certified financial planner and managing director at YellowWood Wealth Solutions, advises that these cash incentives should not be the primary factor in choosing a new bank account. He emphasizes that a banking relationship should prioritize excellent service and competitive products that cater to your needs. Instead of pursuing bank bonuses, many might find it more beneficial to open a savings account, some of which offer interest rates of 5% or higher.
Why Do Banks Offer Such Large Cash Bonuses?
Free money is undoubtedly appealing. However, understanding why banks are distributing it is crucial when pursuing a sign-up bonus. Rericha explains that acquiring a new client presents the bank with an opportunity to offer additional products such as mortgages, investments, or insurance to recover their costs. He adds that the more products a client uses, the stronger the relationship becomes, making client retention less reliant on factors like rates. It’s all about expansion and profit margin.
Are Bonuses Worth the Effort?
Many of this month’s top offers come with qualifying obstacles. For instance, all of the 10 largest bonuses have minimum deposit restrictions, with some requiring depositors to part with $1 million or more. Moreover, many require a certain number of direct deposits and for depositors to meet account-funding deadlines, maintain a high average account balance over several months or more, or meet strict membership requirements to qualify.
However, if you have the assets and are looking for a new bank account, a bonus can be a quick way to increase your income. But it should not be the sole deciding factor, says Rericha. He explains that sign-up bonuses are typically short-term, so they aren’t the best way to choose a bank. He reiterates that a banking relationship should prioritize finding a firm that provides excellent service and competitive products that cater to your needs.
While some financial institutions attract new customers with a bonus, others do so by offering attractive interest rates, often for products such as high-yield savings accounts, certificates of deposit (CDs), or money-market accounts, many of which can yield more than 5% annual percentage yield (APY). Yes, the best available rates also come with their own restrictions, such as investment minimums or maximums, temporary offers, and fluctuating rates. However, they can be a viable long-term option for increasing your net worth.
Regardless of your choice, Rericha emphasizes the importance of knowing all the details. He advises, “Ensure you read all the fine print and inquire about any potential fees before signing up. After all, if a bank has to buy your business, that might be a warning sign.”
Top Sign-Up Bonuses for May 2024
If you’re in the market for a new bank account and have a substantial amount of liquid cash ready to transfer, here are the best bank account sign-up bonuses for May 2024. Just make sure to read the fine print and ensure you meet all the requirements.
If you don’t qualify, we’ve also included some of the more accessible bonus offers below.
Tastytrade: Up to $5,000 New Tastytrade customers who fund their investment accounts with at least $5,000 by Dec. 31, will qualify for a cash bonus. But it takes an account with more than $1 million to be eligible for a maximum bonus of $5,000. Like with all account bonuses, it’s important to read the details before opening.
Citi Personal Wealth Management account: Up to $5,000 New or existing customers who open a Citi Personal Wealth Management account before June 30 with at least $50,000 in new-to-bank funds stand to earn a relatively high bonus of $500. For clients who open a wealth management account with at least $2 million, Citi will add $5,000 for the effort. This high balance must also be maintained for a set period of time, so it’s critical to read the fine print.
Chase: Up to $3,000 Deposit between $150,000 and $249,000 in a qualifying Chase account before the July 24 deadline and you could earn as much as $1,000. For those with deposits that exceed $500,000, Chase will add $3,000 to your account. You’ll just need to make your minimum transfer balance within 45 days of enrollment with qualifying deposits to a combination of eligible checking, savings and/or J.P. Morgan Wealth Management non-retirement accounts that are opened in a Chase branch and serviced by a J.P. Morgan Private Client Advisor. For whichever account you choose, you’ll just need to maintain that qualifying balance for 90 days.
Citi checking account: Up to $2,500 Checking accounts opened prior to July 8 can earn a cash bonus of up to $2,500. They’ll need to be funded with a minimum $300,000 deposit within the first 20 days. If you’re able to maintain that balance for 60 days from the 21st day of account opening, this cash bonus is yours. It should be noted that living trusts, fiduciary, estate, business or retirement accounts — IRAs, SEPs, CESAs, or money purchase pension plans and profit-sharing plans — do not quality. International Personal Bank, Citi Private Bank and Citi Alliance accounts also do not qualify for this offer.
Wells Fargo Premier Checking: Up to $2,500 Open a Wells Fargo Premier Checking account by June 25 with a minimum deposit of $25, add $250,000 in new money by the 45th day of opening the account, maintain your balance for at least 90 days, and you can qualify for a hefty $2,500 bonus. You’ll also have to bring a bonus offer code to a banker at the time of account opening at a physical branch location to activate the offer, so be sure to read the fine print when accessing this account.
Flushing Bank Complete Checking : Up to $2,500 Maintain a three-month average account balance of at least $10,000 and you are eligible for a bonus at Flushing Bank. For balances above $250,000, the bonus grows to a generous $2,500. This offer, however, is only available for one account opened by a new customer.
Huntington Business Checking Account: Up to $1,000 Make a minimum cumulative deposit of at least $20,000 within 30 days of opening a new Huntington Unlimited Plus Business Checking account by Sept. 3 and you may be eligible for a $1,000 sign-up bonus. You’ll just need to maintain that minimum account balance threshold for 60 days after meeting that minimum deposit requirement with new-to-bank money and keep your account open for 90 days before you are eligible.
PNC Analysis Business Checking: Up to $1,000 Maintain an average ledger balance of $100,000 with a PNC Analysis Business Checking account for the first three payment cycles from account opening and you can earn a $1,000 cash reward for your effort. Just be sure to do so before the June 30 deadline to qualify.
Teachers Federal Credit Union: Up to $1,000 Like with most of the biggest bonuses available today, the cash boost at Teachers FCU is available on a tiered basis. Deposits starting at $25,000 stand to earn a $100 bonus, while those that surpass $500,000 can earn $1,000. To earn, you’ll just need to become a member, fund your account within 14 days of enrollment and maintain your account balance for 90 days. Just be sure to enter the code “NM2024” to enroll.
Broadway Bank Business Analysis Checking: Up to $1,000 There’s no membership required to earn the $1,000 sign-up bonus at Broadway Bank. That said, only Texas-based business accounts that can fund a Business Analysis Checking account with at least $50,000 in new-to-bank money within 30 days of account opening and maintain that balance for 120 days can qualify. In addition, new account holders will need to make 10 qualifying transactions in the 90 day period and enroll in two Treasury Solutions products with the bank.
Huntington Perks Checking: Up to $600 Open a Perks Checking account by the June 7 deadline with cumulative deposits of at least $1,000 within 90 days of account opening and you stand to earn an attractive $400 bonus. This offer, however, is only available for residents in Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Dakota, West Virginia and Wisconsin.