10 Rules When Earning Money via Bank Account Bonuses

10 Rules When Earning Money via Bank Account Bonuses: By now, you know that banks offers consumers like us cash bonuses to open an account typically after meeting certain requirements like direct deposit, meeting spend requirements, enrolling in certain services, and/or a combination of various qualifications. But why do banks offer bonuses? Banking is a business – a very competitive business at that. These cash incentives are designed to earn your business – and to retain you as a customer in hopes that you use their more profitable services (such as taking out a mortgage, car loan, opening a credit card, IRA account, etc).

With that being said – this plays in your favor! A good handful of banks will offer sign-up bonuses to reel new customers in. Some of these bonuses aren’t very appealing, while some can be very lucrative worth up to several hundred dollars! Usually the higher the bonus, the more difficult/demanding the requirements are to obtain that bonus. The process isn’t difficult, but there are rules you need to follow – if not, you could skip out on the bonus for not meeting the specified requirements. See below for the 10 rules when earning money via bank account bonuses.

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10 Rules When Earning Money via Bank Account Bonuses

• Rule #1: Read the fine print.
  • Signing up for these bank account bonuses can be thrilling since you're earning some quick, easy money - but don't forget what each bonus comes with. The most important tip you can get when going for these bonuses is to READ the fine print and understand what it takes to earn the bonus. If you do not meet all of the specified requirements, you may not receive the bonus at all.
  • In the fine print, you'll see the requirements that the bank/credit union is expecting you to complete before you receive the bonus. Some of these requirements can include (but not limited to) direct deposit, enrolling in services like eStatements/mobile banking/bill pay, spending requirements using your debit card, depositing a certain sum of money for a specified length of time, etc. If you're lucky, some bonuses only require you to simply open the account and that's it!
  • You can see a full list of bank bonus promotions here.
• Rule #2: Follow the specified requirements of each offer.
  • Now that you're aware of the fine print and the requirements, you just simply need to follow/complete them. Majority of these requirements will need to be completed by a certain amount of time (for example, the account will need a direct deposit posted within 45 days of account opening OR you will need to complete at least 10 debit card purchases within 30 days of account opening). I suggest you complete the requirements as soon as possible. Do keep in mind some bonuses are not as simple as one requirement - some may require multiple requirements be met before you qualify for the bonus.
  • Keep in mind that the longer you wait, the easier it is to forget about your bonus and the requirements needed to be met. Usually the quicker you complete the requirements, the quicker your bonus will post (in most cases).
• Rule #3: Be sure to maintain any deposits if needed.
  • Some account bonuses will require you to keep and maintain a specified amount of money in the account for a specific length of time. For example, to earn your $200 bonus, you must deposit $10,000 into your account and maintain it for 90 days. This is just an example and the amount and length of time can vary. Be sure note how much you've deposited and at what date - that way you know how long you have to maintain the funds before withdrawing and/or earning your bonus.
  • Personally, if a requirement states that I need to maintain the funds for 90 days, I will leave the funds in there for 91/92+ days just in case OR leave the funds in there until the bonus posts.
• Rule #4: Be careful for fees.
  • While these bonuses might look very appealing, some accounts may come with monthly service fees. Be aware of these fees - you can find out about the account fees by finding out more information about the account, checking in with your banker, or reading the fine print/disclosure of the account.
  • For example, ABC Bank Checking Account may have a monthly maintenance fee of $5 per month. However, a lot of these accounts have ways to waive the fee or avoid it overall. For example, the account may waive the fee if you have 1) direct deposit, 2) $500 minimum balance each month, 10 debit card transactions per month, etc. The list can go on. As mentioned previously, you can find out this info by either contacting your banker, reading the terms/fees/disclosure of the account, etc. These fees can sometimes lessen, take away, or even cost you if you're not careful. This is another reason why it's so important to read the fine print and to get as much information on the account as possible.
• Rule #5: Keep your account open to avoid any account closure fees.
  • Here's another sort of fee that you should be aware of. A common mistake that many people encounter when earning their bank bonuses is to have it lessened or even revoked due to closing the account too early.
  • If not stated in the fine print, be sure to check the terms & conditions/account disclosures for any sort of early account closure fees. For example, some banks/credit unions will require you to keep the account open for 3 months, 6 months, a year, etc - some accounts you're able to close immediately after receiving your bonus - but that all depends and varies.
  • Be sure you're aware of how long you must keep your account open to avoid giving up part of your bonus or even have it fully revoked.
• Rule #6: Maintain a spreadsheet to keep track of your bonuses.
  • This is very important - it's important to keep organized. If you plan on just going for one or two bonuses and do not feel the need to keep a spreadsheet, there's no need to as long as you know what to do. However, if you're planning on going for multiple, it's best advised to maintain some sort of spreadsheet to keep track of things.
  • My personal spreadsheet includes the bank/credit union' name, the date you signed up for the account, the requirements, the dates you completed the requirements, the bonus amount, the date the bonus posted onto your account, and the date you're able to close your account. Some extras you can add is whether the account triggered a hard pull or soft pull. Be sure to get familiar with what a hard pull or soft pull is. It's ideal to go for bank account bonuses that trigger soft pull so your credit history will not be impacted.
• Rule #7: Don't hurdle more than you can handle.
  • If you're on the roll and tackling multiple bank bonuses at once, it would be strongly advised that you have excess cash on hand. As previously mentioned, some accounts will require you to hold a certain sum of money for a specific length of time - in that case, if you're in dire need of funds and all your existing cash is put away to meet those requirements, you could risk losing the bank bonus overall if you withdraw for things like bills, emergency, etc.
  • All in all, it's important that you understand how much you can handle at once to prevent any sort of mishaps.
• Rule #8: Get your family/friends involved.
  • Do you have a spouse, a room mate, or even want your family/friends to get involved? If you have a spouse, room mate, etc and you're splitting bills, saving up for a vacation, etc, this is a great idea! The rules for acquiring these bonuses are the same for everyone, but again, be sure to keep up with the fine print and don't hurdle more than you can handle.
• Rule #9: Consider high interest-bearing accounts.
  • Bank bonuses is a smart and easy way to earn extra income - however, keep in mind that your brick and mortar financial institutions may not offer the best rates. What you'll find is that a majority of physical banks will offer you no return or rates as little as 0.01% on your funds. I highly suggest you open an online account where the rates are exponentially greater. One account I recommend is the Discover Bank Online Savings Account.
  • After scoring your bonus, deposit these funds into an interest bearing account to earn additional money on your existing funds - you could even consider investing it via a brokerage account (high risk but high opportunity for return) or even certificate of deposit accounts (very secure return).
  • In conclusion, don't just let your money sit around in your checking account earning no interest - take the step today and make your money work for you!
  • You can see the best interest bearing accounts here along with the best rewards accounts here.
• Rule #10: Make use of your new-earned money!
  • Now that you've went through the whole process to earn your bank account bonus(es), be sure to make use of it! Whether you decide to save it, invest it, or use it - is all up to you! All this is is extra money - and it's up to you on how you use it! Just be sure to report these bonuses when tax season comes. Banks will provide you/mail you a 1099 form for when the time comes.

Author's Verdict

Let's face it, who doesn't love free money? Bank account sign-up bonuses are one way you can earn extra income on the side without having to work that hard for it. With that being said, hopefully we prepared you on what to expect when going for these bonuses. It's also important that you understand what hard pull/soft pulls is, credit card funding, and even tips on meeting direct deposit requirements. You can see a full list of the best credit cards here. If you're interested in earning extra income, be sure to check out our list of the best bank deals & bonuses! Be sure you brush up on what a hard pull or soft pull is before opening an account as well!