Bank account bonuses are one of the ways that you can get even more out of opening a bank account. Over time, more and more banks have started offering these bonuses, making it more common for people to get some kind of sign-up bonus when they sign up for a new account. If you’re interested in getting the best checking account bank bonus offers, you’ll probably want to have these four questions answered before you sign up for one.
1. Why Do Banks Offer These Bonuses?
A sign-up bonus may seem like just a benefit to the customer, which may make you confused as to why banks offer them in the first place. The thing is, bonuses can be very helpful for banks as well; a great bank account bonus can convince many potential customers to choose a specific bank over some of their competitors. By offering a sign-up bonus, a bank can get more long-term customers.
2. Will I Have to Pay Taxes on Bank Account Bonuses?
Bank account bonuses are considered interest-bearing income for taxes. That means you may have to pay some amount of taxes on your bank account bonus. Look out for a 1099-INT form at the end of the year; if your bank sends you one of these forms, it means that you’ll have to report the bank account bonus to the IRS as interest-bearing income. Some research can help you learn how much you might expect to pay.
3. Do All Banks Have Monthly Maintenance Fees?
Monthly maintenance fees are essentially what they sound like; they’re monthly fees that you pay to a bank in exchange for being allowed to have an account with the bank. However, while they are definitely very common, they’re far from universal. Even banks that do have monthly maintenance fees may offer waivers, often if you have enough money in your account on average, so that you don’t have to pay the fee.
4. What’s the Best Bank Account Bonus?
There’s not necessarily just a single “best bank account bonus” because different bonuses may be best for different people. Dollar amounts for bank account bonuses can range from about $50 to up to $1,000 for some accounts, but not everyone will be able to meet the requirements for higher-level bonuses. Your best bet will always be to look through a list of bank account bonuses and choose from the list depending on your needs.
Bank account bonuses can be a great way to save more money and front-load a surprising amount of value onto a number of different bank accounts. However, you also need to think about all the different reasons why bank account bonuses may be beneficial for you or not beneficial for you. If you’re interested in getting the best bank account bonus for your needs, these are the questions you’ve probably had. With the answers, you’ll be able to choose a great bank account for your current and future needs much more effectively.
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