Eye-catching cash bonuses are drawing consumers to new bank and brokerage accounts this season, but many will find the richest payouts are out of reach without hefty deposits and tight timelines. Lenders and trading firms are dangling offers worth thousands of dollars to attract fresh money, a promotional push that reflects stiff competition for deposits and customers amid higher interest rates.
The pitch is clear. The fine print, less so. While some offers pay a quick $200 for opening a checking account and setting up direct deposit, the splashiest deals require moving five-figure sums and parking the cash for months.
“The top bonuses offer thousands of dollars—but you’ll often need substantial deposits to qualify.”
Why Big Bonuses Are Back
Rising rates have made deposit dollars more valuable. Banks must work harder to keep balances from drifting to higher-yield accounts, money market funds, or Treasury bills. Promotional bonuses help plug that leak. Brokerages, for their part, use tiered incentives to win assets and trade volume, especially from customers who might otherwise sit on the sidelines.
These offers often ramp up during quarter ends and holiday seasons. Institutions use them to meet growth targets and to replace customers who leave for better yields or lower fees.
How the Offers Typically Work
Most high-dollar bonuses follow a simple formula: bring in a lot of money, keep it there, and meet activity requirements. The details vary by institution, but patterns repeat across the market.
- Tiers: Bigger deposits unlock bigger payouts.
- Holding period: Money must stay put for 60 to 180 days.
- Activity rules: Direct deposit, bill pay, or trading may be required.
- Timing: Bonuses often post weeks after the holding period ends.
Consumers who chase multiple offers can stack rewards, but timing and liquidity matter. Pulling money out early usually voids the bonus. Miss a deadline and the payout may vanish.
What Consumers Should Watch
High-dollar promotions can still be worth it, but only if the math checks out. The true return depends on the deposit size, the time commitment, and what the money could have earned elsewhere. A $1,000 bonus for locking up $100,000 for three months looks generous until you compare it with yields on top savings accounts, money market funds, or short-term Treasurys.
Fees also matter. Some checking accounts require minimum balances or direct deposits to avoid monthly charges. Brokerages might require a trade count or margin relationship. Taxes apply to bonuses, which are usually reported as interest or “other income.”
Consumer advocates urge careful reading of terms. Requirements around “new money,” account age, and household limits can trip up applicants who have used the same bank before or who move funds among related brands.
The Industry’s View
Banks argue that bonuses are a fair way to reward new relationships and cover onboarding costs. Brokerages say asset-based tiers reflect the scale of service and support larger clients often need. For both, the promotions are cheaper than permanent rate increases and can be turned on or off as conditions change.
Yet there is a risk of churn. Customers who arrive for a bonus may leave when the holding period ends. To reduce that, firms bundle extras: fee waivers, credit card tie-ins, or higher promotional yields that extend the value.
How to Judge a Bonus
Analysts suggest treating each offer like an investment decision. Calculate an annualized return, compare it with safe alternatives, and consider liquidity needs. Factor in time spent on paperwork and tracking deadlines. The best deals tend to be simple, with clear steps and quick payouts.
For savers with large cash balances, tiered bonuses can beat market yields for short windows. For those with smaller cushions, standard interest rates and no-fee accounts may be safer and less stressful.
What Comes Next
If rates remain steady or drift lower, expect bonus promotions to stay visible as institutions jockey for stable, low-cost funding. If rates fall sharply, firms may lean even harder on one-time payouts rather than raising ongoing yields. Either way, consumers will see more fine print—and more need for calculators.
The bottom line is simple. Big numbers on banners require big numbers in deposits. The offers are real, the trade-offs are real, and the clock usually starts the moment the money lands.
