Let’s Talk… Sign-up Bonuses for Banks and Credit Cards!!
Have you all seen the sign-up bonuses for new banks accounts? It’s wild. The normal bonuses that I see regularly on social media are $400-$500 but I’ve seen them go up to $3k. For credit cards I’m seeing bonus points and miles of up to 100k. I view banking as a commodity, meaning that there is no substantial difference in what bank A can do for me vs bank B. If a bank is willing to pay me to use their “service”, I’m willing to take their sign-up bonus any day of the week. Here are some things to watch for when signing up for a new account with a cash reward.
- Read their rules for getting the bonus and make sure you follow each step. Typically, there is a required minimum deposit, a number of debit card transactions, and a minimum daily balance you have to keep.
- Pay attention to fees. Again to get out of paying the monthly service charge, you have to do something. Just make sure you do that “something”.
- It seems this is market based, so if you live in a market that has a lot of competition the sign-up bonus is offered. If you live in a place where one bank controls everything, don’t expect to have these offers in your area. I’m in Houston and there is evidently a lot of competition for a lot of money.
- You’ll get a 1099 int at the end of the year for the cash bonuses but not the bonus miles or points.
Lastly, make sure to put the new account on your account aggregation program to keep track of the assets. You don’t want to forget about the account at any point in time. So what’s the best bonus checking account or credit card you’ve signed up for recently?
The content in this material was created for educational and informational purposes only and is not intended as an investment advice.
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
