Yes, believe it or not, banks are increasingly using the tactic of offering up cash incentives and rewards to lure in new customers. Make sure you do your homework first if you are currently looking to open a new checking or savings or brokerage account. There are lots of lucrative first time customer rewards. In fact, to help you get started I have started to list the current bank deals that I am aware of on my Free Money Bank Deals page.
How do you find the banking bonus deals?
I find out about these primarily by visiting the actual bank either online or through their physical brick and mortar branches. From there it is advertisements, SlickDeals, FatWallet, and personal finance blogs like MyMoneyBlog. There appears to be an exhaustive list on iBankBonus.
Is it worth it?
Does it affect your credit score?
Sometimes. Not every bank will do a hard pull of your credit score. If your checking account comes with an overdraft line of credit then they will likely do a hard pull. Each inquiry to your credit will ding your score. This will not be helpful if you plan on going in and getting a new loan for a car or house in the near term. You can read more about what affects your credit score.
Are you at increased risk of identity theft?
It is generally believed that the more you expose yourself the more chance you have of becoming a victim of identity theft. This might be true. Banks and other financial institutions are charged with safekeeping your information private but thieves do exist. That is one reason you should check your credit report at least once a year even if you haven't been opening new accounts for a few extra Benjamin Franklin's in your wallet.
What is the catch?
Do the rewards always come through?
Yes, as long as you meet all of the requirements. If you are going to sign up for a promotion be sure to print off or save the promotion page with all of the fine print. Then create a little to do list and keep to it.
What are the best deals?/What are the easiest way to make free money?
The best deals are those that just have a minimum deposit for a required time frame. For example, open an account and leave the money there for six months to a year. These offers can be thought of as lucrative one year CD's because you have to wait to get your principal back. Some banks will count direct deposits that come in the form of an ACH push from another bank.
Can I do more than one at time?
You are not limited to the number of offers you want to apply for. You will likely be limited in the number of direct deposits that you can do in a month. If you employer allows your paycheck to be split up and direct deposited into several accounts it will be easier to do two offers with direct deposit requirements. If you want to fulfill billpay requirements on more than offer - just split up payment and pay it multiple times or from multiple sources.
Any other tips?
Remember, while you might be upset the banks were all bailed out and are evil - they are only offering the money as a marketing ploy to gain you as another customer.
Have you switched banks recently? Tell us about your experience with new account offers.
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