Financial institutions frequently offer substantial cash incentives and freebies to attract new customers. These promotions are designed to encourage consumers to switch their primary checking or savings accounts to a new provider. The availability and specifics of these offers can change rapidly, and many are geographically restricted to certain states or regions. This article provides an overview of current account incentives and freebies based on available information, detailing the types of offers, eligibility requirements, and the competitive landscape of bank account promotions.
Understanding Bank Account Incentives
Banks and credit unions utilize sign-up bonuses as a primary marketing tool to differentiate themselves in a highly competitive market. These bonuses attract new customers and bring new money into the institution, which is particularly profitable for larger accounts. While some offers provide simple cash payments, others require specific activities such as direct deposits or maintaining a certain balance.
The process of switching accounts has been streamlined in some regions through services like the Current Account Switch Service, which guarantees completion within seven working days. In the United States, consumers can take advantage of various state-specific and national offers. It is crucial for consumers to read the terms and conditions carefully, as requirements often include depositing new funds (not transferring from an existing account at the same bank), maintaining the balance for a specific period, and avoiding account closure shortly after receiving the bonus, as the bonus may be subject to clawback.
Types of Incentives and Freebies
Incentives range from direct cash payments to gift cards and fee waivers. The value of these bonuses can vary significantly, from under $100 to over $1,000, depending on the institution and the required deposit amount.
Cash Bonuses Requiring Deposits
Many of the most lucrative offers require a substantial initial deposit. These are often tiered, offering higher bonuses for larger deposits.
- Wellby Financial: Offers a $1,000 checking bonus for a $50,000 deposit in Texas.
- Associated Bank: Offers a $750 bonus across several states (IA, IL, IN, KS, MI, MN, MO, OH, WI), requiring $20,000 for the full bonus, with smaller bonuses available for lower deposits.
- S&T Bank: Offers a $900 bonus in PA and OH, with $300 being easy to obtain and the remainder requiring a $25,000 deposit.
- Broadway Bank: Offers $300-$400 in Texas, requiring $25,000 for the $400 bonus and $2,000 for the $300 bonus.
- Truist: Offers a $400 bonus across many states including AL, AR, GA, FL, and others.
- Farm Bureau Bank: Offers a $250 bonus in Nevada.
Bonuses with Activity Requirements
Some bonuses are tied to specific account activities, such as debit card purchases or direct deposits, often without requiring a large balance.
- Firstrust Bank: Offers a $450 bonus in DE, MD, NJ, PA, requiring $500 in debit card purchases.
- Fulton Bank: Offers a $225 business checking bonus in DE, DC, MD, NJ, PA, & VA.
Gift Cards and Vouchers
Some banks offer gift cards or vouchers instead of or in addition to cash.
- Lloyds (Student Account): Offers £100 cash and up to £90 in Deliveroo vouchers (UK-specific).
- M&S Bank: Offers a £100 gift card for spending in-store and online (UK-specific).
Interest Rates and Cashback
In addition to upfront bonuses, some accounts offer ongoing benefits like tiered interest rates or cashback on purchases.
- Santander (123 Current Account): Offers tiered interest (1% to 3% on balances up to £20,000) and cashback on household bills (1% on water/Council Tax, 2% on gas/electricity, 3% on communications). Requires a £500 monthly deposit and two direct debits.
- Lloyds (Vantage Account): Offers tiered interest up to 4% on balances up to £5,000 when paying at least two direct debits. Also offers up to 15% cashback via the Everyday Offers website.
- Clydesdale Bank: Offers 2% interest on in-credit balances up to £3,000, requiring £1,000 credited monthly.
Referral Programs
Some institutions incentivize customer acquisition through referral programs.
- Nationwide: Offers a referral program where both the referrer and the referred person receive £50 when the referred person switches their main account to Nationwide. There is a cap of ten referrals per year, potentially earning £500.
Brokerage Account Transfer Bonuses
The competitive nature of the financial industry extends beyond traditional bank accounts to brokerage firms. These companies often offer bonuses to attract assets from competitors. Bonuses can be substantial, sometimes amounting to thousands of dollars, and are often calculated as a percentage of the transferred assets. For example, Robinhood has previously offered a 3% bonus on funds transferred into traditional and Roth IRAs. Other major brokerages like Schwab and Fidelity have also been known to offer cash incentives or reimburse transfer fees to attract new clients.
State-Specific and Regional Offers
Many of the most attractive bonuses are limited to specific geographic areas. Consumers should verify if their state of residence is eligible for any given offer. Examples of state-specific bonuses include:
- Associated Bank: Operating in IA, IL, IN, KS, MI, MN, MO, OH, and WI.
- S&T Bank: Limited to PA and OH.
- Firstrust Bank: Operating in DE, MD, NJ, and PA.
- Truist: Available in a large number of states including AL, AR, GA, FL, IN, KY, MD, MS, NC, NJ, OH, PA, SC, TN, TX, VA, WV, and DC.
- Broadway Bank: Limited to Texas.
- Farm Bureau Bank: Limited to Nevada.
- Wellby Financial: Limited to Texas.
Conclusion
The financial market offers a variety of incentives for consumers willing to switch their bank or brokerage accounts. These promotions, ranging from direct cash bonuses to interest-bearing accounts and cashback schemes, provide an opportunity to earn significant value. However, they come with specific requirements regarding deposits, account activity, and maintenance periods. Consumers should carefully evaluate the terms of each offer, consider the geographic restrictions, and ensure they can meet all conditions to qualify for and retain the bonus. Staying informed about current offers from various institutions can lead to substantial financial benefits.