If you’re considering opening a new checking or online savings account, take note that certain banks are currently offering additional financial incentives for depositing your funds with them – with potential bonuses of up to $3,000 for checking accounts and savings accounts. Evaluate these bank account bonus opportunities to discover the most advantageous offer tailored to your financial needs. Additionally, explore other incentives, such as bonuses for opening brokerage accounts.
Highlighted as the top consumer bank account bonuses for February 2025 by Bankrate are:
Best checking account bonuses:
– Chase (Private Client): $3,000 bonus
– Huntington National Bank: Up to $600 bonus
– BMO: Up to $350 bonus
– PNC Bank: Up to $400 bonus
– Bank of America: $300 bonus
– KeyBank: $300 bonus
– Wells Fargo: $300 bonus
– SoFi: Up to $300 bonus
– Chase Bank (Total Checking): $300 bonus
– Chase Bank (College/Secure Checking): $100 bonus
– TD Bank: Up to $300 bonus
– Capital One: $250 bonus
– M&T Bank: Up to $200 bonus
– KeyBank: $100 annual bonus
Best savings account/money market account bonuses:
– Barclays Bank: $200 bonus
– TD Bank: $200 bonus
– Alliant Credit Union: $100 bonus after a year
– BMO: Up to $60 bonus during the first year
Best business bank account bonuses:
– Huntington National Bank: Up to $1,000 bonus
– PNC Bank: Up to $1,000 bonus
– Axos Bank: Up to $400 bonus
Dive deeper into the top promotions for consumer checking accounts, savings accounts/money market accounts, and business bank accounts to make an informed decision on your banking needs.
Why banks offer sign-up bonuses:
Banks utilize sign-up bonuses as a way to set themselves apart from competitors and attract new customers and deposits. Rather than increase interest rates on deposits, bonuses provide a clear and quantifiable incentive for customers. While some banks offer multiple sign-up bonuses, note that you typically cannot qualify for more than one at the same time with the same institution.
Considerations before signing up:
Before committing to a bank account bonus, carefully review the terms and conditions, particularly regarding minimum balance requirements and fees. Ensure that the account aligns with your banking habits and preferences. For checking accounts, verify the availability of branches and ATMs in your area, and for savings accounts, weigh the long-term interest rates against one-time bonuses.
Tax implications:
Bonuses earned from bank accounts are subject to taxation by the IRS at the standard income tax rate. Be prepared to receive a 1099-INT form from your bank indicating the bonus amount for tax purposes.
If you receive a bank bonus of more than $10, it may be reported on a 1099-MISC form. Your bank might provide these forms electronically. However, your bank could also choose not to issue a tax form for the bonus you earned. In such a case, you are still required to pay taxes on the bonus. The income from a bank account bonus can be reported on a 1040 form, allowing you to disclose additional income from sources like unemployment compensation or money received from prizes or awards.
Upon receiving a bank bonus, it is advisable to set aside a portion of it (based on your tax bracket) for taxes. This ensures that you have the necessary funds to meet any tax obligations related to the bonus. It is important to note that promotions mentioned in this article may have specific requirements that are not explicitly detailed here. Terms and conditions may apply to these offers.
