How do bank bonuses work?
A bank bonus is cash a bank pays you for opening an account and completing a specific requirement, usually direct deposits or a minimum balance held for a set number of days. The money typically posts 30 to 90 days after you finish the requirement and is reported to the IRS as interest income on a 1099-INT.
Acquiring a checking customer costs an American bank a few hundred dollars in advertising no matter what. Handing that money to you instead of to a billboard company is simply cheaper for them. That is the entire trick. There is no catch beyond the requirement itself, which is why reading the requirement carefully is the only skill this hobby demands.
Step by step
1.Check that you are eligible before you apply
Most offers exclude people who held the same account type recently, commonly within the last 12 to 24 months. Some are limited to specific states. Eligibility is the number one reason a bonus never pays.
2.Open through the offer link and save the terms
The bonus is attached to the specific offer you opened through, not to the account in general. Screenshot the terms page on the day you open it, including the requirement and the deadline.
3.Complete the requirement exactly as written
If it says two direct deposits of $500 each, two deposits of $499 do not count and one deposit of $1,000 often does not either. Banks automate this check, and the automation is literal.
4.Keep the account open through the holding period
Many offers claw the bonus back if the account closes within 90 to 180 days. Leave it open and quiet until that window passes.
5.Set a reminder for the payout date and follow up
If the money has not arrived by the stated window, secure message the bank with your screenshot. Bonuses that fail to post automatically are frequently paid after a single polite message.
Quick facts
- Typical bonus range
- $100 to $500 for checking, more for brokerage
- Common requirement
- Qualifying direct deposits, or a balance held 60 to 90 days
- Payout timing
- Usually 30 to 90 days after the requirement is met
- Tax treatment
- Interest income, reported on a 1099-INT
- Credit impact
- Usually a soft pull for checking, a hard pull for credit cards
Common questions
Are bank bonuses worth it?
For most people yes. A $300 bonus for parking money you already have, or redirecting a paycheck you already receive, is one of the highest hourly rates available in personal finance.
Do bank bonuses hurt your credit score?
Opening a checking account is usually a soft inquiry through a banking database rather than a credit check, so the score impact is typically none. Credit card bonuses do involve a hard inquiry.
Are bank bonuses taxable?
Yes. A cash bonus from a bank is treated as interest income and the bank sends a 1099-INT if it totals $10 or more for the year. Credit card spending bonuses are generally not taxable.
How often can you get a bank bonus?
As often as you find offers you are eligible for. The limit is each bank's own cooling-off rule, commonly 12 or 24 months since you last held that account type.
What counts as a qualifying direct deposit?
Usually a payroll or government ACH credit carrying a specific transaction code. Transfers from your own other bank often fail, though some banks are far more relaxed than others.
Keep going
- What counts as a direct deposit
- Find bonuses you can actually finish
- Checking account bonuses
- Savings account bonuses
- Best bonus lists by situation
- Learn how bonuses pay out
Last reviewed 2026-09-21.