Banks do not send you checks just for having an account open
No bank sends you a check simply because you opened a checking or savings account. Banks make money from your deposits — they lend that money out and keep the interest — so they do not pay you to hold an account with them. What you might see instead is a promotional offer that pays cash when you meet specific conditions, like depositing a certain amount within a set timeframe.
These promotions are real and come from actual banks, but they are not automatic. You have to meet the terms, and the bank sets those terms to attract new customers or encourage larger deposits. The payment arrives as a deposit to your account, not as a mailed check, and it typically shows up within one to three months after you meet the requirements.
Key Takeaways
- Banks do not pay you for simply opening or maintaining a checking or savings account — they profit from your deposits instead.
- Some banks run promotional offers that pay cash when you deposit a minimum amount or set up direct deposit within a specific window.
- Promotional payments deposit directly into your account rather than arriving as mailed checks.
- The terms vary widely by bank and change frequently, so comparing current offers matters if you are considering switching banks.
- Interest on savings accounts is separate from promotions and depends on the account type and the bank's current rates.
How bank promotional offers work
When a bank advertises a cash bonus for opening an account, it is running a promotion to compete for new customers. The bank sets a condition you must meet — for example, deposit $500 within 30 days, or set up direct deposit of your paycheck. Once you meet that condition, the bank deposits the bonus amount into your account automatically.
The bonus is not a loan or a gift card. It is real money that becomes part of your account balance. You can withdraw it, spend it, or leave it there. The bank reports the bonus to the IRS as interest income, so you will receive a 1099-INT form at tax time if the bonus is $10 or more.
Timing varies. Some banks credit the bonus within days of meeting the requirement. Others wait 30 to 90 days to make sure you do not close the account immediately after collecting the money. Read the fine print before you open the account so you know when to expect the deposit.
Where to find current promotional offers
Banks advertise these offers on their own websites, usually on the page for the specific account type. You can also find comparisons on financial websites that track current promotions across multiple banks. The offers change frequently — sometimes monthly — so what was available last month may be gone now.
When you see an offer, check the full terms before opening the account. Look for the minimum deposit amount, the timeframe to meet it, any direct deposit requirement, and when the bonus will post. Some offers require you to maintain a minimum balance for a set period, or they may exclude people who have closed an account with that bank in the past year.
If you are considering switching banks partly for the promotional bonus, compare the bonus amount against the account's ongoing fees and interest rate. A $200 bonus means little if the account charges $15 a month in maintenance fees or pays nearly zero interest on savings.
Interest on savings accounts versus promotional bonuses
Interest and promotional bonuses are two separate things. Interest is money the bank pays you based on the balance you keep in the account, calculated as a percentage per year. A savings account might pay 4% annual percentage yield (APY), meaning a $1,000 balance earns about $40 per year in interest.
A promotional bonus is a one-time payment for meeting a condition, not an ongoing return on your balance. Once you collect it, it does not repeat. The interest, by contrast, accrues every month as long as money sits in the account.
Interest rates change based on what the Federal Reserve does with its benchmark rate. When rates rise, banks typically raise the interest they pay on savings. When rates fall, so does the interest. Promotional bonuses do not change with the Fed — the bank sets the amount and the bank can change or end the promotion whenever it chooses.
Why banks do not pay you for just having an account
Banks profit by lending out the money you deposit. If you put $5,000 in a savings account, the bank can lend that $5,000 to someone else at a higher interest rate. The difference between what they pay you and what they charge borrowers is the bank's profit margin.
Because of this model, banks have no reason to pay you simply for opening an account or keeping money there. They already benefit from your deposit. Promotional bonuses exist only as a marketing tool to attract customers they would not otherwise get, or to encourage larger deposits than they would normally receive.
Checking accounts typically pay no interest at all, even though you keep money in them. Some banks offer checking accounts with interest, but the rate is usually very low — often less than 0.1% APY — and may require you to meet conditions like setting up direct deposit or maintaining a high balance.
What happens if you close the account before the bonus posts
If you close the account before the promotional bonus deposits, you usually forfeit the bonus. Banks include this rule in the terms to prevent people from opening accounts, collecting the bonus immediately, and closing them. The waiting period — often 30 to 90 days — protects the bank's investment in the promotion.
Some banks will still pay the bonus if you close the account after it has already posted to your account. Others require the account to remain open for a set period after the bonus arrives. Check the terms carefully. If the terms say the account must stay open for 90 days after the bonus posts, closing it on day 89 could mean losing the money.
If you think you might need to close the account, contact the bank's customer service before you do. They can tell you whether the bonus is protected or whether closing will forfeit it.
Checking accounts versus savings accounts and payouts
Checking accounts and savings accounts handle promotional bonuses the same way — both deposit the bonus directly into the account. The difference is in how the accounts are designed. Checking accounts are for frequent withdrawals and bill payments. Savings accounts are meant to hold money longer and earn interest.
Some banks offer checking accounts with promotional bonuses and no interest. Others offer savings accounts with both a promotional bonus and ongoing interest. A few banks offer high-yield savings accounts that combine a competitive interest rate with occasional promotional bonuses.
If you are opening an account partly for the promotional bonus, consider whether the account itself fits your needs. A bonus of $200 is only worthwhile if you actually use the account and do not pay fees that eat into the bonus value.
Frequently Asked Questions
Can I get multiple bonuses by opening accounts at different banks?
Yes. Each bank runs its own promotion, so you can open accounts at multiple banks and collect bonuses from each one, as long as you meet each bank's specific terms. However, some banks exclude people who have received a bonus from them in the past year or two, so check the fine print.
Do I have to keep the promotional bonus in the account, or can I withdraw it right away?
Once the bonus posts to your account, it is your money and you can withdraw it immediately. However, some banks require the account to stay open for a set period after the bonus arrives. If you withdraw the bonus and close the account before that period ends, the bank may claw back the bonus or charge you a fee.
Is the promotional bonus taxable income?
Yes. The IRS treats promotional bonuses as interest income. If the bonus is $10 or more, the bank will send you a 1099-INT form at tax time, and you must report it on your tax return. The amount is usually small enough that it does not significantly affect your taxes, but it is still taxable.
What if a bank advertises a bonus but I cannot meet the requirements?
You do not have to meet the requirements to open the account. You can open it without the bonus and use it normally. However, if you do not meet the stated conditions within the timeframe, the bonus will not post. Some banks allow you to contact customer service and ask for an extension or exception, but this is not may provide.
Are online banks more likely to offer promotional bonuses than traditional banks?
Online banks often run more aggressive promotions because they have lower overhead costs and compete heavily for deposits. However, both online and traditional banks offer bonuses. Compare the current offers from banks you are considering rather than assuming one type always offers better deals than the other.