I’m a Banking Expert: 4 Ways To Leverage Bank Promotions To Boost Your Finances
Written by
Angela Mae
Edited by
Gary Dudak
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Having a bank account is one of the easiest ways to manage your finances. As long as that account is insured — such as through the FDIC — and has features like fraud protection and identity theft, it’s also a useful way to keep your money safe.
In addition to all of that, did you know that you can leverage bank promotions to boost your finances? GOBankingRates spoke with a banking expert, Bethany Hickey, about how to do it. Here’s what she said, and you can also check out more bank bonuses and promotions here.
Sign-Up Bonuses
Perhaps the easiest way to leverage bank promotions in your favor is to open an account with a bank that’s currently offering a welcome or sign-up offer to new customers.
“These offers are usually limited and come with expiration dates, but if you’re in the market for a new checking or savings account, definitely keep an eye out for bonus cash,” said Bethany Hickey from Finder.
These sign-up bonuses usually range from $200 to $500, but are sometimes more. However, you’ll generally need to meet certain requirements to be eligible for one of these bonuses.
This could mean setting up direct deposit or maintaining a minimum account balance. It might also mean making a certain number of monthly transactions to that account. Be sure to read the fine print when choosing a bank to see whether or not you qualify.
Direct Deposit Incentives
According to Hickey, banks also often offer direct deposit bonuses. Again, these are often available to new customers, but it doesn’t hurt to see what else your bank might have available for current members.
Take BMO, for example. As of August 21, 2024, this bank is offering a $350 cash bonus to those who open a Smart Advantage Checking account and have at least $4,000 in qualifying direct deposits (within the first 90 days of opening the account).
Sometimes, you’ll get additional incentives or cash offers for opening different types of accounts with a bank. Again, you’ll typically have to meet certain criteria to qualify for these, often related to direct deposits or maintaining a certain account minimum. Still, that’s potentially hundreds of dollars you can add directly to your account — all because you opened an account.
APY Boost
APY, or annual percentage yield, is essentially the rate of return on your investment over one year (including compound interest). At a bank, you’ll typically find the highest APYs on savings accounts. Some other types of accounts, such as interest-bearing checking accounts, also have an APY.
Generally speaking, choosing an account with high APY is a great way to boost your finances. But sometimes, banks also offer additional bonuses here.
“Savings account bonuses often come in the form of an APY boost,” said Hickey. “For example, a bank may offer a 1.00% APY boost for three months for depositing $1,000 within 30 days of account opening.”
This boost is on top of the account’s normal APY. There are often limits to how much of your account balance can benefit from this APY boost, so keep that in mind.
Savings Round-Ups
Whether you’re a new or current customer of a bank, you could also benefit from savings round-ups. These are most commonly attached to your checking account, meaning you’ll probably need to open one — plus a linked savings account — to take advantage of the feature.
“A savings round-up feature usually involves rounding up each debit card purchase to the nearest dollar and then depositing the rounded-up amount into your savings account automatically,” said Hickey.
It might take a while, but over time these small round-ups can turn into some substantial savings. Think of this like saving change in a jar back when cash was much more commonly used.
What’s great about savings round-ups is that all you need to do is set it up. Since everything else is automated, you won’t even have to think about contributing that little bit of extra cash. It’s still generally a good idea to set up automatic savings, though, especially if you have a high-yield savings account. That way, you’ll get extra savings and earn even more money off your account balances.
Some banks will also offer matching contributions for your savings round-ups up to a certain amount. If yours does, that’s essentially free money.
Other Ways To Use Your Bank Account To Make Money
Here are just a few other ways to use your bank account to increase your account balances:
- Use an interest-bearing checking account with decent APY.
- If you don’t need immediate access to your funds, get a certificate of deposit (CD) with a high APY.
- Take advantage of any other bonuses or incentives your bank offers (e.g., minimum balance bonuses).
- Find out how to waive any bank fees (such as by keeping a minimum balance) and do that to prevent them from eating into your money.
- Make sure that any bank you choose offers competitive rates and bonuses — and consider making a switch if it doesn’t.
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