The banking industry is constantly searching for new consumers to do business with. Decades ago, banks would give items such as TVs, toasters and other household appliances to gain business. These days, many banks are offering cash incentives and other bonuses to their savings account holders instead.
Many banks are offering new account holders a $25 cash bonus just for opening savings accounts. The minimum amount to get the cash bonus differs from bank to bank. Typically, the money has to stay intact for a period of several months for the bank to pay the cash incentive.
Other banks entice new customers with easy ways to save more money. For example “keep the change” programs are springing across the national bank fronts. The concept is that every time you make a purchase with your debit account, the money is rounded up to the nearest whole dollar and the small change rolls into your savings account.
For example, if you charge a purchase of $18.86 then .14 cents will automatically be placed into your savings account. On top of the constant addition of money and the interest earn, many banks match some form of the savings dollar for dollar (i.e. they match the first $100 saved).
After you open a savings account, some banks even offer you a bonus for referring your friends to their business. The amounts for referrals typically vary from $10-$25 and only applies to customers who meet the banks specific qualifications.
Long gone are the days of toasters, TVs, and free coffee makers as banking incentives. Financial institutions know that a savings account with a cash incentive bonus is far more effective for securing new business and to encourage savings.