Every business needs a strategy to maintain its buoyancy. Offers for an open new account are one of the strategies bank use to fish new clients. At the same time, it can be an avenue for potential customers to reap big.
Depending on the type of account you want, different banks have different bonuses. So, it’s up to you to dig deeper and choose the best deal for your needs.
If you are looking to tap into these bonuses, you’ve come to the right place. We are dissecting everything about this topic. We will also bring you a collection of 10 banks we rate as the best in this category.
How to open a new bank account?
Opening a bank account can be a freaky endeavor especially for newbies. The process may even seem intimidating when you have conflicting options. Fortunately, the process is almost similar across all banks. Whatever type of an account you want to open, you’ll have to cruise through the following steps;
1. Choosing A Bank
You may have an idea where you want to open your account even if not sure of the process. If you haven’t decided yet, we’ll help you. First, you need to ask yourself what type of account you need. Is it a saving, a checking account, or an investment?.
After that, think of the accompanying fees applied to the services offered. This is important to ensure the bank doesn’t eat a big chunk of your money on charges. There are three major types of the financial institution you can consider for an account.
- The Credit Unions: These are financial institutions owned by a group of people. They offer similar services and products to banks. These are further split into profit and non-profit credit unions. In most cases, non-profit credit unions have more competitive rates than their counterparts. Although, it is important to properly study the fee schedule as sometimes there can be variations.
- Banks: This category includes the community and the usual big banks. They are the most popular and common financial institutions and offer the most basic banking services. Local and regional banks tend to have more friendly charges. You can even negotiate for a waiver at the big banks.
- Online Banks and Credit Unions: These are entirely online-based institutions. All their transactions and operations are carried out electronically. They are a result of technology increment and they don’t even have physical branches.
You can consider these institutions if you are comfortable with computers and smartphones. They can be very instrumental in helping you save and cut down your banking expenses. Instead of always making trips to a bank branch, these institutions are a button press away.
2. Visit the Bank’s Branch or Website
After you research and settle on a certain bank, it’s time to head to the bank or its website. To open your account, you can either go to a physical branch or use their online platforms. However, caution is advised for the latter. There are several imposter sites that can end up misleading you. So, if you are not very sure about the online steps, you better go to the bank.
3. Choose Your Product
The next step is choosing your preferred account or services. Here, you have a large pool of options. The following are some of the accounts you can open;
- Checking Account: This checking account is like a central collection point for your money. You can use it to receive and transfer money. Depending on how frequently you use this account, it’s important to check the fee tariffs. Otherwise, you may end up spending a lot of money on your transactions.
- Savings Account: A savings account is purposely meant for savings. The funds in this account will earn you some percentage interest. So, if you are opening a savings account, you need to consider a bank with the best interest rates.
- Money Market Account: This account operates more like a savings account. Also known as the money market deposit account, it has several unique features. For instance, their interests are mostly higher than savings accounts. They may also include a debit card and check writing services. But, unlike regular checking accounts, money market accounts tend to be more rigid.
- Certificates of Deposit: This is a product of banks and credit unions. They offer premium interest rates in exchange for your locked savings. The customer must agree to lock their savings for a specific period of time. The CD terms differ from bank to bank. So, it’s upon you to check what terms and interests are available for your target bank. It’s also important to check the penalties in case of early withdrawal.
4. Provide Your Official Information
Whether opening an account online or physically, identity verification is a critical step. It is a rule by the government in a bid to ensure financial security and prevent money laundering. At this point, you’ll be required to provide your sensitive biodata to the bank. Thus, ensure you have the following information or documents before starting off.
- A government-issued ID.
- Your physical and mailing address.
- Your official names as captured in the ID.
- Identification number. In most cases, these are Social Security Numbers or ITIN.
5. Financial History Check
Before approval for an account, most banks tend to check your credit. The check is meant to understand your financial behaviors. Not that you must have a squeaky-clean credit history but it quickens your approval. Too bad credit history or one with an aspect of financial malpractices can prompt a denial. The good thing is that the check isn’t too deep to affect your credit score. So, you should not be afraid of it.
6. Read and Consent to Terms
By opening an account with a certain bank, you are entering into an agreement. By consenting means, you agree to abide by their rules and regulations. That’s why you must be very keen. Read and understand every detail of the terms and conditions.
If applying manually, you agree by signing the forms. When using the online method, you consent by clicking the “I agree” button.
7. Print, Sign and Mail Documents
When using the online application method, you may be required to download some documents for signing. Some banks have a complementary electronic method before activating your account. Before this, the account remains inactive and cannot be used. So, this depends on which bank you are opening your account.
If you are applying physically, the agent may ask you for the documents. They can photocopy and file them.
8. Funding the Account
For checking and savings accounts, the initial deposit is mostly part of the account opening process. This may differ from one bank to another. Some banks allow post-funding after your account is already operational.
To fund your account, you can use any of the following methods;
- Money order
- Electronic money transfer from another account
- Cheque deposit
9. Account Ready for Use
If you have followed this guide from the first step, you should have a new bank account by now. Depending on the bank, your account should be ready for a transaction within minutes of a few days.
After you are done with the opening process, check out for the resources. If you open a checking or savings account, expect things like a debit card, check books and ATM through the mail.
Finally, it’s important to sign up for the account free features. These enhance the account usability and management. If the bank has a mobile app, download and configures it on your phone. This will enable you to receive instant alerts and check balances remotely. Make sure you exhaust all the available free account features. Things like remote check deposits are also important items you shouldn’t leave out.
Advantage of the Bank Offers to Open A New Account
It’s a way to earn extra cash. Once you deposit your funds in a bank, unless it’s in the savings account, there is no way to earn from it. Opening new accounts during the banks’ bonus period is the easiest way to get extra bucks in your account.
Depending on a bank and account, most promos offer at least $100 for new account sign-ups. The amount can even be higher to hundreds of dollars for premium accounts. Therefore, it’s up to you to choose wisely the account you want and your capability.
The Disadvantage of Bank Offers to Open A New Account
The tag promo shouldn’t confuse you to take up the bait without thorough research. You may end up regretting it. Bank offers for new accounts isn’t an all-rosy deal as it may appear. The accompanying hidden rules and requirements make these offers even more dangerous.
Some of them will need you to invest a lot of time and energy to benefit. Things like penalties applied also may be too high. So, you can end up losing your hard-earned cash.
The 10 Best Bank Offers to Open A New Account
There is a myriad of banks with offers for new customers. Even though the banks may not be available in all states, most of the offers are available for everyone. Those who cannot access the physical branches can use the online method. If you are looking for that extra dollar by opening an account, we have a list of the best banks for you. These include;
1. TD Bank
TD Bank has two bonuses for new customers opening checking accounts. The first bonus goes to the brand new Beyond Checking accounts. It is a whopping $300 bonus. Nevertheless, t is not without a condition. The owner must make a direct deposit of $2,500 within 60 days. About the deposit, there is no restriction to the amount one should make. Although, there is a monthly fee of $25 waivable if the account owner maintains a minimum balance of $2,500 per day. The good side of it is that there is an interest paid. Also, you don’t pay anything to use non-TD ATMs. Although, others may charge you.
The second is a $150 bonus for TD Convenience Checking account. Like the first one, there is no fixed deposit for the customers. So, you are free to pay whatever amount you have. However,, a $15 fee is also applied. The fee can be waived if you maintain at least $100 daily balance for a month. Also, to qualify for the bonus, you must have at least a cumulative direct deposit total of $500 within 60 days.
2. Chase Bank
New customers opening Total Checking accounts with direct deposit are entitled to a $300 bonus. The offer is only for new customers. They must also pay a monthly maintenance fee of $12. Note that this fee is avoidable. All you need to do is observe a few simple instructions.
The first leeway is to make a direct deposit of not less than $500 to your account. The other way is to maintain your balance at $1,500 and above. Or you can ensure that your average daily balance of all other accounts doesn’t go below $5,000. Checking and savings accounts are among the qualifying accounts.
There is also a $200 bonus for customers opening a new savings account. To qualify for the offer, the account owner must deposit at least $15,000 within 20 working days. Additionally, the balance must remain so or higher for at least 90 days. A monthly service fee of $5 is also payable. However, if you maintain your account balance at or above $300 the fee won’t apply.
3. Huntington National Bank
Huntington National Bank has two bonuses for new customers opening checking accounts. This offer runs up to 7 April 2021. So, if you want to take advantage of this offer, you better hurry. You qualify for the first bonus of $150 if you open an Asterisk-Free Checking account. This account doesn’t have any fixed deposit attached to it. Also, it doesn’t have any monthly maintenance fee.
To qualify for the $200 bonus, you open a 5 Interest Checking account. This account bears a $5 monthly maintenance fee. You can also evade the fee by keeping your account balance at $5,000 or above. Both offers have similar demands. You must make a cumulative deposit of $1,000 within the first 60 days. On top of that, you must keep the accounts open for not less than 90 days. If everything checks out, you should receive your bonus within 14 days.
4. PNC Bank
If you haven’t had a PNC account for the last 3 months or transacted any promotional payment within the last 2 years you can qualify for an offer. These are top priorities though there may be variations depending on your location. So, be sure to check out your eligibility before trying out.
PNC has various bonuses for new accounts. For instance, there is a $50 bonus for customers opening a new standard virtual wallet. If you add the Performance Spend, then you increase the bonus up to $200. The criteria here require that the direct deposits must be not less than $500 and $2,000 respectively.
Also, there is a $300 bonus if you open a Virtual Wallet with Performance Select. In this case, you make direct deposits of not less than $5,000.
To qualify for any of the above, you must make not less than 5 debit card purchases. If you meet all the requirements, you receive the bonus within 60 to 90 days.
5. Bank of America
Bank of America offers a $100 bonus for new customers opening checking accounts. All you are required to do is open any of the following bank accounts; Advantage SafeBalance, Advantage Plus or Advantage Relationship Banking.
After opening your account, you should make an opening deposit of $25 or $100 depending on the type of your account.
The next criteria are that you must receive at least two deposits of not less than $250 each. And this should be within a period of 90 days from the account opening date. After fulfilling all the requirements, ensure you have an offer code. This is a must-have to claim your bonus.
6. Axos Bank
Axos Bank is offering a bonus of $100 for new small business owners looking to open their business checking accounts. To qualify for the bonus, you must fulfil certain requirements.
One, you must have incorporated your business not earlier than 1st June 2020. The second rule demands that you must maintain your account balance at $2,500 and above. Finally, all your deposits must be of new funds. If you fulfil all the above requirements, all you need is the offer code to claim the $100 bonus.
7. HSBC Bank
HSBC has many bonuses for their new customers. Top on the list is the $450 bonus for premiere account customers. After opening your account, you should receive direct deposits amounting to $5,000 or more. Also, this should happen within 90 days after opening your account. Although, you should be aware of the $50 monthly fee charged. But you can avoid it.
There is also a $200 bonus for HSBC Advance checking account. To qualify for this offer, after opening the account, you must receive at least a cumulative $500 within 90 days. The count starts from the second full calendar month from the date of account opening.
8. Associated Bank
Associated bank offers three types of bonuses. If you are a new customer, you can win a bonus of $200, $300 or $500 by opening a new checking account. To qualify and receive the bonuses, you must maintain a specific account balance for 61-90 days. The threshold balances are $1,000, $5,000 and $10,000 in order of the bonuses.
Additionally, the bank requires that you keep your account open for at least 12 months. Even though Associated Bank may not be available in your state, you can check their online application portal. That will allow you to apply from anywhere in the USA.
9. Citi Bank
Currently, Citibank is offering a $700 bonus for new checking and savings accounts. The requirements are simple. You open a new account in the Citi Priority package and deposit at least $50,000 within 30 days.
Also, you should ensure that the balance in the two accounts doesn’t drop below the $50,000 threshold. If you adhere to all the requirements, you receive your bonus within 90 business days.
BBVA is offering a bonus of up to $250 for new accounts across 7 states. Their bonus has simpler requirements compared to other banks. All you do is open a new checking account within the offer period and receive at least $500. Additionally, you can increase your bonus by maintaining a savings balance at or above $1,000.
People Also Ask
A couple of banks offer money to entice new customers to open new accounts. This happens to almost all types of banks including credit unions, standard banks as well as community banks.
How good a bank depends on the type of account you want to open. People opening savings account need a bank with high-interest rates. On the other hand, those opening checking accounts need a bank with low transactions fees. You also need to consider the new account bonuses. So, the decision of the best bank to open an account is varied.
Yes. With most banks today developing websites and mobile apps, it is possible to open an account remotely. All you need is a computer, internet and perhaps the verification documents. Log in remotely, fill in all the required details and submit your application. After all, some banks are operating entirely online today.
Yes. However, this is not possible for all banks. Some banks allow you to fund your account after they have activated it. However, others include an initial deposit as a step when opening the account. So, in that case, you won’t be able to open an account without money.
Yes. There are banks that allow people to apply for accounts online. All you need is a smartphone, computer or a tablet connected to the internet. You’ll go through the normal processes as if applying physically. The only difference is that you may not interact with papers anywhere. Some banks may need people to download, print and sign the final documents. Though, others have complementary systems to verify their new customer identities.
Bank offers for new accounts are bittersweet deals. If used appropriately, it’s a great way to earn an extra dollar in your account. However, it is prudent to be aware that banks don’t give free money. Thus, you should read the fine print properly to ensure that you are sure of what you are getting yourself into. Otherwise, you may end up losing your hard-earned cash in pursuit of bonuses.