Did you know you can make money from opening bank accounts? It’s 100% legitimate and I’ll explain how. A lot of people are worried these are scams, because why would a bank give you free cash? I’ll explain how banking works so you’ll see how banks also benefit from you opening an account through bank promotions.
How does banking work?
To put it simply, when you open a checking account and put your money in the bank, the bank is lending some of that money to others. It might even go to a student’s college loan. The bank then makes money off the interest on that loan. By you giving the bank your money, the bank has made more money, and now has more money to lend to more people. When you withdraw your cash, the bank is able to still give it to you.
So why are they giving me money?
Now you understand how banks benefit from having more people open checking accounts, but why do they pay for you to do that? Here’s where the math comes in. For banks to profit off your opening of a checking account, you’ll need to put in an amount greater than the amount they’re giving you. Before you whip out your pitchforks and scream, “Aha! That’s the catch! There’s always a catch!!” it’s a condition for the deal to take place, but I won’t call it a “catch.” You’re still making money in the end, and the money you put in is still yours to spend or save.
There are usually three conditions:
- you need to direct deposit a certain amount of money into your new checking account (so you need a job with direct deposit options).
- you need to do this within a certain amount of time and keep it in the account for a certain amount of time, normally 3-4 months.
- some banks will add on the condition that you need to spend from your debit card 10 times. This is to try to get you into the practice of using their card over a different one.
These conditions are so they know you’re not going to just cycle money around different banks. The more you use their bank and longer you keep money in the account, the higher the chance you’ll be a long time customer. If you don’t want to forget, set a calendar reminder on your phone – that’s what I do.
Okay, I’m ready! What do I need to do?
Here’s a list of December 2018 bank promotions. There are different conditions and timelines for each, so be sure to read through each one!
- TD Convenience Checking $150 for a $500 deposit
- Capital One 360 Checking $25 for a $250 deposit
- PNC Performance Spend $200 for a $2,000 deposit
- BMO Harris Personal Checking $100 for a $600 deposit
- Bank of America SafeBalance/Advantage Plus $25/$100 for $500 deposit
Banks do this consistently, so even if you’re reading this and it’s not December 2018, you’re not missing out! Search up a bank near you and Google “bank promotions” or “cash bonus.” Be sure to remember that cash bonuses and cash back are two different things.
Ready to make some money?