There are two different ways to balance your budget as well live according to your possibilities. The first way is to reduce your expenses. This is the easiest way to get started, but you will quickly reach a point where returns are going down. After all, there are only so many gym memberships or soy slats that you can cut out. The other way to live within your means is to increase your income.
There are many opportunities Increase your earning potential at your main job, but it is also possible to get extra money through sideline jobs and other small sources of extra money. In this article, we're going to talk about how you can make extra cash through cashier's checks and savings account sign-up offers. With a little knowledge and minimal effort, it's possible to make hundreds, if not thousands of dollars a year in bank sign-up bonuses on new checking and savings accounts.
What are bank sign-up bonuses and why do banks offer them?
There are many banks that are constantly looking for new customers. Banks have a variety of different marketing channels to attract customers, and each has a cost. Just like Welcome offers for credit cardsBanks want to encourage you to vet their bank in the hopes that you will like what you see and will keep your money with you.
To support this, many banks offer welcome bonuses for setting up a new checking or savings account. Some banks only offer these bonuses on a regular basis, while others are constantly offering new bonuses. Some bank sign-up bonuses are publicly available to everyone, while in other cases you need to be targeted (usually via email or direct mail). The size of a given bank bonus depends on many factors, including the size of the bank or the amount of money you need to deposit. However, most of the amounts are between $ 100 and $ 500. Also, keep in mind that these bonuses are offered per ACCOUNT. So, if you have a spouse or partner, often both of you can qualify for the bonus to get twice as much.
General requirements for bank accounts
In order to receive a new account bonus by opening a bank check or savings account, you usually have to meet certain criteria. The criteria differ from bank to bank and from bonus to bonus. Here are some of the general requirements you may need to meet:
deposit – Most bank bonuses require you to transfer a certain amount of money to the bank and keep it there for a certain amount of time. The amount of money can range from $ 500 to $ 10,000 or more. Sometimes the bonus amount depends on how much money you deposit.
Direct deposit – Often times, in addition to depositing money into the account, you also need to make one or more direct deposits.
Debit card transactions – You may also need to make a certain number of monthly debit card transactions
Bill payments – Or you may have to make a certain number of bill payments to receive the bonus.
Requirements vary depending on the bonus, so it's worth looking around. One of the tricks is to look for new bank account bonuses that pay the highest amounts while also requiring the least amount of work.
Bank fees and how to avoid them
Of course, nobody likes bank charges, and we recommend Avoidance of bank charges if possible. In the case of bank account bonuses, however, this can be useful. Even if there is a $ 12 monthly service fee on your new account, it may be worth paying for 3 months while you wait for your $ 300 new account bonus to release! Remember to close this account after your bonus contributions (or look for a way to avoid the monthly surcharges).
Check the fine print when signing up for a new account. Some banks may also charge an early termination fee. For example, you may need to have your money in your account for three months to receive a bonus. However, if you close your account within six months, you will be charged a $ 100 early termination fee. If so, make sure that your money stays in the new account at least long enough to avoid charges.
Tips to stay organized
While the process isn't particularly difficult, it does require a little organization. You don't need to be overly complicated – a simple spreadsheet or date-based reminder system will do for most people. Just keep track of when you opened an account, what bonus to expect and when it is safe to remove your funds.
It's also important to understand that in almost all cases, you will receive a 1099-INT form by the end of the year. The money you get from a new account bonus is considered interest and is taxable. The bank will not withhold tax from the bonus so your refund amount or tax liability may change when you file your tax return.
The final result
Bank account bonuses can be a lucrative way to make a little extra cash with little effort. Instead of keeping your money in a checking or savings account that earns near zero interest, with a little organization you can start to really get that money going.
Dan Miller (24 posts)
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a website that helps families travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 children.