Switching banks for a checking account bonus?3 things you should know

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Here’s how to make the switch without causing major financial problems.

Key Point

• A checking account bonus can motivate you to change banks, but you should read the fine print.
• Also, you must resolve any outstanding issues with your old bank account before you can start using your new bank account.

Everyone can spend a little extra cash these days, and there are plenty of bank accounts. While checking account bonuses have become a popular tool used by banks to attract new customers, they are not as straightforward as they first appeared. Here’s what you need to know about them before opening a new account.

Simply opening a checking account at a new bank is usually not enough to receive a bonus. In most cases, there are additional criteria that must be met in order to obtain it. The most common requirements include:

• Account opening within a certain period
• Use a special code when opening an account
• Fixed amount deposit
• Receive a fixed monthly direct deposit
• Maintain a constant balance for several months after opening an account

You have to tick all the required boxes to get the bonus, but you still don’t get it right away. Once you meet all the required criteria, it may take weeks or months before your bank credits the bonus to your account.

For this reason, we recommend reading all the terms and conditions of the bonus offer before opening a bank account. Often this is buried in the fine print at the bottom of the web page that describes the bonus. If you have any questions about what is listed there, please contact your bank before opening an account.

2. Don’t forget to pay bills automatically

When you move to a new bank account, be sure to switch any automatic bill payments you set up on your old checking account. Otherwise, your bank may charge you an overdraft fee. Creditors may also charge late fees and interest.

Go through past bank statements from your old bank account and note any recurring payments from your account. You can go back up to a year to understand irregular payments that may only occur once every few months.

Make a note of these and enter your payment information into your new checking account once the setup is complete. Then cancel the recurring payments on your old bank account to avoid paying twice each month.

3. Fees may be charged from your old bank account

If you decide to keep your old checking account open, take a moment to review its tariffs. Some checking accounts, especially traditional bank checking accounts, charge a monthly maintenance fee to those who fail to maintain a consistent balance. This may result in the loss of any savings left in this account or incur overdraft charges.

You should leave at least enough money in your old bank account or close it completely to avoid monthly fees. Before closing, please transfer all funds and automatic invoice payments as described above.

A checking account bonus can be the best cherry for an already great bank account, but switching banks can be a pain. . If not, you’re better off sticking with the bank account you have and skipping the bonus.