How bank bonuses work

What a sign-up bonus is

A sign-up bonus is cash a bank pays you for opening a new account and doing a few specific things — usually receiving direct deposits or keeping a minimum balance for a set period. Checking and savings offers commonly run from about $100 to $400; some business and brokerage accounts pay more.

The basic flow

Almost every bonus follows the same four steps:

1. Open the account through the official offer link. The link matters — in-branch and online offers can carry different terms.
2. Fund and qualify — meet the requirement, such as $500 in total direct deposits within 90 days, or a $5,000 balance held for 60 days.
3. Hold the account open through the required period. Closing early almost always cancels the bonus.
4. Get paid — the bonus posts as a separate credit, often 60–90 days after you qualify, not on day one.

Common requirements

• Direct deposit: a payroll or government ACH deposit, sometimes for a specific amount. The most common — and most misunderstood — requirement.
• Minimum balance: keep a set amount in the account for a number of days.
• Debit transactions: make a handful of debit-card purchases.
• Other activity: a few offers ask for bill pay or similar.

What to watch for

• Bonuses are taxable income — the bank usually reports them on a 1099.
• They're typically for new customers only; recent or existing customers are often excluded.
• The holding period matters: keep the account open until the bonus posts and any clawback window passes.

Once you know this pattern, every offer in the directory reads the same way: what you have to do, how long you have to do it, and when you get paid.