Here’s Why I Open a New Bank Account Every Year

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Most consumers open new bank accounts sparingly. Check out the reason why one personal finance writer does it on a yearly basis. 

Banking is usually a long-term relationship. Most people don’t play the field much with their bank accounts. They find a checking account and a savings account they like, and they use them for years, and often decades.

I do things a bit differently. I open at least one new bank account every year, and I’ve been doing this for several years now. It might sound strange — who wants to set up a new account that often? It makes more sense when you know about the money that many banks are handing out to new clients.

Bank bonuses are an easy way to earn extra cash

I’m pretty happy with the bank accounts I already have. But if a bank is going to offer me money to open a new one, I’ll gladly take that deal. This type of deal is available with quite a few banks, in the form of bank bonuses.

Here’s how a bank account bonus works:

You sign up for an account that includes a bonus. Normally, you’ll need to sign up through a specific offer link or enter an offer code during the application process.You must complete the terms of the bonus within the designated time frame. Terms depend on the offer, but some of the most common are receiving a direct deposit or depositing a certain amount of money, such as $5,000.Once you complete the terms, the bank will verify that and deposit your bonus. The amount of time this can take will be specified in the terms. Eight to 12 weeks is common.

There are plenty of bank bonuses worth hundreds of dollars. If you won’t have any trouble meeting the conditions to earn the bonus, then this is a quick, convenient way to make extra money.

SEE OUR TOP PICKS: Best Bank Bonuses

What to look for in a bank account bonus

I look for a couple of things when deciding if I’ll sign up for a bank bonus:

How much is the bonus?How easy will it be for me to earn?Does the account have any fees or minimum balance requirements?

If a bonus will be a breeze for you to earn, and it’s at least a reasonable amount, then it could be worth doing. On the other hand, if a bonus is going to be inconvenient to earn, then it needs to be big enough that it’s worth your while.

For example, I recently opened a new checking account. I have several already, so I certainly don’t need another one. But there was a bonus of $250, and the only requirement was to receive a direct deposit of at least $500. I jumped on that, because all I need to do is change my direct deposit account. It took me minutes, and it’s going to earn me $250.

On the other hand, if a bank bonus requires depositing $50,000 and maintaining that balance for three months, I’d stay away. That’s inconvenient, and I’d much rather invest some of that money through my brokerage account than leave it locked up in a bank.

Watch out for fees

Many banks that offer bonuses have an early termination fee. If you close your account too soon, the bank could take back the bonus. Make sure to review the terms if you decide you don’t want to keep the account.

The other type of fee to avoid is an account maintenance fee. Some banks charge this monthly, although most will waive it if you meet certain requirements, such as maintaining a minimum balance. Only sign up for an account if you’re sure you’ll be able to meet those requirements and avoid a monthly fee. Or, you can also just stick to bank accounts that don’t charge fees like this.

If you don’t mind opening a new account every now and then, keep an eye out for bank bonus opportunities. They can be an easy way to boost your savings.

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