This Bank Is Offering A $20,000 Bonus If You Open An Account In January — Plus Other Banks That Reward You For A New Account

January 2024 has unveiled a slew of attractive bank account promotions, with M1 Finance's unprecedented offer of up to a $20,000 sign-up bonus for retirement accounts stealing the spotlight. This offer, designed for people with substantial retirement savings, is part of a competitive trend in the banking industry to attract new customers through high-value incentives.

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M1’s Mammoth Retirement Account Bonus

Targeted at high-net-worth individuals: The M1 retirement account offer caters to those with significant retirement savings, offering a tiered bonus that peaks at $20,000 for transferring over $7 million in eligible assets.

Eligibility criteria: To qualify, customers must roll over a minimum of $50,000 from existing 401(k), 403(b) or other employer-sponsored plans within 14 days of account opening. 

Why Are Banks Offering New Account Bonuses?

Financial institutions are now crafting strategies to bolster their deposit numbers in response to a decline in bank deposits over six consecutive quarters, according to the Federal Deposit Insurance Corp. (FDIC). 

Matthew Goldberg, a consumer banking reporter for Bankrate, offers insights into this phenomenon. He notes that banks are perennially in pursuit of new clientele, saying, "Banks, like most businesses, are always looking for new customers." 

He further explains the role of incentives in this process: "Offering a large bank account bonus could be what motivates a customer to open a new account." Goldberg acknowledges that opening a new bank account is not a spontaneous decision for most people. That's why significant bonuses are designed to provide that extra push for potential customers.

The structure of these offers often necessitates substantial deposits from customers. In cases involving the largest bonuses, the required deposit amounts can be exceedingly high, sometimes reaching hundreds of thousands of dollars.

Other Notable Offers in January 2024

Citi Priority Account: Offers up to $2,000 to new customers who meet specific deposit requirements within a certain timeframe.

Chase Private Client Checking: This account provides a bonus of $3,000 for deposits of $500,000 or more.

SoFi Checking and Savings: Offers a bonus between $50 and $300, depending on the direct deposit amount, combined with high-yield returns on deposits.

PNC Bank Virtual Wallet: Offers bonuses ranging from $200 to $400 for meeting certain conditions.

TD Beyond Checking: Provides a $300 bonus for new personal checking customers who meet specific direct deposit requirements.

Important Considerations Before Taking Advantage Of These Promotions

When contemplating the enticing bank account promotions available, there are several crucial factors to consider:

1. Minimum deposit requirements: Before diving into any of these promotions, it’s essential to understand the minimum deposit requirements. Each offer has a specific threshold that must be met to qualify for the bonus. For example, Citi Priority Account may require a certain minimum deposit within a defined timeframe, while TD Beyond Checking may necessitate specific direct deposit amounts. Ensure you meet these criteria to enjoy the benefits fully.

2. Funding the account: Transferring funds from your existing accounts to take advantage of these promotions may be necessary. Be prepared to fund the new account with the required amount promptly. For the M1 Mammoth Retirement Account Bonus, you’ll need to roll over a minimum of $50,000 from your current retirement savings within 14 days of opening the account.

3. Maintaining the account balance: Some promotions may stipulate that you maintain a minimum account balance for a specified period. Failing to meet this requirement could result in forfeiture of the bonus. Carefully review the terms to understand how long you need to maintain the balance. For instance, Chase Private Client Checking may require you to keep a certain balance for a few months to receive the full bonus.

4. Eligible account types: Different promotions may apply to various account types, such as retirement accounts, checking accounts or savings accounts. Ensure you select the right type of account based on your financial goals and the specific promotion’s eligibility criteria.

5. Consult with a financial adviser: Before making any significant financial decisions, it’s wise to consult with a financial adviser. They can provide personalized guidance based on your unique financial situation and goals. A financial adviser can help you evaluate whether these promotions align with your long-term financial plans and whether there are alternative strategies that may be more suitable.

Making An Informed Decision

Each of these offers has its unique appeal and requirements, catering to a range of potential customers from high-net-worth individuals to average savers. For those considering a new banking relationship in this year, these promotions present lucrative opportunities, albeit with conditions that warrant careful consideration. 

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Jeannine has written about personal finance and investment for the past 13 years at a variety of publications including Zacks, The Nest, and eHow. She is not a licensed financial advisor and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Jeannine believes that the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.