In a bid to secure customers, some banks are offering cash bonuses when you open high-yield savings. Here’s how to tell if you should take advantage.

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High-yield savings account rates are decreasing amid coronavirus concerns, so some banks are offering cash bonuses to encourage people to keep creating accounts.
There are numerous reasons to open a high-yield savings account, but a promotion shouldn’t be the only one that matters. You should be comfortable with your choice regardless of any limited-time promotion.
High-yield savings accounts can earn you up to 20x more than the average savings account and rarely require initial deposits, minimum balances, or monthly management fees.
See Business Insider’s picks for the best high-yield savings accounts »

Did you know that right now, Ally will pay you up to $250 for setting up a new high-yield savings account? Any new or existing customer can receive this bonus if they transfer at least $1,000 from another bank to an Ally savings account, money market account, or CD.

Ally isn’t the only bank offering a cash bonus for signing up. For a limited time, you can receive up to $300 from CIT Bank if you create a new Savings Builder account or deposit new funds into your existing account. You may also get up to $700 from Citibank if you open a new checking and savings account.

Several companies are offering limited-time cash bonuses for setting up high-yield savings accounts right now. You must deposit new funds to the account (meaning you can’t transfer money from an account you already have with that bank).

Banks are usually requiring minimum deposits to receive the bonus. Some are asking you to keep the money in your account for a certain amount of time, typically two or three months.

So, why the sudden influx of promotions?

Because the Federal Reserve has already cut it rates twice in 2020, high-yield savings account rates have been decreasing, too. These companies are offering cash as an incentive for Americans to continue opening accounts with them.

But a cash bonus isn’t the only reason to open a high-yield savings account. These accounts are great places to store money you expect to need in the next couple years, especially if you’re saving for a big purchase, like a car or house.

A cash bonus is useful, but remember that you should be happy with your savings account long-term. If you feel the app is poorly designed or the ATM fees are too high, don’t open an account just for a few hundred extra bucks. Choose a high-yield savings account that will meet your needs long after these promotions are gone.

The prospect of pocketing free money from your bank might be just the push you need to finally open a high-yield savings account, though. Here are three reasons it might be time to open an account regardless of available promotions.

1. You’ll earn more money than you would with other bank accounts

You might be wondering whether it’s still worth setting up a high-yield savings account now that interest rates are decreasing. A …read more

Source:: Business Insider

      

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