Who doesn’t love free money? If you’ve seen ads from big banks offering a cash bonus—sometimes $300 or more—just for opening a new checking account, you might be wondering: What’s the catch?

 

It’s a great question, and one that Atlanta resident Ann recently asked about a Wells Fargo promotion. She noticed the bank was offering a $300 reward for new checking account holders but had a hunch that it wasn’t quite that simple. 

 

Spoiler alert: She was right.

 

So, are these bank promotions worth it? Let’s break down how they work, what to watch out for, and whether you should jump on the next big bonus offer.

 

$300 sounds great, but how many people meet the qualifying criteria?

 

The Fine Print: What Banks Don’t Advertise Up Front

While banks do give out these bonuses, they’re not handing out cash for nothing. To earn that $300 (or whatever the offer may be), you usually have to meet a series of requirements, which are often buried in the terms and conditions.

 

For example, Wells Fargo’s $300 promotion requires:

  • Providing an offer code that only works for a certain time period.
  • A minimum deposit of $1,000 in direct deposits within 90 days of opening the account.
  • The deposit must come from an employer, government benefits, or a similar source—money deposited or transferred from an outside account, including physical ATM deposits, does not qualify.
  • Maintaining the account for a set period (often several months) to avoid an early closure fee.

And Wells Fargo isn’t the only bank doing this. Chase, Bank of America, and others offer similar promotions, each with their own fine print. Some require even higher direct deposit amounts, minimum balances, or other hoops to jump through.

 

Promotions can be great, but make sure the terms are worth your time.

 

Why Banks Offer These Promotions

If you’re wondering why banks are so eager to give away cash, the answer is simple: they want long-term customers.

 

The reality is that most people don’t open an account just for a bonus and then close it right away. Instead, they stick around, set up direct deposits, and use the bank’s services—often paying fees or taking out loans in the future.

 

Banks also know that many people will miss a requirement or forget to complete one of the steps needed to get the bonus. If that happens, they keep your business but don’t have to pay out the reward.

 

Is It Worth It? Here’s How to Decide

Bank bonuses can be a great deal—if you go in with your eyes wide open. Here are a few questions to ask before signing up:

  1. Do I meet the deposit requirements?  If your paycheck isn’t big enough or you don’t get paid through direct deposit, you might not qualify.
  2. Are there monthly fees?  Some banks waive fees for those who meet certain qualifications (such as students and service members, reward program members, or those who maintain a certain minimum daily balance), but others might eat into your bonus with fees.
  3. Is it worth switching banks?  If you’re happy with your current bank, switching just for a one-time bonus may not be worth the hassle.
  4. Will I remember to withdraw the bonus later?  Some banks require you to keep the account open for a few months to avoid fees—so don’t forget to check back when the time comes.

The Bottom Line

Bank promotions like Wells Fargo’s $300 bonus aren’t scams, but they’re also not truly free money. They come with strings attached, and if you don’t follow the fine print exactly, you might miss out on the reward.

 

If you’re thinking about taking advantage of one of these offers, make sure you understand the requirements—and that they fit your financial situation. Otherwise, that “easy” bonus could turn into more of a headache than it’s worth.

 

Have you ever signed up for a bank promotion? Did you get the bonus, or did you run into unexpected hurdles? Share your experience in the comments!