Bank promotions: What are they and are they worth it?

You've probably seen banks offering special promotions or bonuses, and you may have seen them advertised in various places. If you're looking to switch banks or open a new account, these incentives can be very appealing. But before you take the plunge, it's important to make sure you understand what bank promotions are and how they work to help you know if they are worth your while

Does Citizens currently have any promotions or bonus offers?

Yes, Citizens' promotions are offered across our products. These promotions vary over time. Learn about our current bonus for opening a checking account or stop by your nearest branch.

What are bank promotions and bonus offers?

A bank promotion or bonus is a special incentive that banks offer to attract new customers or encourage existing customers to use additional services. It can be a one-time bonus or an ongoing promotion for the life of the account.

For example, a bank could offer a cash bonus for opening a new checking account. It might deposit the funds into the new account or give the account holder a gift card. The bank could also waive the monthly account maintenance fee or offer free checks.

To encourage people to sign up for a savings account, a bank might offer a promotional annual percentage yield (APY) that is higher than the standard rate for a limited time. It could also offer a cash bonus to existing customers who refer friends or family members.

Are bank promotions and bonuses worth it?

A checking account promotion or bonus could be a deciding factor if competing banks have similar accounts and you aren't sure which one to go with. A special incentive could make an account worth it if you were already looking to open an account.

Opening a new account just to take advantage of a promotion isn't always a good idea, however. You have to make sure the account's features and fees align with your needs.

For example, if a bank offers a new checking account bonus of $150 but you don't maintain the required minimum balance, you could incur a monthly fee. Over time, the fee will consume the $150 you received for opening the account. This could leave you worse off than if you had chosen an account with lower fees and more favorable terms.

What’s the catch with bank promotions and bonus offers?

You may have to meet certain requirements to qualify for bank bonuses. For example, when you open a new checking account, you may be required to maintain a minimum balance or sign up for automatic bill pay, direct deposit or something else to qualify.

If a cash bonus is offered, how you receive the funds will also vary from one bank to the next. One bank might deposit the funds in your new checking account, while another might send you a prepaid debit card or credit card with the amount loaded onto it.

Also, be careful with time-limited promotions, especially when an advantage or offer is ending soon. A sense of urgency could lead you to make a hasty decision to sign up for an account that isn't a good fit. It could also cause you to overlook important details, or you could miss out on a better deal.

Consider all your options

Bank promotions and bonuses can differ greatly between banks. Be sure to find out all of the details before signing up to make sure the account terms and qualifying for the offer are worth it. Then carefully consider all of your options. Compare different accounts' interest rates, fees and promotion eligibility requirements to make sure the account you choose is the best one for your needs.

Check out Citizens' current promotion for new customers or stop by your nearest Citizens branch.