If you’re going to switch banks, you might as well try to get some cash out of the chaos
Switching banks isn’t the easiest thing to do. If you have direct deposit with your employer, automatic payments for select bills set up or automatic transfers to savings, changing it all can easily take up an afternoon.
While you’re at it, look for new customer bonuses to score some extra cash.
How to get paid by switching banks
If you’re going to do all the work to switch banks, you may as well see if the new bank has account bonuses.
When you switch banks, you have to move money around and change where your direct deposit goes. By doing those things, you may automatically qualify for a bank account bonus.
Some common account bonuses require setting up direct deposit, depositing a lump sum or performing a certain number of debit or credit card transactions.
Most bank bonuses are offered to new customers and usually require you to meet the bonus requirements within 30 to 90 days of opening the account. Just keep in mind that most bonuses have expiration dates, so if you see a good one, you may need to act fast.
Top bonuses to consider when switching banks
Here are three great checking account bonuses to check out from top banks.
Chase Total Checking: $300 bonus
Expires October 16, 2024. Offers a $300 bonus for new customers who meet requirements. To earn the bonus, you must set up a direct deposit totaling $500 or more within 90 days of setting up the account. The bonus cash is delivered within 15 days of meeting requirements.
SoFi Checking & Savings: $50 to $300 bonus
Expires December 31, 2024. Offers between $50 to $300 for new customers who meet requirements. When you open a new SoFi Checking and Savings account, earn $50 by setting up direct deposit totaling at least $1,000 within 25 days of enrollment. To earn the $300 bonus, your direct deposits must total at least $5,000 within 25 days. For either bonus, you’ll receive the bonus cash within seven business days after the 25-day period.
PNC Virtual Wallet: $100 to $400
Expires October 31, 2024. The PNC Virtual Wallet account has a few versions, and each offers a unique bonus for setting up direct deposit and meeting deposit requirements.
- Virtual Wallet account offers a $100 bonus if you set up a direct deposit totaling at least $500.
- Virtual Wallet with Performance Spend offers a $200 bonus if you set up direct deposit totaling at least $2,000.
- Virtual Wallet with Performance Select offers a $400 bonus if you set up direct deposit totaling at least $5,000.
To earn the bonus for any of these accounts, you must meet deposit requirements within 60 days. After meeting the requirements, the bonus is credited to the eligible account within 60 to 90 days.
Are there credit card or savings account bonuses?
Yes! Several credit card bonuses are available. Most require spending a certain amount with the card to earn. Usually, the bonus is getting a lump sum of extra points or a higher cashback rate for a limited time. Many credit cards also offer a 0% APR introductory rate for a limited time after you open the account.
Savings account bonuses are rarer than checking or credit card bonuses. For most saving bonuses, the reward is a higher APY for a limited time, such as the Marcus Online Savings bonus — which offers a 0.25% APY boost for three months after a successful referral.
Switching banks checklist
Switching banks can be time-consuming and a little stressful. Here’s a checklist to go over while you’re switching accounts:
- Fund the new account. After opening your new account, most banks require you to fund it within a certain time frame to keep it open. Additionally, many accounts have opening deposit requirements, so keep that in mind while comparing.
- Transfer funds. Bank transfers may take three to five business days, especially when moving a large amount. Plan accordingly for this, and you may want to contact your old bank to let it know you’re making a large, outgoing transfer.
- Update direct deposit. If your employer offers direct deposit or you have benefits like Social Security, you’ll need to change where the deposits are automatically sent. Most often, it just requires filling out a simple direct deposit form, and it may take a statement cycle to enact.
- Update automatic payments. Subscription services, utility bills, your mortgage and credit card payments are all common bills that people automate. Go through your bills and change the billing information so your payments go through and don’t cause problems down the road.
- Activate new cards. If you’re opening a new checking account, you may have to wait seven to 10 business days to get the physical card and to activate it. In the meantime, you can typically add the new debit card to your mobile wallet and activate it online.
The bottom line
Switching banks isn’t exactly a fun task, but if you’re switching banks to get a higher APY or to stop paying monthly maintenance fees, it can be well worth your time. And while you’re switching banks, look for new customer bonuses to make the effort worthwhile.