What is a savings account bonus worth?

one with High Yield Savings Account, you can add hundreds of dollars to your savings balance just from interest. But for some, interest isn’t the only way to see your account balance grow.

If you are in the market for one New savings account, you can find banks that offer bonuses for meeting certain requirements upon opening These are one-time cash offers (usually worth a hundred dollars or more) that the bank will add to your balance after meeting certain requirements, which usually include a minimum deposit.

While this sounds like a great deal, it’s important to think about the value of the one-time bonus as well Long term value You can get from other high-yield savings accounts. Below, we’ll explore how you can decide if a savings account bonus is right for you.

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What is a savings account bonus worth?

Depending on your goals, it may be worth choosing a savings account with a one-time bonus. Here are a few ways you can decide:

When it might be worth it

A good way to evaluate an account with a savings account bonus is to consider short-term versus long-term value. If you consider account opening Even without bonuses — based on Current interest rate and other features – then the bonus is just an additional short-term boost.

Take the online savings account from Discover Bank for example. It offers 4.00% APY, which is competitive if not competitive Maximum possible rate, and there are no monthly fees or ongoing balance requirements. But on top of that, you can earn either $150 or $200 if you open a new account and deposit $15,000 or $20,000, respectively, within 30 days (the offer ends on June 15, according to Discover).

If you already have that cash in savings, the bonus may be worth it for the lack of fees and competitive interest rates. You’ll benefit from a one-time bonus now, but also a top yield on your savings balance over time.

Explore more top savings rates you can use to increase your balance today!

When it may not be worth it

Along the same lines, a bonus may not be the best value if, in return, you give up potential benefits. There aren’t some savings accounts with great bonuses Competitive APYs To match – especially if they come big bank. If the account doesn’t have a competitive interest rate of at least 4% APY (although some high-yield accounts have up to 5%), the one-time bonus may not be enough to cover the potential value lost.

Even if you come out on top in the first year, you likely won’t earn as much in the long run with an account with a highly competitive interest rate, especially If the rate is high.

You may want to pass on a savings bonus if the requirements are too complex, or you don’t have the cash on hand to meet them. Many savings account bonuses require a steep minimum deposit, so you need a large balance to qualify in the first place. Some may have additional requirements, such as opening a checking account, a certain number of direct deposits or qualifying for a bank relationship program.

You must maintain a minimum balance in your account for up to three months to qualify for the bonus terms. If you are using the account as your emergency fund, be careful. If you need to withdraw cash in an emergency, you may lose the bonus entirely.

While a savings account bonus can be a great way to add a few extra dollars to your account balance, make sure you read the fine print on any offer. If you don’t qualify, or the account doesn’t offer much interest over the long term, you may find more value elsewhere.

Bottom line

When looking for a new high-yield savings account, you should first consider the long-term value you’ll get from your balance. Before looking at bonuses, narrow down your list based on this Competitive interest rates, lack of fees, minimum balance requirements that work for you and other factors. Otherwise, you could be missing out on long-term value that even the best one-time bonus is unlikely to beat. If you find a great high-yield account with a savings bonus, take the time to thoroughly read the fine print and requirements so you don’t have any trouble qualifying.

Start your search today by comparing the best savings rates available here.