- Savings accounts are accounts that customers use to store funds for the long term. Banks do not offer the same withdrawal features in savings accounts that they do with checking. Checking accounts are designed to move money back and forth easily, and typically include debit cards and checkbooks. The more people open bank accounts, the more money the bank has access to, so banks often offer incentives to customers for opening new accounts.
- Cash bonuses are common incentives, especially for checking accounts. Banks agree to give customers a gift certificate or check for a certain amount, usually between $50 and $150, for opening the account. The banks typically require customers to keep a certain amount of money in the account for a month or two before they grant the cash award.
- One of the most common incentives for opening any type of savings account is a high rate that will earn customers more money on the funds that they keep in the account. Savings account rates cannot match the high rates associated with bonds and other securities, but the accounts are much less risky, and offer higher rates than checking accounts. Banks advertise these rates as incentives.
- Smaller banks have the freedom to hold contests and raffles for prizes. Any new customers that sign up for an account while the contest is running are entered into the drawing. The drawing is typically for a cash prize, but other prizes (new cars, etc.) may be made available. Instead of buying a lottery ticket, the customer creates a bank account and deposits a minimum amount.
- To help customers access online banking accounts, banks also create incentives for their online applications. These incentives are often bonuses, better rates, and other common incentives, but apply only to the online system.
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