Can You Get Paid for Switching Banks?
KEY POINTS
- Many banks will pay you a few hundred dollars for opening an account and meeting some basic requirements.
- Going from a sad low-yield account to a high-yield account can pay off big, especially if you have a lot of savings.
- Getting rid of nuisance fees can easily save you enough money to make it worth the time.
With online applications and mobile banking apps, opening a new bank account is easier than ever. I've opened a new bank account in less than 15 minutes (and while wearing pajamas, ain't technology amazing?).
Even better, though, is that those 15 minutes had very little opportunity cost. Every time I've opened a new bank account, it's because the time investment would pay off -- literally.
Here are a few ways I've been paid for opening a new bank account.
New account bonuses can be worth $300 or more
Long gone are the days when the banks hand out small appliances with new accounts. Now, they tend to stick with cash.
Our Picks for the Best High-Yield Savings Accounts of 2024
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of December 28, 2024. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of December 28, 2024. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.46%
Rate info
The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.46%
Rate info
The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
You can find new account bonuses for checking accounts and savings accounts (and credit card and investment accounts -- pretty much anything, really). Most new account bonuses will require you to meet some qualifications, such as receiving direct deposits or meeting a minimum balance requirement for a set amount of time.
Amounts vary quite a bit, but they're typically between $100 and $500. You'll get the largest bonuses if you have a lot (read: five or six figures) of money to move around.
An APY boost can lead to significant returns
Even if you don't get a bonus for signing up, a new bank account could be quite profitable if it includes a significant boost to your interest rate. And if you have a savings account at a brick-and-mortar bank, chances are good your APY has a lot of room for improvement.
The average APY for a checking account is a measly 0.08%. Sadly, savings accounts aren't faring that much better, with a national average of just 0.42%.
On the other end of the spectrum, the best high-yield savings accounts are paying out at least 4% APY right now, with the most competitive accounts offering over 5% APY.
To show you what a stark difference this makes, here's what you could earn on $10,000 in one year in an "average" vs. high-yield account:
| APY | 0.08% | 0.46% | 4.00% | 5.00% |
|---|---|---|---|---|
| End balance | $10,008.00 | $10,046.10 | $10,407.42 | $10,511.62 |
| Total interest | $8.00 | $46.10 | $407.42 | $511.62 |
Don't underestimate the value of lower fees
If your current bank account charges you a monthly maintenance or account fee, then that alone could be enough financial incentive to change banks. It's easy to find competitive checking and savings accounts without any monthly fees, so you aren't stuck!
Even a small monthly fee can add up to a big annual cost:
| Monthly Fee | Annual Cost |
|---|---|
| $5 | $60 |
| $7 | $84 |
| $10 | $120 |
| $15 | $180 |
| $20 | $240 |
| $25 | $300 |
Let's say, at worst, it takes you an hour to open a new bank account and update everything else that goes with such a switch. If you're now saving $5 a month (or more) in bank fees, that means you effectively just paid yourself (at least) $60 for an hour's worth of work.
Unless you make more than $60 an hour, that's an excellent return for your time. Even better, you've saved yourself that money for years to come, too. That's now a long-term investment.
A lot of us are stuck with this idea that switching banks is a chore, but opening a new bank account is not only easy and fast, but it can also pay off in a variety of ways.
Our Research Expert
Brittney is a data-obsessed finance nerd whose personal credit card collection is in the double digits. She has been sharing personal finance advice with readers since 2016.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.