Banks have always wanted your business and they’ve gone to some pretty wild lengths to get it. From raffling off ponies to handing out firearms, financial institutions have a long, quirky history of dangling incentives to win over new customers.
These days, the giveaways have gotten a lot more straightforward, and a lot more valuable. Cash bonuses and gift cards have replaced the kitchen appliances and raffle tickets of yesteryear.
Companies always want your business. That’s a given, since banks are for-profit institutions. They need customers to use their products and deposit funds to function.
So, how do banks persuade you to become a customer? Well, they do what many other businesses do: Offer signup bonuses and unique incentives.
Here are some of my favorite incentives that banks have offered in the past.
From my own home state, the Michigan bank North Country used to offer firearms instead of interest payments on certificates of deposit (CDs). If you opened a CD at the bank and deposited a certain amount, customers could browse over 100 firearm models from Weatherby Inc.
Ah, a classic TV trope. But, in reality, banks really did offer various kitchen appliances for opening a new account. Toasters, waffle makers, microwave ovens, you name it — banks offered these appliances to lure in new folks and earn those deposits.
Not just new cars, but ponies as well! Banks have offered cars and even horses via raffles if you become a new account holder. One of the most famous examples of these types of giveaways is from Wells Fargo, hosting extravaganzas for new branch openings with raffles and such in the 1950s.
An oldie but a goodie, and one that’s still offered today: Cold hard cash is a simple way to earn a customer. By opening a specific account, usually depositing a certain amount of cash or performing transactions, banks pay you a cash bonus once you meet requirements. These are no doubt the most popular types of bank account incentives today, because who doesn’t love free money?
Today, banks are more likely to offer cash bonuses or gift cards for opening a new account and performing certain actions, like setting up direct deposit or making lump-sum deposits.
Here are some examples of new customer bonuses and rewards you’re more likely to see now:
As you might imagine, banks and financial institutions can’t offer cash to anyone who just opens an account — especially when it comes to bank accounts, which are usually pretty accessible for most people.
Generally, banks will require making deposits, performing a certain number of transactions and keeping the account open to earn a signup bonus. Banks offer these bonuses to persuade you to open a new account, and they want you to become a long-term customer.
This is important to keep in mind: Just because an account has a nice bonus, you might have to use the account for a few months and meet deposit requirements. So, before you open a new bank account only for the bonus, make sure you’ll be comfortable using the account and depositing cash.
Bank account signup offers are a dime a dozen, but not all are created equal. Some banks may require depositing thousands of dollars before you even get a dime. Read the terms and conditions carefully, and make sure you can meet the requirements to get that bonus.