Most people aren’t scouring around for the best deals on checking accounts, maybe like you’d shop for appliances or airline tickets. You open a checking account, and well, odds are you’re going to stick with it for many, many years.
The average checking account customer has had the same account for 19 years, according to Ted Rossman, principal analyst for Bankrate.com.
“The checking account is where your pay gets deposited and where your bill payments come from. It’s very sticky,” Rossman said.
“Once people have all of this established, they’re reluctant to make changes.”
New branches, competition prompt bonuses for checking accounts
Not that banks won’t try to tempt you to move your money anyway.
Often, you’ll spot mailers or emails targeting your business especially in specific situations, such as when a new branch opens up nearby or sometimes when some customer shake up seems likely to come into play, such as Fifth Third Bancorp’s acquisition of Comerica in early 2026.
The latest plan calls for closing 75 branches in Michigan — which breaks down to 55 legacy Comerica branches and 20 existing Fifth Third branches. The specific dates for closing will vary by branch but the closures are expected to happen by Sept. 3 and Sept. 4. The Comerica name will be no more in early September.
If your favorite branch is closing, who knows, maybe you would be more willing to jump at making a switch?
Yet Steve Davis, Michigan regional president for Fifth Third Bank, told Detroit Free Press business writer JC Reindl in an interview that even with the planned branch closures, customers will gain access to more branches than they had before the $12.7 billion all-stock deal.
“If you were a Comerica customer, pre-merger, you’ll now have 60% more branches available to you,” Davis said. “If you were a Fifth Third customer before, you’ll have 40% to 45% more branches available to you.”
Michigan consumers offered hundreds of dollars to open new accounts
Even so, I wouldn’t be shocked to see some extra maneuvering in the weeks ahead from competing banks and credit unions, perhaps similar to some deals that have already been offered in select situations.
KeyBank had a mailer that hit some metro Detroit mailboxes this summer that offered up to $700 with a new KeyBank checking account. The offer was set to end June 12. And here’s the kicker: It was redeemable only at the Detroit Belmont branch. It also had a chunk of footnotes.
To receive the $500 bonus, you’d need to deposit a total of $1,000 or more in eligible deposits within 90 days of opening the account. And to get that extra $200 you’d first need to qualify for the $500 and make at least one eligible direct deposit into your new checking account within a specified window.
KeyBank declined to say how many people had signed up for the specific branch offer in Detroit but indicated that it had been effective in attracting new clients. Such promotions are designed to “support growth and help clients get more from their financial journey,” according to Matthew Pitts, senior communications manager for KeyBank.
“We tailor these offers to meet the needs of local communities and to welcome new clients to Key,” he said.
Another offer I saw recently offered potentially even more money. A Chase customer with a car loan at Chase but does most of her banking elsewhere recently received an email offering up to $900 to open a new checking account.
To get the most cash, you’d need to set up direct deposit within a set timeframe, deposit $15,000 or more in new money, and maintain a balance for at least 90 days from offer enrollment. Again, you’d want to read all the tiny print packed into this offer, too. One offer I saw appeared to have a deadline to open an account by July 15.
Chase periodically offers promotions like “up to $900” for customers who are new to Chase checking and/or savings, including customers who may already have another Chase product but don’t yet bank with Chase, according to a spokesperson for JPMorgan Chase.
The offer that was shared with me, she said, is designed for customers who already have a Chase relationship, such as a consumer who has a loan through Chase or a credit card but does not have a Chase checking or savings account.
The offer for “up to $900” is available in the 48 contiguous states. Chase may also have other offers available nationwide. Full details — including other special offers, key restrictions, timing requirements, and monthly service fee information — can be found on the Chase offers page at its website.
Promotion amounts and eligibility can vary based on the specific offer, account type, and market, she said.
We’re talking about some decent cash, but perhaps, not eye-popping enticements.
“I would describe the current state of checking account bonuses as good but not the best we’ve ever seen,” Rossman told the Detroit Free Press.
Some very targeted offers to higher-end customers have included bonuses of $1,500 to $3,000 in the past, according to Bankrate.com’s research. On the lower end, some offers might only be $200 to $300 to get you to open a checking account.
Fifth Third, for example, lists a limited-time $300 offer online when “opening an eligible Fifth Third checking account with qualifying activities.” Some of the requirements include: You’d need to make direct deposits totaling $500 or more within 90 days of opening an account. And you’d need to open up that new account by June 30.
What should you do if you’re tempted by an offer? Always dig deep into the rules, including checking the bank’s website for restrictions. In many cases, you’d likely need to sign up for direct deposit, such as for your paycheck or monthly Social Security payment.
Make sure that you’ll be able to qualify for the bonus if you plan to go through all the trouble to open a new account.
And consider if you do have local access to branches or the bank’s ATM network.
Rossman suggested a potential but possibly overlooked workaround for a lack of branches. Check to see if the bank will reimburse you for out-of-network ATM fees or if it participates in a wider branch network. Can you, for example, get cash at an ATM at a local 7-Eleven without paying a surcharge?
Many consumers consider going through the headaches involved with opening one checking account — and closing another — to avoid high fees being charged at one financial institution, find friendlier customer service or, yes, nab that sign-up bonus.
But you want to watch out for potentially higher monthly fees or other fees at any new bank that would cut into any money you make from a bonus.
Study the fee structure and figure out if you’d be able to avoid most or all fees. Study the rules, too. Fifth Third notes online that it will charge a $5 dormant account fee if there are no deposits or withdrawals for 12 months. The Fifth Third Momentum Checking account otherwise does not have a monthly service charge, has no minimum deposit needed to open an account, and requires no minimum balance.
And get ready at tax time: You’re going to receive a 1099-INT or 1099-MISC to report the bonus cash as income.
Why banks want your checking account
Large banks have a high amount of deposits, relative to their loan volume, and are not particularly hungry for more deposits, Rossman said.
Yet checking accounts are the backbone for building a stronger relationship.
“Banks don’t make a lot of money from the checking account itself,” Rossman said, “but the feeling is that if they can hook you as a checking accountholder, you’ll be a customer for a long time and they can cross-sell other products as part of that relationship.”
Think credit cards, car loans, mortgages, home equity lines of credit and more.
Most regular checking accounts at big banks don’t pay interest, so that’s why banks offer a compelling sign-up bonus to attract new accountholders.
A few hundred dollars upfront, Rossman said, is likely a better business strategy than offering a 4% yield or higher year after year — especially since most checking accountholders stick around a really long time.
What are some other options?
As you drive around town, you might even spot some signage offering higher rates on high-yield checking accounts.
High-yield checking accounts, which are offered mostly by credit unions and community banks, tend to have some pretty strict requirements to get those high annual rates on checking deposits.
In some cases, you might need more than 25 debit card transactions in a month and there could be a cap on how much interest you could earn in a year.
Even so, Rossman said, many consumers could do well if they paired a high-yield savings account that has fewer restrictions with a checking account that offers local branch and ATM access.
According to Bankrate.com data, average checking account APYs among accounts paying interest are around 0.05%, down from 0.06% a year ago.
If you can lock up your money in a certificate of deposit, the best paying rates for savings, one-year CDs and five-year CDs are a bit higher than 4%.
The average is now 1.93% for a one -year CD, up from 1.75% a year ago. And the average five-year CD rate is 1.63%, up from 1.55% a year ago, according to Bankrate.com data.
Sure, it’s far more fun to snag a deal on an airfare to somewhere fun. But cash is cash — and if you’re looking for a new checking account, well, you might as well shop for the deals.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: Checking account bonuses sound tempting but first dig into details
Reporting by Susan Tompor, Detroit Free Press / Detroit Free Press
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By Susan Tompor, Detroit Free Press | USA TODAY Network
