You can earn a $250 bonus with a new Capital One checking account

If you’re looking for a new checking account with no monthly maintenance fees and no minimum deposit requirements, Capital One offers a great option. This bank’s 360 checking account even earns a little interest — and currently offers a $250 bonus.

Checking accounts don’t get as much attention in the current interest rate environment as savings accounts, CDs and money market accounts, but most of us rely on these accounts for everyday transactions. When it comes to finding the right checking account, it’s important to choose one with no fees, easy access, convenient banking features, and perhaps even a competitive annual return. A sign-up bonus is the icing on the cake – if all the other features work too.

Here’s everything you need to know about Capital One’s 360 Checking bonus offer, what you need to do to get it, and what to consider before committing.

Bonus details from Capital One’s 360 Checking account

Capital One offers a $250 bonus when you open a new 360 Checking account after August 22, 2024. You are not eligible for the bonus if you already have or have opened a 360 Checking, Simply Checking, Total Control Checking account as a primary or secondary account holder on or after January 1, 2022.

To earn the new account bonus, enter the promo code CHECKING250 in the Promo Code box when opening the account. You must also set up and receive at least two qualifying direct deposits of at least $500 each within the first 75 days of account opening. A qualifying direct deposit includes periodic payments, such as a paycheck; pension and government payments such as social security; or other monthly income from an employer that processes the funds in your checking account as an automated clearinghouse or real-time payment network.

If you meet the stated requirements and eligibility criteria, the bonus will be deposited directly into your account within 60 days of your second qualifying direct deposit being placed into your account.

Keep in mind that bank account bonuses are considered income by the Internal Revenue Service, or IRS, so the amount of your bonus will be reported on a 1099-INT form.

Why we love Capital One

Capital One is ranked among the 10 largest U.S. banks by consolidated assets The latest data from the Federal Reserve. But unlike the checking accounts offered by most other major banks, Capital One’s 360 Checking Account has no minimum deposit requirement or monthly maintenance fees, and offers 0.10% APY on all balances. While that’s not as high as the APYs offered by some high-yield specialty checking accounts, you get the benefit of banking with a large, established institution with physical branches (and cafes) to manage your money nationwide.

In addition, Capital One has a network of more than 70,000 ATMs where you can withdraw or deposit money free of charge. Additionally, you can deposit cash into your account at select Target, Walgreens and CVS stores.

Capital One not charging overdraft or insufficient balance fees, and there are no overdraft protection fees. You can choose auto-decline, which allows Capital One to decline any transactions that would trigger a transfer from your account, or an automatic transfer from a linked savings or money market account.

However, there are a number of banking services that incur fees, including cheques, outgoing bank transfers and additional printed cheques. But you can receive your first checkbook for free through your online checking account.

If you want a higher return on your money, Capital One also offers a high-yield savings account that earns 4.25% APY, earning you a spot in our top picks for the best savings accounts.

What you need to know about bank bonuses

A cash bonus can be attractive if you’re looking for a new bank account, but there are a few things to consider before signing up for a new account. Here’s what you need to know:

• Read the fine print for information about offer eligibility and requirements. It is important that you understand the terms of the offer as failure to meet the eligibility or offer requirements may make you ineligible for the account bonus. Some things to consider before opening an account: who is eligible for the bonus, whether you need to complete certain activities to receive it, whether there is a deadline to complete the activities and how long it will take to get your receives a bonus.
• Understand that bank bonuses are considered taxable income. The IRS considers bank account bonuses as interest income, the same as any money you earn from a high-yield savings account or CD. During tax season, you will receive a 1099-INT form from your bank. You must report any earned bank account bonuses to the IRS.
• Please note other account features and fees. Consider whether the account has monthly maintenance fees, minimum balance requirements, or if you need to meet additional requirements to keep the account open. Getting a sign-up bonus may not be worth saddling yourself with monthly maintenance fees or high minimum balance requirements that you can’t maintain.
• Know what the account closure policy is. You don’t want to sign up for a new account and then find out that you can’t close it (or have to pay a fee to close it) in the long run. Please check the account closure policy in the terms and conditions or deposit account agreement before opening an account.

Are bank account bonuses worth it?

Free money is free money, but is earning a bank account bonus really worth it? If you’re already shopping for a new checking account, a cash bonus could be the icing on the cake. But you don’t necessarily have to open a checking account just because of the sign-up bonus. Also consider the monthly fees associated with the account and the requirements to earn the bonus.

If you get stuck with a checking account with sky-high maintenance fees and a restrictive cancellation policy, it could wipe out any profits you might make from the sign-up bonus. Likewise, it would be a shame if you went through all the trouble of signing up for a new account, only to find out that you don’t qualify for the bonus or can’t complete the required activities to get it.

Read more: What do high school students know about personal finance? Not enough