Signup bonuses are a win-win for banks and customers. Banks give away free money in the form of a checking account sign up bonus, which encourages customers to open new accounts with them. In turn, these customers become active in their banking relationship with the bank and are more likely to make regular deposits or other transactions on an ongoing basis.
What is a free signup bonus?
A free signup bonus is a reward or incentive for customers signing up for a new service. When you receive one of these types of bonuses, you can use it to play games, shop online, or get free money when shopping in brick-and-mortar stores. For instance, with SoFi, you “get a $300 bonus in your online bank account when you set up direct deposit.”
Some companies even give away gift cards that can be used at their stores or restaurants as part of their bonus promotions. These are very popular because they allow customers to save money on things they need or want.
How do free signup bonuses work?
Free signup bonuses work by giving away something of value to customers who are new to your business. The offer is meant to attract and incentivize them, which can effectively get people on board.
How do you make use of these bonuses? Let’s say you’re signing up for a new social media platform, and they offer a $10 credit as part of their welcome package. You’ll get that money deposited directly into your account immediately after signing up—you don’t even have to spend it! That’s great news if you’ve been thinking about using this service but haven’t wanted to shell out any cash.
Banks offer more than just checking account bonuses
Banks have a lot to offer the modern consumer. They offer checking account bonuses, credit card bonuses and even savings account bonuses. Most banks will reward you for signing up for their products with some kind of freebie. In addition to these freebies, many banks also provide perks such as lower savings account fees, or exclusive credit card offers through partnerships with other companies.
Why do banks offer free signup bonuses?
- Increased number of customers: Banks want to increase the total number of customers by offering something that will attract new customers.
- Increased transactions: If a bank can get more people to open and use an account, there will be more transactions. That means more money for the bank.
- Referral bonuses: Banks offer referral bonuses because they know that word-of-mouth advertising is one of the most effective ways to attract new customers. Plus, if someone refers you and you end up signing up with another bank, there’s no longer a customer for them!
- Average balance growth: A high average balance means that each customer is worth more to the bank on average (representing a larger potential profit).
There you have it! These are some of the most common questions about free signup bonuses. As you can see, there are many benefits to offering these types of bonuses to your customers. Hopefully, we’ve helped answer some of those questions for you too!