Bank sign-up bonuses can be as high as $80,000. But here’s why chasing the highest offer isn’t always the best move

These promotions can be worthwhile, but experts warn consumers should read the fine print (1).

On the surface, it can seem like free money. In reality, they’re marketing tools designed to attract deposits — more importantly, attract higher amounts per deposit — and they often come with conditions consumers need to weigh carefully.

Why consumers need to be careful with sign-up bonuses

Generally, the more money you bring to a bank — and the longer you leave it there — the larger the bonuses tend to be. Most offers fall into a few categories:

• Direct-deposit bonuses: Common for checking accounts, these bonuses require you to direct deposit your paycheck into the account for a set period of time.
• Balance-based bonuses: These bonuses are based on how much you hold in the account. Higher balances unlock larger rewards, but there are often strict minimums.
• Investment matches: Brokerages may offer a percentage match when you transfer assets to their company, rather than a flat cash reward.

Another factor: Higher offers typically target wealthier customers.

For example, Webull is currently advertising a match bonus of up to $80,000, but only for customers who transfer or deposit $2 million and keep those funds in the account for several years (2).

Smaller deposits can qualify, but the bonus drops quickly and bonus payments are spread out over several years. This means you have to keep your money there for long periods to reach the promised amount.

Other bank offers include similar strings.

Premium checking accounts at places like HSBC and Chase often require maintaining six-figure balances for a set period of time to avoid service charges (3). And, if you accidentally go below the threshold or fail to meet other terms, you could lose the bonus altogether.

In addition to the terms that make it easy to disqualify yourself (perhaps without even knowing), there are other cons as well.

Sign-up bonuses are taxable, which means that a few hundred dollars (or thousands) might amount to a significantly lower take-home sum after taxes — and especially if the bonus nudges you into a higher tax bracket.

Plus, there's the opportunity cost. Depositing and maintaining thousands of dollars in a low-interest-rate checking account could mean missing out on higher returns from other investments, such as CDs or stocks.

Before signing up, do your research

While sign-up bonuses can feel like 'free' money, experts warn consumers should be careful.

The biggest bonuses tend to come with the biggest tradeoffs, like larger minimum deposits and long hold periods. The complexity of the rules can turn that 'reward' into a headache.