Big banks in the US are boosting the amount of cash they’re handing to new customers as the fight for deposits intensifies for the first time in years.
JPMorgan Chase and Wells Fargo in particular are battling it out to curb deposit flight triggered by the Federal Reserve’s interest rate hikes, reports the Wall Street Journal.
Both banks are now offering $300 cash bonuses to new customers. And here’s the catch – newcomers must set up direct deposit in order to claim the reward.
Bank of America is offering $200 for the same set up, and Citi has a new promo offering 5% interest on new savings accounts for the first 90 days.
The moves come as earnings reports confirm banks are paying up to retain deposits and combat the rising popularity of money market funds.
Says BofA Chief Financial Officer Alastair Borthwick,
Our instructions to our team are to grow our deposit base a little bit faster than the economy. That means you have to price across the board to achieve that.”
Data from the market research firm Curinos shows the average cash offer for new checking accounts hit $400 this year. For comparison, that number was $160 in 2016.
However, compared to 2016, customers must now hold higher balances in their accounts in order to receive the rewards.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
