Are checking account promotions worth it?

You’ve probably seen banks advertising various promotions for opening a checking account and wondered if it was worth it? Depending upon the type of promotion offered and the strings attached some of these promotions are definitely worth a look.

Generally, checking account promotions involve some sort of giveaway: cash, points, airline miles or electronics such as iPods. Most banks restrict bonuses to new customers, who then have to meet specific requirements to claim the loot. Among the restrictions could be maintaining a minimum daily balance, making a certain number of withdrawals with an ATM card or setting up recurring direct deposit of your paycheck.

You also may encounter promotional interest rates that last for a period of time. The fine print of such offers generally indicate that rates are variable and may be subject to change. If you’re looking for this type of deal, try to find checking accounts that tell you how long the promotional rate will last. Always find out what the rate will be after the promotional period ends and what type of monthly fees are involved.

Some banks also offer promotions for people who hold more than one account with them. Do your homework to find the right products and services for your needs instead of rushing into something just for a free toaster.

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