This Checking Account Pays a Welcome Bonus of Up to $600. Is It Worth It?

Bank account bonuses can be a great way to boost your balance, particularly if you were already considering switching to a new account. The current $600 welcome bonus from Associated Bank caught my eye because it's much bigger than many other offers.

However, a bit of digging showed that many customers won't be able to capitalize on the bonus. For starters, the interest rates on Associated Bank's savings accounts and CDs are not as high as you can get elsewhere. Plus, it's only available in a handful of states. Finally, there are account fees that could add up over time.

How to earn the Associated Bank welcome bonus

The Associated Bank bonus is bigger than many checking account bonuses. The trouble is that it's not super easy to earn that $600 payout. You'll need to maintain a combined average daily balance of $10,000 or more for two months to earn the highest bonus. It's also only available to new customers in Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Ohio, and Wisconsin.

Many bank sign-up bonuses require you to deposit a certain amount within a set time frame, but Associated Bank goes further. On top of the minimum deposit requirement, your bonus amount depends on your average daily balance across all your deposit accounts. Check out our guide to the best bank account bonuses and promotions for information on other deals.

Essentially, you have one month to build up funds. After that, your balance in the next two months will count toward your bonus. Here are the bonus tiers:

Here are the steps you'll need to take:

• Open a checking account with Associated Bank. The minimum opening deposit is $25 on the Associated Access Checking account and $100 on the Associated Balanced or Choice Checking accounts.
• Make recurring direct deposits of at least $500 within 90 days. To qualify, you'll need to set up direct deposits from an employer or government agency. The offer applies to accounts that are opened and funded before June 30, 2024.
• Maintain an average daily balance of at least $1,000. The bank will calculate your average balance 90 days after you open your account. It will use days 31 to 90 for the calculation and include checking, savings, money market, IRA and/or CD account balances. The bonus will be paid 120 days after you open your account.

Is it worth it?

Associated Bank offers a solid mix of banking services. Its checking accounts are covered by FDIC insurance, have access to over 30,000 fee-free ATMs, and a $50 cushion if you accidentally overdraw your account. The Associated Access Checking® account does not charge monthly maintenance fees. There's a waivable monthly fee on its Associated Balanced Checking® and Associated Choice Checking® accounts.

It might be worth trying to get the $300 welcome bonus, if you:

• Live in a qualifying state
• Are able to waive the monthly account fees
• Can easily maintain an average daily balance of over $1,000 for two months

However, if you have the funds to maintain an average daily balance of $10,000, there may well be better places to put your money. Particularly as we're talking about checking accounts, savings accounts, CDs, money market accounts, and IRAs. Here's why.

1. You may be able to get a higher rate of return

The highest interest rates on Associated Bank's savings accounts and CDs are better than average. But some of the best high-yield savings accounts and CDs are offering rates of over 5.00% right now. The best savings account rate Associated Bank offers is 2.40%.

Let's say you put $10,000 into a savings account that earned 5.00%. The return in your first year would be $500. In contrast, that same deposit would earn $240 on an account with an APY of 2.40%. That difference already covers a big chunk of your sign-up bonus.

2. You may prefer to put your retirement money elsewhere

Several brokerages offer sign-up bonuses, and some will also give a 1% match (or more) if you transfer your IRA from another institution. But there are many other considerations when choosing the best individual retirement account (IRA). Look at fees, the types of investments you can choose, and additional features such as mobile apps or personal advice from financial planners.

Associated Bank offers several types of IRAs, but it charges more in fees than many popular brokerage firms. For example, you'll pay commissions when you buy or sell equities, as well as an annual account maintenance fee. Over time, those charges will eat into any sign-up bonus you receive.

Finding the best home for your money

There's a lot to think about when deciding where to park your cash. Sign-up bonuses are great, as long as you see them as the tiebreaker between two options, rather than the driving factor. Before you move significant amounts of money to a new bank to earn a bonus, pay attention to account fees, interest rates, customer service, account minimums, and ease of use. These will all make a bigger difference to your financial journey overall.