How do you compare and evaluate different banking rewards offers and promotions?

1 Identify your goals

The first step is to identify your goals and priorities when it comes to banking. Do you want to save more, earn more interest, pay less fees, get cash back, travel perks, or other benefits? Depending on your answer, you might look for different types of rewards, such as savings bonuses, high-yield accounts, fee waivers, credit card points, or airline miles. You should also consider how often and how much you use your bank account, and what kind of transactions you make.

2 Compare the rewards value

The next step is to compare the value of the rewards offers and promotions that you are interested in. This means looking at the amount, frequency, and duration of the rewards, as well as the eligibility criteria, terms and conditions, and expiration dates. You should also factor in the opportunity cost, which is what you could earn or save by choosing another option. For example, if a bank offers you a $200 bonus for opening a checking account, but charges you a $10 monthly fee, you might be better off with a no-fee account that pays you interest.

3 Calculate the net benefit

The third step is to calculate the net benefit of each rewards offer and promotion, which is the difference between the rewards value and the costs associated with the bank account. The costs include fees, interest rates, minimum balances, and other charges that you might incur. You should also consider the taxes that you might have to pay on the rewards, as they are usually considered income by the IRS. To calculate the net benefit, you can use online tools, spreadsheets, or simple math formulas.

4 Review the customer service

The final step is to review the customer service and reputation of the bank that you are considering. Rewards are not the only factor that matters when it comes to banking relationships. You also want to make sure that the bank is reliable, responsive, transparent, and trustworthy. You can check online reviews, ratings, complaints, and feedback from other customers, as well as the bank's website, social media, and customer support channels. You can also ask for referrals from your friends, family, or colleagues who use the same bank.

By following these four steps, you can compare and evaluate different banking rewards offers and promotions, and find the best one for you. Remember to always read the fine print, do your research, and weigh the pros and cons before making a decision.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?