I’m a big believer in using sinking funds to pay for holiday expenses, but things don’t always go as planned. An expensive 2025 and some unexpected household costs meant that in September, I realized I wasn’t financially prepared for the most wonderful time of the year. What’s a Nerd to do to avoid going into debt or raiding her emergency fund for Christmas costs? Improvise.
While I’m no stranger to getting a credit card purely for a signup bonus, I had never pursued bank bonuses. Bank bonuses are cash incentives offered by some banks when you open a new checking and/or savings account and meet certain requirements. And this year, I decided that’s how I was going to pay for the holidays.
Here’s what I did and what you might do if you find yourself in want of some relatively quick cash, for the holidays or otherwise.
1. Set a goal
Before I pursued any bank bonuses, I determined my goal — pay for Christmas expenses — and then quantified it. For me, these expenses include gifts for my two kids as well as my four local nieces and nephews, gift cards for my kids’ teachers, our annual family photos, holiday cards for friends and family, and a buffer in case I go over budget. I added up my expected costs for each of these items and came up with my goal amount: $1,750.
2. Find bonuses that meet that goal
Once I had a specific target amount figured out, I sought out bonuses to fund it.
I chose my first bank in a way that I would generally never recommend when choosing a financial product: The bank sent me a flyer in the mail. Before you revoke my Nerd card, I would never choose a financial product that I planned to have a long-term relationship with in this way. But for the purposes of this project, I didn’t need to find the bank equivalent of Mr. Right. Just Mr. Right Now, if you will.
After that, I went back to my nerdy ways and did some research. I set two basic guidelines for the other bonuses I wanted to pursue: First, choose accounts with simple bonus earning requirements. And second, open the fewest number of accounts needed to reach my goal.
Ultimately, I opened three new checking accounts and one new savings account to hit my target of $1,750. Each account had slightly different requirements, all of which were straightforward and I could realistically meet all the requirements simultaneously. This also meant I could earn all of the bonuses within a few months, which was perfect for my holiday timeline.
3. Know the rules
Bank bonuses generally come with specific requirements to earn them. These can vary bank to bank, but they may look something like this:
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Deposit $X in Y number of days.
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Direct deposit $X or more in Y number of days.
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Maintain a balance of $X for Y number of days.
Some bank bonuses are easy to earn and some require more work on your part. However, even with a simple bonus, pay attention to the fine print. If possible, avoid opening accounts that charge monthly maintenance or account closing fees. Also, if you have to leave a balance in a low-interest account for multiple months, use a savings calculator to do the math to see if you’d be better off just keeping the cash in a high-yield savings account. Essentially, you want to make sure that the bonus outweighs interest you could be earning elsewhere.
4. Keep documentation
As a Nerd who writes data studies, I don’t need anyone to twist my arm to get me to create yet another spreadsheet. My “Bank Bonuses” sheet included columns for the name of the bank, the amount of the bonus, the requirements necessary to earn the bonus, the date I opened the account and the status. I also noted any offer codes associated with the bonus in case an issue came up later.
As of this writing, I’ve received $1,150 of my bonuses, and I know the last $600 will be deposited in early January, right in time for my December credit card bill to come due. And if for some reason my bonus isn’t deposited when expected, I have proof of my offer code and a timeline of when I met the requirements ready to go.
5. Close the accounts intentionally
I’m happy with my primary bank and had no intention of switching going into this project. So the last thing I need to do after I receive all bonuses is close the accounts with intention. This means making sure that any direct deposits I set up were no longer going to the accounts I planned on closing and transferring out any cash remaining in said accounts.
Would I play the bank bonuses game again?
Absolutely. With a little research and organization, I brought in extra funds to cover a costly time of the year without much effort. If you opt to do something similar, keep in mind that like interest earned on a savings account, bank bonuses count as taxable income. And pay attention to the terms of your offer; if you’re paying fees on the new accounts or tying up funds that could otherwise be earning interest in a high-yield savings account, the juice may not be worth the squeeze.
