What are some of the best online deals banks offer for opening a new account?

Ralph
00:00:00

Are you tired of your current bank offering lackluster interest rates and minimal perks? Do you feel like you're missing out on potential financial gains?

Well, get ready to discover some of the best online deals and perks that banks and credit unions are offering right now to entice new customers.

Today, we're exploring the exciting world of bank account bonuses and perks that could put some extra cash in your pocket and make your financial life easier. And who doesn’t need some extra money in their pocket tight these days?

Narrator
00:00:29

Welcome to the Ask Ralph podcast, where listening to an experienced financial professional with over 30 years of experience can help you make sense of confusing questions, current headlines and industry trends about taxes, small business, financial decision making, investment strategies, and even the art of proper budgeting. Ask Ralph makes the complex simple by sharing his real world knowledge from a Christian perspective with all things financial.

Now here's your host, Ralph Estep Junior.

Ralph
00:00:58

Let's take a quick look back. Yesterday, we discussed the five most common places retirees spend their money in retirement. I think it was a great episode, and understanding where your money might be going in retirement can help you better prepare for your golden years.

Now, before we move into today's episode, I'd like to take a moment to share something personal with you. My mother-in-law, Dianne Bethard, is currently battling the late stages of Alzheimer's disease. In light of this, I have assembled a team representing the "Ask Ralph" show to participate in the upcoming Alzheimer's walk right here close to us in Wilmington, Delaware. For those of you in the area, we'd be honored if you joined us this Saturday, October 19th. Maybe you don't live in the area and you're unable to attend but still wish to support the cause. If you want to, we've set up a donation page.

You'll find the link in the show notes. And listen, every contribution, no matter the size, brings us one step closer to defeating this devastating illness. And if you know somebody that’s gone through this, or if you've been a family member of someone going through this, it is brutal. So let me just tell you, your support means the world to us and to the millions affected by Alzheimer's. And here's the thing—I know working together, we can make a huge difference. So I hope you consider joining us.

We've got a great message today, and it comes to us from Trey. Trey writes this: “Ralph, I've been with the same bank for over a decade, but I feel like I'm not getting much value from my account. I've heard about some great offers from online banks, but I'm hesitant to make the switch. What should I be looking for in a new bank? And are these online deals really worth it? I'm also worried about the security of online banking and whether I'll lose that personal touch I get from my local branch. Please help.”

Trey, thank you for your message, and I completely understand your concerns. A lot of us have been working with the same bank or credit union, and we get stuck in that hesitation to move on. Many people share that hesitation about online banking, but I’m going to talk to you today about how that change could potentially revolutionize your financial life.

Trey, your question is all about stewarding your finances, so I got into scripture, and I found this from the book of Proverbs 27:23-24. It says, “Know well the condition of your flocks and give attention to your herds, for riches do not last forever, and does a crown endure to all generations?” What this scripture is really telling us is that we need to be diligent in managing our resources. Just as if we were shepherds, we need to know the condition of our flock.

We need to be aware of our financial situation, and once we're aware, we need to make wise choices about where need to keep our money. If you listen to the show, you know I raise Black Angus cows, and one of the things I do on my way over here to the office each and every day is check on the cows. Because just like the scripture says, I've got to pay attention to them. So, just like I pay attention to my cows, you've got to pay attention to your finances.

Let's address Trey's question and explore some of the best online deals and perks that some banks and credit unions are currently offering. I’m also going to share some personal experiences and stories from friends of mine who made the switch to online banking, and I want to show you how these tools can positively impact your finances. Let me start with a truth bomb—if you're sticking with your current bank out of habit or fear of change, you could be leaving hundreds, if not thousands, of dollars on the table each year. That’s right. The world of online banking has revolutionized the way we manage our money. There are perks and deals that traditional brick-and-mortar banks simply can’t match.

Picture this, if you will: it’s a typical Monday morning, and you’re sipping your coffee while checking your bank account on your smartphone. How many of us do that? Instead of seeing that usual low-interest rate, you notice that your savings have grown significantly overnight. And guess what? This isn’t a mistake—it’s the power of high-yield online savings accounts. Let me tell you about my friend Tom, who experienced this firsthand.

Tom was very hesitant to switch at first, just like you, Trey. He was worried about security, and he missed the idea of walking into that local branch. But Tom did his research, and he took the plunge. He was amazed at the difference it made in his finances. Now, in Tom's case, he opened one of these high-yield savings accounts with an online bank that was offering a 2.5% annual percentage yield (APY). You might say, “That’s not that much, Ralph”—this was a few years ago—but think about that for a second. That 2.5% APY was more than 25 times the national average of what he was earning on his 0.1% checking account.

And what’s crazy is that within a few months, Tom saw his savings grow faster than ever before. Do you want to know the best part? He didn’t have to do anything differently. He just had to shift his accounts around and find a better bank. His money was simply working harder for him.

But let me just tell you—high-interest rates are just the beginning. Many online banks and credit unions offer substantial sign-on bonuses to attract new customers. I did a show on this back on August 12, 2024, about playing what we called the "bank bonus game," and I’ll put a link in the show notes so you can check it out if you missed it.

But look, I did a survey just yesterday while preparing for the show, and there are currently bonuses of $200, $300, even $500 for opening a new checking account. Now, the truth is, you might need to meet certain requirements—things like setting up direct deposit or maintaining a minimum balance.

This is exactly what my colleague Harry did. He took advantage of one of these offers just last month. He opened a new checking account with an online bank that was offering a $300 bonus and only had to set up direct deposit of at least $1,000 within the first 60 days. And the best part? He did it with his regular payroll check. So, while earning an extra $200 or $300 might not seem like much, it felt like getting a mini-raise just for changing banks.

Now, I know what you might be thinking: “Ralph, what about that personal touch? I enjoy going to the bank. I enjoy talking to the tellers. And what about security concerns?” Let’s talk about those—let’s address those head-on. The truth is, online banks have come a long way. And to be honest, in terms of customer service, many of these online banks offer 24/7 phone support, live chat, and even, like my credit union, video chats. It’s a great way to connect.

And as for security, most online banks are using state-of-the-art encryption and multifactor authentication to keep your money safe. Here’s what I’m going to tell you: Look for FDIC insurance—that’s the banking side of the insurance—or the NCUA insurance if you’re dealing with a credit union. Here’s the thing I’ll also tell you: do your research, read reviews, and find the bank or credit union that works best for you. My neighbor Mike was skeptical about online banking because he thought, “Ralph, it can’t be as secure.” But then he tried it, and he actually found his online bank’s app was more secure than his traditional bank’s website.

The app had things like fingerprint or facial recognition login, instant transaction alerts, and the ability to lock his debit card with just a tap. And here’s what Mike told me—he said, “Ralph, I feel more in control of my money than I ever did before.” But it’s not just about high-interest rates and sign-on bonuses, though those things are great. Many online banks offer perks that can make your financial life easier and save you money in the long run.

I found a great article from NerdWallet about the best banks and credit unions, and I’ll put a link to it in the show notes today. Here are some of the best perks I’ve seen. The number one thing: no monthly maintenance fees. They don’t charge you a fee to have that bank account. Number two: a lot of them are doing this now—no minimum balance requirements. They don’t have that $1,000 or $500 balance requirement.

Another thing that’s very common now is free ATM access nationwide, and that’s huge. We’re not carrying cash, but when I need to tap the ATM—by the way, I’m old school, we used to call it the MAC when I was a kid—it’s free. Number four: early direct deposit. You can get your paycheck up to two days early. A lot of these financial institutions are offering this, so no more of those payday loans where they’re ripping you off to get your own money.

Number five: cashback rewards on debit card purchases. I’m seeing a lot of those now. Now, I’m not a huge fan of debit cards—I did a show about that—but if you find yourself using one, look for a banking institution that gives you rewards for doing that. And last but not least: budgeting and savings tools built right into the app. These are huge tools.

My friend Lisa recently switched to an online bank that offers all these perks, and she said to me, “Ralph, I was amazed at how much easier it became to manage my money.” The built-in budgeting tools helped her identify areas where she was overspending. She said, “Ralph, I had no idea how much I was spending on eating out, coffee, lattes, and all that kind of stuff.”

And here's the kicker—those cashback rewards on her debit card added up. In fact, she told me that in the first month, she got an extra $50 in her account just by doing those things. Now, I did a show about a week ago on how banking apps can help you better manage your finances. So, if you missed it, I recommend you check it out. Remember, one of the things I say on the show all the time is: “What gets measured gets done.” These banking apps are great for showing you the facts. It’s not about emotion—they show facts, and you can make better decisions.

Let me share some specific examples of banks and credit unions currently offering some great perks. And listen, I’m not endorsing any institution—I have no affiliate programs with any of these examples. You still need to do your due diligence and research.

The first one I found is Ally Bank. Now, I have some clients who work with Ally Bank, and they offer a high-yield savings account with no minimum balance, and their rates are fantastic. So, you might want to look at Ally Bank. The second one is Discover Bank. Discover Bank actually provides cashback on debit card purchases, and the best part is they don’t have any monthly fees. The third one I found was Capital One 360. Now, Capital One 360 offers a high-yield savings account and a checking account with, again, no fees. They also have that cool feature of early direct deposit, so they can see how much you’re going to be getting in your direct deposit from your paycheck, and they’ll actually give you the money a day or two early.

Number four is Chime. This is a completely online bank. They provide a spending account with no hidden fees—they’re very transparent about it—and again, they have the ability to get your paycheck up to two days early. And one of the things I’ve found, especially for a lot of millennials, is they like this bank called SoFi, which offers cash management accounts with competitive rates, and again, no account fees.

Remember, though, these offers and rates can change, so it’s always a good idea to check the latest information before making a decision. If you want to reference that NerdWallet article I posted, it has some great information.

Let’s wrap up what we covered in the main points today. Number one: online banks offer much higher interest rates on savings accounts than traditional banks. That’s just the truth. But pay attention to the details—are there things you need to do? Do you have to have direct deposit? Do you have to make a certain number of transactions?

Number two: many banks provide substantial sign-on bonuses for new accounts. If you can take advantage of those, why not? Just remember, I’ve talked about this on a previous show—they are going to give you a 1099 at the end of the year, so those bank bonuses will be considered taxable income. No big deal—you just need to report them.

Number three: online banking can offer perks like no fees, cashback rewards, built-in budgeting tools, and some even give you your money ahead of time through early direct deposit.

And number four, last but not least: a lot of people are concerned about security, but those concerns are truly addressed through advanced technology and around-the-clock customer support. That’s really the key—paying attention to what’s going on.

So, Trey, I’m going to encourage you to explore these online banking options. But like I’ve said probably three times now, Trey—do your research. Compare the different offers, and don’t be afraid to make a change. Change is not a bad word if it means improving your financial situation.

Remember, just like we learned in Proverbs 27:23-24, we need to be diligent in managing our resources. That’s what God has entrusted us to do. And by taking advantage of these online banking deals and perks, you’re being a good steward of your finances and making your money work harder for you.

Now, tomorrow’s show is going to be another barn burner. I’m going to talk to you about, “Should I purchase special medical insurance when I travel abroad?” I’m going to tell you about the time my wife, my older son, and I traveled to Germany and how we had to make this decision for ourselves. It’s crucial information for anyone planning international travel because some of the things I’m going to talk about might surprise you. So, don’t forget to tune in.

I know that navigating the world of online banking and choosing the right account can feel overwhelming. You may be frustrated with your current banking situation, feeling like you’re missing out on potential growth for your hard-earned money. Maybe you’re a small business owner looking to maximize your business accounts, or perhaps you’re just starting your financial journey and want to make the right choices from the beginning. If you’re feeling stuck or unsure about how to proceed, I’m here to help.

Let me tell you about my process and how I will help you find that financial security—how I can help you find that financial security. The first thing we’re going to do is assess your current situation. We’re going to look at where you really are. This is a non-emotional decision—just the facts. The second thing we’re going to do is identify your dreams—we’re going to look at those big, hairy, audacious goals, those things you’ve always wanted to do, and we’re going to figure out how to get there. Moving to step three, we’re going to take those dreams and align them with your goals, matching them to your faith, so that you’re living out that faith.

The fourth step is we’re going to build a personalized plan for you. It’ll be your financial roadmap, specific to you—not some cookie-cutter approach. The fifth thing we’re going to do in our process is seek accountability. And then the final thing we’re going to do is measure the results.

It all starts when you schedule a personal consultation with me. For a $150 consultation fee, I will work with you to analyze your specific financial situation. I’ll help you choose the right banking products, develop a budget, and create a personalized plan to improve your overall financial health. Maybe you feel like you’re living paycheck to paycheck. Maybe you feel like you’re taking three steps forward, only to get pushed four steps back. Whether you need help with your personal finances, as we talked about, or help with a business, or maybe you’re looking to start a new venture, I will help you assemble a team of experts to guide you toward financial success.

And here’s the best part—if we cannot develop a personalized plan to move you forward, I will refund your consultation fee. So don’t let another day go by feeling uncertain about your financial choices. Go to askralph.com right now, click on the “Book a Call with Ralph” banner, and let’s start the process. Let’s create that personalized plan to make your money work harder for you.

Remember this—my passion is to help you achieve financial success. That’s why I turn on this microphone, why I turn on this camera, why I plan these episodes out. That’s my mission field. I want to see you live out your dreams, and my process will help you get there. At the same time, we want to manage your finances with your faith. I want you to grow in your faith, and I know that together, we can master your finances from a Christian perspective.

So, as I always end the show, stay financially savvy out there, and God bless you.

Narrator
00:16:14

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