3 reasons to pass up a new bank account bonus

  • ​The bonus isn’t as big as you think

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    The larger the bonus, the more tempting it is to open up a new checking or savings account, but don't let yourself be fooled by dollar signs. Just because the bank is going to give you $100, $200 or even $500 doesn't mean that you get to keep all of that money. According to the IRS, it's considered taxable income, so you'll be handing over part of the bonus to the government.

    For example, if you're normally in the 25 percent tax bracket, a $100 bonus would only be worth $75 after it's all said and done. If you open several new accounts throughout the year to rack up a few hundred or thousand dollars in bonuses, Uncle Sam could end up taking a pretty decent bite out of what you're raking in.