Is a savings account bonus worth it?

With a high-yield savings account, you can potentially add hundreds of dollars to your savings balance from interest alone. But for some, interest isn't the only way to see the number on your account balance go up.

If you're in the market for a new savings account, you may find banks offering bonuses for meeting certain requirements upon opening. These are one-time cash offerings (typically worth a hundred dollars or more) that the bank will add to your balance after you meet certain requirements, which usually includes a minimum deposit.

While that sounds like a great deal, it's important to think about the value of a one-time bonus alongside the long-term value you might get from another high-yield savings account. Below, we'll explore how you can decide if a savings account bonus is worth it for you. 

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Is a savings account bonus worth it?

Depending on your goals, it could be worth it to choose a savings account with a one-time bonus. Here are a few ways you can decide:

When it might be worth it

A good way to evaluate an account with a savings account bonus is to consider the short-term vs. long-term value. If you would consider opening the account even without the bonus — based on its ongoing interest rates and other features — then the bonus is just an additional short-term boost.

Take the Online Savings Account from Discover Bank as an example. It offers 4.00% APY, which is competitive even if it isn't the highest possible rate, and has no monthly fees or ongoing balance requirements. But on top of that, you can earn either $150 or $200 when you open a new account and deposit $15,000 or $20,000, respectively, within 30 days (this offer ends on June 15, according to Discover).

If you already have that cash in savings, the bonus could definitely be worth it thanks to the lack of fees and competitive interest rates. You'll benefit from the one-time bonus now, but can also keep earning a top yield on your savings balance over time.

Explore more top savings rates you can use to increase your balance today!

When it may not be worth it

Along the same lines, a bonus may not be the best value if, in exchange, you're sacrificing potential interest. Some savings accounts with great bonuses don't have competitive APYs to match — especially if they come from big banks. If the account doesn't have a competitive interest rate of at least 4% APY (though some high-yield accounts range up to 5%) the one-time bonus may not be enough to make up the lost potential value.

Even if you come out on top the first year, you likely won't earn as much over the long run as you could with an account that has a highly competitive interest rate, especially if rates remain high.

You may also want to pass up a savings bonus if the requirements are too complicated, or you simply don't have the cash on hand to meet them. Many savings account bonuses require a steep minimum deposit, so you'll need a large balance to qualify in the first place. Some may also have additional requirements, like opening a checking account, a certain number of direct deposits or qualifying for relationship programs with the bank.

The terms of the bonus may require that you keep the minimum balance in your account for up to three months to qualify. If you're using the account as your emergency fund, take caution. If you need to withdraw the cash in case of an emergency, you could lose out on the bonus altogether.

While a savings account bonus can be a great way to get a few extra dollars added to your account balance, make sure you read the fine print of any offer. If you can't meet the qualification, or the account doesn't offer much interest over the long run, you may get more value elsewhere.

The bottom line

When looking for a new high-yield savings account, you should first consider the long-term value you'll get on your balance. Before looking at bonuses, narrow down your list based on competitive interest rates, lack of fees, minimum balance requirements that work for you and other factors. Otherwise, you could be missing out on the long-term value that even the best one-time bonus is unlikely to beat. If you do find a great high-yield account with a savings bonus, take time to read the fine print and requirements thoroughly so you have no issue qualifying.

Start your search by comparing the best savings rates available today here.