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JPMorgan Chase and Wells Fargo Offering $300 Cash As Banks’ Battle for New Deposits Intensifies for First Time in Years: Report

July 22, 2024

Big banks in the US are boosting the amount of cash they’re handing to new customers as the fight for deposits intensifies for the first time in years.

JPMorgan Chase and Wells Fargo in particular are battling it out to curb deposit flight triggered by the Federal Reserve’s interest rate hikes, reports the Wall Street Journal.

Both banks are now offering $300 cash bonuses to new customers. And here’s the catch – newcomers must set up direct deposit in order to claim the reward.

Bank of America is offering $200 for the same set up, and Citi has a new promo offering 5% interest on new savings accounts for the first 90 days.

The moves come as earnings reports confirm banks are paying up to retain deposits and combat the rising popularity of money market funds.

Says BofA Chief Financial Officer Alastair Borthwick,

Our instructions to our team are to grow our deposit base a little bit faster than the economy. That means you have to price across the board to achieve that.”

Data from the market research firm Curinos shows the average cash offer for new checking accounts hit $400 this year. For comparison, that number was $160 in 2016.

However, compared to 2016, customers must now hold higher balances in their accounts in order to receive the rewards.

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