Question 1

How do I calculate the true value of a bank bonus?

Accepted Answer

To calculate a bank bonus's true value: Start with the bonus amount, subtract any monthly fees (times months you'll keep the account), subtract approximately 25% for taxes, and consider the value of your time. Our calculator automates this for you.

Question 2

Are bank bonuses worth my time?

Accepted Answer

Most bank bonuses offer excellent hourly returns. A $300 bonus that takes 2 hours of your time equals $150/hour. Even after taxes (~25%), that's $112.50/hour. Use our calculator to determine if a specific bonus is worth it based on your hourly rate.

Question 3

What fees should I consider with bank bonuses?

Accepted Answer

Consider: Monthly maintenance fees (and whether they're waivable), early account closure fees (if you close before the required period), minimum balance requirements that tie up your money, and any ATM or transaction fees.

Question 4

How much should I set aside for taxes on bank bonuses?

Accepted Answer

We recommend setting aside 20-30% of your bank bonuses for taxes, depending on your tax bracket. Bank bonuses are taxed as ordinary income. Banks report bonuses $600+ on Form 1099-INT or 1099-MISC.

Bank Bonus Net Value Calculator