It’s difficult to ignore the allure of free cash. If you are seeking a cash bonus for your savings account, then Capital One’s offer of up to $500 is worth a closer look.

You will have to open a new bank account and deposit $50,000 to get the biggest bonus, but Capital One offers tiered deals on balances of $10,000 and above for new customers. The bank also provides opportunities for existing customers to earn a bonus. The online bank pays savers a competitive yield.

Here’s everything you need to know about the offer to see if it’s the right fit for you.

The details

A deal like that might sound too good to be true. Let’s take a closer look at the details.

New customers can score up to $500

Capital One is offering cash bonuses of $100 per every $10,000 you deposit and maintain in your account, up to $500 for $50,000. In order to secure this offer, you will have to open a 360 Performance Savings account through Capital One using a promo code (SCORE500).

According to Capital One, it should only take you about five minutes to open your new account. However, receiving the promised bonus will take several months.

Existing customers can score up to $450

If you already have an existing Capital One 360 Performance Savings account, don’t worry. You won’t miss out on the chance to score a cash bonus from Capital One.

As an existing account holder, you can earn a $450 bonus if you deposit $50,000 or more. If you don’t have that much on hand, then you can still score a $150 bonus if you deposit between $20,000 and $49,999.99 in your existing Capital One 360 savings account.

What’s the catch?

There are some limitations for this cash bonus.

Importantly, the offer has some specific time requirements for both existing and new customers. In order to secure the bonus, you will need to make your deposit before May 31, 2020. For new customers, you will also need to deposit money into the account within 10 days of opening it.

Simply transferring the money into your Capital One account will not lead to a bonus, however. In addition to an initial deposit, you have to maintain the daily balance until Aug. 29, 2020, if you’re an existing customer, or for 90 days if you are a new customer. The daily balance must stay at the level you have chosen if you want to see the expected bonus hit your account. Otherwise, you may miss out on some of — or all of — your cash bonus.

For example, let’s say you open a new account with $10,000; however, your daily balance drops below that initial deposit at some point in the first 90 days. If your daily balance drops below the initial deposit, you won’t qualify for the cash bonus. But if you deposited $50,000 into a new account and your daily balance dropped to $30,000 in the first 90 days, then you would still see a $300 cash bonus as a new customer.

If you are able to maintain your account balance for 90 days or until Aug. 29, 2020, you’ll receive the appropriate cash bonus within 60 days. If you don’t see the cash bonus by Oct. 28, 2020, then you should call Capital One to see what the delay is.

Is this a good deal for you?

This Capital One 360 savings account bonus is something to consider if you have enough cash to deposit. A bonus is not the only factor you should think about, however. The key features to look for in any savings account are: APY, the fees associated with the account and any bonus offerings.

First, the APY offered by the Capital One 360 Performance Savings account is relatively high. Although the APY on the savings account is not the highest on the market, it is still very competitive. For example, Marcus by Goldman Sachs offers a slightly higher APY; however, you would miss out on the cash bonus opportunity.

Capital One’s savings account doesn’t charge monthly account maintenance fees either, so you’ll also be able to watch your savings continue to grow without fees eating into your earnings potential.

Finally, the bonus offered by the Capital One 360 Performance Savings account is attractive when compared to other bank deals. But you’ll need to park a substantial amount of your savings in this account for an extended period of time in order to receive the cash bonus. If you have ample cash reserves on hand, then this could be a good opportunity to score a worthwhile cash bonus. However, you’ll need to be comfortable with the idea of leaving your savings untouched for the foreseeable future. If you are unable to do that, then you may want to consider a bank with a higher APY to help your savings grow faster until you need to access it.

Bottom line

When you are looking for the right savings account to safely store your money in, it can be difficult to find the right fit. You want an account with a high APY and no fees. But you also want a little something extra for doing your banking with a particular institution. Many banks under-deliver on these desires, but Capital One’s 360 Performance Savings account doesn’t disappoint. Overall, the bonus offered by Capital One is worth considering.

Even if you don’t choose to work with Capital One, you should take advantage of one of the savings accounts with a higher APY to help you reach your savings goal sooner, and potentially, to also earn a cash bonus to further increase your savings.

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