Banks often provide lucrative sign-up bonuses to attract new customers, and recently, one of the most competitive offers has emerged from E*TRADE by Morgan Stanley. This bonus program promises up to $6,000 for eligible new customers, though the reward depends on meeting specific deposit thresholds.
How does E*TRADE’s $6,000 bonus work?
ETRADE’s offer is structured around deposit tiers, rewarding new account holders who meet various funding levels within 60 days of account opening. The highest tier offers $6,000 for deposits of $2 million or more. Here’s a snapshot of the tiered bonus system:
- $1,000–$4,999: $50
- $5,000–$19,999: $150
- $20,000–$49,999: $200
- $50,000–$99,999: $300
- $100,000–$199,999: $600
- $200,000–$499,999: $800
- $500,000–$999,999: $1,000
- $1,000,000–$1,499,999: $3,000
- $1,500,000–$1,999,999: $5,000
- $2,000,000+: $6,000
To claim the bonus, new customers need to use the promo code “OFFER24” when opening their account and must complete their funding by January 31, 2026. After meeting the deposit requirements, E*TRADE will deposit the bonus within 30 days.
How to qualify for the offer
To qualify, clients must open a new ETRADE brokerage account and fund it with at least $1,000 from an external account. The bonus calculation considers only new funds transferred from outside ETRADE and must be completed within 60 days of opening the account. Clients must retain these funds, minus any trading losses, in the account for a minimum of six months to avoid bonus clawbacks.
The “OFFER24” promo code is essential for enrollment. When entering this code at account setup, clients signal their intention to participate in the bonus promotion.
Important terms and conditions
- Account type and eligibility: Only new non-retirement brokerage accounts are eligible for this bonus. Existing clients who open additional accounts may not qualify for the same promotion.
- Deposit holding period: Funds must stay in the account for a minimum of six months. E*TRADE can reclaim the bonus if funds fall below the qualifying amount within this time, making it essential for clients to avoid withdrawing deposits prematurely.
- Multiple account restrictions: The promo code “OFFER24” applies to one account per client. This means that even if a client opens multiple accounts, they cannot receive multiple bonuses under this offer.
- New vs. existing funds: ETRADE requires all bonus-qualifying deposits to come from an external account, meaning funds already held in ETRADE accounts or transferred internally are not eligible.
How to get started
To participate in the E*TRADE $6,000 bonus offer:
- Visit the E*TRADE website and open a new brokerage account by January 31, 2025.
- Use promo code “OFFER24” during the setup process.
- Complete the minimum qualifying deposit within 60 days to activate the promotion.
For detailed terms and to confirm eligibility, prospective clients should consult ETRADE’s official site or contact ETRADE’s support team.
Are Bank sign-up bonuses worth it?
While a $6,000 sign-up bonus sounds enticing, experts advise taking a comprehensive look at the account’s terms. Matthew Goldberg, a senior consumer banking reporter at Bankrate, suggests that bonuses can be appealing if they fit within your financial plan but warns that such offers shouldn’t be the sole reason to open a new account. Goldberg explains that “a bonus can be another reason for someone who’s been thinking about changing banks,” but emphasizes that customers should consider factors like ongoing fees and interest rates.
Similarly, Paul Brahan, a certified financial planner, advises that the best bonuses are those that provide real value without requiring an excessive deposit or demanding long holding periods. He recommends that prospective customers look at their long-term banking needs before committing to a new bank just for a bonus.
Other high-value banking offers to consider
While E*TRADE’s $6,000 bonus is among the highest in November 2024, there are other attractive sign-up offers:
- Tastytrade: Tastytrade offers up to $5,000 for deposits exceeding $1 million by December 31, 2024.
- Chase private client checking: Chase private client checking up to $3,000 for large deposits maintained for at least 90 days, expiring January 22, 2025.
- HSBC premier checking: HSBC premier checking up to $2,500 for maintaining a balance of $250,000 for three consecutive months.
Tips for maximizing bank bonuses
- Understand account requirements: Some accounts may require a monthly maintenance fee or a minimum balance to avoid fees. Be clear on these costs to ensure your bonus doesn’t get offset by charges.
- Keep track of timelines: Sign-up bonuses often come with strict deadlines for funding and account maintenance. For example, E*TRADE requires deposits within 60 days, with a January 31, 2026, deadline. Missing deadlines could disqualify you from receiving the bonus.
- Assess your liquidity needs: A $6,000 bonus may not be worth the opportunity cost if it locks up a large sum of your money. Compare this to potential gains from alternative investments or high-yield savings accounts.
- Consider tax implications: Sign-up bonuses are generally taxable and will be reported as income. Planning for potential taxes upfront can prevent surprises when filing returns.
