Act Now to Get This Checking Account Welcome Bonus of up to $500

Bank account bonuses can be a great way to score a bit of extra cash when you're opening a new account. They'll often pay anything from $100 to $500 or more to new customers who jump through their hoops. As such, the latest Axos Bank promotion is on the top end of the scale.

Qualifying new Axos Bank Rewards Checking customers can get up to $500 if they open an account before July 31 and meet its deposit and balance requirements.

Putting the bonus offer aside, the Axos Bank Rewards Checking is an attractive account. It does not charge monthly maintenance or overdraft fees and has no minimum balance requirements.

Better still, it will reimburse all your U.S. ATM fees. It's also an interest-earning checking account, though you'll have to work hard to earn its highest APY tier.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of June 28, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of June 28, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	APY 4.50%	Min. to earn $0.01

How to earn the Axos Bank Rewards Checking cash bonus

The Axos Bank Rewards Checking account bonus works slightly differently from other bank account bonus offers. Rather than paying a lump sum, it breaks the $500 bonus into five $100 payments.

To earn the bonus, you'll need to open a new account between now and the end of July, using the promotional code RC500. You've then got six statement cycles to earn the full bonus. You'll earn $100 (up to $500) for each statement cycle when you meet these two requirements:

• Maintain an average daily balance of at least $3,000.
• Make qualifying monthly direct deposits of at least $1,500. This needs to be your paycheck or government benefits, not a transfer from another account.

You can earn up to five payouts of $100 each. Each time you do, the money will be deposited into your account 15 business days later. Keep the account open if you want to receive the money.

What to know about the Axos Bank -- and other -- bank account bonuses

Bank account bonuses can boost your balance. But it's better to see them as the cherry on top rather than the dessert itself. Opening a new top checking account means switching your automatic payments and getting used to managing your money with a different bank. It's doable, and it can often make sense. Especially if you're paying a monthly maintenance fee. But it's not as easy as switching to a new brand of cereal, and it isn't worth doing purely for a welcome bonus.

1. Make sure you're confident you'll meet the bonus requirements

Like many welcome bonuses, the Axos Bank promotion only applies to new customers. It also has a pretty hefty minimum balance requirement, which not everybody will be able to meet. If you're living paycheck to paycheck and aren't confident about keeping your balance above $3,000, this bonus may not be for you. Check out our best bank bonuses for this month to find an offer that matches your financial situation.

2. Be prepared to pay tax on the bonus

You will likely need to pay tax on your bonus. This could be between 10% and 37%, depending on your tax bracket. The IRS considers bank bonuses and any interest you earn as taxable income. This is not the same as credit card rewards, which the IRS categorizes as spending rebates.

3. Make sure this is the right bank account for you

Once the bonus is paid, you'll probably use this checking account for some time to come. Read the fine print to make sure you understand how the account works. Shop around to see how it stands up against the competition. The lack of monthly fees and ATM reimbursements are certainly attractive, but Axos Bank isn't the only bank with these features.

One of the selling points of the Axos Bank Rewards Checking account is that you can earn 0.40% (up to 3.30%) APY on your balance. That's extremely competitive, though not as high as you'll get from many top savings accounts. Plus, it isn't easy to reach that top rate.

• Be aware that you'll need to receive monthly direct deposits of at least $1,500 to earn the base rate. This also unlocks your ability to earn more.
• From there you'll get a higher APY for each criterion you're able to meet. You'll have to jump through a lot of hoops to qualify for the highest rate. This includes maintaining an average daily balance of $2,500 in two different Axos Bank investment accounts.

Key takeaway

If you're able to meet the minimum balance and direct deposit requirements for the $500 bonus, the Axos Bank Rewards Checking account could be an attractive option. You've got until July 31 to open your account. Start by making sure it's the right account for you for the long term. After that, you can open an account online, set up qualifying direct deposits, and maintain that $3,000-plus balance to earn your bonus.