Want an Extra $300? This Bank Account Offers a Competitive APY and Welcome Bonus (2024)

Axos Bank may not be a household name in financial services, but this online-only bank packs a punch with features and perks that are sure to pique your interest. If you’re in the market for a new checking account, the Rewards Checking bonus will hand you a free $300. But you need to follow the rules and exercise patience.

This account also offers one of the highest APYs we’ve seen for a checking account, so even if you can’t easily earn the bonus, it’s worth considering.

Axos’ Rewards Checking account bonus details

To qualify for the $300 new account bonus, open a new Rewards Checking account with the promotional code AXOS300 by June 30, 2024. You’ll need to transfer money from an external source into the Axos checking account within 30 days of opening to begin the process.

After opening the account, you’ll need to receive at least $5,000 each month in direct deposits for the next seven consecutive months the account is opened. Qualifying direct deposits include electronic transfers of paychecks or government benefits such as Social Security. You also must maintain a $7,000 minimum average daily balance during this time to be eligible to receive the account bonus.

The good news is this bonus isn’t all or nothing even if earning the full amount will take some time. You can earn a maximum payout of $50 per statement cycle (up to a total of six payouts) as long as you satisfy the direct deposit and minimum daily balance requirements.

But if you’re thinking about account churning -- opening new accounts and closing them quickly to receive the bonus -- read the fine print. Axos will impose an early account closure penalty of up to $300 on new accounts that are open for 210 days or less.

Axos’ Rewards Checking APY

The Axos Reward Checking account provides a generous benefit for new accounts and a competitive APY -- on paper. You won’t find many checking accounts that offer up to 3.30% APYs in this environment. But it’s not easy to earn the full interest rate. Here’s everything you’d need to do to obtain the 3.30% APY.

But you don’t have to check all of the boxes to earn interest. If you receive monthly direct deposits of $1,500 or more and make 10 Axos Visa debit card purchases each month, you can earn 0.70%. Sure, it’s lower than 3.30% APY, but it’s higher than most checking accounts offer. The national average APY for checking accounts is 0.07%. The Rewards Checking account offers the potential to earn a competitive rate but requires more of a commitment than its competitors, which you should factor in when considering this account.

More details about Axos

Axos Bank is a San Diego-based online-only bank founded in 2000 that offers a full suite of personal and commercial banking services, including checking, savings, certificate of deposit and money market accounts. Axos scores points for the convenience of its mobile banking services. However, with the exception of the checking account, Axos Bank deposit accounts don’t earn competitive annual percentage yields, or APYs, compared to other online banking options.

Axos Bank has low minimum balance requirements to open its deposit accounts, no monthly fees and no overdraft charges. The Reward Checking account offers unlimited ATM fee reimbursem*nts and supports cash deposits through ATMs, a service not all online banks offer.

In addition to deposit accounts, Axos Bank’s lending department offers home mortgages, personal loans and auto loans. And if wealth building is on your radar, Axos provides wealth management tools for novice to experienced investors.

How Axos’ Rewards Checking compares to the competition

If you’re looking for a new checking account, here’s how Axos stacks up to other banks.

Is the Axos Rewards Checking account bonus worth it?

The Axos Reward Checking new account bonus is a benefit worth considering if you’re in the market for a new checking account and comfortable banking in a digital-only environment. But the requirements imposed to receive this new account bonus can be steep: You must receive $5,000 in direct deposits per month for seven months and maintain a sizable $7,000 minimum average daily balance.

These requirements may be unreasonable for some, but if you can comfortably meet them, then a free $300 and competitive yield on your checking account balance can boost your interest earnings.

If these requirements present a hardship, consider other checking accounts, such as SoFi, which also offers a competitive yield and multiple ways to receive its new account bonus. Plus, you only have to meet the direct deposit requirement for one month instead of seven.