I Chose a $5K Bonus from Schwab for My $1.5MM Deposit: Here’s What I Found Out

One of the things most people love about choosing a bank is the opportunity to get whatever bonus comes from opening up a new account or making a large initial deposit. Just as credit cards offer various bonus sizes if you spend a certain amount in 90 days, banks have something similar to traditional accounts. 

This is precisely the scenario one Redditor discovered over a series of Reddit posts in r/fatFIRE as they were making a $1 million check deposit and wanted to get a little extra for doing so. They looked at E*TRADE, TastyTrade, and other banks before finally deciding. 

Unsurprisingly, we’re always on the hunt for any way to earn a little extra “free” money, so it’s hard to fault this Redditor for shopping around his sizable deposit. 

The Situation 

As a small business owner, this individual posted indicating they were closing out the books in 2024 and would look to deposit around $1 million dollars. Before doing so, the original poster wanted to shop around and see if they could get any “reward” or incentive for making such a sizable deposit at local banks or financial institutions. 

This led them to call places like E*TRADE and tastytrade, among a host of others, after Reddit chimed in with its belief that places like Robinhood, Webull, and others would offer outsized rewards. However, as the Redditor didn’t want to add any new accounts beyond where they had existing relationships, this narrowed down the list to Fidelity, Chase, a local bank, and Schwab. 

Fidelity offered little, just $2,000 for a $1 million deposit, and it didn’t have any public offers. Schwab went a little higher, offering $3,000 in bonuses for $1 million or upping it to $5,000 for $1.5 million. 

Lastly, Chase wasn’t budging with more than $3,000 until they realized this individual was already a client, so there wouldn’t be any bonus. This disappointment led this individual to make a final choice with Schwab, where they deposited their initial $1 million and then brought another $500,000 over from Fidelity to earn $5,000 in bonuses. 

Talk To A Rep

The most important thing to know from this Redditor is that talking to a rep is the best option, as walking into a bank isn’t likely to yield many results. The original poster focused heavily on shopping these offers against each other with their different reps. 

Still, even with the offer, their rep indicated that places like Webull or E*TRADE offers might be better, but at the end of the day, the original poster would be happier with funds at Schwab or Fidelity. It’s hard to disagree with this idea, considering Fidelity is almost always at the top of everyone’s favorite customer service list of financial clearinghouses. 

In the original post, someone mentioned that Webull would give $8,000 to deposit $1 million, but there is a one-year holding requirement. Since the Redditor wanted to stick close to firms with an existing relationship, Webull was out. 

Making This Happen

One important note is that there is a good chance that the bonus amount won’t be as good if you are an existing client and want to move additional funds. There is also a question about what happens if you are at a place like Fidelity, leave, and then come back. Can you still receive the bonus, or do you have to be gone for some time? 

While a 0.33% bonus doesn’t sound like much on paper, it sure can lead to a little extra cash in your pocket that this individual could use for a vacation or a staycation with family. There is no question that this Redditor did the right thing pitting existing banks against one another, but ultimately, going with the Schwab offer is likely the best scenario with the highest bonus. 

Of course, one Redditor expressed their disappointment that after transferring $22 million to a Schwab account last year, they only received the same $5,000. It’s hard to argue with their level of disappointment, but it’s also a nice little bonus you didn’t expect, so take it and run.