A sign-up bonus and an APY are two different things, and federal rules say so: under Truth in Savings (Regulation DD), the advertised annual percentage yield covers interest and compounding only, and may not include the value of a bonus. So the honest way to compare 2026 offers is to treat the bonus as a one-time cash payment with conditions, and the APY as the ongoing rate — never as a single blended number.
That distinction matters because the two behave differently. A bonus is fixed, taxable, and usually one-per-customer; an APY is variable and can drop the week after you open the account. Getting both right is the difference between a real gain and a promotion that pays less than the savings account you already have.
Table of Contents
- What Regulation DD actually says a "bonus" is
- Why deposit rates in 2026 are capped by something other than the bank
- What real 2026 offers require of you
- Who gets locked out
- The tax bill nobody quotes in the headline
- How to compare an offer in five minutes
- Frequently Asked Questions
What Regulation DD actually says a "bonus" is
Regulation DD is the Consumer Financial Protection Bureau rule that governs how banks advertise deposit accounts. Under the CFPB's definitions in § 1030.2, a bonus is a premium, gift, award, or other consideration worth **more than $10** given for opening, maintaining, or renewing an account. Anything at or below $10 is not a bonus for disclosure purposes. The rule also excludes fee waivers and fee absorption from the definition.
A bank that waives a $12 monthly maintenance fee for a year is handing you $144 of value, but it is not a "bonus" and does not carry the same disclosure obligations. That is worth knowing when you compare a $200 cash offer against an account that simply never charges you. APY is defined separately, as a total-interest figure over a 365-day period expressed as a percentage. The CFPB's APY definition and the calculation method in Appendix A to Part 1030 reflect interest and compounding only. That is why no compliant ad shows you "5.9% APY including your bonus" — the regulation does not permit it.
Why deposit rates in 2026 are capped by something other than the bank
Deposit apys do not float free. At its July 28–29, 2026 meeting the FOMC held the federal funds target range at **3.50%–3.75%**, according to the Federal Reserve's published minutes. That benchmark sets the practical ceiling on what a bank can pay and still make money on your deposit. The September 15–16, 2026 decision had not been published as of September 15, so any rate outlook past that date is a guess. There is a second, more literal cap.
The FDIC publishes a national rate cap for non-maturity deposits set at the higher of the national average rate plus 75 basis points, or the federal funds rate plus 75 basis points. Banks that are less than well capitalized cannot exceed it, which is the mechanism that stops a struggling institution from buying deposits with an eye-catching savings rate. The takeaway for a reader: a rate far above the pack is usually promotional and temporary, not a structural advantage. SoFi, for example, advertises 3.10% APY on savings with eligible direct deposit plus a limited-time 0.90% boost to 4.00%, and states plainly on its savings page that the rate is variable and can change at any time. The boost is a promotion, not a locked term.
What real 2026 offers require of you
The conditions are where bonuses are won or lost. Old National Bank's checking offer, open through **October 30, 2026**, is tiered: $300 for three or more qualifying recurring ACH direct deposits totaling $3,500, or $600 for deposits totaling $12,000, each within the first four months. The bonus is credited between day 121 and day 140 — roughly four to five months after you open.
SoFi's direct-deposit bonus runs 5/15/2026 through 12/31/2026 and sizes the payout from total eligible direct deposits received in the 25 calendar days after your first qualifying deposit. It is limited to members who have never set up direct deposit with SoFi, which makes it a one-shot offer per person rather than something to repeat. Three structural features show up across these offers:.
- **Direct deposit, not transfers.** Qualifying deposits are typically recurring ACH from an employer or benefits provider, not a push from another bank.
- **A deadline to fund and a later date to get paid.** Old National's four-month qualifying window and day-121-to-140 payout are separate clocks.
- **A total, not a count.** Old National's tiers turn on dollar totals ($3,500 vs. $12,000), so three small deposits can qualify you for the lower tier and miss the higher one entirely.
Who gets locked out
Exclusions do more to determine your outcome than the headline dollar figure. Chase's Total Checking offer, per Chase's own offer page, excludes existing Chase checking customers, anyone whose account closed within the past 90 days, and anyone whose account closed with a negative balance in the last three years. Read that list carefully, because it describes two separate groups. The first is repeat bonus-chasers: if you already hold the product, or recently closed it, you are ineligible by design.
The second is consumers with prior account trouble — a checking account closed while overdrawn can disqualify you for three years, long after the balance itself is resolved. This is the practical limit on "bank bonus" as a strategy. The offers are customer-acquisition spending, so they are aimed at people the bank does not already have and does not consider a risk. If you are outside that target, the advertised number is not available to you at any effort level.
The tax bill nobody quotes in the headline
A bank bonus is not a rebate or a gift — it is income. The IRS treats these payments as interest reported on Form 1099-INT, and IRS Topic no. 403 sets the reporting threshold at **$10**. Essentially every bonus worth chasing clears it.
You also have to report the income even if no 1099-INT shows up in your mail or online banking portal. A missing form is an administrative failure by the payer, not a waiver of your obligation. So a $300 bonus is pre-tax. At a 22% marginal rate, it is $234 in hand; at 32%, $204. Compare that net figure — not the headline — against the interest you would give up by moving money out of an account already earning a competitive APY.
How to compare an offer in five minutes
Run the two numbers separately, then combine them yourself at the end. If the net bonus after tax is smaller than the interest you forfeit, the offer is a loss dressed as a gain — and because the FDIC rate cap sits at the national average plus 75 basis points, the gap between a good existing account and a headline promotional rate is usually narrower than the advertising implies.
- **Confirm you are eligible before anything else.** Check the exclusion list for existing-customer, recently-closed, and negative-balance rules, as with Chase's terms.
- **Write down the qualifying total and the deadline.** For Old National, that is $3,500 or $12,000 in recurring ACH direct deposits within four months.
- **Note when the money actually arrives.** Old National pays between day 121 and day 140, so the cash is not available for roughly a third of a year.
- **Cut the bonus by your marginal tax rate.** That is the real figure.
- **Price the APY you are leaving behind.** Multiply the balance you must park by the difference between the two rates, over the months you are committed.
Frequently Asked Questions
Can a bank legally advertise an APY that includes its sign-up bonus?
No. The CFPB's APY definition and Appendix A calculation cover interest and compounding over a 365-day period only, so bonus value cannot be folded into the advertised rate.
Is a waived monthly fee a "bonus"?
Not under Regulation DD. Section 1030.2(f) expressly excludes fee waivers and fee absorption, even though the savings can be worth more than many cash offers.
Do I owe tax if the bank never sends me a 1099-INT?
Yes. IRS Topic no. 403 sets the reporting threshold at $10, and you must report the interest income whether or not the form reaches you.
Why can't a struggling bank just offer the highest savings rate in the country?
The FDIC's national rate cap limits less-than-well-capitalized banks to the higher of the national average plus 75 basis points or the federal funds rate plus 75 basis points.
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