A bank account bonus clawback is when the bank removes a bonus after it was paid. It is most often triggered by closing the account early, missing deposit or balance rules, or violating prior-bonus limits.
Clawback terms differ by offer and sit inside the fine print. A forfeiture is slightly different because the bonus never pays out. Knowing the trigger lets you time closure and deposits.
Table of Contents
- Does closing early trigger repayment?
- What if the balance or new money falls short?
- Can a direct deposit arrive but not count?
- Do past bonuses block a new bonus?
- What happens at tax time after a clawback?
Does closing early trigger repayment?
JPMorgan Chase describes the rule in its business onboarding terms. It deducts the full checking bonus at closing if either side closes the account within six months after enrollment or opening.
Wells Fargo uses forfeiture for the same timing mistake. It requires the Everyday Checking account to remain open and unrestricted at payout. Close or restrict it before then and the $325 bonus never pays.
- keep the account open through the clawback window
- keep it unrestricted until after payout posts
- move direct deposit only after the bonus is secure
What if the balance or new money falls short?
Chase explains the test in its $650 Premier Plus offer page. The bonus pays only after $15,000 in new money arrives within 30 days and a $15,000 balance stays for 90 days.
New money means funds from outside the bank, not transfers between Chase accounts. A shortfall means no payout, not a later second chance. Track arrival date, daily balance, and the 90-day hold separately.
Can a direct deposit arrive but not count?
Wells Fargo explains the timing rule in its Everyday Checking offer terms. An ACH direct deposit made available early does not count until it posts and is no longer pending.
That delay matters because Wells Fargo requires $1,000 or more in qualifying direct deposits within 90 days. Withdrawing, changing payroll, or closing before posting can leave you below the mark. Wait for posted status before counting a deposit toward the $1,000.
Do past bonuses block a new bonus?
Chase limits customers to one new checking-account bonus every two years. It also excludes existing customers, accounts closed within 90 days, and accounts closed with a negative balance.
Wells Fargo excludes customers who received a consumer checking bonus in the prior 12 months. It also reserves the right to close or restrict accounts for suspected bonus or promotion abuse. Opening several accounts for bonuses can therefore end with no bonus and a closed account.
What happens at tax time after a clawback?
The IRS states in Publication 550 that cash and gifts for opening or funding a deposit account are taxable interest income. They are reported on Form 1099-INT, not as a nontaxable gift.
Banks must file Form 1099-INT for interest of $10 or more. The $10 line controls paperwork only, so smaller bonuses stay taxable. A bonus taken back can still create a reporting mismatch to fix with bank records.
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