BMO is offering a $400 cash bonus for new checking account customers who open an account online and meet specific deposit and direct deposit requirements within the promotional period. The offer is limited in time and available primarily to customers without existing BMO checking accounts.
This article walks you through the eligibility requirements, the steps to qualify for the bonus, common restrictions that apply, and how this offer compares to similar bank promotions currently available. The $400 bonus represents one of the more generous checking account promotions in the current banking landscape, particularly if you already had plans to establish a relationship with BMO. Unlike many promotional offers that require minimal activity, this bonus does have specific conditions around direct deposits and account usage that you’ll need to meet before the money arrives in your account.
Table of Contents
- What Are the Eligibility Requirements for BMO’s $400 Checking Bonus?
- How Does the Direct Deposit Requirement Work, and What Counts?
- When Will the $400 Bonus Post, and What’s the Timeline?
- What Restrictions or Conditions Apply to This Offer?
- How Does BMO’s $400 Bonus Compare to Other Bank Promotions Right Now?
- What Account Features Does the BMO Checking Account Offer?
- Is Now the Right Time to Open a BMO Checking Account for This Bonus?
- Conclusion
- Frequently Asked Questions
What Are the Eligibility Requirements for BMO’s $400 Checking Bonus?
To qualify for this $400 offer, you must be a new BMO checking account customer—meaning you cannot have held a BMO checking account in the past 90 days. BMO’s specific definition of “new customer” varies slightly by product and promotion, but generally excludes anyone with an active or recently closed checking account. You’ll also need to be at least 18 years old and a U.S. resident with a valid taxpayer identification number (typically a Social Security number).
The core requirements beyond opening the account online include receiving a direct deposit of at least $500 within 60 days of account opening and maintaining the account in good standing. Direct deposit means an electronic transfer of funds from your employer or a government agency directly into your BMO checking account. Some people mistakenly think they can deposit $500 in cash or via check to meet this requirement—that won’t work. If you’re between jobs or don’t receive regular direct deposits, this condition could be a barrier, and you might want to confirm with BMO whether ACH transfers or other automated deposits qualify before opening.
How Does the Direct Deposit Requirement Work, and What Counts?
The direct deposit component is where many people get tripped up. BMO requires an automated deposit of at least $500 from a third-party source, typically your employer’s payroll system. This is different from transferring money from another account you own or depositing your own funds.
The purpose of this requirement is for BMO to ensure customers have ongoing banking activity and a genuine income stream. However, if you’re self-employed or a gig worker, you may face challenges meeting the direct deposit requirement since you control the deposits coming into your account. Some self-employed individuals have successfully used online payment services or business account transfers if they’re set up as automated deposits from a different entity, but this is a gray area. The safest approach is to contact BMO directly and ask whether your specific deposit method qualifies, rather than opening an account and risking the bonus being denied.
When Will the $400 Bonus Post, and What’s the Timeline?
Once you’ve met both conditions—opening the account online and receiving a qualifying direct deposit of at least $500—the bonus typically posts within 10 to 30 business days, though BMO may take up to 60 days to process and verify your eligibility. Timing matters here because if you open the account late in a promotional period and delays occur, you could miss the deadline for the offer altogether. Check the fine print on the specific promotion page to confirm whether the 60-day window to receive the direct deposit is calculated from the account opening date or from when the promotion started.
It’s important to note that the bonus itself is treated as taxable income, meaning BMO will issue a 1099-INT form for tax purposes. The $400 will be reported to the IRS, so factor that into your tax planning. If you’re trying to build an emergency fund or hit a savings goal, remember that a portion of that $400 bonus will likely go toward tax liability in the following year.
What Restrictions or Conditions Apply to This Offer?
The $400 bonus is only available to new customers opening accounts online, not in branches. If you prefer face-to-face banking or have questions that require in-person support, you won’t be able to apply for this specific promotion at a branch—you’ll need to complete the application on BMO’s website. Additionally, the offer is non-transferable and can be claimed only once per person or per household, depending on BMO’s current terms (this varies by promotion).
Some promotions also exclude certain states or certain types of accounts (such as student checking or accounts already bundled with other products). If you live in a state where BMO doesn’t have widespread availability, the offer may not be available to you at all. Before spending time on the application, check BMO’s website to confirm the promotion is available in your state and that your circumstances meet all the requirements.
How Does BMO’s $400 Bonus Compare to Other Bank Promotions Right Now?
Currently, several major banks offer checking account bonuses in the $200 to $500 range, so BMO’s $400 offer is competitive but not the highest available. Chase, for example, has occasionally offered $200 bonuses on checking accounts, while online banks like Ally and Capital One 360 have run promotions ranging from $100 to $250. The key difference is often the requirements: some banks require lower direct deposits, shorter timeframes, or additional conditions like using their debit card a certain number of times.
When comparing offers, look beyond the bonus amount and consider the account’s ongoing features, interest rates, and fees. A $400 bonus is attractive, but if you’re choosing between BMO and another bank, factor in whether BMO’s checking account has a monthly maintenance fee, ATM access in your area, and what the interest rate is on balances. If you’ll close the account after six months once the bonus posts, the bonus matters more. If you plan to keep the account long-term, the day-to-day features and fees become equally important.
What Account Features Does the BMO Checking Account Offer?
BMO’s checking accounts vary by product line, but the standard offerings typically include online and mobile banking, bill pay, a debit card, and access to BMO’s ATM network. If you live or work near a BMO branch, the convenience factor is higher. Importantly, BMO has both physical branches and a growing number of in-person banking locations, which appeals to customers who still value the ability to deposit checks or speak to someone in person.
However, BMO checking accounts often come with monthly maintenance fees (typically $12 to $15) unless you meet certain balance or direct deposit thresholds. If you plan to keep your account open long-term, ask whether your direct deposit will automatically waive the monthly fee—many banks offer this as an ongoing benefit to customers who have regular payroll deposits. This can offset or even exceed the value of the initial $400 bonus over time.
Is Now the Right Time to Open a BMO Checking Account for This Bonus?
Promotional offers like this are time-limited, so if BMO’s $400 bonus aligns with your banking needs, the answer is probably yes. The question becomes: do you need a new checking account right now, and would you use BMO’s services beyond the promotion period? If you’re already satisfied with your current bank, opening an account purely for a bonus and then closing it within months isn’t necessarily the best use of your time, especially if closing the account affects your credit profile or credit history length.
On the other hand, if you’ve been considering switching banks or opening a second checking account for specific purposes (such as separating business and personal finances or maintaining an emergency fund account), the $400 bonus effectively gives you four months of account maintenance for free and removes an obstacle to making the switch. Check the promotion end date before applying, as it may expire sooner than you’d expect, and ensure the direct deposit requirement fits your actual banking situation rather than creating an artificial constraint.
Conclusion
BMO’s $400 checking account bonus is a solid incentive if you meet the eligibility criteria, particularly the direct deposit requirement and the online-only application process. The offer is legitimate, taxable, and ranks competitively within the current landscape of bank promotions, though you should compare it against ongoing account features and fees before committing. The direct deposit requirement is the primary hurdle for many people, so confirm your eligibility before applying rather than discovering afterward that your deposit method doesn’t qualify.
If you’re ready to move forward, open the account on BMO’s website, set up a direct deposit of at least $500 within the 60-day window, and monitor your account for the bonus to post 10 to 30 days after qualifying. Keep documentation of the promotion terms in case questions arise with BMO about whether you met the requirements. After the bonus posts, evaluate whether the account’s features and fees make sense for your long-term banking needs.
Frequently Asked Questions
Can I count a check deposit or ACH transfer I initiate myself as a “direct deposit”?
No. Direct deposit specifically means an automated deposit from a third party, such as your employer’s payroll system or government benefits. Check deposits and ACH transfers you initiate don’t qualify.
Do I have to keep the account open after the bonus posts?
No, the bonus is yours once it’s deposited into your account. However, closing the account within a short timeframe may trigger a “account closure within 90 days” flag in some banking systems, which could affect future promotions with other banks.
What if I miss the 60-day direct deposit deadline?
You won’t qualify for the bonus. The direct deposit must arrive within 60 days of opening the account. If you open the account late in a promotional period, confirm you have enough time to receive your paycheck.
Will the $400 bonus affect my credit score?
Opening a new checking account typically doesn’t affect your credit score because BMO doesn’t do a hard inquiry for checking accounts (they may do a ChexSystems check, which is separate from your credit report). The bonus itself has no credit impact.
Is the $400 taxable?
Yes. BMO will issue a 1099-INT form for the bonus, and you’ll owe federal income tax on the $400. Set aside roughly 24% of the bonus for tax liability in the following year.
Can I get the bonus more than once?
No. Most bank promotions limit the bonus to once per person or per household. If you’ve received a BMO checking bonus in the past, you likely won’t qualify again.
