A new account bonus typically adds $50 to $500 to first-year high-yield savings account earnings before tax. A high-yield savings account (HYSA) is a savings account paying a higher rate than average, so that cash sits on top of interest. A $200 bonus on a $10,000 balance can turn about $400 of interest into about $600 for the first year. That one-time lift fades after year one if the rate drops.
Table of Contents
- How the math works
- What you must deposit and hold
- How taxes reduce the gain
- Is chasing the bonus worth it?
How the math works
The rate sets the baseline. A $10,000 balance at 4.00% APY earns about $400 in a year before tax, versus about $38 at the 0.38% national average, according to The Motley Fool's October 2026 rate research. The bonus does not replace that difference.
The bonus is a first-year adder. A $200 bonus on $10,000 at 4.00% lifts pre-tax earnings from about $400 to about $600, a 50% one-time uplift before tax and hold-period costs, according to Marcus by Goldman Sachs' current savings disclosures. Marcus also lists 3.50% APY, a reminder that variable rates can lower later years.
What you must deposit and hold
Barclays and SoFi show the range. Barclays pays $200 for a large qualifying deposit and long hold. SoFi pays $50 or $300 based on direct deposits during a short bonus period.
Banner Bank pays $500 for opening High Yield Relationship Savings with $25,000 in new money within 60 days and holding $25,000 for 90 days. It pays within 30 days after qualifying, according to Banner Bank. Large bonuses demand large idle balances.
- Check the required new deposit and deadline.
- Check the minimum balance and consecutive-day hold.
- Check whether direct deposit or new money is required.
- Check the payout timing and one-bonus limit.
How taxes reduce the gain
Interest and deposit bonuses are taxed as ordinary income in the year credited or withdrawable, according to IRS Topic No. 403.
A $300 bonus plus $400 of interest is $700 of taxable income. Banks send Form 1099-INT when reportable interest including bonuses totals $10 or more, according to IRS instructions. Smaller bonuses stay taxable even without a form, so keep the offer statement for tax time.
Is chasing the bonus worth it?
Safety caps the chase. Deposits at FDIC-insured banks are insured up to $250,000 per depositor, per bank, per ownership category, according to FDIC Deposit Insurance FAQs. Do not exceed that limit to earn a bonus at one bank.
Weigh the locked balance against the payout. A $200 bonus means less on $25,000 held 120 days than on $5,000 held briefly. Match the required hold balance to money you will not need to move.
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