American Express Wants to Give You $250 for Opening a Checking Account

If you've been thinking about trying out American Express's banking services, now's a pretty good time. They're dangling a $250 carrot for new checking account customers, and the deadline to get in on it is still a ways off. It's a straightforward offer, but like any bank bonus, the devil is in the details. Let's break down what you need to do to pocket that cash and what you should watch out for.

How to Snag the $250

The process is simple on paper. First, you need to be approved for your first-ever American Express Rewards Checking account by the cutoff date of January 31, 2026. This is crucial—if you've ever had this specific account before, you're not eligible.

Once your account is open, the clock starts ticking. You have a 90-day window from the day you open it to get at least $5,000 in qualifying direct deposits posted to the account. This isn't a 'set it and forget it' deal; you need to actively route your payroll or other eligible income to make this happen.

What Exactly Counts as a 'Qualifying Direct Deposit'?

This is where people often trip up. American Express is pretty specific about what they'll accept to trigger the bonus. The money must come via an ACH transfer directly from an employer or a government agency. Think: your regular paycheck, Social Security benefits, a pension payment, or even a tax refund.

Conversely, a lot of common transfers do NOT count. You can't just move $5,000 from your old bank account. Transfers between your own accounts (even from an Amex savings account), person-to-person payments like Venmo or Zelle, check deposits, and redeeming Amex points for cash all won't help you meet the requirement.

Practical Tips and Potential Pitfalls

A 5% return on $5,000 for 90 days of your money sitting there is a solid deal. But before you jump in, consider a few things.

First, plan your direct deposit switch carefully. Make sure your employer's payroll system can handle the change and that you know the timing. You don't want your first deposit to hit on day 91.

Second, you must keep the account open and in good standing until the bonus actually lands in your account, which could be up to 12 weeks after you complete the steps. Closing it early means forfeiting the $250.

Also, remember that this bonus is considered taxable income. Come tax time, American Express will likely send you a 1099 form for the $250, so you'll need to report it.

On the plus side, the account itself seems decent. It has no monthly fees, earns a little interest (1.00% APY as of the bank's latest info), and comes with the customer service you'd expect from Amex.

Bottom Line

• A $250 bonus for a $5,000 direct deposit requirement is a competitive offer worth considering if you need a new checking account.
• Eligibility is strict: you cannot be a current or former Amex Rewards Checking customer.
• Meticulously verify that your income source qualifies as a direct deposit—standard bank transfers won't work.
• Factor in the tax implications; this $250 will add to your taxable income for the year.

Common Questions