Columbia Bank's $250 Checking Bonus: A Solid Deal for West Coast Residents

If you live in California or Utah and you're in the market for a new checking account, Columbia Bank has a $250 bonus that might be worth a look. It's not the biggest bonus we've ever seen, but the requirements are pretty straightforward, and the bank doesn't pull your credit. Let's break down what you need to know.

What You Need to Do

To snag the $250, you'll need to open a new personal checking account at a participating branch. The eligible accounts are Pinnacle, Embark, and Foundation. Make sure the banker activates the promotional offer when you open the account—if they forget, you might not get the bonus.

Once your account is open, you'll need to enroll in online banking within 90 days. You also need to set up direct deposits that total at least $3,000 within the first 90 days. And you'll need to keep an average deposit balance of $3,000 for 90 days. That's a lot of requirements, but if you can meet them, the $250 is a nice reward.

• Open a new Pinnacle, Embark, or Foundation checking account in person at a participating branch.
• Enroll in online banking within 90 days of account opening.
• Receive direct deposits totaling $3,000 or more within the first 90 days.
• Maintain an average deposit balance of $3,000 for 90 days.

The Fine Print You Shouldn't Ignore

This offer is for new customers only. If you've had a checking account with Columbia Bank or any other deposit account in the last 12 months, you won't qualify. Also, it's limited to one bonus per household, so if your spouse already got it, you're out of luck.

The bonus is paid within 45 days after you meet all the requirements, and it's deposited into your account. But you need to keep the account open and in good standing (no negative balance) to receive it. The bonus is considered interest, so you'll get a 1099-INT and owe taxes on it.

• Existing customers with a checking account or any deposit account in the last 12 months are not eligible.
• Limit one bonus per household.
• Account must be open and not negative when the bonus posts.
• Bonus is reported as interest on IRS Form 1099-INT.

Avoiding Fees and Other Considerations

The Embark checking account has a $3 monthly fee, but it's waived if you sign up for eStatements. The other accounts may have different fee structures, so check the terms before you open.

There doesn't appear to be an early account termination fee, but you do need to keep the account open until the bonus posts. That means you'll need to keep it open for at least 90 days plus up to 45 more days for the bonus to hit. After that, you can close it if you want.

• Monthly fee: $3 for Embark, waived with eStatements.
• No early account termination fee mentioned, but account must stay open until bonus posts.
• Consider the opportunity cost of maintaining a $3,000 balance for 90 days.

Is It Worth It?

If you're in California or Utah and you can easily meet the direct deposit and balance requirements, this is a decent bonus. The soft pull means it won't affect your credit score, and there's no hard inquiry. However, the $3,000 average balance requirement is steep—you'll need to have that much cash sitting in the account for three months.

If you already have a checking account that pays interest, you might want to compare. But if you're looking for a new bank and you can park $3,000 for a few months, $250 is a solid return. Just make sure you read all the terms and follow the steps carefully.

• Good for those who can meet the direct deposit and balance requirements.
• Soft pull is a plus for those worried about credit inquiries.
• High average balance requirement may not be feasible for everyone.

Bottom Line

• Columbia Bank offers a $250 bonus for new checking customers in CA and UT.
• You must open an eligible account in-branch and activate the offer with a banker.
• Direct deposits totaling $3,000 and a $3,000 average balance for 90 days are required.
• The bonus is taxed as interest and reported on a 1099-INT.
• No hard credit pull, but ChexSystems inquiry is unknown.

Common Questions