Peoples Bank's $400 Checking Bonus: A Midwest Money Maker

If you live in Illinois or Indiana and you're looking to give your checking account a quick cash infusion, Peoples Bank has a promotion that's worth a close look. They're offering a solid $400 bonus for opening a new account, and the requirements are fairly straightforward. It's a regional offer, so it won't be for everyone, but if you're in their service area, this could be an easy way to pocket some extra money. Let's break down exactly what you need to do and what you should keep in mind before you apply.

How to Snag That $400

The process to earn the bonus is a classic checking account bonus structure, but it's crucial you follow each step precisely. First, you must open an eligible checking account online. You can't walk into a branch for this promotion. The eligible accounts appear to be their standard consumer options: You First Checking, eChecking, or Senior Plus Checking.

Once your account is open, you have a 90-day window to get moving. You need to enroll in electronic statements (eStatements) and set up a qualifying direct deposit. The key is that you must receive a total of at least $1,000 in those direct deposits within that same 90-day period.

If you hit the target, the $400 will be deposited into your new account during the statement cycle that follows the end of your 90-day qualification window. Just make sure you don't close the account before the bonus lands.

• Open an account online (branch openings don't count).
• Enroll in eStatements during the setup.
• Set up and receive $1,000+ in qualifying direct deposits within 90 days.
• Keep the account open and in good standing until the bonus posts.

Defining a 'Qualifying' Direct Deposit

This is where people often trip up. Peoples Bank is specific about what counts. A qualifying deposit is an electronic transfer of your regular income sent via the ACH network. Think paychecks from your employer, pension payments, or government benefits like Social Security.

What doesn't count? Basically, any transfer you initiate yourself. Moving money from your savings account at another bank, depositing a check via mobile app, or making a cash deposit at an ATM or branch will not satisfy the requirement. The deposit needs to come from an external, approved source automatically.

Practical Advice and Potential Pitfalls

A $400 bonus for a $1,000 direct deposit requirement is a great 40% return, but it's not without its considerations. First, check your location. This offer is only for residents of Illinois and Indiana. Use the bank's branch locator to double-check your eligibility if you're near a state border.

While the bank's official page doesn't mention a hard credit pull, opening any new bank account typically involves a check of your banking history through ChexSystems. If you've had account mishaps (like unpaid negative balances) at other banks recently, you might not be approved.

Also, note the fine print: this is a one-per-customer offer and cannot be combined with other promotions. The bank can change or end the offer at any time, so if you're interested, it's better to act sooner rather than later. Finally, remember that the bonus itself is considered taxable income, so you'll receive a 1099 form for it come tax season.

• Confirm you live in IL or IN before applying.
• Be prepared for a ChexSystems inquiry.
• The bonus is taxable income—plan for it at tax time.
• This offer is for new checking customers only.

Which Account Should You Choose?

Peoples Bank offers a few checking options that qualify. The You First Checking and eChecking accounts both have no monthly service charge, which is ideal for bonus chasers who want to avoid fees after meeting the requirement. You First requires a $500 average balance to earn a tiny bit of interest, while eChecking offers small cash rewards on debit card purchases if you maintain a $250 direct deposit each month (waived if you're 26 or younger).

The Senior Plus Checking has a $100 minimum to open and requires a $100 daily balance or eStatements to avoid a small fee. It earns interest on balances over $100, but the rates are very low. For most people going after the bonus, the simple, no-fee You First or eChecking accounts are the way to go.

Bottom Line

• A strong regional offer with a clear, achievable $1,000 direct deposit requirement.
• No monthly fees on key accounts make this bonus easy to keep.
• Pay close attention to what counts as a direct deposit—person-to-person transfers don't qualify.
• The bonus is taxable, so set aside a portion for your tax bill.

Common Questions