Sign-up bonus.
In plain English
A sign-up bonus, or welcome offer, is a lump of points, miles, or cash a card or bank gives new customers who meet a condition, usually spending a set amount within a few months or keeping a deposit for a period. It is the single largest reward most cards offer and the main reason people open a specific card. The catch is the requirement: chasing a bonus by overspending, or opening accounts you do not need, can cost more than the bonus is worth, and some bonuses are taxable when paid by a bank.
01Why it matters
A sign-up bonus can be worth hundreds of dollars, but only if you meet the requirement with spending you would do anyway, so it rewards planning rather than chasing.
02The math, step by step
A card offers a 200 dollar bonus for spending 1,000 dollars in three months. If that 1,000 dollars is normal spending, the bonus is a clean 200 dollars; if you buy things you do not need to hit it, it costs more than it pays.
03What this is NOT
A sign-up bonus is NOT the card's regular rewards rate. It is a one-time offer for new accounts that meet a requirement; the ongoing earn rate is usually much smaller.
04Receipts
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