Bank Bonus Glossary

New to bank bonus churning? Here are the key terms you'll see everywhere.

ACH (Automated Clearing House)

The electronic network used for bank-to-bank transfers in the US. ACH pushes from one bank to another are a common way to trigger direct deposit requirements.

Bonus Posting

When the bank actually credits the bonus to your account after you've met all the requirements. This can take anywhere from a few days to several statement cycles.

ChexSystems

A consumer reporting agency that tracks your banking history. Banks check it when you open a new account. Too many recent inquiries or negative marks (bounced checks, unpaid fees) can get you denied.

Churning

The practice of repeatedly opening bank accounts (or credit cards) to earn signup bonuses, then closing them and doing it again. Named after the butter-making process — lots of repeated motion for a tasty reward.

Direct Deposit (DD)

An electronic payment deposited directly into your bank account. Required by most bonus offers. Many ACH transfers from other banks, PayPal, or Venmo also qualify.

Early Termination Fee (ETF)

A fee charged by some banks if you close your account within a certain period (usually 6 months). Typically $25–$50. Always check the terms before closing.

Funding

The initial deposit you make when opening a bank account. Some banks allow credit card funding, which can also earn credit card rewards — a double dip.

Hard Pull (HP)

A credit inquiry that shows up on your credit report. Some banks do hard pulls when you open checking or savings accounts. These can temporarily lower your credit score by a few points.

Minimum Balance

The amount you need to keep in the account to avoid monthly fees or to qualify for a bonus. Read the terms carefully — "average daily balance" and "minimum daily balance" are different things.

Qualifying Period

The window of time (usually 60–90 days from account opening) during which you must complete the bonus requirements like direct deposits or debit card transactions.

Signup Bonus

The cash reward a bank offers for opening a new account and meeting specific requirements. These typically range from $100 to $500 for checking accounts.

Soft Pull (SP)

A credit inquiry that does NOT show up on your credit report and does NOT affect your score. Many banks only do soft pulls for bank accounts, which is ideal for churners.