What is a hold period?

A hold period is the minimum amount of time you're required to keep your account open, or your balance above a certain level, before the bank will pay out the bonus.

Most bonuses have some version of this. A typical structure is something like: complete your direct deposit requirements, maintain the minimum balance for 60 or 90 days, and then the bonus posts within a few weeks after that window closes.

The hold period exists because banks want to make sure you're a real customer and not someone who grabs the cash and immediately disappears. Closing your account or dropping below the required minimum balance during the hold period usually forfeits the bonus entirely. Some banks will also hit you with an early termination fee if you close too soon. A bank might require you to keep the account open for 90 days after the bonus posts. Close early and the bank can recover the bonus.

This is the most important date to track when you're working on a bonus. Set a calendar reminder for when the hold period ends so you know exactly when you can move your money or close the account. Each bonus listing shows the hold period so you know how long your money is tied up.