5 Deposit and Investment Incentive Examples for Fintechs

A deposit bonus can bring money in quickly. Customers can move it out just as quickly once they've earned the reward.

A useful offer makes three things clear: what to deposit, what the customer receives and how long the money must stay. These five examples show how matches, devices and rate boosts handle that commitment.

1. Robinhood: match retirement contributions with a holding requirement

Add a percentage to eligible contributions to give customers a direct benefit for building an investment balance. State the holding requirement beside the match rate.

Robinhood offered a 1% match on eligible annual IRA contributions, or 3% for Gold members. The matched assets had a five-year holding requirement; Gold members also had to keep the membership for a year after the enhanced match.

Early withdrawals could preserve the match if the remaining balance covered the eligible deposit plus its match. Falling below that amount could trigger a match-removal fee. A design like this needs a clear explanation of how withdrawals affect the reward.

2. Robinhood: offer a 3% bonus for retirement transfers

Reward customers for moving existing assets when your goal is to become their chosen provider. This asks for a different decision from making a new contribution.

Robinhood offered a limited-time 3% match on eligible retirement transfers. It reported more than $4 billion transferred, averaging over $90,000 per customer.

For your own offer, follow the balance after withdrawals and compare with a randomly selected group outside the offer where possible. A large transfer total still leaves two questions: how much arrived because of the reward, and how much stayed?

3. Wealthsimple: offer Apple devices for keeping funds for two years

Offer a device when the balance you expect to retain can cover its cost. A choice of products can make the reward relevant to more customers.

Wealthsimple's Apple promotion let customers choose devices such as an iPhone or MacBook after reaching a funding threshold. A 30-day funding period was followed by a 730-day balance requirement. A withdrawal buffer and exceptions applied; exceeding them could trigger prorated recovery of the reward's value. There was no cash alternative.

Customers received the device before finishing the holding period. Keep the continuing balance requirement visible after delivery.

4. Wealthfront: offer a savings rate boost or investment deposit match

Calculate a temporary rate boost over the time it lasts. Calculate a deposit match from the qualifying amount and payout rules.

Wealthfront offered a 0.75-percentage-point annual percentage yield boost on up to $150,000 in cash, a one-time 0.50% match on up to $100,000 in qualifying investment deposits, or both. The cash boost lasted three months, with extra referrals extending it to six. The investment match paid in four quarterly installments; withdrawals reduced future payouts.

For illustration, on a constant $100,000 balance:

• An extra 0.75 percentage points for three months is roughly $187.50, before compounding and timing differences.
• A one-time 0.50% match is $500, subject to the payout conditions.

Similar-looking percentages can produce very different costs.

5. Wealthsimple: link mortgage cashback to account status

Give existing customers a reason to consider another product. Tie the benefit to a relationship they already have with you.

Wealthsimple linked Pine mortgage cashback to the size of a new qualifying mortgage and the customer's account status. The payout went into a Wealthsimple Chequing account. Renewals and mortgage modifications were excluded.

The receiving account creates a follow-up opportunity. Help customers use it for payments or bills, then check whether it stays active after the cashback arrives.

Budget deposit incentives around retained balances

Include the full holding period, reward cost and account-servicing cost. For devices, add delivery and support. For rate boosts, model changing balances. For staged matches, account for withdrawals and canceled payouts.

Compare those costs with the income the retained funds could generate. Start with a balance and holding period your product can reasonably support.

For acquiring customers through these offers, see fintech referral programs. For delivering a physical reward, read fintech prize campaigns.