PNC, rivals paying hundreds for new customers

With U.S. interest rates slipping toward zero despite warnings the Fed may raise rate targets, banks that seek cheap deposits as a way to fund loans and sell other services are paying new customers bonuses to open checking accounts.

"The top promotions currently running in Philadelphia," says BankRate.com:
- $300 at PNC Bank
- $150 at M&T Bank
- $150 at Santander Bank

Citibank, which closed its former Philadelphia-area branches in a cost-cutting move, is paying even more in the nation's busiest markets -- up to $400 in New York, Washington and San Francisco. But not here. PNC is also running $300 specials in Washington and Detroit, among the big metro areas Bankate checked.

There's more to signing up than just filling out a form, PNC spokesman Jason Beyersdorf clarified: "A new client would need to open a PNC Virtual Wallet Performance Select" or similar account; and to set up Direct Deposits sending $5,000 into the account; and make at least 10 purchases with the attached debit card within 60 days.

Plus, customers need a coupon code to sign up (available online or by showing a copy of PNC's account promotion ad and signing up at a PNC branch), Beyersdorf told me.

The bank also offers smaller bonuses for new checking accounts with smaller deposits.

PNC is the largest bank based in Pennsylvania. Philadelphia market leader Wells Fargo isn't listed among those offering top dollar for new accounts.