I’m always on the hunt for the best bank bonuses, and First Merchants Bank has a new offer that caught my attention. They’re offering up to $500 for new checking customers in Indiana, Michigan, and Ohio. But as with any bank bonus, the devil is in the details.
Let’s break down whether this bonus is worth your time or if you should pass and look for better opportunities.
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The First Merchants Bank Bonus at a Glance
First Merchants is offering two different bonus tiers:
$300 Bonus with Advantage Checking:
- Direct deposit of $500+ monthly for three months
- 15 debit card transactions/payments of $10+ monthly
- Maintain a $1,500 minimum balance
$500 Bonus with Elite Checking:
- Direct deposit of $1,000+ monthly for three months
- 5 debit card transactions/payments of $10+ monthly
- Maintain a $15,000 minimum balance
Both offers require you to be a resident of Indiana, Michigan, or Ohio and use promo code SOCIAL25 when opening your account.
Trending Savings Account Deal:
Breaking Down the Requirements
Let’s analyze what you’ll actually need to do to earn these bonuses:
The Direct Deposit Requirement
For the $300 bonus, you need a $500+ direct deposit each month for three months. For the $500 bonus, that requirement jumps to $1,000+.
First Merchants specifically mentions “payroll Direct Deposit,” which typically means they’re looking for actual employer payroll deposits, not just any ACH transfer. In my experience, banks are getting stricter about what counts as a direct deposit, so your safest bet is routing your actual paycheck to this account.
The Transaction Requirements
The transaction requirements differ between the two accounts:
- Advantage Checking ($300 bonus): 15 transactions of $10+ per month
- Elite Checking ($500 bonus): Only 5 transactions of $10+ per month
What’s interesting is that they count not just debit card purchases but also ACH payments, bill pays, and checks. This gives you flexibility in how you meet this requirement.
The Minimum Balance Requirement
This is where things get tricky:
- Advantage Checking ($300 bonus): $1,500 minimum daily balance
- Elite Checking ($500 bonus): $15,000 minimum daily balance
That $15,000 requirement for the Elite account is substantial and represents the biggest hurdle for most people considering this bonus.
Trending Checking Account Deal:
The Fine Print You Shouldn’t Ignore
Before you rush to open an account, here are some important details:
- Eligibility restrictions: You must be a new customer without any existing First Merchants personal checking accounts. Additionally, you can’t have closed a personal checking account with them in the past 36 months (since May 1, 2022).
- Account termination fee: If you close your account within 6 months, you forfeit the entire bonus AND pay a $50 early closing fee.
- Bonus timing: After meeting all requirements for three consecutive months, the bonus will be credited in the following month. So you’re looking at a 4-month timeline at minimum.
- ChexSystems check: First Merchants does use ChexSystems, so if you have negative banking history, you might be denied.
- Credit card funding: You can fund up to $1,000 with a Visa or Mastercard when opening the account, which is a nice option.
Avoiding Monthly Fees
Both accounts come with monthly fees that can eat into your bonus if you’re not careful:
Advantage Checking ($300 bonus) has a $15 monthly fee, waived if you:
- Have one $500+ direct deposit per month, OR
- Make 15 debit card transactions per month, OR
- Maintain at least $1,500 in combined personal deposit balances, OR
- Are 62 or older
Elite Checking ($500 bonus) has a $20 monthly fee, waived only if you maintain $15,000 in combined personal deposit balances.
For the Advantage account, the fee waiver requirements align perfectly with the bonus requirements, so you shouldn’t have any issues keeping it fee-free.
For the Elite account, you need to maintain that $15,000 balance to avoid the fee, which is the same requirement for earning the bonus.
Is This Bonus Worth It? Let’s Do the Math
For the $300 Bonus (Advantage Checking)
- Time commitment: 3-4 months to earn the bonus, 6 months minimum to avoid penalty
- Money tied up: $1,500 for at least 6 months
- Effort: Setting up direct deposit + 15 transactions of $10+ monthly
If you kept $1,500 in a high-yield savings account earning 5% APY for 6 months, you’d earn about $37.50 in interest. So your effective bonus is around $262.50 ($300 – $37.50).
For the effort involved, this is still a solid return. The requirements align with normal banking activity for many people, making this relatively easy to achieve.
For the $500 Bonus (Elite Checking)
- Time commitment: 3-4 months to earn the bonus, 6 months minimum to avoid penalty
- Money tied up: $15,000 for at least 6 months
- Effort: Setting up direct deposit + 5 transactions of $10+ monthly
Here’s where it gets interesting. If you kept $15,000 in a high-yield savings account earning 5% APY for 6 months, you’d earn about $375 in interest. So your effective bonus is only around $125 ($500 – $375).
This significantly reduces the appeal of the higher bonus tier. You’re essentially tying up $15,000 for six months to earn an extra $125 over what you could make in a high-yield savings account.
Who Should Consider This Bonus?
The $300 Bonus Makes Sense If:
- You live in Indiana, Michigan, or Ohio
- You have regular direct deposits of $500+ monthly
- You can easily make 15 transactions of $10+ monthly
- You can maintain a $1,500 balance for 6 months
- You don’t mind keeping the account open for at least 6 months
The $500 Bonus Makes Sense If:
- You already keep a large cash cushion in checking accounts
- You’re planning to move $15,000+ to a new bank anyway
- You prefer the simplicity of only needing 5 transactions monthly
- You don’t have better options for that $15,000 (like investments or high-yield savings)
My Verdict: Go for the $300 Bonus, Skip the $500
After analyzing this offer, I agree with the assessment that the $300 bonus is the better deal for most people. Here’s why:
- Better return on investment: The effective return on the $300 bonus is much higher when you consider the opportunity cost of tying up $15,000 for the $500 bonus.
- Lower barrier to entry: $1,500 is a much more manageable minimum balance for most people than $15,000.
- Same time commitment: Both bonuses require the same 6-month account maintenance period.
The only scenario where I’d recommend the $500 bonus is if you already keep a large amount in checking accounts and don’t want to bother with high-yield savings accounts or other investments.
Trending Savings Account Deal:
How to Apply for the First Merchants Bank Bonus
If you’ve decided to go for it, here’s how to apply:
- Visit the First Merchants Bank website or a local branch
- Use promo code SOCIAL25 when opening your account
- Ask the banker to enroll you in the “SOCIAL25 Checking Offer”
- Set up direct deposit with your employer
- Plan your transaction strategy (debit purchases, bill payments, etc.)
- Set calendar reminders to ensure you meet all requirements each month
Final Thoughts
Bank bonuses are one of my favorite ways to earn extra cash, but not all bonuses are created equal. This First Merchants offer is decent for the $300 tier but less compelling for the $500 tier when you consider the opportunity cost.
If you’re in Indiana, Michigan, or Ohio and looking for a new checking account, the $300 bonus is worth considering. Just make sure you can meet and maintain all the requirements for the full six months to avoid losing your bonus and paying the early termination fee.
Have you taken advantage of bank bonuses before? Let me know your experiences in the comments below!
Disclaimer: This offer is valid from May 1, 2025, to December 31, 2025. Terms and conditions are subject to change. Always verify the current offer details directly with First Merchants Bank before applying.
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