5 easy banking and rewards hacks to maximize your holiday cash

Holiday spending often winds up costing a lot more than people expect. Travel, gifts, food, and year-end commitments can add up fast.

The good news is you can tap into several banking and rewards strategies this month to boost your holiday funds without stressing your regular budget. With a few strategic steps, you can combine these tools and create a meaningful cushion to see yourself through the peak spending season.

Banks often compete for new customers with bonus offers that reward you for opening a new account and completing a handful of requirements. You could earn a cash bonus of $100 to $400 — or even more in some cases. Usually, you’ll need to complete a minimum number of qualifying direct deposits and/or maintain a minimum average daily balance within a certain time frame to qualify.

To make this strategy work, compare bank bonus offers and review each requirement in detail. Once you meet the conditions, the bonus typically goes straight into your account. Keep in mind, however, that this process could take 45, 90, or even 120 days. So while a bonus might not hit in time for the holidays, it could be a great way to pay off credit card debt that might be lingering after the season ends.

Another way to earn extra cash is by referring family members or friends to financial products you already use and trust. Numerous banks, credit card companies, and fintech apps reward customers with referral bonuses when they share the product with others.

Referral rewards often range from $10 to $100 or more (or the equivalent value in points). You can use these rewards to build up your holiday fund without a ton of extra effort.

Most referral programs are pretty straightforward, but it’s important to read the fine print to make sure you don’t miss out on potential rewards. Typically, you share a unique referral link with the person you’re referring, and they use that link to sign up. Once the person you refer satisfies the program requirements, the reward shows up in your account. Often, the person you refer receives a reward too.

A few examples of banks and apps that offer referral programs include American Express, Chase, SoFi, Ally, Cash App, and others. Programs change often. So check the referral page on each bank or app’s website for rules and reward details.

Read more: The 5 best neobanks and fintech companies

Credit card welcome bonuses can create a major holiday surplus when you use them responsibly. Many issuers offer sign-up offers worth hundreds of dollars in value to new cardholders who meet a minimum spending requirement during their first few months from account opening.

The smartest approach here matches up the bonus requirement with the spending you already plan to do. And if your budget is higher for the holiday season, that number might look a bit higher than your average monthly budget.

Remember, it’s important to review the details of each credit card sign-up bonus and compare card features such as annual fees, interest rates, and ongoing rewards. Once you earn the bonus, you can redeem the rewards to fund travel, pay down your card balance (with cash-back credit cards), and more.

Many people overlook rewards they have already earned during the holiday season. However, your loyalty program rewards, credit card points, and cash back could boost your holiday budget right away. Even so, the value you receive for your rewards redemptions depends on the choices you make.

You can maximize the value of credit card rewards and stretch them further. Gift cards and “pay with points” tools, for example, are often a poor way to redeem your credit card points. These tools feel convenient, but they often reduce the value of your rewards. If you plan to travel during the holidays, you’ll likely get more value from your points by redeeming them for flights or hotels and saving your cash for holiday shopping.

Cash back can also offer a quick way to add money to your holiday fund. You can redeem it as a statement credit or move the cash into a separate savings account (preferably a high-yield savings account to help your money grow faster).

Before you redeem rewards, keep the following tips in mind.

1. Compare the value of each redemption option, including transfer partners and credit card rewards portal choices.

2. Choose travel redemptions when you want the highest value, and remember to consider credit card transfer partners to unlock potential added value.

3. Consider cash back redemptions when you want immediate holiday budget support.

Read more: How I pair travel credit cards with a high-yield savings account to maximize family vacations

Shopping portals and cash-back browser extensions can help you save money or earn more rewards when shopping online. These tools allow you to stack rewards on holiday purchases you already planned to make.

Many shoppers use a cash-back or rewards browser extension, such as Rakuten or Kudos. And some credit card issuers also offer online shopping portals. These tools enable cardholders to earn extra points or cash back on top of their normal card earnings by starting their shopping trip through the portal and clicking through to online retailers. You can also combine the tools and multiply your rewards-earning potential.

When you combine a shopping portal, a browser extension, and a rewards credit card, that’s where the magic really happens. With this strategy, you create three layers of value on the same purchase. It does take a little extra effort to keep up with multiple rewards programs, but the added value is worthwhile.

When it comes to boosting holiday cash flow, many people combine several methods together to maximize benefits. If you can manage this approach responsibly, it could be a valuable strategy.

A credit card welcome offer could offer hundreds of dollars worth of rewards for purchases you already plan to make. Shopping portals help you earn more cash back or points from those purchases. Meanwhile, researching the best ways to redeem the rewards you earn (and already have banked) ensures you get the most value possible for your redemptions.

The combination can create a flexible, low-stress way to cut holiday spending without credit card debt.

Read more: 6 creative holiday savings tips to keep your budget in check this year

Holiday budgets work best when you plan ahead and use the financial tools that already exist in your everyday life. Banks and card issuers offer bonuses and rewards that can grow a holiday fund faster than many people expect. Shopping portals and cash-back tools can stretch your spending even further.

You don’t need a complicated plan to boost your holiday cash. A few intentional moves often create enough breathing room to enjoy the season without stress and debt.