Bank bonus or higher APY: which one really pays more?
A bank bonus gives you a one-time payout. A higher APY keeps paying as long as the money stays in the account. Which one wins depends on how much money you have, how long it will sit there, and what you have to do to qualify.
Figure out what the bonus is really worth
Start with the advertised bonus, then subtract any fees and account for anything you are giving up to earn it. If you have to move direct deposit or keep a large balance in place, that is part of the deal too.
Then look at the rate difference
An extra fraction of a percent may not mean much on a small balance, but it can add up on a larger one. The longer you keep the money there, the more the APY difference matters.
Use the same amount of time
Do not compare a bonus earned over a few months with a full year of interest unless you adjust the math. Use the period you actually expect to keep the money in each account.