They did that when I was a kid, but I have not seen them giving out anything (except a bad attitude
) for probably 25 years. It might be still a 'thing' in some of the smaller, regional banks....but my bank won't even give out extra deposit slips!
As for how it started....well, I have a theory. During the Great Depression, there was a "run on the banks"---people were freaking out and withdrawing all their money from the banks out of fear things would collapse. The decision was made to temporarily close the banks and not allow people to get access to (that is,
take away) their money, since that money was what made it possible for banks to make loans, finance mortgages, etc and stay in business. A lot of the banks closed permanently due to various issues. Without going into too much of a history lesson, that period when people were unable to access their own money was understandably scary. The stronger banks re-opened once the currency was stabilized, but it created at least two generations of Americans who did not trust banks. I know my great-aunt (b. 1902) was one of those people who kept her money under the mattress. Those born during the Depression were raised to be wary of banks not only because of the Run on the Banks, but also because so many people lost everything due to the Depression. The banks were often the ones who repossessed the car or foreclosed on the house, leaving the family blaming the bankers for their misfortune. So when the country became prosperous again in the post-war period, the banks had to win back the affections of a lot of people who mistrusted them or outright hated them. They offered free gifts (the toaster to open a new checking account became a cliche of the 1950s), and of course how better to win the favor of housewives than to make their kids happy with free candy? It would also help build bridges between the banks and those kids who would eventually grow up to have money of their own.