Induced insight is the sudden comprehension of a previously unsolved problem through building of novel associations. It has been associated with improved learning and memory performance. This memory-superiority effect was demonstrated to critically depend on the intrinsic reward accompanying induced insight upon completion of the problem. While the effect of intrinsic reward in induced insight already has been investigated, the possible effect of extrinsic reward remained almost unattended, yet. In the context of reward-based learning, extrinsic reward has been associated with enhanced learning and memory performance. However, it also has been shown that administering an extrinsic reward to an intrinsically rewarding behavior diminishes the positive effects of the intrinsic reward in form of an overjustification. The current study aimed to further disentangle the effects of intrinsic and extrinsic reward on learning through induced insight. To this end, we presented Compound Remote Associates (CRA) and compared learning and memory performance using an incidental memory test at the following day. Intrinsic reward was manifested in the correct completion of an item, while extrinsic reward relied on a monetary reward upon correctly solving an item. By employing (generalized) linear mixed models, signal detection theory and measures of metacognitive monitoring, our study aims to further investigate the precise role of extrinsic reward in induced insight. Our data will shed further light on the mechanisms of the memory superiority effect of induced insight. In addition, we will discuss practical implications for using induced insight problems in educational settings.