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Social media makes it easy to stay in touch with friends and family, spot the latest trends, and follow the news while enjoying the occasional cat meme. But your social media habits could have a negative effect on your finances if you feel pressured to spend unnecessarily in order to maintain a lifestyle that you can’t really afford.

FOMO, or fear of missing out, is a well-documented phenomenon that can drive people to make decisions based on things they see other people doing on social media. When the concept of FOMO is applied to money, it can lead to overspending and dangerous financial behaviors, all for the sake of getting likes and clicks.

Understanding how social media can hurt your finances can help you break the FOMO cycle and make smarter decisions with your money. Read on to learn:

•   The negative financial effects of social media.

•   At worst, how social media can impact your finances.

•   How to reduce the financial impact of social media.

Negative Financial Effects of Social Media

If you’re busy checking your favorite influencers, you may not realize how social media can actually keep you poor. After all, these people might be making a living on social media, so how can it possibly be bad?

The reality is that social media can influence how you manage your money, along with the balance in your bank account, in a number of ways. If you’re wondering how Twitter or Facebook can impact your finances or whether Instagram and Snapchat are contributing to your lack of cash, here are some of the potentially dangerous side effects to consider.

Overspending

Social media can contribute to impulsive or compulsive spending if you’re constantly trying to keep up with trend-setters or you’re buying “stuff” to satisfy your emotional needs. For example, you might see your favorite beauty influencer touting a new $50 lipstick or $500 dress and decide that you need to buy it too to feel beautiful.

What you might not know is that the influencer is likely being paid to advertise these items on their social media accounts and they didn’t purchase it themselves. In that sense, social media can be a trap for overspending because it’s easy to adopt the mindset that since everyone else seems to be doing it, you should too.

Distractions Causing Less Time for Budgeting and Managing Finances

Social media can also keep you poor if you’re spending so much time online that you’re not staying on top of your financial situation and making sure you’re sticking to your budget. Whether you use an envelope system or the 50/30/20 budget rule, a budget is at its core a personal plan for spending the money that you earn each month. Without a budget, it’s much easier to lose track of expenses and give in to FOMO spending.

You might also turn a blind eye to how much debt you might be racking up as a result of social media-driven spending. By the time you get around to taking a break from social media, you could have a stack of credit card bills to deal with.

Trying to Keep Up With Your Friends

The types of people you surround yourself with can have an impact on how you manage your money. If your social media feeds are full of friends who are going off on expensive vacations, driving flashy cars, or buying big homes, it can be very tempting to try to match those behaviors in your own life.

The problem is that unless your friends are being open about their finances, you don’t really know how they’re able to afford those things. They could be living in a beautiful home, for example, but struggling to make the mortgage payments each month. Or they might drive a luxury vehicle with a four-figure car payment. Or perhaps their family is wealthy and helps them with their bills.

If you try to replicate their lifestyle, it’s possible that you could quickly find yourself struggling financially. On the other hand, developing financial discipline can make it easier to live a lifestyle that you enjoy, without causing yourself unnecessary stress.

Buying Trendy Items

Ever bought something just because you saw it advertised on your social media feeds? That’s one tricky way that social media platforms keep you broke.

You might buy something because the ad makes the item seem as if it will dramatically improve your life. Or perhaps it’s something that everyone else is buying and you want to feel like you’re part of the trend. The trouble is that once the trend eventually dies, you’re stuck with that item and you’re out the money you paid for it.

That’s not just limited to clothes, bags, or accessories either. Many young people turn to “finfluencers” to get their financial, and even investment, advice. This exposes them to potentially bad advice, as well as outright fraud.  

Dealing With Constant Advertisements

Ever been searching for something on Google, then you open up social media and see an ad for it? If you’re trying to wrap your head around how Snapchat or Facebook can impact your finances, targeted advertising could be the answer.

The average person can see thousands of ads per day and quite a few of them are concentrated on social media outlets and search engines. And once you see an ad, it’s hard to unsee it. The flashier the ad, the more you might be tempted to click and make a purchase. If you’re trying to quit spending money, ads can be the biggest roadblock to your success.

Falling Into the Trap of an Influencer’s Fantasy Life

At first glance, influencers seem to have it made. They’re living in nice homes and wearing the latest designer clothes, they look perfect, and they’re rich. Or at least, that’s the way it seems.

Following influencers can be harmful to your mental and financial wellbeing if you feel like you need to try to emulate their lifestyle. Once again, you don’t know what their life is like behind the scenes or how they’re financing it. For every big influencer making six or seven figures, there are scores of micro-influencers who are making much less. And in some cases, they may be dressing up their lifestyle for the camera to hide the fact that they’re not truly wealthy. Or they may just be showing off swag that they got for free or are being paid to promote. Try to keep up, and you could see your financial wellness spiral downward.

Helpful Tips to Reduce the Financial Impact of Social Media

What happens if you fall into any of the traps above? High credit card debt, empty bank accounts, and increased stress can all be signs that social media may be negatively affecting your money management.

Fortunately, there are some things you can do to reduce the negative impacts social media might be having on your financial life.

Unfollowing Brands and Influencers

Hitting the “unfollow” button on brands and influencers can remove those accounts from your social media feeds. And it can be a major, positive moment in your financial self-care. When you can’t see what an influencer is up to or what a brand is advertising, there’s much less temptation to spend. You can instead focus on following accounts that add to your quality of life in some way (perhaps with money-saving hacks).

Focusing on Yourself and Managing Finances

Turning your attention to mastering personal finance basics is another way to break the cycle of allowing social media to influence your money decisions.

For example, if you don’t have a budget in place yet, you can block off an afternoon or evening to sit down and make one. Or you could spend time researching the benefits of an emergency fund and the best place to open a checking account.

Replacing social media time with these kinds of tasks can help you to improve your financial situation little by little. And the more you learn about personal finance, the more motivated you might become to save more while spending less.

Improving Your Money Mindset by Removing FOMO

Taking the FOMO out of your financial decision-making can go a long way toward bettering your money situation. Instead of automatically allowing yourself to spend, ask yourself why you feel tempted to do so. For example, if you see an influencer sporting a new $500 bag that you’d like to buy, take time to analyze what that bag is really going to cost you.

How many hours of work will you need to do to make the $500 after taxes needed to pay for it? And how often will you use the bag? What will it add to your life? Asking these kinds of questions can help you to decide if a purchase that’s FOMO-driven is truly worth it.

Budgeting for Any Purchases You Make

A budget is a simple but powerful tool for controlling spending. You can use a budget to minimize the negative impacts of social media by committing to only spend money on planned purchases. That means no impulse buys or unanticipated spending.

True financial emergencies can be the exception to this rule. If you’re building an emergency fund, you can use that money to pay for any unexpected expenses that might come along. Otherwise, if it’s not in the budget, you don’t spend it.

Setting a Waiting Period Before Making a Purchase

Applying a temporary 30-day rule can help to curb FOMO. The 30-day rule advocates delaying impulse buys for 30 days to decide whether you really want to spend money on them or not. Taking time to let the idea of the purchase cool off can give you perspective on whether you should spend the money.

At the end of the 30 days, you might decide that the purchase isn’t that necessary after all. Using the 30-day rule can keep you from wasting money on things you don’t need or won’t use.

Setting a Screen Time Limit on Your Phone

The average person spends two and a half hours on social media per day. If you’ve never kept track of how much time you spend scrolling each day, you might be surprised by what it adds up to.

A simple fix is setting limits on screen time. So, for example, you might allow yourself 10 minutes to check social media on your lunch break and another 20 to 30 minutes in the evening. Spending less time on social media can free you up for other things, like managing your finances or developing healthy, inexpensive hobbies.

Deleting Social Media

If you continue to feel like social media is negatively impacting your finances, you could simply delete it altogether. Removing social media apps from your phone means you can’t just scroll mindlessly and find yourself in a sea of ads and promotions.

This action can also make it easier to set limits on screen time if you’re having to open up your laptop to check social media. Yes, you still have your accounts; removing the apps alone won’t delete them.

If you want to take your social media purge to the next level, you can delete your accounts and profiles altogether.

Recommended: Are You Bad with Money? Here’s How to Get Better

Curating Social Media Feeds

If you don’t want to abandon social media entirely, you could try curating your feeds instead. Social media algorithms are designed to show you more of the things you’re already searching for or suggest things based on your search history. By focusing your searches on things that provide you with real value and inspiration, you may be able to weed out influencers or excessive ads that could lead you to overspend.

Removing Payment Apps From Your Phone

Mobile payment and mobile wallet apps can make buying things online or in stores convenient. Instead of fishing out your debit or credit card and typing in all those digits, you can pay with a click or a tap at checkout.

The problem is that mobile payment apps can make it all too easy to make purchases without thinking. Removing those apps from your mobile device (typically, just by holding your finger on the app till the x appears), unlinking your cards, or deleting your accounts altogether can make it easier to avoid situations where you might spend without thinking. Having to take the extra time to break out your plastic and type in the digits might provide much-needed time to think over the urge to buy.

Improving Financial Accountability

Being accountable to yourself about what you spend can act as a motivator to limit unnecessary or frivolous spending. If you’re having a hard time staying accountable and sticking to your budget, you might enlist the help of a friend or family member to reinforce positive financial behaviors.

For example, if you’re about to spend money on the latest accessory or electronic gadget, you can call up your accountability partner and ask for advice. They can talk you through whether the purchase is a good idea or not and help you put into perspective why you should — or shouldn’t — spend the money.

Recommended: Online Banking vs Traditional Banking: What’s Your Best Option?

Managing Finances With SoFi

Being aware of how social media can hurt your finances can help you take steps to counteract its negative impacts. For example, streamlining your financial accounts can make it easier to keep tabs on your money.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Are there positive financial impacts of social media?

Social media can have a positive impact on your finances if you’re following accounts that genuinely help people manage their money better. For example, you might learn about new budgeting techniques, pick up savings hacks, or get tips on how to reduce expenses by following reliable financial accounts on social media.

Does social media lead to debt problems?

Social media can lead to debt problems if you’re charging more than you can pay off on your credit cards or taking out loans to finance a lifestyle that you can’t realistically afford. You might get into a situation where you can’t afford to pay your bills.

What are good financial accounts to follow on social media?

When deciding who to follow on social media for financial tips or advice, do your research. Look at their follower count, but also consider the quality of the advice they’re offering. You can look at their credentials to see if they have any financial certifications, are affiliated with respected financial institutions, or have personal experience dealing with the type of advice they’re offering. And be wary of any influencer whose only goal seems to be to sell something to you.

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Photo credit: iStock/Suwaree Tangbovornpichet

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Financial stability can mean different things to different people, and there’s no single way to measure whether someone is financially secure. There are, however, certain money behaviors that can indicate when you’re on the right track. These can include following a budget, growing your savings account, and living within your means vs. accruing high-interest debt.

Knowing how to recognize the signs of being financially stable can help you fine-tune your money plan.

What Is Financial Stability?

If you search online for a definition of financial stability, the results are usually geared toward organizations or governments, not individual people. For example, the Federal Reserve defines financial stability as “building a financial system that can function in good times and bad, and can absorb all the good and bad things that happen in the U.S. economy at any moment.”

That’s an institutional way to define financial stability, but it’s possible to adapt that to fit personal finance. For instance, creating a budget and adding money to an emergency fund can help you manage money wisely during the good times. It can also allow you to be prepared for the unexpected, such as a job layoff or an emergency expense.

The best way to define financial stability is in a way that has meaning for you. For instance, you might create a personal financial mission statement that outlines your ideal money vision for yourself. For some people, that vision might involve having six months’ worth of expenses in an emergency fund. For another, it might involve putting enough money in their savings account to take a two-week vacation or meeting goals for funding their retirement.

Why Does Financial Stability Matter?

Being financially stable is important because it can influence your overall financial health. When you feel financially secure, it may be easier to pay bills without stress. Or you might have developed the discipline to save money and be excited about it, versus spending everything that you make.

In a nutshell, being financially stable can help you to:

•   Have the money that you need to cover day-to-day expenses while working toward financial goals

•   Avoid costly debt

•   Manage your money without it feeling like a chore or a cause for anxiety

If you’re interested in how to become financially independent, then becoming stable with your money is likely an important first step.

Signs That You’re Financially Stable

Chances are, you might be doing some of the things on this list already. And if you’re not, then these moves could help you to overcome your personal financial challenges.

1. Following a Budget

A budget is the foundation for your financial plan. When you make a budget, you’re dictating where your money goes instead of simply spending without a plan. If you don’t have a budget yet, then making one should be a top priority.

There are a number of budgeting methods you can use, including:

•   Cash envelope budgeting

•   Zero-based budgeting

•   The 50/30/20 rule (you can use a 50/30/20 budget calculator to help you utilize this)

Experimenting with different budget systems can help you find one that works for you.

2. Living Below Your Means

Here’s one of the secrets to how to have financial freedom: Live below your means. This simply means spending less than you earn. Making a budget is central to living below your means because without one, you may not have a clue how much you’re spending each month.

Tracking expenses can be a great way to determine if you’re living below your means. You can write each expense down in a notebook, use a spreadsheet, or link your bank account to a budgeting app. It’s a good idea to track expenses for at least one month to get a realistic idea of what you spend, which can help you to better define your budget.

3. Saving Money Is a Consistent Habit

You may have heard the expression “pay yourself first,” and it’s a wise move. This simply means that before you spend any money on payday, you first deposit some of your earnings into savings. Paying yourself first is a sign of financial stability as it suggests that you have money reserved for emergencies and are also saving for longer-term financial goals.

Setting up direct deposit into savings or scheduling automatic transfers from your checking account each payday are easy ways to automatic savings. When the money is directed to savings automatically, there’s no opportunity for you to spend it.

4. Paying Down Debt Is a Priority

Debt can be a roadblock to reaching your financial goals and too much debt could make you financially unstable. Making an effort to pay down debt (or avoid it altogether) is a sign that you’re committed to living within your means instead of spending money unnecessarily.

If you have debt, consider the best ways to pay it off. For example, the debt snowball method involves paying off debts from smallest balance to highest. The debt avalanche, on the other hand, advocates paying off debts from highest APR to lowest in order to maximize interest savings.

When choosing a debt repayment method, consider how much of your budget you can commit to it. If you’re only able to pay the minimums to your debts, you may need to review your expenses to see where you can cut back or look into debt consolidation.

5. Bills Get Paid On Time

Paying bills late can trigger nasty late fees. What’s more, late payments can lower your credit scores.

A good credit score is a sign of financial stability because it means that you’re responsible with how you use credit. On-time payments can work in your favor while late payments can hurt your score.

If you’ve fallen behind, getting caught up on late payments as soon as possible can help you turn things around. From there, you can commit to paying on time each month. Scheduling automatic payments or setting up payment reminders is an easy way to keep track of due dates.

6. Financial Goals Are Clearly Defined

Setting financial goals can help you to make the most of your money. Financial goals can be short-term, like saving $10,000 for an emergency fund. Or they might be long-term, like saving $1 million for retirement.

Someone who’s financially stable understands the value and importance of setting goals and how to set them effectively. For example, they may follow the SMART rule for goal setting and create money goals which means they are:

•   Specific

•   Measurable

•   Actionable or achievable

•   Realistic

•   Time-bound

If you’re not setting financial goals yet, consider what you want to do with your money or what kind of lifestyle you’d like to have. If you created a personal financial mission statement that can be a good guide to deciding what kind of goals to set.

7. Regular Investing Is Part of Your Financial Routine

Investing money and saving it are two different things. When you invest money, you’re putting it into the stock market. Investing can help you grow your money faster and build a higher net worth thanks to the power of compounding interest.

There are different ways to invest. If you have a 401(k) or similar retirement plan at work, for example, you may defer 10%, 15%, or more of your income into it each year. At a minimum, it’s a good idea to contribute at least enough to get the full company match (which is akin to free money) if one is offered.

You might also open an Individual Retirement Account and a taxable investment account. With an IRA, you can save for retirement on a tax-advantaged basis. A taxable investment account, on the other hand, is useful for trading stocks, mutual funds, exchange-traded funds (ETFs), and other securities without restrictions on how much you can invest.

Recommended: A Beginner’s Guide to Investing in Your 20s

8. You Have the Right Insurance

Insurance is designed to protect you financially. There are different types of insurance a financially stable person might have, including:

•   Homeowners or renters insurance

•   Car insurance

•   Health insurance

•   Disability insurance

•   Life insurance

Having the right coverage in place can help to minimize financial losses in a worst-case scenario. If your home or apartment is damaged because of a fire, for instance, then your insurance policy could help you to rebuild or replace your belongings.

Life insurance is also important to have, especially if you have a family. Life insurance can pay out a death benefit to your loved ones if something should happen to you. That means they’re not in danger of becoming financially unstable after you’re gone.

9. FOMO Doesn’t Drive Decision-Making

FOMO, or fear of missing out, can be a threat to financial stability. It’s the modern-day equivalent of keeping up with the Joneses: What it means is that you make financial decisions out of peer pressure or societal pressure. Trying to mimic the lifestyle of social media influencers, for example, can wreck your finances if you’re going into debt with FOMO spending on things that you can’t afford.

Someone who’s financially stable, on the other hand, is relatively immune to FOMO. They don’t buy things on impulse (or at least not often). And they don’t make financial decisions without considering the short- and long-term impacts.

10. There’s No Worrying About Money

Worries about money can keep you up at night if you’re fretting over the bills or debt. Financially stable people don’t have stress over money because they know that they’re in control of their situation. They approach money with a calm, confident attitude.

So how do you reach that zen state with your finances? Again, it can all come down to making smart money decisions like sticking to a budget, saving, and avoiding debt. The more proactive you are about making your money work for you (and finding the right banking partner and financial advisors, if you like), the faster money worries may fade away.

If You’re Struggling to Become Financially Stable

If you recognize that your financial situation isn’t as stable as you’d like it to be, it’s important to consider how you can improve it. Working your way through this list of action items is a good starting point but what if you’re overwhelmed by debt or struggle to make a budget?

In that case, you may benefit from talking to a nonprofit credit counselor or a financial advisor. A credit counselor can help you come up with a plan for budgeting, paying down debt, and getting into a savings routine. And once you begin to gain some stability, you can think about things like investing or insurance.

In addition, you can consult these government sources for more insight:

•   Making a budget

•   Sticking to a budget

•   How to save and invest

•   How to save for retirement

The Takeaway

Achieving financial stability can take time, but it’s typically possible if you’re using the right approach to managing money. Taking small steps, such as setting one or two money goals or changing bank accounts, can add up to a big difference in your situation over time.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

How much money is considered financially stable?

The amount of money needed to be considered financially stable is subjective and depends on a person’s individual situation. But generally, having a net worth of $1 million or more can indicate that someone is financially stable or secure and has a good grasp of money management.

What are the signs of a financially stable person?

The most common signs of a financially stable person include having little to no debt (or at least avoiding high-interest debt), being able to make and stick to a budget, having a healthy amount of money in savings, and having a good credit score. Financially stable people tend to see their net worth increase year over year. What’s more, money generally isn’t a source of stress or worry.

At what point are you financially stable?

Someone could be considered financially stable when money is no longer a cause for anxiety or frustration. A financially stable person isn’t necessarily measured by how much money they have. Instead, their stability is based on their overall financial situation and their approach to managing money. They are likely to have savings for emergencies, as well as short- and long-term goals.

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Photo credit: iStock/AsiaVision

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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If you currently don’t have a job, finding ways to make money is likely at the top of your to-do list. The good news is that there are numerous ways to earn income when you aren’t working a steady gig. Some opportunities require Wifi and a laptop or smartphone; others require little more than your physical presence — and some require that you have a little money that you’d like to multiply into more.

Keep reading even if you have a job, because starting a side hustle can be a great option for making money from home.

How to “Make Money With Money” With No Job

What does it mean to make money with money? In simple terms, it means finding ways to make the money that you already have work for you, without necessarily getting a traditional first or second job.

Learning how to make money with money often involves various ways to earn passive income. Passive income is money that you earn with little to no work involved. That doesn’t mean you don’t do any work at all: Some degree of work is required in the beginning to create passive income streams before you can start making money on autopilot. It’s a good idea to use a free budget app to track how much you spend to set up your income stream and to track the money you make.

If that sounds good to you, then you might consider these passive income ideas.

Earn Cash Back

When you download cash-back apps, you can link your debit card or credit cards, then earn back a percentage of what you spend at partner retailers.

There are several different cash-back apps to choose from, and they all pay different cash-back reward rates. Some of the apps you might consider for online shopping, grocery shopping, or travel include:

•   Rakuten

•   Ibotta

•   Dosh

•   Mr. Rebates

You can sign up for one or multiple apps to maximize your cash-back earnings potential.

Invest in Real Estate

Real estate can be a great investment, especially when there’s uncertainty in the stock market. Of course, you might have enough cash on hand to buy a rental property, but figuring out how to make money with money in real estate doesn’t have to be that complicated. Investing in a real estate investment trust (REIT), for example, offers the benefits of real estate ownership without the hassles of operating a rental property. You can also invest in real estate mutual funds or exchange-traded funds (ETFs) to gain exposure to a variety of properties in a single investment.

These investment options might be offered through your online brokerage. You may also consider real estate crowdfunding platforms, which allow you to pool your money along with other investors in a variety of property types. You make money through any of these investments in the form of dividends, which is another type of passive income.

Invest in Dividend Stocks

A dividend represents a share of a company’s profits. Some companies pay out dividends to investors who own shares of their stock as a reward for their loyalty. Dividend investing is something that might appeal to you if you’re specifically interested in passive income or residual income, since you can make a one-time investment, then collect dividends as they’re paid out.

When comparing dividend stocks, it helps to familiarize yourself with how the stock has paid out historically. You’ll also want to consider how often dividends are paid out and what kind of tax liability you’ll incur by receiving dividend payments.

Practice Peer-to-Peer Lending

Peer-to-peer (P2P) loans are funded by money pooled from different investors. Those investors make passive income from the loans by collecting interest from borrowers.

You might consider P2P lending as an investor if you’re looking for another idea on how to make money with no job passively. Keep in mind that with peer-to-peer lending, a higher potential rate of return usually equates to higher risk. If the borrower defaults on the loan you’ve helped fund, you won’t be able to collect any remaining interest.

For that reason, you might want to diversify the types of loans you invest in. You can also balance risk by investing in other things, such as real estate, dividend stocks, or even fine art.

More Ways to Make Money Without A Job

Maybe you don’t have a nest egg to invest up front via a making-money-with-money strategy. Never fear — there are still ways to pull in cash without a conventional 9-to-5 schedule.

Sell Your Plasma

Selling plasma can be an easy way to make extra money without a job or without doing any real work. Plasma donation centers pay healthy people real cash to donate their plasma. Depending on where you donate, you can make $1,000 your first month as a new donor.

Keep in mind that there may be a limit on the number of times you can donate plasma each month. You may also want to read up on potential side effects of donating plasma and how the process works.

Get Cash for Your Clutter

If you have things around the house you no longer need or use, you could sell them to make some quick cash. Some of the places you can sell items you don’t need include:

•   Craigslist

•   Facebook Marketplace

•   Facebook bargain groups

•   eBay

•   Etsy (for vintage items)

•   Consignment stores

You can also try selling items through an app like Mercari or Decluttr (for tech products).

Selling items for cash could generate a steady income if you reinvest the money you make clearing your clutter into a flipping business. Flipping simply means taking things you get for one price, then selling them for a higher price. For example, you might be able to find bargains on clothing or accessories at thrift stores and flea markets, then turn around and flip them on Facebook Marketplace or eBay. You might need to spend a little money to purchase your first items to flip, but this can be another great idea for how to make money with money.

Get Paid to Do Market Research

Companies are always interested in figuring out how to gain a competitive edge. One way they do that is by paying everyday consumers to participate in market research. There are numerous apps and websites that pay you cash to complete surveys, share your opinions, or participate in focus groups. The amount you can make largely depends on which apps or sites you’re signing up for. But this can be an easy way to make money from home using your cellphone or laptop.

Recommended: Does Net Worth Include Home Equity?

Start a Blog

Blogging can help you to generate passive income in a variety of ways. For example, you might earn passive income from advertisements on your site, affiliate marketing, or product sales. You can also make a more active income by writing sponsored posts or offering some type of service, like coaching or consulting.

There is a certain amount of work that goes into setting up a blog and growing various income streams. But it’s entirely possible to make a full-time income from home as a blogger, even if you’re starting with no experience and very little money.

Offer Childcare, Senior Care, and Pet Care

If you want to make money offline, consider babysitting, pet sitting, or dog walking within your social circle or local area. You might also branch out to offer help to seniors who need it. For example, if you don’t mind leaving the house, you can hire yourself out to run errands for elderly people who may not have transportation. Or you may earn extra money by sitting with a senior for a few hours a day while their regular caretaker does the grocery shopping or cleaning.

Rent Out a Room on Airbnb

If you’ve got a spare room, you might have an easy solution for how to make money without a job. You can rent out a spare room or part of your home on Airbnb to create passive income. Or you might take on a regular roommate, which can help to reduce your share of monthly expenses.

You’ll need to register for an account on Airbnb to start hosting guests in your home. Before you do that, however, it’s important to check the zoning laws where you live to determine whether you need any special permits to act as an Airbnb host.

Rent Out Your Car

Have a car that you rarely drive? You can rent it out to people who need a vehicle short-term through a site like Turo. Renting your car for cash is similar to renting out a room on Airbnb, in that you’re effectively sharing your vehicle with someone else. This can be an easy option for making money with your car passively versus driving for Uber or Lyft.

Recommended: What Credit Score Is Needed to Buy a Car?

Become a Tutor

Tutoring is something you might consider if you’re comfortable helping students learn and you want to be able to make money from home. You might offer tutoring services virtually through a site like Tutor.com or from the comfort of your home if you’re helping students locally. Keep in mind that with tutoring websites, you may be required to pass a skills test or show proof of a college degree in order to get approved.

Freelance Online

You might try freelancing to make money without a job if you have some marketable skills. (Freelancing is also a good option if you’re looking for a good job for an introvert.) Some of the ways you can make money as a freelancer include:

•   Proofreading

•   Virtual assistant services

•   Graphic design services

•   Website design

•   Freelance writing or editing

If you’re not sure where to get started with making money as a freelancer, you might try a site like Fiverr. With Fiverr, you can list your freelance skills and services, along with your preferred rate. Potential clients can browse freelancer profiles and if yours is a good fit, hire you for their project.

Sell Photography

Selling photography online is another way to make money from home. You’ll need a good camera (or smartphone camera) to take pictures, and it’s helpful to have good editing software on hand. Once you have some pictures to sell, you can upload them to a site like Shutterstock or Foap.

These sites allow you to license the rights to your photography. When someone purchases a license, you earn royalty income. Once again, this is another good way to make money passively without leaving home.

Sell eBooks or Low-Content Books

Ebooks and low-content books like blank journals or lined notebooks can be an excellent way to create steady income without a lot of ongoing work. You can create an ebook or low-content book, upload to a self-publishing website like Amazon Kindle Direct Publishing (KDP), and collect income each time you sell a copy.

You typically don’t need much to get started with self-publishing, other than a great idea for a book and some graphic design software to create your covers and interiors. When deciding where to sell your finished books, take time to research the fees each platform charges, since they can eat into your earnings.

How to Make the Most of Extra Income

Figuring out how to make money with money or in another way that doesn’t involve having a job can increase your cash flow, sometimes significantly. But it’s important to think about what to do with extra money that you’re earning from a side hustle or passive income ideas.

Some of the best ways to put extra income to work include:

•   Paying down high-interest debt

•   Increasing your savings

•   Investing money in the market, where it can grow through compounding

•   Reinvesting it into new passive income ideas

Those are just a few ways to make the most of supplemental income, versus simply spending all of the extra cash you’re bringing in.

The Takeaway

Earning money while still having the flexibility that comes from not having a conventional job is an attractive prospect. If you’re testing out different ideas for how to make money with money (or make money even when you don’t have capital to invest), there are plenty of passive income ideas worth trying. A budgeting app can help you track your expenses and revenue to find the method that delivers the biggest rewards.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

How can I make money with no job?

Starting a side hustle or online business, or doing gig work, are great ways to make money without a job. It’s possible to make money online or from home doing things like market research, shopping with cash back apps, mystery shopping, or offering freelance services.

How can I make $100 without a job?

The fastest way to make $100 without a job is to sell something. For example, you might sell items around the house that you no longer need, or resell bargain items that you find on Facebook or at flea markets. If you’d like to make $100 a day or $100 a week consistently, then you might consider pet sitting, dog walking, freelancing, or blogging.

How do I live without a job?

Living well without a job starts with creating a realistic budget and understanding how you spend your money. Having savings to rely on can make it easier to live without a job if you expect to be out of work temporarily. You can also work on finding ways to make money without a job, including passive income ideas, or gig work.

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Photo credit: iStock/Natalia Bodrova

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Opening a checking and savings account, whether at an online bank, a brick-and-mortar one, or a credit union, can be a major step towards good money management. With an account set up, you’ll likely be able to receive your paycheck as a direct deposit, swipe a debit card to pay for purchases, and access tools to help you save towards some short-term goals.

But you may worry that you need a chunk of change to open an account. The truth is, though, that you may be able to start an account with zero cash deposited.

While each bank can set its own minimum deposits, some will let you open an account with a single dollar or even no money at all. Or you might encounter certain financial institutions or account types that require $100, $500, or more. You might even find that the account with the higher deposit minimum is the better fit for you.

To better understand minimum deposit and minimum balance requirements, read on.

How Much Do You Need to Open a Bank Account?

Let’s get down to the dollars and cents of this topic: How much money do you need to open a bank account?

Minimum Opening Deposit for Online Banks

When opening an online bank account, it’s typical to have low or $0 minimum initial deposits for a checking account. Because online banks don’t have to pay for physical locations, they typically are able to pass the savings along to their clients with lower or no minimum deposit requirements.

They may also offer other perks like an annual percentage yield (or APY) on a checking account or a higher APY than elsewhere on savings accounts.

Minimum Opening Deposit for Brick-and-Mortar Banks

If you were to open a bank account at a traditional bank (also known as a brick-and-mortar bank), on the other hand, you might need $25 or more for the initial deposit. And if you have two checking accounts at the same bank, it’s possible you might have to meet different initial deposits for each one.

Jumbo or premium accounts, which may be interest-bearing checking accounts and offer rewards, can also set the bar higher for how much money is required to get started. For example, a jumbo checking account might pay interest on balances of $1,000, $10,000, or more so you would need at least that much to open one.

Minimum Opening Deposit for Credit Unions

How much money do you need to open a checking account at a credit union? If you prefer to open a checking account at a credit union vs. a bank, you will likely find minimum opening deposits that range from zero to $25.

Can You Open a Bank Account With No Money?

You can probably open a bank account with no money. As mentioned above, you are most likely to find this kind of checking account offered at an online bank vs. a traditional bank.

Before you open this kind of account, though, it can be wise to make sure you understand the terms of the account, including the fine print. Factors to consider include what, if any, fees will be assessed, what balance you may need to maintain, and how and when you need to fund the account.

Recommended: What to Know If You’ve Been Denied a Checking Account

What Is a Minimum Initial Deposit?

A minimum initial deposit is the amount of money that a financial institution requires you to deposit in order to open an account. In some cases, this can be as little as $1 or even nothing at all; in other cases, it could be $100 or considerably higher.

What’s the Difference Between Minimum Initial Deposit vs. Minimum Balance Requirement?

When thinking about how much money you need to start a bank account, it’s important to understand the difference between your initial deposit and your ongoing balance requirement. If a deposit requirement is in place, that is separate from the minimum balance requirement that you may also need to meet to avoid a monthly service fee.

For example, you might need to deposit $100 to open your account. However, in order to avoid a $10 monthly maintenance fee, you may need to keep an average daily balance of $500 there.

A free checking account that doesn’t charge a monthly fee may not have a minimum balance requirement. Check with the bank up front so you are familiar with the terms and aren’t surprised by any fees being deducted.

The Takeaway

Checking and savings accounts can make your financial life easier, and you may be able to open an account with very little in terms of an initial deposit, even no money at all. When choosing a banking option, it’s important to consider the fees you might pay, the interest you could earn, and any minimum deposit or minimum balance requirements. Whenever possible, you want your bank to pay for the privilege of holding your money, not vice versa.

SoFi: Making Banking Better

If you’re interested in hassle-free online banking, consider opening a SoFi Checking and Savings account. You’ll earn a competitive APY, pay no account fees, receive a debit card with cashback rewards, and have access to a suite of financial tools that can help your savings grow.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

How much is needed to open a checking account?

The amount of money needed to open a checking account can vary by bank. At some banks, it may be as low as $1 or even $0; at others, you might need to deposit $25, $50, or more to get started.

Can I open a checking account with no money?

It’s possible to open a checking account with no money if your bank allows you to fund your account later. For example, you may be able to open a bank account online with no money, connect an external bank account, then fund your new account with an initial deposit later.

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Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Having a bank account can provide a solid foundation for your financial life. It can make it easier to pay bills, track spending, and get paid if you’re enrolled in direct deposit. But how can you know you’re putting your money at a financial institution that’s the right fit for you?

If you’re interested in moving to a new bank or you’re opening a bank account for the first time, it’s important to do your research first. That starts with knowing what questions to consider when opening a checking account or savings account. Asking the right questions can make it easier to choose an account that fits your needs.

Read on to learn the key questions to ask, as well as the answers to look for, before you open a new bank account.

The Importance of Choosing a Reliable Bank

Where you choose to keep your money matters when it comes to things like convenience, benefits and features, and cost. Ideally, you want to choose a bank that:

•   Has a good reputation

•   Is fee-friendly or fee-free

•   Offers a good selection of products and services

Does that mean you have to choose a brick-and-mortar bank? Not necessarily. Online banks can be just as reliable as traditional banks or credit unions, and often charge fewer fees. The difference, however, is that online banks usually lack a physical presence.

It’s also important to choose a bank that’s going to keep your money safe. That means banks that are insured by the Federal Deposit Insurance Corporation (FDIC) or credit unions that are insured by the National Credit Union Administration (NCUA).

These institutions insure deposits against the rare event that a bank or credit union fails. The primary difference between the FDIC vs. NCUA is where deposits are insured. Coverage limits extend up to $250,000 per depositor, per account ownership type, per financial institution.

10 Questions to Ask a Bank Before Opening an Account

Ready to get your new accounts set up? Here are 10 of the most important questions to ask a bank before opening an account.

1. What Are the Options for Accessing Accounts?

One of the most important questions to ask when opening a checking account or savings account centers on how you’ll be able to deposit or withdraw money. It’s a good idea to know what options you have, which may include:

•   Branch banking

•   Phone banking

•   Online and mobile banking

•   ATM access

If you’re opening an account at a traditional bank, you may ask a secondary question about where branches are located. With an online bank, you might want to review features like direct deposit, mobile check deposit, or whether you can deposit cash at an ATM.

2. What Is the Minimum Deposit to Open an Account?

It’s not unusual for banks to impose minimum deposit requirements for new and existing customers. So what is a minimum opening deposit? It’s just an amount of money that you’re required to deposit upfront as a condition of opening your account.

The amount of money needed to open a bank account typically varies from institution to institution. At online banks, the sum might be as low as $1 or even $0, while traditional banks might set the minimum at $25, $50, or more. Credit unions may require a $5 minimum to join and open a savings account, with a different minimum for checking accounts.

3. What Are the Fees for the Account?

One of the ways banks make money is by charging fees, so you’ll want to be clear on what you might pay to have your account upfront. Some of the most important fees to ask about include:

•   Monthly maintenance fees for checking and savings accounts

•   Overdraft fees and returned item fees

•   Check ordering fees

•   Paper statement fees

•   Excess withdrawal fees, if you’re opening a savings account (these may be triggered by more than six withdrawals per month)

•   Wire transfer fees

You may be able to find a copy of the bank’s fee schedule on its website. If not, you can ask the bank to provide you with a list of fees. That way, you can review them before opening an account.

Recommended: Overdraft Fees vs. Non-Sufficient Funds Fees (NSF): What’s the Difference?

4. Is Overdraft Protection Offered?

Overdraft occurs when your checking account balance ends up in negative territory. Your bank can charge an overdraft fee for each item that exceeds your balance. One option for avoiding overdraft fees is enrolling in the bank’s overdraft protection.

That feature allows you to link a savings account to your checking. Then, if you’re in danger of an overdraft, the bank can transfer money over for you. The bank might charge you a fee to transfer funds, but the fee is usually less than the typical overdraft fee.

5. How Large Is the ATM Network?

If you routinely visit the ATM for cash, then you’ll want to ask the bank how large its network is and where you can complete transactions fee-free. It’s also a good idea to ask what fees you might pay for using an out-of-network ATM; the fee typically runs between $2 and $3.50 per transaction. You may also want to check whether any of those fees might be refunded to you at the end of the statement cycle.

6. Are There Transaction Limits?

Here’s another in the list of what questions to ask when opening a bank account: What are the transaction limits? This will let you know how much money can move in and out of your account over a set time period. Some of the transaction limits you might want to ask about include:

•   Debit card purchases

•   Cash withdrawals at ATMs

•   Cash withdrawals at a teller

•   ACH transfers

•   Wire transfers

•   Deposits, including direct deposits, ATM deposits, or ACH deposits

Banks can impose daily, weekly, or monthly limits on different types of transactions so it’s helpful to know what they are beforehand. You don’t want to be stuck trying to withdraw cash or make a large purchase, for example, only to find that you’ve already exceeded the allowed limit.

7. Do Accounts Earn Interest?

Savings accounts, money market accounts, and certificate of deposit (CD) accounts typically earn interest. If you’re interested in one of these accounts, it’s important to look at the interest rate vs. APY to see how much you could earn. Also of course check other details such as minimum deposit and account fees to make sure you get the best deal for your situation.

This is also a wise question to ask when opening a checking account. While some banks offer interest checking, those accounts are more of an exception than the rule. But if you’re specifically looking for interest-bearing checking, then you’ll want to ask the bank if that account option is available. You may find the best high-interest checking accounts at online banks and credit unions.

Recommended: Different Ways to Earn More Interest on Your Money

8. What Documents Are Needed to Open an Account?

Banks ask for certain information when opening an account. Knowing what you’ll need can save time during the account opening process. A typical bank account opening checklist includes:

•   Personal information, such as your name, date of birth, and address

•   Social Security number and birth date

•   Government-issued photo ID

•   Bank account information if you’re making your initial deposit via an ACH transfer.

What if you’re opening a bank account for someone else to use? For example, what if you’re setting up a checking account for your teen, but you’re listed as the account owner? In that case, the bank might ask for some information about your child, like their name and date of birth.

9. Are Accounts FDIC- or NCUA-Insured?

As mentioned, the FDIC and NCUA insure deposit accounts against losses in case a bank or credit union fails. While it’s rare to find a bank or credit union that isn’t insured, it’s still a good idea to double-check and make sure you’re protected. An easy way to tell if a financial institution is covered is to look for FDIC or NCUA signage at a branch or on its website.

10. What Other Banking Products and Services Are Offered?

When opening a bank account, consider what else the bank or credit union offers besides checking and savings. For example, you might be interested in:

•   Credit cards

•   Home loans

•   Auto loans

•   Student loans

•   Personal loans or lines of credit

•   Business loans

•   Retirement products

•   Investment accounts

•   Insurance

•   Wealth management services

Looking at the bigger picture can help you to find a bank that fits where you are in life currently and where your financial goals might take you down the line. If you know you may need one or more of these products in the not too distant future, it could be wise to open your account at a place where you can easily access these offerings.

The Takeaway

Setting up a new bank account shouldn’t be a headache. Knowing which questions to ask and answer can make the process easier and help you determine which financial institution best meets your needs. It’s also helpful to compare accounts from different banks to get an idea of what each one has to offer.

If you’re interested in banking online, you might consider opening an online bank account with SoFi. You’ll pay no account fees while earning a great APY on deposits, both of which can help your money grow faster. And it’s super convenient: You can quickly open an account online and then spend and save in one place with our Checking and Savings account.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

How much money do you need to open a bank account?

The amount of money you need to open a bank account can depend on the bank. At online banks, for instance, you might be able to open an account with as little as $1 or even no money at all. Traditional banks, on the other hand, might require $25 or more for a minimum opening deposit.

Is there a fee for closing a bank account?

Banks can charge a fee for closing an account if it hasn’t been open very long. For instance, you might pay a fee if you open a new account and then close it within six months. If there’s an account closing fee, it should be included on the bank’s fee schedule, so check their details or contact customer service.

Are online banks better than traditional banks?

Online banks can offer some advantages that you don’t always get with traditional banks. For example, online banks may not charge any monthly maintenance fees for checking or savings accounts. Initial deposit requirements may be lower, and interest rates for deposit accounts might be higher. Traditional banks, however, can offer branch banking access, so that’s something to weigh in the balance when deciding where to open an account.

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About the author

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Photo credit: iStock/Sakibul Hasan

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
SOBK1122010

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