Remember your kids as little ones, riding on their tricycles and grabbing fistfuls of Cheerios? Now they are soon off to college, and you might be feeling bittersweet. Your children can finally do their own laundry (hallelujah) and you get some much needed quiet time around the house.
Sending kids to college is not just a transition for your children, it’s also a big step in parenthood for you. You may be sending your first child to college, but what if you have another child headed off to educational pursuits not too far behind?
If you have two kids going to college at the same time, the double whammy can hurt right in the wallet. As you navigate college dorms, tuition, and how to make sure your kids know where all of their classes are, you might have a few questions on how to support them over the next four years. We’ve compiled a few tips that could help guide you through sending your kids to college.
Financing Your Kids’ Education the Debt-Free Way
If you are putting multiple kids through college, then you know how much tuition and other costs can beat down your budget. You might want to start by talking with your spouse or someone you trust about finding the cash to finance your children’s education.
Scholarships can also play a role in financing your children’s education. They can be especially helpful since you won’t need to pay them back after your child graduates, and they can be used to directly fund tuition. Scholarship hunting can be a daunting task though.
Your mini-mes are most likely overwhelmed with selecting their university, studying for college entrance exams, and finishing out their high school senior year.
You could band together on scholarship applications by helping them find scholarships they are eligible for and compile a list. Ultimately, it’s up to your child to make the effort to complete the requirements. Encouragement is key here!
A Borrower’s Way to Pay
If paying for tuition out-of-pocket is out of reach, it’s recommended to first apply for federal financial aid by filling out the Free Application for Federal Student Aid (FAFSA®) . You may be faced with several options here, including Federal Direct Loans, which can be either subsidized or unsubsidized, PLUS Loans work-study, or grants.
Federal Direct Subsidized and Unsubsidized loans are offered to students who are enrolled at least half-time in school. Each of your kids will need to fill out their own FAFSA—parents cannot take out these types of loans on behalf of their children. That’s where the Parent PLUS, or Direct PLUS, loan comes into play.
The Direct PLUS Loan allows parents of undergraduate students to take out a loan to pay for education expenses not covered by other financial aid. It’s helpful to have a strong credit history, as anything adversely affecting your credit could also affect your eligibility to receive a Direct PLUS Loan.
Are You Cashing In on Ramen and Mac ‘n’ Cheese?
Your kids might not be accustomed to fending for themselves when it comes to food. If you’re concerned about your child’s eating habits while in college, you could make clear what you will or will not be paying for in groceries.
If you want to help out your kiddos, you could send them food items to get them through the week. You might want to check with the college residence hall coordinator first about any rules on using a mini fridge. Or you could stick with items that can be stored in a plastic bin or inside a closet to make things easy.
Let Your Kids Spread Their Financial Wings
Tuition continues to rise, and so does the cost of living. Tuition and fees for full-time, in-state students attending four-year public colleges and universities saw a 2.6% increase between the 2018-19 academic year and 2019-20.
How will your children support themselves in school? There are several ways, and it might be advantageous to have a conversation with your kids early on about how they can take care of themselves financially.
Some universities offer work-study programs, which give student workers the opportunity to work a job that fits within their class schedule. Students would need to fill out the FAFSA to determine eligibility for federal work-study.
If your child qualifies, it will be noted in their financial aid award. If your child is awarded work-study, they will still be responsible for securing a job that fits within the program.
Your kids could also explore part-time opportunities off-campus, such as waiting tables or picking up a gig as a nanny.
Another alternative, if you have the ability, is to support your children financially. You could determine an appropriate amount to keep your child on the right path or consider offering cash incentives for good grades. If you have the funds to help throughout the year, this could help offset student loan debt.
You Come First
Sending your kids to college can be a priority, but you come first. You might want to prioritize your money goals first, such as retirement. You don’t want to be caught dumping all of your potential retirement savings into tuition if you are short on your retirement goals.
You could make a plan and ask yourself how much you want to contribute each month to retirement, regardless of other pressing expenses. Tuition can be covered in a variety of ways, but borrowing from your retirement stash or neglecting it could have an impact on your retirement goals.
They’re Off to College, but They Still Need You
Just because you successfully guided your offspring to college doesn’t mean that they don’t need you. You can probably expect to answer text messages (because we all know actual phone calls are a thing of the past with Gen Z’s) on how to make a pot of coffee or what that genie lamp light means on the dashboard of their car (hint: check your engine oil!). Remember, they may still lean on you for support as they transition into adulthood.
Then There’s the Whole Paying It Back Thing
Four years are going to fly by. When your kids are well on their way to their post-grad careers, you could check out how refinancing their student loans might help. Refinancing student loans with SoFi can create one monthly payment.
Your child could even reduce their interest rate when they refinance, depending on the terms of their existing financing. If they have federal loans, know that refinancing means they’ll no longer qualify for federal protections or repayment programs.
Learn more about student loan refinancing with SoFi.
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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.
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In the U.S., debt is a reality for many Americans. According to the Federal Reserve’s most recent report, our total national household debt is at $13.95 trillion .
That’s a lot of student loans, car loans, mortgages, and credit card debt. And for those who’ve fallen behind, it can mean a lot of headaches and heartache.
If you’ve had enough of all that stress and you’re trying to build a budget that tackles your debt, it helps to have a strategy you can stick to while you also keep current with your other monthly bills.
If you find yourself struggling to make ends meet and are unable to form a plan to get back on track on your own, many people find some assistance by exploring other options, such as a nonprofit credit counseling agency to put together a debt management plan—but there can be some downsides to that decision.
The basic concept seems simple enough: Typically, a debt settlement agency negotiates a repayment schedule with creditors for debt that can include credit cards, medical bills, and personal loans; the consumer makes one payment each month to an account set up with the agency, which includes a small fee; then the agency pays each creditor over an agreed-upon period of time, typically two to five years.
You might want to be sure that you are able to set aside that money for the full term of the plan. If you fail to make your required deposits to the debt relief savings account on time—if an unexpected home repair or medical bill breaks your budget, for example—you can be dropped from the plan and all its perks.
It’s also likely you’ll have to give up your credit cards for the length of the program—and you won’t be able to take out any new lines of credit during that time. And it’s important to note that taking actions like closing accounts may impact your credit history, so it could be a great idea to talk through the pros and cons of this method of debt repayment with a trusted, credentialed advisor.
If that lack of flexibility doesn’t work for you, there are a few other strategies you could consider instead. They, too, take discipline, but you’ll be completely in control of the plan’s structure.
The most well-known of the debt management plans are likely the snowball and avalanche methods, but there’s also the fireball method, which combines both strategies.
Which method is right for you is something only you can decide, and we aren’t advocating one or all of these methods. Here’s just a little bit on each and some of their pros and cons.
The Debt Snowball Method
Once you’ve compiled your monthly budget and have a good idea of how much money you’ll have left each month after paying all your bills, the snowball method directs any excess funds to the debt with the smallest outstanding balance. Here are the basic steps:
• Disregard interest rates and start by listing your debts based on how much you owe, from the smallest balance to the largest.
• Make the minimum payment on all other debts and pay as much as you can each month to eliminate the smallest one.
• After you pay off the smallest debt, you’d turn your attention to the next-lowest balance.
• Keep going until you are debt-free. (And, of course, avoid the temptation to use the credit cards you’ve paid off.)
Pros: This approach is all about motivation. Instead of slogging away, trying to knock down your biggest debt, you’re picking off the little guys as quickly as possible. Depending on your personality, snowballing could provide the psychological boost you need to keep going.
Cons: It’s more about behavior modification than math. By focusing on the smallest account balance instead of the highest interest rate, you could be missing out on an opportunity to make a more significant dent in your debt. The sooner you get your debts paid, the sooner you can adjust your focus to saving and investing to reach other financial goals.
One debt consolidation strategy to
consider is a personal loan.
Learn more about SoFi personal loans.
The Avalanche Method
The avalanche method puts any excess money in your budget toward the debt with the highest interest rate. Here’s how it works:
• Disregard minimum payment amounts and balances, and instead list debts in order by interest rate.
• Make the minimum payment on all debts and pay as much as you can each month to get rid of the bill with the highest interest rate. (So, for example, if you have three credit cards with interest rates of 21%, 18%, and 22%, and a student loan with 6% interest, you’d pay as much extra as you could toward the card with the 22% rate first and keep at it until the balance is zero.)
• When the first balance is paid off, you’d move on to the debt with the next-highest interest rate. (The 21% card, in this example, then the 18% card, then the lower-interest student loan.)
Pros: Since this method focuses on the most expensive debt first, it helps bring down the amount of interest paid while working toward debt repayment. If you need a reminder of how impactful interest can be, check your credit card bill: The minimum payment warning explains just how long it will take you to get rid of that debt if you pay only what you have to every month.
Cons: This method could take more commitment and discipline. If you’re the type who needs to experience little “wins” along the way, you might lose interest before you wrap up this plan.
The Debt Fireball Method
This strategy takes a hybrid approach to the traditional snowball and avalanche methods of paying down debt.
We call it the fireball method because it can help you blaze through costly bad debt faster so you can accomplish the things that matter to you. The steps include:
• Categorize all debt as either “good” or “bad.” (Debts with a less than 7% interest rate are “good.” Debts with a higher than 7% interest rate that do not have the potential to increase your net worth are considered “bad” debt under this method.)
• List “bad” debts from smallest to largest based on their outstanding balances.
• Make the minimum monthly payment on all outstanding debts, then funnel any excess funds to the smallest of your “bad” debts.
• When that balance is paid in full, you’d go on to the next smallest on the bad-debt list. Torch those balances until all your bad debt is repaid.
• When that’s done, you’d keep paying off your “good” debt on the normal schedule while investing in your future. Then you could start applying the money you used to pay toward your “bad” debt to a financial goal, such as saving for a house, starting a business, saving for retirement, etc.
Pros: The math here may make more sense because you’re taking on more expensive debt before less-expensive debt. And it can also work from a psychological perspective because the payoff tends to accelerate as you approach the finish line.
Cons: If you’re more interested in dumping all your debt first before investing in the future, this approach might not satisfy your need to make even low-interest debt a payoff priority. Also, it typically isn’t as mathematically efficient as the avalanche method—though it could be more cost-effective than the snowball method.
Consolidating Your Debt With a Personal Loan
Looking for another method to help pay off your debt? A personal loan from SoFi may be the right choice for you. SoFi offers low-rate, no-fee option, unsecured personal loans to help you save money on your debt.
With a fixed monthly payment, you may qualify for a SoFi personal loan to consolidate credit cards or other high-interest debt at a more competitive interest rate.
It only takes minutes to see your rates. Get started.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
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.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
The list of fees that banks might charge you is pretty darn long and, on average, they can cost you more than $161 per year. Per year.
Some of the more typical bank fees include monthly maintenance fees, overdraft charges, returned item fees, ATM fees, and foreign transaction fees. Some of these charges, such as the overdraft and returned item fees, can hit people the hardest when they have the least amount of money available to pay them.
So, if you’ve ever been frustrated by having to pay bank fees, or have been surprised when a charge showed up on a bank statement, this post will share tips on how to avoid those fees in the first place.
And, when thinking about bank fees, here’s something else you could consider: Picture what you would do with an extra $161. Save it? Buy something special? Also, think about how long you’ve had a particular account. If it’s been 10 years, for example, imagine how you’d spend an extra $1,610! That’s money you could put back into your pocket.
At the end of this post, you’ll find a possible way to avoid paying bank fees altogether.
Monthly Maintenance Fees
If your bank or financial institution charges maintenance fees, you may be so used to watching that money disappear out of your account each month that you’ve simply stopped trying to figure out how to make it stop.
It isn’t unusual for banks to charge about $12 a month in maintenance fees, nearly $150 a year for this fee alone.
If you keep a large enough balance in this account, you can typically avoid paying a monthly maintenance fee at many banks. That’s great for those who have that kind of money, but this is the type of fee that often hits those who don’t have a lot of money in their accounts.
If keeping a larger balance in your account isn’t practical right now, then it can make sense to explore online-only financial institutions that are more likely to not charge this fee.
Online-only banking doesn’t mean banks that they offer mobile services, though—it’s banks that don’t have a physical location and are online only, who have less overhead and, therefore, the opportunity to pass on more savings to you, the customer.
Overdraft Fees
Banks often have an overdraft program, so if you withdraw more than what’s currently available in your account, the bank won’t “bounce” the check. Instead, it will be covered, but often with a fee attached.
So, let’s say that you deposited $200 in your checking account but $100 of it has a short-term hold on it. This means that even though you have $200, only $100 is currently available. This is a common practice among financial institutions. So, if you withdraw $150 during this time, you could be charged an overdraft fee, depending upon your bank’s policies.
These types of fees can average around $35 per instance. To avoid being charged, you could decline to sign up for overdraft service (which may lead to bounced checks or declined debit card transactions).
Or you could ask if your bank has a service where, if you overdraft on your checking account, then the amount would be covered from your savings account. Note, though, that this kind of transfer may also come with a fee.
What may be most important here is, you may want to be clear about what your bank or financial institution will do in a certain circumstance. Let’s say that you’ve signed up for automatic bill pay at your bank. What will your financial institution do if there aren’t enough funds?
Pay it anyway and charge you an overdraft fee? A little research with your own financial institution could reveal the answer, and if it’s not what you want to hear, you could see if another institution handles the situation in a way that works better for you.
Returned Item Fees
If you don’t opt in to have overdraft protection on an account, banks typically decline or bounce, the transaction if there aren’t enough funds to cover a transaction.
Besides the problems associated with a bounced check, there is typically a returned item fee, averaging around $35 for each occurrence. And, unfortunately, sometimes a returned item fee can take an account balance to the point where another check may bounce, causing the situation to become increasingly worse.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 3.80% APY on savings balances.
Up to 2-day-early paycheck.
Up to $3M of additional FDIC insurance.
ATM Fees
ATM fees come with unique pain points that can be especially frustrating. That’s because you sometimes have to pay a bank or a random ATM just to get your own money! And sometimes you’ll pay ATM fees twice on the same transaction: once in a surcharge by the ATM being used and, second, by the bank that issued your card.
To make matters more frustrating, out-of-network surcharges from ATM owners keep increasing, becoming the highest to date in 2018. In fact, it’s 36% higher than it was almost a decade ago, with an average out-of-network ATM charge costing users around costing users around $4.68 , on average!
This situation isn’t especially likely to change, because the very nature of an out-of-network surcharge means that people getting socked with extra fees are non-customers.
If you’re trying to budget carefully, this can be painful. To reduce how much you could pay in ATM fees, pre-planning might help. You could research locations of in-network ATMs and only make withdrawals there.
If you know you’ll be shopping at a business or attending an event that operates as cash only, you could withdraw more than you might need, just in case, so you can avoid using an out-of-network ATM nearby.
When you go into a store, pharmacy, and so forth, you could also check to see if the ATMs located in them are part of your bank’s partnership network. Even if you don’t need cash right away, it might be a good idea to file away that information for when you do need it.
Here’s another idea: Many grocery stores and even some big box stores will let you get cash back when you make purchases there. This could be another way to circumvent ATM fees.
Foreign Transaction Fees
If you’ll be going abroad, then you will likely need to deal with foreign transaction fees. Credit card companies add these onto transactions processed by or passing through foreign banks.
A typical fee is 3% of the transaction amount. There is often a fee charged by the credit card network and another one by the card issuer. Some credit card companies charge fees in addition to network ones, while others don’t.
Credit card issuers typically don’t mention these fees up front (unless they’re advertising that they don’t charge them), so they can come as a surprise when the next statement arrives.
Just one foreign transaction fee might not seem like a big deal, but when you consider how many times you might use a credit card during a trip, it can really add up. And, often, you don’t earn any credit card rewards on these fees.
Returning to the painful subject of ATM fees, banks often charge an additional 1% to 3% for this type of fee on international transactions, meaning beyond what you’d normally pay on ATM withdrawals and debit card purchases.
To help mitigate these fees, you could check with your bank to see if they have affiliate banks in regions where you’re traveling and ask if you can withdraw from those ATMs without paying the additional international fees. You could also ask if your bank reimburses fees that you’ve paid.
As another way to reduce bank fees, you could exchange US dollars to foreign currency before you leave the country, perhaps eliminating the need for ATM withdrawals while traveling. Your bank might do this with no fees.
Online-Only Banking
With online-only banking, there are no physical branches, so overhead costs for the financial institution can be lower, giving them the ability to provide certain perks to customers, such as lower fees.
Sometimes, certain fees aren’t charged at all. Just like with traditional banks, policies differ from one online-only financial institution to another.
If this sounds appealing, you could consider investigating how online-only institutions might help you avoid fees. Many, for example, provide ATM services for free or refund ATM fees up to a certain amount each month.
Money and Millennials
A Kasasa study points out that an overwhelming percentage of millennials they surveyed—93% of them—say that fee-free banking is important to them. They note that no-fee banking matters to them when choosing a bank for everyday banking needs.
SoFi Checking and Savings®
SoFi Checking and Savings® is a checking and savings account where you can spend, save, and earn all in one place. You’ll earn 0.20% APY (annual percentage yield) on all your cash with no account fees (subject to change).
You can sign up for and open an account in just 60 seconds, and the account is FDIC insured for up to $1.5 million with additional fraud insurance.
Discover more about SoFi Checking and Savings today!
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.
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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.
As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.
Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Is your bank ghosting you? Charging fees out of the blue? Do you feel like you’re settling instead of looking for “the one”?
It can be tough to tell when it’s time to call it quits with your bank, especially after all these years and bank statements you’ve shared. Knowing how to switch banks isn’t always easy, but neither is detecting those red flags.
If you’re generally happy with your bank, it might be best to stay put, especially if it’s a busy time. While it’s typically easy to open a new account, you’ll need to transfer your balance over, change autopay settings and more. If you’re not up for the task, you could end up with late fees, penalty payments, and more.
But, if you and your current bank account are on the rocks, it might be time to move on—for the right reasons, of course. A brokerage checking and savings account, which combines checking and savings accounts under one virtual roof, could be one option. The accounts tend to offer higher interest rates and also often don’t charge fees that a brick-and-mortar location might.
Learn why you might consider trading up and switching accounts.
Reasons to Switch to a New Bank
Fees
What’s worse than the dreaded 2am “U up?” text? Possibly an unexpected fee or charge from your banking institution to your account. Some banks charge up to $30/month in checking fees, then there are fees for using out-of-network ATMs and more.
If minimum balance fees, maintenance fees, paper statement fees, and weighty overdraft fees plague your monthly account balance, it might be time to consider switching accounts.
You could research alternative financial institutions and see if they charge similar rates or if they waive fees in certain circumstances. If you’re noticing unnecessary fees popping up in your account, it could be time to look for a new institution to better manage your money with.
Bad Customer Service
Does it feel like your bank is never there for you when you actually need them? When you detect fraud on your debit card, does it take half a day to straighten the charges out? Maybe the call center hours aren’t great, or you haven’t been happy with the in-person service at your bank’s retail location.
Whatever has given you pause, bad customer service is a common reason for leaving a bank. You might want better branch hours or online chat service instead of a customer service line. Your reasons might vary, but if you don’t feel you’re being treated as a valued customer, then it’s worth considering a move.
Joint Accounts
If you’re getting married or joining a partnership and want to open a joint account, it might be time to switch accounts. Your partner’s financial institution might offer better features, or have better customer service. In that case, it might be time to say farewell to your current account.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 3.80% APY on savings balances.
Up to 2-day-early paycheck.
Up to $3M of additional FDIC insurance.
Lack of Branches
Maybe you’ve been with the same bank for years but moved to a different city. It could be a struggle to find your bank’s location, leading you to incur hefty ATM charges from using other ATMs when you’re in need of cash.
If your bank isn’t convenient location-wise to you, and you often find yourself in need of a brick-and-mortar location, then you might think about making the switch to a bank more common in your area. If brick and mortar doesn’t matter much to you, it might be time to consider an online-only checking and savings account, which often offer ATM reimbursement across the country.
Safety and Security
If you’re concerned about the safety of your funds at your current bank, then it might be time to switch. Check to see if your current bank is FDIC-insured. This insurance would mean your cash is still covered, even if the bank goes under.
You Want “In” on Incentives
If you’ve been with your bank for a while, you probably haven’t thought about incentives or sign-on bonus offers. While a one-time offer shouldn’t be the primary reason your switch bank accounts, taking advantage of an additional benefit might just be the cherry on top of your sundae.
Pay attention to rewards programs, or a bonus for a first-time deposit of a certain amount—it might end up being the tipping point to open something new.
Multiple Accounts
When it comes to bank accounts, you might be considering playing the field and opening multiple accounts at once. For business owners, freelancers, or foreign travelers, this can be a common practice.
If you’re looking to keep these accounts separate, you could consider opening a new account at a different bank or financial institution.
Lack of Features
You might’ve been floored by the rates and specials you had when first signing up with your current bank, but if you notice peers getting better features with other institutions, then maybe it’s time to move.
This could be ATM-fee reimbursement, a better online portal, and mobile check deposit, or overdraft fee forgiveness. If you feel like you’re missing out on special features with your current bank, then take a look around to see what other institutions offer. You might be surprised by what you’ll find.
Better APY
Wouldn’t we all like to make money just for putting our cash in a financial institution? Most offer some kind of APY (annual percentage yield), for using their services. The thing is, APYs can vary dramatically depending on where you’re banking or managing your money.
It might be only the difference of a few dollars a year, but hey, if you’re considering a new financial institution, take note of their APY as compared to your current institution.
Another Reason to Switch
If the signs are pointing you in a new direction, you might consider trying SoFi Checking and Savings®. With a 3.80% APY, no fees, and ATM fee reimbursement, it could be the perfect match you’re looking for.
SoFi works hard to give you high interest and charge zero account fees. With that in mind, our interest rate and fee structure is subject to change at any time. See our terms and conditions to learn more. Remember, you deserve more, and if something’s not meeting your needs, there are plenty of other fish in the sea.
Check out SoFi Checking and Savings — a high yield bank account that offers 3.80% APY and no fees!
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.
SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 during a 30-day Evaluation Period (as defined below).
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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.
As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.
Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Money touches almost everything we do, from our basic living expenses to vacations and outings with friends to planning for the future—whether that includes a house, kids, or some other long-term goal. And yet, it can sometimes be hard to make space for important financial conversations with a spouse or partner.
Discussions about money can sometimes be awkward and unpleasant. Whether it’s figuring out how to breach the topic of who should pay the bills in a relationship or which partner is responsible for which expenses—whether based on earnings or some other criteria—these conversations aren’t always easy to start. But prioritizing them can be the key to a strong and sustainable partnership.
Take a look at some of the ways that couples might start having these discussions regularly. This article will also explore some possible strategies for divvying up financial responsibilities in a way that feels manageable and fair so the next time the topic of splitting bills in a relationship comes up in your life, you may feel more prepared.
No matter your financial situation, it can be important to find ways to have open money discussions in your relationship so that you can focus on making memories and building a strong foundation with the person you love.
Talking About Money in Your Relationship
When you’re in a long-term relationship, whether you’re married or cohabitating, talking about finances can be a worthwhile investment into your life together.
Living together often means splitting costs for day-to-day things, such as rent, utilities, groceries, and other costs.
So, it can be wise to start these conversations early, although it’s up to you to decide when makes the most sense in your relationship.
For many married couples, combining finances is the logical approach, so the question of who should pay the bills in a marriage isn’t as pressing as it can be for others.
But, there are couples—married or otherwise—that still like to have a sense of financial independence and who prefer to split shared expenses in a way that makes sense for them.
Every couple is different, so there is no one-size-fits-all approach to talking about money and splitting costs. Though, for some, marriage means enmeshing accounts and finances, other couples choose to keep their accounts separate.
Additionally, some partners earn similar salaries and prefer to split things evenly, while others earn drastically different incomes and adjust their financial responsibilities accordingly. What’s more, sometimes one person is carrying a substantial debt while the other is debt-free.
There are many factors that can impact the way that a couple chooses to split bills and other financial responsibilities in a relationship, and it may be helpful to keep in mind that there isn’t a single right way to do it.
A strategy that can potentially help to avoid financial elephants in the room is to find a time to establish a budget as a couple or other financial guidelines with your partner.
You may also want to a set time check in with your partner about finances, whether that’s once a week or once a quarter. It can also be helpful to come together to identify your shared goals and financial weaknesses so that you can support one another.
Some couples may opt to work with a financial advisor or another professional, while others prefer to manage things on their own. Regardless of your approach to splitting finances, consistent communication can be crucial.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 3.80% APY on savings balances.
Up to 2-day-early paycheck.
Up to $3M of additional FDIC insurance.
Splitting Bills Evenly
For some couples, splitting bills evenly makes the most sense. This could mean keeping track of all of the monthly receipts for groceries and other shared living expenses along with rent, utilities, gas, or other common expenses you and your partner share.
At the end of each month, both partners can calculate the total expenses and settle them evenly. Of course, this strategy isn’t for everyone, and sometimes splitting bills and living expenses equally doesn’t make sense, especially, for instance, if both partners are making drastically different incomes.
If splitting things evenly doesn’t make sense for your relationship, there are other strategies that could be a better fit.
Splitting Bills Individually
In some cases, it may be preferable for each partner to be responsible for specific bills. This could look like one partner taking responsibility for the gas and electric bill, while the other covers water and internet.
Though this type of set-up can be great in terms of distributing responsibility, it’s highly unlikely that each partner will end up paying the same amount each month. For some couples, this may make sense and be an ideal set up. For others, partners may want to decide on a way to reconcile the bills at the end of the month.
Paying Bills Proportionally
Many couples, both married and unmarried, prefer keeping separate bank accounts for their own personal expenditures and having a joint bank account from which to pay for big household expenses.
Opening a joint account may make bill pay a bit easier every month and can make sense for recurring expenses, like utility bills, rent, and other shared costs. Joint accounts can also make it easier for each partner to transfer the money they are responsible for into the account before the bills are due.
Of course, the question of how to split up the money for these expenses will depend on the discussions you have had with your partner. If you both decide to split the costs evenly, then both of you can transfer the same amount into the shared account once a month or before the bills are due, otherwise you can decide to reconcile things in a way that makes sense for you.
Regardless, having one central location from which to pay for all shared bills can take a lot of the guesswork out of your financial big picture and could also make it simpler to look back at what you’ve spent and analyze your shared spending habits over time.
Keep in mind that when you open a joint account each person has equal rights to the account. This means that one of the account owners could make withdrawals or close the account without the consent of the other. Opening a joint account requires a certain level of trust and commitment.
Splitting Bills in a Way That Works for You
Though many married couples have traditionally merged their finances, this is not the automatic course of action for all couples.
As such, it’s important to consider what strategies make the most sense based on your unique situation.
Ultimately, prioritizing open, honest, and regular conversations about money may help you to avoid money arguments, ensure you and your partner are on the same page, and help you both feel more in control of how you’re approaching your financial life together.
Whether you decide to open a shared bank account, split bills up based on your income, or simply combine your bank accounts and pay everything together, know that there is no right or wrong decision.
Consider giving yourself the freedom to try a few different approaches to find the one that best suits you and your partner, and remember that communication is often the key to success.
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.
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 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, 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 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY 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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.
As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.
Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.