Budgeting & Goals Archives

Feb

2026

Can You Contribute to Both a 401(k) and an IRA?

By Rebecca Lake | Budgeting & Goals, Growing Wealth, invest | Comments Off

Table of Contents

Introduction to Retirement Savings Accounts
Can I Contribute to a 401(k) and an IRA?
2025 and 2026 Contribution Limits for 401(k) and IRA Plans
The Intricacies of IRA Contributions
How Contributing to Both a 401(k) and an IRA Affects Your Taxes
Choosing Between a 401(k) and an IRA
The Combined Power of a 401(k) and IRA
Step-by-Step Guide to Contributing to Both 401(k) and IRA
FAQ

“Can I contribute to a 401(k) and IRA?” It’s a question many individuals ask themselves as they start planning for their future. The short answer is yes, it’s possible to have a 401(k) or other employer-sponsored plan at work and also make contributions to an individual retirement plan, either a traditional or a Roth IRA.

If you have the money to do so, contributing to both a 401(k) and an IRA could help you fast track your retirement goals while enjoying some tax savings. But your income and filing status may affect the amounts you are allowed to contribute, in addition to the tax benefits you might see from a dual contribution strategy.

Read on to learn more about the guidelines and restrictions for having these two types of accounts and to answer the question “Can I contribute to a 401(k) and IRA?”

Key Points

• It is possible to contribute to both a 401(k) and an IRA for retirement savings.

• 401(k) plans are employer-sponsored and allow both employee and employer contributions.

• IRAs are individual retirement accounts that anyone can set up for themselves.

• Contribution limits and tax benefits vary for 401(k)s and IRAs based on income and filing status.

• Having both types of accounts can provide flexibility and help optimize taxes and distribution strategies.

Introduction to Retirement Savings Accounts

Although both IRAs and 401(k)s are retirement savings accounts, there are some important differences to know. The main one is that a 401(k) is an employer-sponsored retirement plan that allows both the employee and employer to contribute to the account.

IRAs are Individual Retirement Accounts that anyone can set up for themselves. There are two main types of IRAs: traditional and Roth.

Here’s a closer look at key differences between 401(k) plans and IRAs.

Understanding the Basics of 401(k)s and IRAs

A 401(k) is an employer-sponsored retirement plan. Employees sign up for a 401(k) through work and their contributions are automatically deducted directly from their paychecks. The money contributed to a 401(k) is tax deferred, which means you are not taxed on it until you withdraw it in retirement. Some employers match employees’ contributions to a 401(k) up to a certain amount.

An IRA is a tax-advantaged savings account that you can use to put away money for retirement. Money in an IRA can potentially grow through investment. While there are different types of IRAs, two of the most common types are traditional IRAs and Roth IRAs. The main difference between the two is the way they are taxed.

With a Roth IRA, you make after-tax contributions, and those contributions are not tax deductible. However, the money can potentially grow tax-free, and typically, you won’t owe taxes on it when you withdraw it in retirement (or at age 59 ½ and older). Individuals need to fall within certain income limits to open a Roth IRA (more about that later).

With a traditional IRA, your contributions are made with pre-tax dollars. Your contributions may lower your taxable income in the year you contribute. The money in a traditional IRA is tax-deferred, and you pay income taxes on it when you withdraw it. Traditional IRAs tend to have fewer eligibility requirements than Roth IRAs.

The Importance of Investing in Your Future

Retirement might seem like a long way off, but it’s vital to keep in mind that saving for it now can help you to meet your lifestyle needs and goals in your post-working years.

As you start planning your retirement savings, it’s a good idea to determine the estimated age you can retire, as the timing can influence other choices — like how much you choose to save, and what investments you might pick.

There are plenty of resources available online, including SoFi’s retirement calculator to help you determine potential retirement timelines and scenarios.

💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.

Can I Contribute to a 401(k) and an IRA?

This is a good question to ask if you’re just getting started on your retirement planning journey. For example, if you’re already contributing to a plan at work, you may be wondering if you can also save money in an IRA.

Or maybe you opened an IRA in college but now you’re starting your career and have access to a 401(k) for the first time. You may be unsure whether it makes sense to keep making contributions to an IRA if you’ll soon be enrolled in your employer’s retirement plan.

Having a basic understanding of how 401(k)s and IRAs work can help you make the most of these accounts when mapping out your retirement strategy.

Rules and Regulations for Multiple Retirement Accounts

There is no limit to the number of retirement accounts you can have. However, there are IRS rules about how much you can contribute to these accounts. And if you have multiples of the same type of retirement account, like two IRAs, you need to stay within the overall limit for both accounts combined. In other words, there is one single annual contribution limit for multiple IRAs.

In many cases, it may be beneficial to have more than one retirement account type. Brian Walsh, CFP® at SoFi says multiple accounts allow you have “added flexibility to optimize your taxes and your overall distribution strategy in 30, 40, or 50 years.”

Key Takeaways for Dual Contributions

When contributing to a 401(k) and an IRA you’ll want to remember these important points:

• You can contribute up to the limit on your workplace 401(k) and up to the limit on your IRA annually.

• If you have multiples of the same type of retirement account, such as two IRAs, you cannot exceed the single annual contribution limit across the accounts.

• If you have a 401(k) at work, the tax deduction on your contributions for a traditional IRA may be limited, or you may not be eligible for a deduction at all.

2025 and 2026 Contribution Limits for 401(k) and IRA Plans

The IRS sets annual contribution limits for 401(k) and IRA plans and those limits change each year. These are the contribution limits for 2025 and 2026.

401(k) Contribution Limits and Considerations

As noted, a 401(k) plan may be funded by employer and employee contributions. Here are the annual 401(k) contribution limits for 2025:

• $23,500 for employee contributions

• $7,500 in catch-up contributions for employees age 50 or older

• $11,250 (instead of $7,500) in catch-up contributions for employees aged 60 to 63

• $70,000 limit for total employer and employee contributions ($77,500 including catch-up contributions for those 50 and older; $81,250 for those aged 60 to 63)

These are the annual 401(k) contribution limits for 2026:

• $24,500 for employee contributions

• $8,000 in catch-up contributions for employees age 50 or older

• $11,250 (instead of $8,000) in catch-up contributions for employees aged 60 to 63

• $72,000 limit for total employer and employee contributions ($80,000 including catch-up contributions for those 50 and older; $83,250 for those aged 60 to 63)

Under a new law that went into effect on January 1, 2026 (as part of SECURE 2.0), individuals aged 50 and older who earned more than $150,000 in FICA wages in 2025 are required to put their 401(k) catch-up contributions into a Roth 401(k) account. Because of the way Roth accounts work, these individuals will pay taxes on their catch-up contributions upfront, but can make eligible withdrawals tax-free in retirement. Those impacted by the new law should check with their employer or plan administrator to find out how to proceed.

IRA Contribution Limits and Income Thresholds

IRAs are funded solely by individual contributions. Here are the annual contribution limits for traditional and Roth IRAs for 2025:

• $7,000 for regular contributions

• $1,000 catch-up contributions for those age 50 and older

And here are the annual contribution limits for traditional and Roth IRAs for 2026:

• $7,500 for regular contributions

• $1,100 catch-up contributions for those age 50 and older

These limits apply to total contributions to traditional and Roth IRAs, as mentioned earlier. So if you have more than one IRA, the most you could add to those accounts combined in 2025 is $7,000 — or $8,000 if you’re 50 or older. And, likewise, the most you could contribute to those IRA accounts combined in 2026 is $7,500, or $8,600 if you’re 50 or over.

The Intricacies of IRA Contributions

There are some rules about IRA contributions that it’s vital to be aware of. For instance, you can’t save more than you earn in taxable income in your IRA. That means if you earn $4,000 for a year, you can only contribute $4,000 in your IRA.

Plus, as discussed above, the most you can contribute, whether you have one IRA or multiple IRAs, is the annual contribution limit.

And finally, the type of IRA you have affects the portion of your contributions (if any) you can deduct from your taxes.

Traditional vs Roth IRA: What You Need to Know

The main difference between a traditional IRA and a Roth IRA is how and when you are taxed. There are also some eligibility requirements and deduction limits.

IRA Deduction Limits and Eligibility Requirements

Traditional IRAs offer the benefit of tax-deductible contributions. The money you deposit is pre-tax (meaning, you don’t pay taxes on those funds), and contributions grow tax-deferred. You pay tax when making qualified withdrawals in retirement.

However, if either you or your spouse is covered by a retirement plan at work and your income is higher than a certain level, the tax deduction of your annual contributions to a traditional IRA may be limited.

Specifically, if you have a workplace retirement plan, a full deduction of the amount you can contribute to a traditional IRA in 2025 is allowed if:

• You file single or head of household and your modified adjusted gross income (MAGI) is $79,000 or less

• You’re married and file jointly, or a qualifying widow(er), with a MAGI of $126,000 or less

If your spouse has a workplace retirement plan and you’re married filing jointly, a full deduction of the amount you can contribute to a traditional IRA in 2025 is allowed if your MAGI is $236,000 or less

For 2026, if you have a workplace returement plan, you can take a full deduction of your yearly contributions to a traditional IRA if:

• You file single or head of household and your modified adjusted gross income (MAGI) is $81,000 or less

• You’re married and file jointly, or a qualifying widow(er), with an MAGI of $129,000 or less

If your spouse has a workplace retirement plan and you’re married filing jointly, a full deduction of the amount you can contribute to a traditional IRA in 2026 is allowed if your MAGI is $242,000 or less

A partial deduction is allowed for incomes over all these limits, though it does eventually phase out entirely.

Roth IRAs allow you to make contributions using after-tax dollars. This means you don’t get the benefit of deducting the amount you contribute from your current year’s taxes. The upside of Roth accounts, though, is that you can typically make qualified withdrawals in retirement tax-free.

But there’s a catch: Your ability to contribute to a Roth IRA is based on your income. So how much you earn could be a deciding factor in answering the question, can you have a Roth IRA and 401(k) at the same time.

You can make a full contribution to a Roth IRA if:

• In 2025, you file single or head of household, or you’re legally separated, and have a modified adjusted gross income of less than $150,000. For 2026, your MAGI must be less than $153,000 to make the full contribution.

• In 2025, you’re married and file jointly, or are a qualifying widow(er), and your MAGI is less than $236,000. For 2026, you need a MAGI less than $242,000 to be able to make a full contribution.

The amount you can contribute to a Roth IRA is reduced as your income increases until it phases out altogether.

💡 Quick Tip: The advantage of opening a Roth IRA and a tax-deferred account like a 401(k) or traditional IRA is that by the time you retire, you’ll have tax-free income from your Roth, and taxable income from the tax-deferred account. This can help with tax planning.

How Contributing to Both a 401(k) and an IRA Affects Your Taxes

Both 401(k) plans and IRAs can offer tax benefits. Here are the key tax benefits to know when contributing to these plans:

• 401(k) contributions are tax-deductible

• Traditional IRA contributions can be tax-deductible for eligible savers

• Roth IRA contributions are not tax deductible, but Roth plans allow you to make tax-free withdrawals in retirement

Understanding the Tax Implications

You might choose to contribute to a Roth IRA and a 401(k) if you anticipate being in a higher tax bracket when you retire. By paying taxes now, rather than when you’re in the higher tax bracket later, you could limit your tax liability.

However, if you expect to be in a lower tax bracket when you retire, you may want to opt for a traditional IRA so that you pay the taxes later.

Strategies for Minimizing Taxes on Withdrawals

Both 401(k) plans and IRAs are designed to be used for retirement, which is why the taxes you pay are deferred (and why these accounts are typically called tax-deferred accounts). As such, early withdrawals from 401(k) plans are discouraged and you may trigger taxes and a penalty when taking money from these plans prior to age 59 ½.

Here are the most important things to know about withdrawing money from 401(k) plans or traditional and Roth IRAs:

• Withdrawals from 401(k) and traditional IRA accounts are subject to ordinary income tax at the time you withdraw them. If you withdraw funds before age 59 ½, you would owe taxes and a 10% penalty — although some exceptions apply (e.g. an emergency or hardship withdrawal).

• Roth IRA contributions and earnings are treated somewhat differently. Withdrawals of original contributions (not earnings) to a Roth IRA can be made tax- and penalty-free at any time.

• If you withdraw earnings from a Roth account prior to age 59 ½, and if you haven’t owned the account for at least five years, the money could be subject to taxes and a 10% penalty. This is called the five-year rule. Special exceptions may apply for a first-time home purchase, college expenses, and other situations.

In addition to taxes, a 10% early withdrawal penalty can apply to withdrawals made from 401(k) plans or IRAs before age 59 ½ unless an exception applies. But the IRS does allow for several exceptions. In terms of what constitutes an exception, the IRS waives the penalty in certain scenarios, including total and permanent disability of the plan participant or owner, payment for qualified higher education expenses, and withdrawals of up to $10,000 toward the purchase of a first home.

You might also avoid the penalty with 401(k) plans if you meet the rule of 55. This rule allows you to withdraw money from a 401(k) penalty-free if you leave your job in the year you turn 55, although you would still owe ordinary income taxes on that money. This scenario also has some restrictions, so you may want to discuss it with your plan administrator or a financial advisor.

Finally, once you reach a certain age, you are required to withdraw minimum amounts from 401(k) plans and traditional IRAs or else you could be charged a significant tax penalty. These are known as required minimum distributions or RMDs.

The IRS generally requires you to begin taking RMDs from these plans at age 73 (as long as you reached age 72 after December 31, 2022). The amount you’re required to withdraw is based on your account balance and life expectancy, and many retirement plan providers offer help calculating the exact amount of your required distributions.

This is critical, because if you don’t take RMDs on time you may trigger a 50% tax penalty on the amount you were required to withdraw.

RMDs are not required for Roth IRAs.

Choosing Between a 401(k) and an IRA

If you are deciding between a 401(k) and an IRA, there are a number of factors you’ll want to weigh carefully before making a decision.

Factors to Consider When Making Your Choice

Overall, IRAs tend to offer more investment options, and 401(k)s allow higher annual contributions. If your employer matches 401(k) contributions up to a certain amount, that’s another important consideration. Additionally, you’ll want to think about the tax advantages and implications of each type of account.

Comparing Benefits and Drawbacks of Each Plan

Both 401(k)s and IRAs have advantages and disadvantages. It’s important to consider all variables in determining which account is best for your situation.

	401(k)	IRA
Pros	• Larger contribution limits than IRAs. • Employers may match employee contributions up to a certain amount.	• Wide array of investment options. • A traditional IRA may allow tax deductions for contributions for those who meet the modified adjusted income requirements.
Cons	• Limited investment options. • Potentially high fees.	• Contribution amount is much smaller than it is for a 401(k). • Roth IRAs have income requirements for eligibility.

401(k)

IRA

Pros

• Larger contribution limits than IRAs.

• Employers may match employee contributions up to a certain amount.

• Wide array of investment options.

• A traditional IRA may allow tax deductions for contributions for those who meet the modified adjusted income requirements.

Cons

• Limited investment options.

• Potentially high fees.

• Contribution amount is much smaller than it is for a 401(k).

• Roth IRAs have income requirements for eligibility.

Neither plan is necessarily better than the other. They each offer different features and possible benefits. If your employer doesn’t offer a 401(k) plan, you may want to set up a traditional or Roth IRA depending on your personal financial situation. And if you’re already contributing to a 401(k), you may still want to think about opening an IRA.

The Combined Power of a 401(k) and IRA

Instead of investing in only an IRA or your company’s retirement plan, consider how you can blend the two into a powerful investment strategy. One reason this makes sense is that you can invest more for your retirement, with the additional savings and potential growth providing even more resources to fund your retirement dreams.

How to Strategically Invest in Both Accounts

Since employers often match 401(k) contributions up to a certain percentage (for instance, your company might match the first 3% of your contributions), this boosts your overall savings. The employer match is essentially free money that you could get simply by making the minimum contribution to your plan.

Now imagine adding an IRA to the picture. Remember, with an IRA you have flexibility when investing. With a 401(k), you have limited options when it comes to investment funds. With an IRA, you’re able to decide what you’d like to invest in, whether it be stocks, bonds, mutual funds, exchanged-traded funds (ETFs), or other options.

To strategically invest in both accounts, consider contributing to 401(k) and IRA plans up to the annual limits, if you can realistically afford to. Make sure this is feasible given your budget, spending, and other financial goals you may have such as paying down debt or saving for your child’s education. And do some research into how this approach may affect your retirement tax deductions.

Not everyone is able to max out both retirement fund options, but even if you can’t, you can still create a powerful one-two punch by making strategic choices. First, think about your company-matching benefit for your 401(k). This is a key benefit and it makes sense to take as much advantage as you can.

Let’s say that your company will match a certain percentage of the first 6% of your gross earnings. Calculate what 6% is and consider contributing that much to your 401(k) and opening an IRA with other money you can invest this year.

And, if you end up having even more money to invest? Consider going back to your 401(k). There still may be value in contributing to your 401(k) beyond the amount that can be matched — for the simple reason that company-sponsored plans allow you to save more than an IRA does.

Now, let’s say you have a 401(k) plan but your employer doesn’t offer a matching benefit. Then, consider contributing to an IRA first. You may benefit from having a wider array of investment choices. Once you’ve maxed out what you can contribute to your IRA, then contribute to your 401(k).

These are all just options and examples, of course. What you ultimately decide to do depends on your financial and personal situation.

Long-term Growth Potential

By investing in both a 401(k) and IRA, you are taking advantage of employer-matched contributions and diversifying your retirement portfolio which can help manage risk and may potentially improve the overall performance of your investments in aggregate.

In addition, while a 401(k) offered by your employer may have limited investment options to choose from, with an IRA, you have more access to different investment options. That could, potentially, help grow your money for retirement, depending on what you invest in and the rate of return of those investments.

Plus, by contributing to both kinds of retirement accounts, you are likely putting more money overall into saving for retirement.

Step-by-Step Guide to Contributing to Both 401(k) and IRA

If you’ve decided to open and contribute to both a 401(k) and an IRA, here’s how to get started.

Eligibility Verification and Contribution Processes

To determine if you’re eligible to contribute to a 401(k), find out if your employer offers such a plan. Your HR or benefits department should be able to help you with this.

If a 401(k) is available, fill out the paperwork to enroll in the plan. Decide how much you want to contribute. This will typically either be a set dollar amount or a percentage of your paycheck that will usually be automatically deducted. Next, select the type of investment options you’d like from those that are available. You could diversify your investments across a range of asset classes, such as index funds, stocks, and bonds, to help reduce your risk exposure.

Individuals with earned income can open an IRA — even if they also have a 401(k). First, decide what type of IRA you’d like to open. A traditional IRA generally has fewer eligibility requirements. A Roth IRA has income limits on contributions. So, in this case, you’ll need to find out if you are income-eligible for a Roth.

You can typically open an IRA through a bank, an online lender, or a brokerage. Once you’ve decided where to open the account and the type of IRA you’d like, you can begin the process of opening the account. You’ll need to supply personal information such as your name and address, date of birth, Social Security number, and employment information. You’ll also need to provide your banking information to transfer funds into the IRA.

Next decide how much to invest in the IRA, based on the annual maximum contribution amount allowed, as discussed above, and choose your investment options. Remember, diversifying your investments across different asset classes and investment sectors can help manage risk.

Examples of Diversified Retirement Portfolios

To build a diversified portfolio, one guideline is the 60-40 rule of investing. That means investing 60% of your portfolio in stocks and 40% in fixed income and cash.

However, that formula varies depending on your age. The closer you get to retirement, the more conservative with your investments you may want to be to help minimize your risk.

No matter what your age, make sure your investments are in line with your financial goals and tolerance for risk.

The Takeaway

Not only is it possible to have a 401(k) and also a traditional or Roth IRA, it might offer you significant benefits to have both, depending on your circumstances. The chief upside, of course, is that having two accounts gives you the option to save even more for retirement.

The main downside of deciding whether to fund a 401(k) and a traditional or Roth IRA is that it can be a complicated question: You have to consider your ability to save, your risk tolerance, and the tax implications of each type of account, as well as your long-term goals. Then, if you decide to move ahead with both types of accounts, you can work on opening them up and contributing to them.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

Can you max out both a 401(k) and an IRA?

Yes, you can max out both a 401(k) and an IRA up to the annual amounts allowed by the IRS. For 2025 that’s $7,000 for an IRA ($8,000 if you’re 50 or older), and $23,500 for a 401(k) ($31,000 if you’re 50 or older; $34,750 if you’re aged 60 to 63). For 2026, it’s $7,500 for an IRA ($8,600 if you’re 50 or older), and $24,500 for a 401(k) ($32,500 if you’re 50 or older; $35,750 if you’re aged 60 to 63).

How do employer contributions affect your IRA contributions?

Employer contributions to a 401(k) don’t affect your IRA contributions. You can still contribute the maximum allowable amount annually to your IRA even if your employer contributes to your 401(k). However, having a retirement plan like a 401(k) at work does affect the portion of your IRA contributions that may be deductible from your taxable income. In this case, the deductions are limited, and potentially not allowed, depending on the size of your salary.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by emailing customer service at [email protected]. Please read the prospectus carefully prior to investing.

SOIN0224031
CN-Q425-3236452-14
Q126-3525874-006

Feb

2026

A woman in a striped top uses a tablet to check a digital calendar, perhaps tracking how student loans are disbursed.

What Is Student Loan Disbursement? Meaning & Common Questions

By Rochel Maday | Budgeting & Goals, Student Loans, student_loan | Comments Off

Table of Contents

The Lowdown on Student Loans
Types of Student Loans: Federal and Private
How Long Does It Take to Get Student Loans Disbursed?
How Are Student Loans Disbursed?
Common Student Loan Disbursement Issues
How to Track the Status of Your Student Loan Disbursement
Final Tips
FAQ

Student loans can be confusing, especially when it comes to how and when the money is actually released. Many borrowers expect funds to arrive all at once or directly in their bank account, only to discover the process works differently than anticipated.

Generally speaking, both federal and private student loans are disbursed directly to the school to pay for things like tuition, fees, and room and board. Keep reading to learn more on the disbursement timeline, who receives the funds first, and what happens to any remaining money after school charges are paid.

Key Points

• Student loans are typically disbursed directly to the educational institution to cover tuition, fees, and other costs.

• Any excess funds from the loan after covering direct educational costs are usually paid to the student.

• Disbursement generally occurs around the start of the academic semester.

• The exact timing of loan disbursement can vary based on the type of loan and the school’s financial aid policies.

• Students should consult their financial aid office for specific details about the disbursement schedule and process.

The Lowdown on Student Loans

Student loans are designed to help college students absorb the many costs of postsecondary education.

The average price of tuition for the 2025-26 school year is $11,950 for an in-state undergraduate student at a public college and $45,000 for a private college student, according to the College Board.

Because of this cost, many students rely on student loans to help pay for college. Student loans typically cover up to the cost of attendance, which may include:

• Tuition and fees

• Housing

• Meals

• Transportation

• Books and supplies

• Computers

A rule of thumb suggests that only required materials and needs can be paid for with a loan. When in doubt about whether an item can be purchased with student loan funding or not, it’s best to speak directly to the loan provider or college financial aid department.

And remember, student loan money is borrowed money and will have to be repaid, with interest.

Recommended: Are Student Loans Secured or Unsecured?

Types of Student Loans: Federal and Private

The two main types of student loans are federal student loans and private student loans. Federal loans are provided by the U.S. government, while private loans are issued by financial institutions. Federal student loans include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

Direct Subsidized Federal Loan

A Direct Subsidized Loan is a federal student loan available to undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest while you’re enrolled at least half-time, during the grace period, and during approved deferment periods, helping keep overall borrowing costs lower.

Direct Unsubsidized Federal Loan

A Direct Unsubsidized Loan is a federal student loan available to undergraduate, graduate, and professional students, regardless of financial need. Interest begins accruing as soon as the loan is disbursed, including while you’re in school, during the grace period, and during deferment or forbearance.

Direct PLUS Loan

A Direct PLUS Loan is a federal student loan available to graduate or professional students and to parents of dependent undergraduate students. It requires a credit check, has higher interest rates than other federal loans, and interest begins accruing as soon as the loan is disbursed.

Under Trump’s One Big Beautiful Bill, no new Federal Direct PLUS Loans for graduate students will originate after July 1, 2026. Current borrowers who received a Grad PLUS loan before June 30, 2026 can continue borrowing under current terms through the 2028-29 academic year.

Direct Consolidated Loan

A Direct Consolidation Loan is a federal loan that combines multiple eligible federal student loans into a single loan with one monthly payment. It can simplify repayment and may extend the repayment term, but it does not lower the interest rate, which is a weighted average of the consolidated loans.

Recommended: Consolidate vs. Refinance Student Loans

Private Student Loan

Private student loans are education loans offered by banks, credit unions, and online lenders rather than the federal government. They can be used to cover gaps in college costs after scholarships, grants, and federal aid are applied. Interest rates may be fixed or variable and are based on the borrower’s credit history, income, and overall financial profile, often requiring a creditworthy cosigner for students.

Unlike federal student loans, private student loans do not offer standardized repayment plans or borrower protections set by law. Terms vary by lender and may include fewer options for deferment, forbearance, or loan forgiveness. Because of these differences, borrowers should carefully compare rates, fees, repayment terms, and flexibility before choosing a private loan.

How Long Does It Take to Get Student Loans Disbursed?

Disbursement is a term that describes when a loan is actually paid out. Disbursement timelines may vary depending on whether the loan is a federal or private student loan.

Federal Student Loan Disbursement

To get a federal student loan, interested students must fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA®. Information provided on this form will be used to determine how much federal financial aid and what types a student will qualify for — including federal student loans.

Applications are typically reviewed within three days to three weeks of submission. Federal student loans are generally disbursed directly to the school at the start of each semester. Each school determines when they will pay out any leftover aid to use for additional living and educational expenses.

Private Student Loan Disbursement

The application for a private student loan will be conducted with the individual lender. Each lender will have its own policies for applications and approvals. Generally speaking, it may take between two and 10 weeks to process a private student loan.

Private student loans are also generally disbursed directly to your school. The disbursement date may be timed to the start of the school year, though, this may vary depending on when you apply for and are approved for a private student loan.

How Are Student Loans Disbursed?

Whether a student chooses to accept multiple federal loans, a private loan, or a combination of the two, the money is often distributed the same way. As briefly mentioned, the loan amount is sent directly to the attending school, where it is held in the student’s account before being applied to covered costs, including tuition, fees, and room and board.

When there is leftover money in a student’s account, the excess is paid directly to the student to be used for additional expenses. These payouts tend to take place once per term and vary by school. If students receive leftover funding, they can use it as they see fit or even begin to pay back the loan early.

Keep in mind that all universities have their own policies on loans and disbursement. Questions about how a specific school handles student loans should be directed to the financial aid office.

Overage funds tend to be awarded to the holder of the loan. If a student’s parents hold a loan with overage, they’re more likely to receive the leftover money.

Also, disbursements may be held for 30 days after the first day of enrollment, especially if the student is a freshman and first-time borrower, according to the Federal Student Aid office.

What Happens if Your Disbursement Is Delayed?

If your student loan disbursement is delayed, it can affect your ability to pay tuition, fees, housing, or other education expenses on time. Schools may place temporary holds on your account or assess late fees until funds arrive. In the meantime, you may need to contact your financial aid office, request a short-term payment extension, or use alternative funds while the issue is resolved.

Common Student Loan Disbursement Issues

It’s possible for issues to crop up that could impact your disbursement. These include:

• Missing application deadlines. Applying for a private student loan or filing the FAFSA too late could impact when your student loan is disbursed. To avoid any late disbursements, be sure to submit your FAFSA before state or school-specific deadlines.

• Making mistakes on the application. If there are errors on the FAFSA or a private student loan application, this could impact your approval or potentially delay the disbursement date as you fix errors and resubmit the application.

• Forgetting to complete entrance counseling for federal student loans. You must complete the entrance counseling required for federal student loans before they are disbursed. Be sure to read the terms of all loans closely and fill out all paperwork properly to ensure timely disbursement.

How to Track the Status of Your Student Loan Disbursement

You can track the status of your student loan disbursement by regularly checking your school’s student portal and your lender or loan servicer’s online account. These platforms typically show when funds are scheduled, processed, and applied to your balance. If information is unclear or delayed, contacting your financial aid office can help clarify timelines and resolve issues.

Final Tips

The world of student loans can be intimidating at first, but it’s not impossible to learn how to navigate the financial waters of postsecondary education. These final tips may help:

• Compare all options. It’s better to have too many loan options and turn some down than face uncertainty about how to pay for everything.

• Apply early. This ensures there’s time to make corrections if necessary. There are rules and requirements unique to all types of loans.

• Avoid overborrowing. Try to calculate overall expenses and keep loan amounts as close as possible to the estimate. Being approved for a large loan doesn’t mean the total amount has to be accepted.

• Get a part-time job. A part-time job may help to alleviate the stress that loan payments can add.

The Takeaway

Student loan disbursement is a critical step in the borrowing process, as it determines when and how your loan funds are delivered to cover education costs. Understanding the timing, method, and potential delays of disbursement can help you plan ahead, avoid surprises, and manage your finances more confidently throughout the school year.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Do student loans get deposited into your bank account?

Typically, student loans do not get deposited in your bank account. Instead, the loans are disbursed directly to the school, where they are applied to tuition payments and room and board. If there is any money leftover after paying for tuition, the money will then be distributed to the student. These payouts tend to take place once per term and vary by school.

How long do student loans take to deposit?

After applying through the FAFSA, it may take up to 10 days to find out what types of aid — including student loans — you are eligible for. If approved for a federal student loan, this money will be disbursed directly to the school. Typically, this will happen within the first 30 days of the start of term.

What does disbursement mean?

Disbursement is when the loan amount is paid out to the borrower. In the case of student loans, the loan is typically disbursed directly to the student borrower’s school.

Can you use a student loan to pay a tuition bill that is past due?

Yes, you can use a private student loan to pay off an outstanding tuition balance. Each lender determines how far in the past a loan can be used to pay an overdue balance, but many will allow loans to cover past-due balances that are six to 12 months outstanding.

Can I use leftover student loan money for personal expenses?

Yes, leftover student loan funds can be used for approved education-related expenses, such as housing, food, transportation, books, and supplies. However, they should not be used for nonessential or luxury purchases. Using excess funds responsibly can help cover living costs while minimizing unnecessary debt.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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.

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.

SOISL-Q126-014

Jan

2026

A young man and woman sit at a table in front of a tablet computer looking at paperwork, with snacks and coffee nearby.

Using a Personal Loan for a Down Payment

By Jackie Lam | Budgeting & Goals, Credit, Financial Topics | Comments Off

Coming up with enough cash for a down payment to buy a house is often the biggest hurdle for prospective homebuyers. To avoid paying for mortgage insurance, you typically need to put down 20% of the purchase price. These days that can be a hefty sum: The median home sale price at the end of 2025 was $428,275, according to Redfin. That means a typical buyer who wants to put down 20% would need to accumulate at least $85,655.

If you don’t have that kind of cash sitting around, using a personal loan might sound like a great solution. Unfortunately, many mortgage lenders do not permit you to do this. Even if you can find one that does permit it, making a down payment with a personal loan may not be a good idea. Here’s what you need to know about using a personal loan for a down payment.

Table of Contents

Why Can’t I Use a Personal Loan as a Down Payment?
Why Is It Bad to Use a Personal Loan for a Down Payment on a House?
What Are Alternatives to a Personal Loan for a Down Payment?
How Much Down Payment Do You Really Need?
FAQ

Key Points

• Most mortgage lenders forbid the use of a personal loan for a home down payment.

• Using a personal loan for a down payment can increase your debt-to-income (DTI) ratio, making it harder to qualify for a mortgage.

• Taking on a personal loan in addition to a mortgage can lead to higher monthly payments and a greater risk of default due to increased financial strain.

• Alternatives to a personal loan for a down payment include using savings, receiving gifts from family, or utilizing down payment assistance programs.

• While generally not allowed for a down payment, a personal loan might be considered to cover closing costs.

Why Can’t I Use a Personal Loan as a Down Payment?

As part of the mortgage application process, a lender will want to verify the sources for your down payment. Being able to provide documentation that you have enough money in savings to cover your down payment (and then some) gives the lender confidence in your strength as a borrower and your ability to repay the loan.

If you fund a down payment through a personal loan, however, a lender may see this as a sign of potential financial instability, which raises the lender’s risk. As a result, some types of mortgages — including conventional mortgages and FHA mortgages backed by the Federal Housing Administration — forbid the use of a personal loan as a down payment loan for a home.

Why Is It Bad to Use a Personal Loan for a Down Payment on a House?

Even if you are able to find a mortgage lender that allows you to use a personal loan for a down payment, doing so can have several negative consequences. Here are the primary reasons why it’s considered a bad idea.

• It can increase your DTI: Having a personal loan on your credit reports impacts your debt-to-income (DTI) ratio — what proportion of your monthly income goes to repaying debts. A higher DTI ratio can make it more challenging to qualify for a mortgage or reduce the amount for which you can qualify.

• It might increase your interest rate. Taking out a personal loan to cover a down payment signals to a mortgage lender that you’re financially stretched and may not be able to afford homeownership. This makes you a greater risk. To protect itself, a lender may offer you a higher rate than it would offer a borrower who is using savings for the down payment.

• Higher monthly payments: Personal loans typically have shorter terms and higher interest rates than mortgages. Using a personal loan for a down payment on a house means additional debt on top of a mortgage, which could be difficult to manage and lead to financial strain.

• Greater risk of default. If your budget is stretched due to multiple debts, you could potentially fall behind on your personal loan, mortgage payments, or both. If that happens, you risk defaulting on your debt, damaging your credit, and in a worst-case scenario, losing your home.

What Are Alternatives to a Personal Loan for a Down Payment?

Instead of using money from a personal loan for a down payment on a house, here are other ways to fund this milestone purchase. Consider these options as you prepare to buy a home:

Savings

If you’re not in a rush, you may want to ramp up your savings and put time to work for you. To ensure consistency with your savings, consider setting up an automated transfer from checking to a dedicated savings account for a set day each month. You might also want to put any windfalls — like a tax refund, work bonus, or cash gift — toward your down payment fund so that you can afford a down payment on your first home sooner.

Gifts From Family

Many mortgage lenders allow down payment funds to come from gifts provided by family members. If you have relatives who are willing and able to assist, this can be a viable option. Since a lender may ask you to substantiate any large deposits into your bank account, it’s a good idea to ask the giver to provide a letter to your lender detailing the amount and confirming that it is a gift and not a loan.

Down Payment Assistance Programs

If you’re still wondering can you get a loan for a down payment, look into local, state, and federal programs that offer down payment assistance to eligible homebuyers. These programs can provide grants, low-interest loans, or forgivable loans to help cover your down payment and closing costs. They’re typically geared toward first-time homeowners who are low- to middle-income. The Department of Housing and Urban Development (HUD) allows you to connect with a local home-buying counselor to learn about options on the HUD website.

Look Into Loans That Require a Smaller Down Payment

There are some types of mortgages that do not require a large down payment. FHA loans, for example, allow eligible borrowers to put down as little as 3.5%. USDA loans (targeted to certain suburban and rural homebuyers) and VA loans (designed for U.S. service members and their surviving spouses) don’t require any down payment.

Retirement Account Loans or Withdrawals

Some retirement accounts, like a 401(k) or IRA, allow you to take out a loan or make a withdrawal for a home purchase. While this option can provide the necessary funds, it’s essential to understand the implications, such as potential taxes, penalties, and the impact on your retirement savings. It’s a good idea to consult with a financial advisor to determine if this could be a good option for your situation.

Budget Changes and Side Income Opportunities

Making a budget that includes a line for savings for a down payment (and then sticking to it) is a good way to ensure you’re socking away money for your home purchase. Budgeting will entail taking a good look at recent bank and credit card statements and chronicling cash expenditures so that you can also look for opportunities to pare back on your spending so that more money can go to the home purchase.

You may also realize that in order to pay all your current bills and still save for a home, you’re going to need to increase your income. Adding a part-time job or a side hustle to your schedule could help you save for a down payment.

Extending Your Timeline to Save More

Giving yourself more time to save money can also help. Not only will you be able to put away cash, but if you place the money somewhere that it can earn some interest, your money can compound while it waits.

Recommended: Guide to Personal Loans for Beginners

How Much Down Payment Do You Really Need?

And as you make a list of what do you need to buy a house, the down payment is only part of the picture. You’ll need cash on hand to cover closing costs, which tend to be 2% to 5% of your mortgage amount. Additionally, you’ll need to think about your loan type.

Typical Down Payment Requirements by Loan Type

How much is a down payment on a house will, to some extent, depend on what type of home loan you choose. A conventional mortgage loan can require as little as 3% down for qualified first-time homebuyers and 5% for repeat buyers. As noted above, you’ll need to put down 20% to avoid paying for private mortgage insurance. But the average first-time homebuyer down payment has ranged from 6% to 9% in recent years.

Government-backed loans tend to require a small down payment or none at all. FHA loans allow homebuyers with a credit score of at least 580 to put down as little as 3.5%. Those with a score of 500 to 579 will need a 10% down payment.

USDA loans and VA loans, as noted above, don’t require any down payment.

Pros and Cons of Putting More Money Down

So you can buy a home with far less than 20% down. But should you do so, or should you wait? The answer will depend on your personal situation, but here are some pros and cons to consider:

Pros

• More equity from the start.

• Quicker access to a home equity loan (after hitting 20% equity).

• Lower monthly mortgage payment.

• Avoid paying for private mortgage insurance (if 20% is put down).

Cons

• You may have to wait longer to save the money.

• You may be missing a good time to buy (e.g., end of a lease, good school district opportunity).

• You may pay more in rent while waiting to save.

Putting more money down means you will have more equity in your home from the point that you purchase it. If you’re buying a home that needs some renovations, you’ll hit the 20% equity necessary for a home equity loan more quickly than you would if you put down very little.

More money down means a lower monthly mortgage payment. You can use a mortgage calculator to examine the effect of different down payment and loan amounts on monthly costs. And of course, hitting the 20% mark on a down payment allows you to avoid paying for private mortgage insurance.

But there are also a few reasons to move forward with a low down payment. If you’re renting and your lease is up, this could be the right time to buy. Ditto if your child is starting kindergarten and you’ve found a home in a desirable school district. And if your rent is the same as or more than you would pay to purchase a home with a small down payment, it might make sense to move forward. Putting down 3%, 5% or even 10% also allows you to begin building some equity in a property that you own, even if it can take years for that equity percentage to grow significantly.

The Takeaway

Taking out a personal loan might seem like a good way to get the funds for a down payment on a home. The problem is that many mortgage lenders won’t permit you to use a personal loan for down payment and, if they do, may charge you a higher interest rate or lower your loan amount, as they will view you as a risky borrower.

Personal loans are generally better left for other purposes, such as covering emergency expenses, consolidating credit card debt, or making home repairs or improvements (once you become a homeowner). If you are considering getting a personal loan, be sure to shop around to find the right offer.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Can you use a personal loan for closing costs?

It may be possible to use a personal loan to cover closing costs when buying a home. These costs, which may include appraisal fees, title insurance, and attorney fees, can add up quickly. Just keep in mind that some mortgage lenders may not approve a borrower for a mortgage if they have recently taken out a personal loan, as it shows you may not be in a strong financial position to take on other new debt.

Do banks check what you spend your loan on?

Banks typically do not check or monitor what you spend the funds from a personal loan on. Once the loan is approved and the funds are transferred to your bank account, it is up to you to use the money as agreed upon in the loan agreement. Keep in mind that misusing the funds from a personal loan can have financial and legal consequences. If you use the loan money for something other than what was outlined in the loan agreement, you are technically in violation of the terms of the loan. This could potentially lead to penalties, legal action, or damage to your credit score.

What happens if you don’t use all of your personal loan?

If you don’t use all of your personal loan, you’re still responsible for repaying the full amount borrowed, along with interest. If your lender doesn’t charge a prepayment penalty, you might consider using the excess funds to pay off your loan ahead of schedule — this can reduce the total amount of interest you’ll pay for the loan.

Can a personal loan ever be used in the home-buying process at all?

It’s unlikely that you can use a personal loan for a down payment, but you might be able to cover closing costs with a personal loan. But remember that mortgage lenders will be looking at your total debt, so a new or recent personal loan might be a red flag. You’re better off using a personal loan either well before a home purchase, to consolidate and pay off debt so that your finances are healthy when you start home shopping. Or you could consider taking out a personal loan after buying a home to help cover renovation costs.

What are some ways to save for a down payment without borrowing?

To save for a down payment effectively, it helps to put your savings on autopilot. Arrange an automated transfer from your checking account to a home-buying specific savings account once or twice a month. And deposit any windfall funds, such as a work bonus or birthday gift into that special savings as well. Finally, audit at least a month of your spending to look for ways you might cut back in other areas of your life to make more room in your budget for savings.

Photo credit: iStock/whitebalance.oatt

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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 .

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

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

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.

SOPL-Q126-006

Jan

2026

A man in glasses sits in front of a laptop with papers spread around him, peering intently at the screen.

What Happens If Your Bank Account Goes Negative?

By Sheryl Nance-Nash | Budgeting & Goals, Financial Independence, money | Comments Off

Table of Contents

What Does a Negative Balance Mean?
Common Causes of Negative Balances
The Risks of Ignoring a Negative Balance
How Long Can a Bank Account Stay Negative? (The Timeline)
Overdraft vs NSF: What’s the Difference?
How to Clear a Negative Bank Balance
How to Prevent Future Negative Balances
FAQ

A negative account balance can happen all too easily: An automatic bill payment might hit when your account doesn’t have enough to cover it. Or maybe you lost track of purchases made with your debit card and overextended yourself.

The resulting negative bank balance can have a serious impact, leading to overdraft fees, declined transactions, and even account closure. Read on to learn more about a negative bank account balance, including ways to avoid the problem, and what to do if you wind up with a negative balance.

Key Points

• Having a negative bank balance can result in costly fees, declined transactions, and (potentially) account closure.

• A negative balance occurs when you make payments that exceed the funds in your account.

• Miscalculating how much is in the account, automatic payment delays, and pending transactions are some reasons a bank account might go negative.

• Overdraft protection can help cover the difference, but it comes with fees.

• To avoid a negative bank balance, monitor your account, set up alerts, and consider linking accounts.

What Does a Negative Balance Mean?

A negative account balance, also known as an overdraft, occurs when you spend more money than you have in your bank account, causing the account to dip below zero. This happens when a bank allows a transaction to go through even though there are insufficient funds. The bank is effectively lending you money to cover the difference, often at the cost of an overdraft fee. The bank may also charge other fees until the balance is restored to zero or positive.

To help you visualize this, here’s an example:

• Imagine you have $500 in your account, and you write a check for $515, because you thought you had a balance of $600.

• If the bank pays the $515, you end up with an account balance of minus $15. That’s the difference between how much money you had in the account and how much the bank paid the person that cashed your check. The bank made up the difference.

Common Causes of Negative Balances

Your balance goes negative when you have withdrawn more than you have in your account. This can happen if you make a transaction — such as ATM withdrawal, or debit card purchase — for an amount that exceeds the balance in your checking account.

This is when overdraft protection, if you have it, kicks in. Instead of rejecting the transaction, the bank will cover the overage, allowing your account to go negative. Typically, you repay a negative balance with the next deposit of funds.

Here’s a closer look at how a negative bank balance can occur.

Miscalculation/Mistakes

Overdrafts can happen with miscalculations and mistakes. For instance, you might overestimate how much is in your account and spend more than you actually have. Or you may forget to record a bill you paid, which could take your balance down into negative territory.

Pending Transactions and Auto-Pay Delays

It’s possible you’re not exactly sure what checks you’ve written have been cashed and what incoming checks are still pending and haven’t yet cleared. You may unwittingly make a payment or ATM withdrawal thinking you’re good, but discover you’re not.

Or perhaps you experience an auto-pay delay, when your automatic bill payment doesn’t process on the exact date it should because the due date is on a weekend or a holiday, or the transaction is taking longer than usual. If sufficient funds aren’t sitting in your account the date the payment finally processes, that could result in a negative bank account balance.

Overdraft Fees Compounding the Balance

Your bank can charge you an overdraft fee whenever you don’t have enough in your account to cover a transaction. The amount varies by bank, but the fee may be as much as $35 per transaction. Since overdraft fees may be charged per transaction, they can multiply quickly, adding even more charges to the negative balance in your account.

The Risks of Ignoring a Negative Balance

Ignoring a negative bank account balance could lead to serious consequences that could cost you money and potentially damage your financial profile. Here are some of the issues ignoring a negative bank account can trigger.

Accumulating Daily Fees

If your bank covers a transaction that puts your account in negative territory, as noted above, it will typically charge an overdraft fee — and it might continue to do so daily or every time you make a transaction. If you make multiple transactions, and/or a number of days go by before you realize you have a negative balance, these fees can add up to a significant sum.

Involuntary Account Closure

If you don’t fix your negative balance by depositing money into your account, or if you overdraw your account too often, your days as a bank customer may come to a close. The bank can opt to shutter the account, and it can be difficult to reopen a closed bank account.

ChexSystems and Credit Score Impact

If the bank closes your account due to an ongoing negative bank account balance, it will likely report the closure to ChexSystems, a consumer reporting company banks use to screen customer accounts. A negative report by this agency will stay on your record for up to five years, which could make it difficult for you to open a new bank account.

Also, a bank that closed your account due to unpaid overdrafts might sell your debt to a collection company. That, in turn, could negatively impact your credit profile and your credit score.

How Long Can a Bank Account Stay Negative? (The Timeline)

How long a bank account can stay negative depends on the specific bank and its policies. Some banks offer a 24-hour grace period for you to bring your balance back up before they charge an overdraft fee; other banks may allow you to be overdrawn for one or two days up to a certain amount (like $50.)

The 30 to 60-Day Risk Window

If you have a negative bank balance for five to seven days, some banks charge extended overdraft fees, which add even more to what you owe. After about 30 to 60 days, many banks will close down the account. At this point, they may send your account to a debt collection agency.

When Does it Get Reported to ChexSystems?

When a bank closes an overdrawn account for a negative unpaid balance, they also typically report the closed account, and the reason it was closed down, to ChexSystems. A negative report by this company can stay on your record for up to five years making it difficult to open a new bank account. In that case, your only option might be a second chance checking account.

Overdraft vs NSF: What’s the Difference?

An overdraft fee is not the same thing as a non-sufficient funds (NSF) fee. Here’s a look at the difference when it comes to overdraft vs NSF fees:

• An overdraft fee is what a bank or credit union charges you when they have to cover your transaction when you don’t have enough funds available in your account. This fee is around $35.

• When a financial institution returns a check or electronic transaction without paying it, they may charge a non-sufficient funds fee. It’s usually about $18. The difference is, with a non-sufficient funds fee, the bank is not covering the shortfall; they are essentially rejecting the transaction and charging you for doing so.

How to Clear a Negative Bank Balance

If you have a negative bank balance, it’s important to take action as soon as you can. The following steps can help you get back on track.

Step 1. Audit Your Transaction History

Determine what went wrong and triggered the overdraft. Check your bank account online or via your bank’s app and also see what charges haven’t been paid or received. Then, do the math. This will give you an idea of where you stand and how soon you may be back in the positive zone for your balance.

Step 2. Stop All Automatic Payments Immediately

Automating your finances can be a convenient tool, but if you are in overdraft, automatic payments could keep popping up and derailing your efforts. Stop these payments right away for all your bills so they don’t keep adding to your negative balance.

Bring the Balance to Zero

Once you understand your situation, take action. Deposit enough money to bring your account balance to zero — and even better, deposit funds to put your balance firmly in the positive zone again. Ideally, put in enough to give yourself some cushion to help protect from future overdrafts.

Recommended: Savings Goal Calculator

Ask for Fee Forgiveness

Make a request to your bank to have your fees waived. They may be feeling generous, particularly if this is your first offense.

If your bank won’t waive the fees, go ahead and pay what you owe. If you don’t, you’ll just make your situation worse, meaning the bank could close your account and turn the matter over to debt collection. Taking action sooner rather than later to protect your bank account is usually best.

How to Prevent Future Negative Balances

There are ways to avoid a negative bank account balance. Try these strategies:

Set Up Low-Balance Alerts

Set up account alerts to let you know when your account balance reaches a certain number. If you know your account is getting low, you can take steps to avoid going into the negative balance zone. In addition, consider setting alerts to notify you before automatic deductions are made (many banks offer this option). That way, you can monitor your bank account and its balance to make sure you can cover the debit.

And be sure to check your balance regularly. “Waiting until the end of the month to check in on accounts leaves you at risk of excess spending and potentially overdrawing your checking account, “ says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “Checking in once a week leaves time to self correct and adjust your budget to help balance the numbers.”

Link a Backup Savings Account

Explore what overdraft protection your bank offers. And then carefully consider: Do you need overdraft protection? It can keep a transaction from being declined if you don’t have enough money in your account, but the overdraft fees —as much as $35 per transaction — can add up.

Instead, you may be able to link a savings account to your checking which can be tapped to cover overdrafts. It may cost you a fee for that transfer, but it’s likely not as steep as an overdraft fee. While you don’t want overdrafts to be a regular occurrence, you do want to be protected in case they crop up.

Switch to a No-Fee Bank

Another option is to look for a no-fee bank, which may not charge overdraft fees, and set up a no-fee checking and savings accounts. A growing number of banks are offering no-fee accounts, especially no-fee checking accounts, so shop around and see which one offers the best option for your needs.

The Takeaway

Having a negative bank balance means you overdrafted your account. This often triggers pricey overdraft fees, and it can lead to other financial issues such as having your account closed down if the situation isn’t remedied. To help prevent a negative balance, keep tabs on your bank account balance, set up low-balance alerts, link a savings account to your checking account for extra coverage, or consider switching to a no-fee bank.

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

Does a negative bank balance affect my credit score?

A negative bank balance could potentially affect your credit score if the negative balance isn’t resolved. For example, your bank might close your account due to an unpaid negative bank account balance and sell your debt to a collection company which could negatively impact your credit score.

Can a bank take my whole paycheck to fix a negative balance?

If you don’t remedy an overdrawn account, it’s possible that a bank could eventually choose to sue you and take legal action to garnish your wages. They would typically need a court order to do this, and it’s probable that they could only take a portion of your wages rather than your entire paycheck. But it’s wise to consult a legal professional about your specific situation.

How much does it cost to have a negative balance?

Having a negative balance typically costs about $35 per transaction in overdraft fees, though the exact amount can vary by bank. The costs can add up quickly, especially if you have a negative balance for several days.

Can I open a new bank account if I have a negative balance?

You may be able to open a new bank account if you have a negative balance, but it might be challenging, depending how long you’ve had the negative balance. If it’s been more than 30 to 60 days, your current bank may close your account and report it to ChexSystems, a banking reporting agency. A negative report can stay on your record for up to five years, making it difficult to open a new account. An option to consider in this case is a second chance bank account, a type of checking account for people with a negative banking history.

What is a “forced closure” of a bank account?

A forced closure means a bank shuts down a bank account without the account owner’s consent, usually for a policy violation such as repeated overdrafts, unpaid fees, or suspicious activity. If this happens to you, contact the bank to find out the reason for the closure. Ask what can be done to remedy the situation. For example, in the case of repeated overdrafts, find out how much you owe and how to go about repaying it to avoid having the account sent to collections, which could impact your credit.

Photo credit: iStock/kupicoo

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*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.

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 .

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.

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

SOBNK-Q126-004

Jan

2026

Two women smile as they pick out fresh eggs at a market, perhaps discussing the average cost of a dozen eggs.

Average Cost of a Dozen Eggs by State

By Rebecca Lake | Budgeting & Goals, relay | Comments Off

Table of Contents

What Is the Average Cost of a Dozen Eggs Today?
Where the Cost of Eggs Is Highest
Where the Cost of Eggs Is Lowest
Why Did the Cost of Eggs Increase in 2025?
When Will the Cost of Eggs Go Down?
Tips on How to Shop for Cheap Eggs
FAQ

As of January 2026, the average cost of a dozen eggs in the U.S. is $3.59, according to data from the U.S. Bureau of Labor Statistics (BLS). This is lower than in previous years, including the $4.71 consumers paid on average in 2025, when concerns about egg shortages sent the cost of eggs skyrocketing.

Why does knowing the cost of a dozen eggs today matter? If you’re trying to manage your household budget, then keeping food costs as low as possible might be a priority. Where you live can play a part in determining how much you’ll pay for a dozen eggs.

Key Points

• Egg prices in the U.S. average $3.59 per dozen as of January 2026.

• Avian flu, severe winter weather, and inflation drove egg prices up in 2025, but they’re slowly starting to return to normal pricing.

• Hawaii and California have some of the highest egg prices in the country.

• The USDA predicts egg prices will decrease to $2.16 per dozen as 2026 progresses.

• Shopping at farmer’s markets and buying in bulk can help consumers find cheaper eggs.

What Is the Average Cost of a Dozen Eggs Today?

On average, Americans are paying $3.59 for a dozen Grade A large eggs, based on the BLS data. That price reflects the most recent Consumer Price Index (CPI) data available as of January 2026. The CPI Consumer Price Index tracks prices for a basket of consumer goods and services over time.

In tracking egg price data, the CPI looks at average numbers by city, rather than state. Prices are based on the cost of a dozen eggs only and don’t take into account pricing for smaller or larger quantities of eggs sold, or pricing for different sizes of eggs. The CPI’s egg price data offers a snapshot of how egg prices have moved up or down over time. The average cost of a dozen eggs increased sharply in the beginning of 2023, declined for a while, and then began going back up in July 2024. Whether you live alone or are supporting a family, these types of fluctuations can impact your grocery budget.

If you’re trying to manage a higher-than-normal grocery bill, tracking your spending can help.

Track your credit score with SoFi

Check your credit score for free. Sign up and get $10

in rewards points on us.*

RL24-1993217-B

Where the Cost of Eggs Is Highest

As evidenced by the price data, some states are more expensive than others when it comes to what you’ll pay for a dozen eggs on average. In descending order, here are the 10 states that had the highest cost overall for a dozen eggs:

• Hawaii

• Florida

• Alabama

• Nevada

• California

• Arizona

• Georgia

• Maine

• Wyoming

• Colorado

Where the Cost of Eggs Is Lowest

Where is the average cost of a dozen eggs the cheapest? Shoppers paid the least for a dozen eggs in these states:

• Missouri

• Nebraska

• Indiana

• Ohio

• Kansas

• Iowa

• Kentucky

• Pennsylvania

• Alaska

• West Virginia

As you can see, most of these states are located in the central, southern, and eastern U.S., though Alaska is the outlier. Assuming food costs are lower overall in these states, the average grocery budget for a family of five is likely to be less compared to the states where eggs are more expensive.

Why Did the Cost of Eggs Increase in 2025?

The spike in egg prices in early 2025 was largely fueled by scarcity. An outbreak of avian flu sent egg production into decline as more than 20 million laying hens were lost to the disease or depopulation efforts just in the last quarter of 2024. With fewer eggs in supply but demand not easing, egg prices began to climb. Severe winter weather events across the country didn’t help matters.

But inflation can also be pointed to as a contributing factor to rising egg prices. In simple terms, inflation is a rise in prices for things consumers buy, like eggs and other household items. Knowing how to find the inflation rate and what’s considered to be a normal range matters for making the most of your money.

You don’t need a money tracker to know that when inflation is higher, everything costs more and your money doesn’t go as far. A difference of a few cents in the price of a dozen eggs might not seem like much. But when everything else is going up in price too, and inflation doesn’t appear to be easing any time soon, it can take a serious toll on your wallet.

When Will the Cost of Eggs Go Down?

Egg prices spiked in early 2025 but have since gone down to normal levels, averaging $3.59 per dozen as of 2026.

Monitoring prices for different goods and services can help you stay on top of your budget. Making and sticking to a spending and savings plan is one of the most basic steps for building wealth and increasing your net worth. Being able to measure your liquid net worth can give you an idea of how well you’re doing financially when it comes to accumulating assets and paying down debt.

Tips on How to Shop for Cheap Eggs

Shopping for eggs on the cheap can save you money and make it easier to live below your means. Living below your means benefits you in a few ways. For one thing, you may be less reliant on credit cards to cover expenses if you always have extra cash in your budget. And for another, it can make it easier to adapt to economic changes that can affect your budget and spending.

With that in mind, here are a few quick tips to help you pay less for eggs.

• Shop the farmer’s market. Buying eggs locally from a farmer’s market vs. a supermarket could save you money if you’re able to find lower prices. You may even be able to work out a barter or trade with a local farmer or neighbor who has a backyard flock, which could allow you to get eggs for free.

• Choose store brands. Store-brand products, including eggs, typically cost less than name-brand ones. If you’re not partial to any one egg brand, you may save a little money by choosing your local store’s brand.

• Buy eggs in bulk. Buying in bulk could save you money if you’re paying a lower unit price per egg. But the catch is that you have to be sure you’re actually going to use them all; otherwise, you could be wasting money.

• Use fewer eggs. A simple way to save money on eggs is to not consume as many. For instance, you might opt to get your daily protein from other sources or swap out your favorite baking recipes for ones that don’t incorporate eggs.

• Shop with coupons and cash back apps. Couponing may seem tedious but supermarkets make it easier by allowing you to load digital coupons to your store loyalty card. You can pair coupons with a cash back app that pays you a percentage back when you shop at partner grocery stores, which can add to your savings.

The Takeaway

The average cost of a dozen eggs might not be something you think about on a day-to-day basis. But knowing how much you’ll pay for eggs matters when it’s time to go to the grocery store and do your weekly shopping. Keeping an eye on egg prices and implementing some different hacks for finding cheap eggs can help you keep your food budget in check.

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 much did a dozen eggs cost in 2023?

As of July 2023, the average cost of a dozen eggs was $2.09, according to Consumer Price Index data. Overall, egg prices were on the decline by mid-2023 after peaking at $4.82 on average per dozen at the beginning of the year.

What state has the most expensive eggs?

Hawaii residents pay the most for a dozen eggs. On average, a dozen eggs there costs just under $10.

Do eggs last longer than sell by date?

Eggs can stay fresh past the sell by date, but there are limits on how long you’ll be able to use them. A simple way to tell if an egg is fresh is to place it in a glass or bowl of water. Eggs that float to the surface are no longer fresh, while ones that lie flat on their side are the freshest.

Photo credit: iStock/nd3000

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.

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.

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

SORL-Q126-005

Can You Contribute to Both a 401(k) and an IRA?

Introduction to Retirement Savings Accounts

Understanding the Basics of 401(k)s and IRAs

The Importance of Investing in Your Future

Can I Contribute to a 401(k) and an IRA?

Rules and Regulations for Multiple Retirement Accounts

Key Takeaways for Dual Contributions

2025 and 2026 Contribution Limits for 401(k) and IRA Plans

401(k) Contribution Limits and Considerations

IRA Contribution Limits and Income Thresholds

The Intricacies of IRA Contributions

Traditional vs Roth IRA: What You Need to Know

IRA Deduction Limits and Eligibility Requirements

How Contributing to Both a 401(k) and an IRA Affects Your Taxes

Understanding the Tax Implications

Strategies for Minimizing Taxes on Withdrawals

Choosing Between a 401(k) and an IRA

Factors to Consider When Making Your Choice

Comparing Benefits and Drawbacks of Each Plan

The Combined Power of a 401(k) and IRA

How to Strategically Invest in Both Accounts

Long-term Growth Potential

Step-by-Step Guide to Contributing to Both 401(k) and IRA

Eligibility Verification and Contribution Processes

Examples of Diversified Retirement Portfolios

The Takeaway

FAQ

Can you max out both a 401(k) and an IRA?

How do employer contributions affect your IRA contributions?

What Is Student Loan Disbursement? Meaning & Common Questions

The Lowdown on Student Loans

Types of Student Loans: Federal and Private

Direct Subsidized Federal Loan

Direct Unsubsidized Federal Loan

Direct PLUS Loan

Direct Consolidated Loan

Private Student Loan

How Long Does It Take to Get Student Loans Disbursed?

Federal Student Loan Disbursement

Private Student Loan Disbursement

How Are Student Loans Disbursed?

What Happens if Your Disbursement Is Delayed?

Common Student Loan Disbursement Issues

How to Track the Status of Your Student Loan Disbursement

Final Tips

The Takeaway

FAQ

Do student loans get deposited into your bank account?

How long do student loans take to deposit?

What does disbursement mean?

Can you use a student loan to pay a tuition bill that is past due?

Can I use leftover student loan money for personal expenses?

Using a Personal Loan for a Down Payment

Why Can’t I Use a Personal Loan as a Down Payment?

Why Is It Bad to Use a Personal Loan for a Down Payment on a House?

What Are Alternatives to a Personal Loan for a Down Payment?

Savings

Gifts From Family

Down Payment Assistance Programs

Look Into Loans That Require a Smaller Down Payment

Retirement Account Loans or Withdrawals

Budget Changes and Side Income Opportunities

Extending Your Timeline to Save More

How Much Down Payment Do You Really Need?

Typical Down Payment Requirements by Loan Type

Pros and Cons of Putting More Money Down

Pros

Cons

The Takeaway

FAQ

Can you use a personal loan for closing costs?

Do banks check what you spend your loan on?

What happens if you don’t use all of your personal loan?

Can a personal loan ever be used in the home-buying process at all?

What are some ways to save for a down payment without borrowing?

What Happens If Your Bank Account Goes Negative?

What Does a Negative Balance Mean?

Increase your savings with a limited-time APY boost.*

Common Causes of Negative Balances

Miscalculation/Mistakes

Increase your savings
with a limited-time APY boost.*

Student Loan
Refinancing

Personal
Loans

Online
Investments