SoFi

After all the work that goes into applying to college — researching schools, submitting transcripts, taking entrance exams, and writing essays — students probably welcome a feeling of relief once that application is officially submitted.

The relief may be instant, but also fleeting. The next phase of getting into college can be painstaking because it’s the waiting phase. Acceptance letters don’t have one standard date for being sent out. Admissions decisions can be delivered as early as December for early action or early decision applicants and as late as April for regular admission applicants.

Learn more on different types of college admissions applications and see how their submission deadlines and acceptance date periods differ.

Types of Applications

Just as there isn’t a standard date for acceptance letters to be sent out, there isn’t one standard submission date for applications, either. There are a few early submission options available, as well as regular submission and rolling admissions. The due date of the application will depend on which type of application is being submitted, and this will also determine when you receive the school’s decision.

Options for applying early include early decision, early action, and single-choice early action.

Early Decision

The early decision application is binding, meaning that students who are accepted are committed to enrolling. Because this application is binding, students can only apply to one school as an early decision. These applications are due in November and the decisions go out in December. If students decide to apply with this early decision option, this school should be their top choice and the one they’d prefer to go to over all others.

Early Action

The early action application is similar to the early decision in regard to the due date (due in November) and decision timeframe (decisions go out in December), but it differs in that it isn’t binding. It’s okay to apply to multiple schools via early action, and if you’re accepted you’re not required to enroll until the normal reply date of May 1.

Recommended: Early Action vs Early Decision

Single Choice Early Action

This option is similar to the early decision in that students can only apply to one school this way, but it’s not binding. If students choose to apply to a school via single-choice early action, it’s a way of saying they’re especially interested in attending that school. The deadline and acceptance period is the same as the other early options.

When it comes to applying early, no matter which type of early application you choose, the applications will usually be due in November and decisions will be sent out in December.

Regular Decision

Regular decision college applications are the most common of the application options. For these applications, the deadline is usually in January or February and the decision letters go out by April. The deadline for submitting your application will differ between schools, so make sure to check the website for each school and mark the dates on a calendar.

Recommended: Ultimate College Application Checklist

Rolling Admission

Rolling admission allows students to apply until the school runs out of space. Applications may be accepted until April or later. Students are encouraged to apply using the same deadline as the regular decision, though, to have a better chance of being accepted before the colleges run out of spaces.

Some colleges will also have differing numbers of spots open based on specific majors. If the major the student lists on an application is impacted at some schools, it might be better to apply by the deadline for regular applications since impacted majors are likely to have more students apply than there are spots available. The average turnaround for rolling admission is about four to six weeks, so the date that decisions are sent out will depend on when students submit their application.

Recommended: College Search – College Finder Tool

The Dreaded Waitlist

After waiting for one to two months to receive a school’s decision, it can be frustrating to open that letter or email and see that there’s more waiting to do. Being on the school’s waitlist isn’t necessarily bad, however.

There are many reasons that students end up on the waitlist. They may have met the academic criteria to get into the school, but the school might not have space yet for these students.

Most schools will require students to contact them and accept their spot on the waitlist to be considered for admission, so don’t forget that step.

Since the number of students that can be accepted from a waitlist depends on the number of students who choose to enroll, students on the waitlist won’t hear back until after decision day.

Decision day is May 1, and it’s the day that seniors are required to notify their school that they accept their admission and will enroll.

After the decision day, the schools will know how many students will enroll, and then they’ll be able to start accepting students from the waitlist if there’s space. This means students on the waitlist can expect to hear back from their school by the end of May, but sometimes it can take up until the fall semester starts to hear back.

Paying for College

Planning for college goes beyond getting accepted. Once accepted, students have to figure out how to pay for college, including tuition, books, and housing. Luckily, there are many good options for financing higher education, which can include financial aid from the government (grants and/or loans), scholarships, and private loans.

Recommended: Ca$h Course: A Student’s Guide to Money

Financial Aid

The Free Application for Federal Student Aid (FAFSA®) is the form students will need to complete as the first step in applying for student aid. Depending on a student’s Student Aid Index (SAI), they may be eligible for federal student loans, grants, or work-study.

Grants don’t usually have to be repaid, but loans do. The amount of aid students can receive from the federal government will depend on their financial need, so not everyone will be eligible.

Recommended: What Is the Student Aid Index?

Federal Student Loans

Federal student loans come with some benefits that are not guaranteed by private student loans, like lower fixed interest rates and flexible repayment options. Federal loans also offer borrower protections, such as deferment and forbearance, and student loan forgiveness programs for those that qualify.

Scholarships

Scholarships can be merit-based, meaning they’re awarded based on some kind of achievement, or need-based. There are many scholarships available, and it’s perfectly acceptable to apply to as many as possible to further the chances of receiving one — or more. Some scholarships are specific to a school or the local community, so check your school’s website for information.

Private Student Loans

Private student loans may be another option for paying for college. Since every financial institution is different, do some research and explore options available. Loan amounts and rates will depend on an applicant’s financial situation, including their credit history and income. Those with little of either may need a cosigner to be approved for a private loan.

Even if the cost of attendance might be covered by scholarships, grants, or federal student loans, there may be other costs of living a student might need assistance for. That’s where private student loans can be helpful when considered responsibly.To learn more about private student loans, college-bound students might want to check out this guide to private student loans.

Keep in mind, though, that private student loans do not offer the same protections as federal student loans, so it’s best to explore federal loans before relying on private ones.

The Takeaway

It can take a few weeks to a few months to hear back for a college admissions decision, depending on the type of application you submitted. Early applicants — such as early decision or early action — will generally hear back in December while regular decision applicants will receive their admission decision in April.

Taking some time to think about college costs and how to pay for the upcoming years of education can be a wise way to spend that time waiting for all of those acceptance letters to come rolling in. Options for paying for college include cash savings, grants and scholarships, federal student loans, and private student loans.

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.

FAQ

How long does it take to hear back after applying to college?

It usually takes four to six weeks to hear back after applying to college, depending on the school’s admissions process and the type of application. Early decision applicants may receive a response in November or December, while regular decision applicants typically hear back between March and April.

What’s the difference between early decision and early action?

Early decision is a binding agreement where, if accepted, you must attend the college, while early action is non-binding, allowing you to apply to multiple schools and decide later.

Do colleges send rejection letters?

Yes, colleges send rejection letters to applicants who are not accepted. These letters are typically sent around the same time as acceptance letters, either by mail or email, depending on the school’s process.

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., 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 04/24/2024 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.

SOISL-Q324-042

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 average home sales price in the second quarter of 2024 was around $500,000, which means a typical buyer will need to accumulate at least $50,000 to purchase a home.

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 who does, it may not be a good idea. Here’s what you need to know about using a personal loan for a down payment.

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 it as a sign of potential financial instability, which raises their risk. As a result, some types of mortgages — including conventional mortgages and FHA mortgages — forbid the use of personal loans as a down payment 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 who 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 — how much 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 themselves, a lender may offer you a higher rate than a borrower using savings for their 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 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.

Recommended: Typical Personal Loan Requirements Needed for Approval

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.

Savings

If you’re not in a rush, you may want to push back your home purchase and ramp up your savings. 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 to get to your goal faster.

Recommended: How to Afford a Down Payment on Your First Home

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

Various local, state, and federal programs 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 search local home-buying programs by state 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 (which are insured by the Federal Housing Administration), 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.

Recommended; Guide to Getting a No Down Payment Mortgage

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.

Recommended: Guide to Personal Loans for Beginners

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. Personal loans from SoFi, for instance, offer competitive fixed interest rates.

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, however, 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.

Photo credit: iStock/whitebalance.oatt

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.

SOPL-Q324-004

We’re a nation of coffee lovers, with java consumption at a two-decade high, according to the National Coffee Association’s 2024 research. Whether you like a cup of basic black coffee or an iced latte with all the bells, whistles, and whipped cream, coffee may feel like an affordable treat.

However, that little indulgence and energy booster is getting more expensive. In fact, between inflation and the higher cost of coffee beans, java prices have increased nationwide. Specifically, in April 2024, the price was 26.5% higher than it was in April 2010, according to U.S. Bureau of Labor Statistics data. This means you’re most likely paying more for your coffee at home and in neighborhood and national chain coffee shops.

While you might not consider spending an extra 25 or 50 cents a cup a big deal, these expenses can add up and mess with your budget. Fortunately, there are lots of ways you can still enjoy your daily cup of joe without going broke. Read on for 17 practical ways you can save money on coffee.

How Much Does the Average Person Spend on Coffee?

It’s estimated that women shell out $2,327 on coffee each year, while men spend $1,934, according to the Perfect Brew. Statistics show Millennials are the biggest spenders with the average 25 to 34 year-old dishing out $2,008 a year on their coffee habit, followed by 35 to 44 year-olds, who spend $1,410 on coffee each year.

Recommended: How Much Should I Spend on Food a Month?

How Spending Money on Coffee Shops Can Add Up

The average price of a cup of coffee-shop joe costs nearly $5 according to the latest data. If you’re buying your coffee five days a week, that’s $25 a week and $100 a month. It might not sound like a lot, but do the math and you’ll find even if you’re only ordering one cup, you’re shelling out $1,200 a year just on to-go coffee. By making a few small changes to your routine, you could potentially save yourself hundreds of dollars and then use that money to open a savings account and sock the funds away for future goals, like a vacation or even a down payment on a house.

17 Great Ways to Save Money on Coffee

Think you might be spending a small fortune on coffee? It may be time to take stock of how much of your money is going towards those pots of Italian roast at home and pumpkin spice lattes when out and about. By incorporating some small changes, you can end up with extra money that can go into savings.

Here are 17 great ideas on how you can lower the cost of buying coffee every day.

1. Grind Your Own Beans

Even though bags of pre-ground coffee and whole beans may cost the same, grinding beans can be more economical in the long run. Why? Whole beans stay fresher longer compared to pre-ground coffee, which is often made with lower quality beans, additives, and fillers, tending to go stale faster. Coffee that’s lost its aroma and flavor may go unused or tossed, resulting in pouring money down the drain along with your brew.

2. Improve Your Brew Method

One reason why you might skip making coffee at home is because it doesn’t taste like it does at the coffee shop. If this is the case, it’s time to up your brewing game. Start by using the right grind size for your coffee method, such as a coarse grind for a French press or a medium-coarse grind for automatic drip. Also try figuring out your preferred coffee strength for the ratio of coffee to water, and understand the best water temperature for your chosen brewing method.

3. Invest in a Quality Coffee Maker

Here’s another smart idea for how to save money on coffee: Get a coffee maker you’re excited about. It will likely inspire you to drink more coffee at home. Purchasing a coffee maker may feel like a bit of a splurge, but in the long run, you’re likely to be spending money wisely. Making coffee at home will offset the cost of daily trips to the coffee shop.

4. Get an Inexpensive Milk Frother

Instead of paying extra for a latte or a cappuccino from your local barista, make your own at home with a milk frother. Milk frothers work by aerating the milk and creating the foam to add to your hot or cold coffee drinks. There are different types of frothers, from handheld to electric, which vary considerably in price, but you can find one on Amazon for as low as $4. Little savings like this can help you live below your means.

5. Drink Your Coffee Black

It might take time to get used to it, but by drinking black coffee, you’ll be saving money on buying milk or creamer in the supermarket and at the cafe. Some national coffee chains charge as much as 80 cents extra or more if you order coffee with certain types of dairy-free milk, such as almond, oat, soy, or coconut. What’s more, when you keep it simple and black, you can really appreciate the coffee’s true aroma and flavor.

6. Switch to a Cheaper Alternative

If you’ve been toying with giving up coffee for a less expensive fix, consider switching to tea, which can cost up to three times less than coffee you make at home. Caffeinated teas such as black, matcha, and Oolong can provide plenty of flavor while still providing you the buzz you need.

The cheapest choice? Decrease the amount of coffee you drink everyday or quit entirely.

7. Refrigerate or Freeze Leftover Coffee

Made too much coffee? No problem. Refrigerate it later and drink it iced, or add it to a smoothie with other ingredients such as peanut butter, banana, vanilla extract, and the milk of your choice. Leftover coffee can also be used to make coffee popsicles or fill an ice tray for cubes you can add to iced coffee.

8. Make Your Own Creamer

Those French vanilla and other flavored creamers can liven up your cup of joe, but they don’t come cheap. Cut your grocery bill by saying no to those costly supermarket creamers. Do a search for homemade creamer recipes on the internet, and you’ll find many different variations. Making your own creamer can be as easy as combining 1 can of sweetened condensed milk, 1-¾ cup skim milk, and 2 teaspoons of vanilla extract.

9. Add Your Own Flavorings Instead of Paying Extra

Before you head out to a coffee bar for one of those flavored treats, try spicing up your coffee at home by sprinkling in cinnamon, powdered cocoa, cayenne pepper, or vanilla extract. Fancy syrups used by coffee shops are easy to create yourself and you can find a variety of recipes online. A couple of teaspoons of maple syrup can sweeten up your java too.

Recommended: 30 Ways to Save Money on Food

10. Order the Smallest Size Coffee

The difference between buying a small and a large size coffee can be as much as 80 cents or more. Opting for a smaller cup over the largest size over the course of a week could save you about $5. That’s $20 a month and a yearly savings of $240.

11. Pay with Cash Instead of Credit

When paying for coffee, it’s easy to whip out a credit card. However, using your card each time and not keeping track can be an eye-opener when your bill comes due. If you’re carrying a balance and have an interest rate of, say, 19%, you’re paying almost 20% more by using your plastic for that cup of joe. Instead, switch to cash only for coffee to become more aware of how much you’re really spending — and to avoid getting into a position of having to pay off outstanding debt.

12. Ask for Gift Cards

For special occasions like birthdays or holidays, put a coffee gift card on your wishlist. A $15 or $20 gift card from a loved one can give you a week or two reprieve from spending your own money at coffee shops.

13. Pay with an EBT Card

The USDA’s Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, provides financial assistance towards groceries for individuals in need. SNAP recipients receive an Electronics Benefit Transfer (EBT) card to buy food items and non-alcoholic beverages at most major supermarkets as well as Amazon, Instacart, and more. This means you can use your benefits in participating retailers to buy such brands as Califia Farms, Starbucks, or Dunkin’ brand packaged coffee, K-cups or cold bottled drinks. Although Starbucks doesn’t accept SNAP at their stand-alone stores, some of its licensed kiosks found inside certain grocery sellers such as Target, Fred Meyer, and Safeway, accept EBT.

The catch? You can only purchase SNAP-eligible items that have a nutritional label. Hot foods and beverages are excluded so barista-prepared coffee isn’t covered. You can check to see what stores in your area take EBT cards with the USDA Snap locator .

14. Check out Coffee ‘Happy Hours’

Look for coffee shop happy hours where you can get your favorite beverages at lower prices. Starbucks, Peet’s, and Ziggi’s Coffee are some national chains that often offer happy hour deals, and your local coffee shop may have them as well.

15. Avoid Hanging Out in Coffee Shops

With more people working remotely, coffee shops have become a popular place to get out of the house and get one’s job done. But, as the hours pass, you’re likely to order more coffee. Just like the price of eating out vs. eating at home can be more expensive, camping out for a longer period of time also means you may feel obligated to purchase food, plus contribute to the tip jar.

16. Budget for Your Coffee

Sometimes you just have to reward yourself with a fancy coffee. This is doable as long as you work it into your weekly budget. That gives your spending some structure and gives you permission to buy that treat guilt-free. As you hone your money-saving skills by sticking to your budget, a PSL can be a great way to celebrate a job well done.

One way to create a flexible budget is to try following the 50-30-20 rule, which teaches you to allocate your take-home income into three categories: needs (50%), wants (30%), and savings (20%). That weekly peppermint mocha can be factored in as a non-essential want.

17. Use a Reusable Cup

In an effort to reduce single-cup waste, some national chains such as Starbucks, Tim Hortons and Peet’s, give customers 10 cents off of each cup of coffee if you bring a reusable cup. Drinking out of an insulated cup not only means you’re helping the environment, but your coffee tends to stay hotter longer too.

Banking With SoFi

Want to find room in your budget for a little more java? Opening the right bank account could help you save and potentially even grow your money. That way you can order a special coffee from time to time and really savor it.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with 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.

FAQ

Is it cheaper to make or buy coffee?

Making coffee at home turns out to be much more affordable than buying coffee at a shop. Depending on the type of coffee maker and coffee you use, you can spend pennies per cup. Using a drip coffee maker can cost about 29 cents a cup compared to $3 or more at a cafe.

How much money do you save if you make your own coffee?

At about 29 cents a cup, making coffee at home can cost as little as $105.85 a year if you drink it every day. On the flip side, getting a $4 coffee at a popular cafe every day can be as much as $1,460 a year. Based on those figures, drinking coffee at home can save you a little more than $1,354 annually. In the bigger picture, over the course of 10 years, you’d save more than $13,540. And that’s without interest.

Is coffee worth the money?

For people who can’t live without their daily coffee, this is a no brainer. Spending money on coffee you love is worthwhile, as long as it fits within your budget. You shouldn’t have to sacrifice your daily pick-me-up. The key is deciding if regular visits to the coffee shop are worth the money, or if you can still enjoy a quality cup of coffee with a less costly alternative.

Photo credit: iStock/Toms93

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

3.80% APY
SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*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.


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

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


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.