Personal loans can help you cover large purchases and emergency expenses, but if you’re not a U.S. citizen, you may wonder if getting a personal loan is even an option. The good news is that it is possible for non-citizens to get personal loans. The bad news is that you may need to jump through a few extra hoops to get approved for financing.
Some lenders view non-citizens as higher-risk borrowers, since they could potentially leave the U.S. before repaying the loan in full. What’s more, they may have little to no credit history in the U.S. As a result, the process of getting approved for a personal loan may involve additional steps and requirements. Here’s what you need to know to get a personal loan as a non-citizen.
Types of Personal Loans for Non-U.S. Citizens
As long as you can meet a lender’s qualification requirements, you have access to a variety of different types of personal loans as a non-U.S. citizen. Below are some types of personal loans you can potentially take out.
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• Secured personal loan: A secured loan requires you to provide collateral, such as a car or savings account, which the lender can claim if you default on the loan. Because this lowers risk for the lender, the minimum required credit score may be lower, and other lending criteria may be less stringent.
• Unsecured personal loan: This is the most common type of personal loan and doesn’t require you to provide collateral to back up the loan. However, the loan requirements tend to be stricter than they are for secured personal loans.
• An online personal loan: Online lenders tend to have less stringent personal loan requirements than traditional banks. However, rates tend to be higher.
Eligibility Criteria for Non-Citizens
While eligibility criteria for non-citizens seeking personal loans varies depending on the lender and the type of loan, here are some common factors that lenders consider.
• Credit score: There’s no universal minimum credit score for a personal loan, but many lenders like to see credit scores of at least 580. If you’re new to the country and don’t have a longstanding credit history or good credit score, it can hurt your odds of getting approved for a personal loan.
• Cosigner: Having a U.S. citizen or permanent resident cosigner can significantly improve your chances of getting approved. The cosigner’s creditworthiness provides additional security for the lender. However, the cosigner will be financially on the hook should you miss any payments.
• Residency status: While lenders legally cannot discriminate against you because of your national origin, they are allowed to ask you about your immigration and residency status, and to request proof of that status. Those with green cards (permanent residents) generally have a better chance of approval than those with temporary visas.
• Income and employment: Demonstrating a stable source of income and employment history reassures lenders that you will be able to repay the loan.
• Debt-to-income ratio: A high debt-to-income (DTI) ratio could mean that you’re financially squeezed and can’t afford to take on more debt. Lenders typically want to see DTI ratios that are below 36%. You might still get approved if you have a higher DTI but an income on the higher end or some savings stashed away.
• Shop for a lender. Not all lenders provide personal loans to non-U.S. citizens. You might need to expand your search beyond traditional banks to include credit unions and online lenders and platforms. Shopping around can help you find a lender that meets your particular needs and circumstances.
• Get prequalified. If a lender has a prequalification option, you can get a preliminary offer, which gives you an idea of the type of loan and rate you’ll likely get approved for after you officially apply. This typically requires only a soft pull on your credit, which won’t impact your score.
• Consider adding a cosigner or collateral. If you’re unable to qualify for the personal loan you want, adding a cosigner — preferably a U.S. citizen — to your application may increase your chances of getting approved or help you get a lower interest rate or higher loan amount. If you don’t want to use a cosigner, you may be able to improve your chances of approval by applying for a secured personal loan.
Alternatives to Personal Loans
If you find it hard to meet a lender’s personal loan requirements, or find your borrowing options are too expensive, here are some other ways you may be able to access funding.
Borrowing from Friends or Family
Getting a loan from someone close to you could allow you to borrow money at a low interest rate (or interest-free). If this is possible, you’ll want to put the agreement in writing, including the repayment terms. Just keep in mind that this type of loan, even if you pay it off in full and on time, won’t help you build your U.S. credit. And should you have trouble repaying the funds, it could strain your relationship.
Salary Advance
Some employers will let their employees borrow against their future earnings to cover a one-time emergency. If your employer offers this benefit, they might offer you anywhere from 50% to 80% of your net monthly pay ahead of schedule. The advance may be free of charge or involve a small fee or interest rate to cover the extra accounting required for advances.
Immigration Loan
You may be able to find a local credit union that offers loans specifically for non-citizens. These loans may have names like “dreamer loans,” “immigration loans,” or “DACA loans,” and are designed to help cover the cost of applying for citizenship and associated legal fees. However, you will need to become a member of the credit union.
It’s possible to get a personal loan even if you are not a U.S. citizen. However, you will likely need to navigate some additional requirements. It’s important to understand the types of personal loans available, make sure you meet the lender’s eligibility criteria, and prepare all the necessary paperwork.
To find a non-citizen personal loan with the best rates and terms, it’s a good idea to explore multiple lenders and compare their offers. If a traditional personal loan isn’t feasible, consider looking into a family loan, salary advance, or a credit union loan designed for non-U.S. citizens.
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 NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Do you need an SSN for a personal loan?
While some lenders don’t require a Social Security Number (SSN), the credit bureaus have no other way to pull your credit file. So, in effect, you do need an SSN at this time.
Can a non-citizen have a credit score?
Yes, a non-citizen can have a credit score in the U.S. The consumer credit bureaus can create credit reports using your personal identifying information, such as your name and address.
If you’ve recently moved to the U.S., however, you may not have a U.S.-based credit report or credit score. If that’s the case, you may be able to build your U.S. credit by getting a secured credit card or credit-builder loan, or by becoming an authorized user on a family member’s or friend’s U.S. credit card.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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 .
Right now, nine states do not charge state income taxes, which means residents in those states don’t need to file a state-level tax return. While an obvious benefit of that is a reduction in their annual tax liability, are there also drawbacks to living in a state without income taxes?
Here, learn the pros and cons of no state income tax. This intel can help you determine if living in a state with no income tax is better for you.
Key Points
• Living in states without income tax can significantly reduce an individual’s overall tax burden, benefiting primarily high-income earners during tax season.
• Higher sales and property taxes often compensate for the lack of income tax, potentially placing a heavier burden on lower-income residents in these states.
• Tax filing becomes simpler for residents in states without income tax, eliminating the need for state tax returns and associated expenses for tax preparation.
• The absence of income tax can lead to reduced funding for essential public services, such as education and infrastructure, impacting the quality of life.
• Although no income tax may attract new residents, the overall cost of living in these states can still be relatively high, complicating financial advantages.
Which States Have Zero State Income Tax?
Currently, nine states do not have state income tax on earned income:
• Alaska
• Florida
• Nevada
• New Hampshire*
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
*New Hampshire currently charges state taxes on interest and dividends but not on income, but it is set to phase this out after 2026, as Tennessee has recently done.
What Are the Pros and Cons of Having No State Income Tax?
At first blush, having no state income tax sounds like a win for Americans — and for many high-earners, it might be. However, there are also downsides to living in a state with no income taxes. Here’s a closer look.
Pro: You’ll Spend Less Money on Income Taxes Overall
While nearly everyone must file federal taxes, residents in states without income taxes will benefit from a lower overall tax bill each tax season. This can be a boost to one’s financial health.
Con: You’ll Likely Spend More on Sales and Property Taxes
Just because states don’t charge income taxes doesn’t mean they’re not getting revenue through different types of taxes. States without income taxes sometimes have higher sales and property taxes, for example.
Tennessee, Washington, Nevada, and Texas are all in the top 20 states with the highest combined state and local sales tax. New Hampshire, Texas, and Florida all have property taxes higher than the national average — with the former two in the top 10 states overall.
An added con to this: Unlike income taxes, which get progressively higher based on your income level and resulting tax bracket, sales taxes are the same no matter how much you make. That means lower-income taxpayers shoulder a heavier tax burden in states with no income taxes, according to the Institute on Taxation and Economic Policy.
Pro: Tax Filing Is Easier
If you live in a state without income tax, filing can be a breeze. You’ll have one less tax filing deadline to worry about.
Those who reside where state tax is collected, however, may need to invest in professional tax software or an accountant to handle their state taxes. This is of course an added expense — and creates extra steps in the tax filing process.
Con: There’s Less in the Budget for Infrastructure and Education
States use income taxes to fund projects like improving infrastructure and investing in education. Without income taxes, there could be less in the budget for such investments.
For instance, Nevada, Florida, Tennessee, and South Dakota are all among the top 10 states that spend the least amount of money per K-12 student, per a report from the Education Data Initiative. The common thread? These four states don’t have income taxes.
Pro: Having No Taxes Can Attract People to Move to the State
A lack of state income taxes may be a selling point for many people looking to move, whether they are looking for a more affordable lifestyle, a welcoming state to retire in, or to be closer to friends and family.
Why does this matter? An influx of residents to a state can be a boon to the local economy.
Con: Cost of Living May Be Higher
Though it’s not the case across all nine states without income taxes, the cost of living could be higher. Four out of the nine states were among the 20 most expensive states to live in last year: Alaska, New Hampshire, Washington, and Florida.
Now, here’s how the pluses and minuses stack up in chart form:
Pros
Cons
Less money spent on income taxes
Potentially higher sales and property taxes
Easier tax filing
Potentially lower infrastructure and education spending
Potential state population growth
Potentially higher cost of living
Why Do Some States Have Zero State Income Taxes?
Some states may choose to enact a no-state-income-tax policy to encourage Americans to move there from other states and thus boost their economy. IRS and Census data backs up this theory.
It may also reflect local political sentiment: Conservative politics tend to favor lowering taxes, while progressive politics often prioritize the social programs that can be achieved through higher taxes.
Do States With No Income Tax Save Residents Money?
States with no income taxes save residents money — on their income taxes. However, many states without income taxes can be expensive in other ways. They might have a higher sales tax, higher property taxes, and/or a higher cost of living.
Before deciding on a move to a state without income taxes, it’s a good idea to view the whole picture by researching sales and property tax rates and overall cost of living.
Some taxpayers may say that living in a state with no income tax is better, but others might not. In general, high-income earners benefit more from a lack of state income taxes, since they may enjoy reduced taxes. Low-income earners, however, may actually shoulder more of the tax burden when states generate revenue from sales tax.
Taxpayers should also consider how much they value lower taxes versus more social programs and investments in things like infrastructure and education. Each individual will have their own opinion.
The Takeaway
States without income taxes may save you a lot of money when it’s time to file taxes, but there may be hidden costs of living in such states, like higher sales and property taxes. Before moving, it’s important to consider the full picture to better understand the potential impact on your finances.
Regardless of where you live, it can be a wise money move to take advantage of a high-yield bank account to grow your savings. When you open a SoFi Checking and Savings account, you’ll enjoy a competitive annual percentage yield (APY) on deposit and pay no account fees, both of which can help your cash grow more quickly. Plus, there’s the convenience factor: You’ll spend and save in one place, and qualifying accounts can access their direct deposit paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.
FAQ
Are other taxes higher in states with no income tax?
Though it varies, it is common for states without income taxes to make up for that lack of revenue through other forms of taxes, primarily sales and property taxes.
Are food costs more in states with no income tax?
Food costs contribute to a state’s total cost of living. In 2022, four of the 20 most expensive states to live in had no income taxes. While that doesn’t inherently mean food costs are higher in such states, it may validate that a disproportionate number of states with no income tax have higher costs of living.
Is living in a state with no income tax better for low- or high-income taxpayers?
High-income taxpayers benefit more from living in states with no income taxes. The more money you make, the higher percentage of your income you must pay in taxes, so high-earners will likely save more.
In addition, states with no income tax may see less spending on education, which can affect the quality of learning for students. High-income earners can probably more easily afford private schools for their children; such schools do not rely on taxes to operate. Low-income earners may not be able to afford private schools.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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.
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.
It’s often — but not always — possible to deposit cash at an ATM. Whether you can feed bills into the machine can depend on your bank, the particular device you’re using, and other factors. If you are able to make the deposit, fees might be charged.
It’s important to understand the ground rules for depositing cash at an ATM so you can get your money where you want it to go, with a minimum of hassle.
Key Points
• Depositing cash at an ATM depends on the bank and specific machine, so verifying capabilities in advance is essential for a smooth transaction.
• Users must insert their bank card and PIN to access ATM options, and some machines allow cardless transactions through mobile devices.
• Cash can typically be deposited in specific amounts, with limitations on the number of bills accepted at once, usually between 40 to 50.
• Fees may apply when using out-of-network ATMs, and availability of deposited funds can vary, with delays up to five business days for certain transactions.
• Potential issues can arise during cash deposits, such as machine malfunctions, so it’s advisable to document any problems and report them to the bank.
How to Deposit Cash at an ATM
Here are the usual steps for depositing cash at an ATM, once you have your bills counted and ready.
Locate an ATM
In order to avoid wasting time at an ATM that won’t accept cash, it’s a good idea to do a bit of research ahead of time. Log onto the website or app for your financial institution, and look for an ATM locator, which will show you all nearby locations and may also specifically mention which services those ATMs can perform.
It’s worth noting that those convenient ATMs that you may see at your local grocery store or at a concert venue may not accept cash. They are likely there just to provide people with some crisp bills for spending.
🛈 SoFi only offers ATM withdrawals at this time. For members looking to deposit cash into their SoFi Checking & Savings account, you can follow these instructions.
Insert Your Bank Card
Once you’ve arrived at an ATM that will accept a cash deposit, you’ll most likely need to use your debit card or other kind of bank card and personal identification number (PIN) to confirm your identity. That will allow you to pull up the ATM’s service options. Some banks may grant access to an ATM using cardless withdrawal technology, which involves using your phone vs. your bank card to complete transactions.
Follow the On-Screen Instructions
Next, you’ll follow the instructions to make a cash deposit. For instance, if you have multiple accounts, such as a checking and savings account, you’ll typically be asked to select the account where the money should be deposited.
Feed Your Money Into the ATM
Ready for the main event? It’s now time to feed your bills into the machine. It’s worth noting that some ATMs may have limits as to how many paper bills they can take at once (perhaps 40 or 50), and ATMs typically don’t take coin deposits. Incidentally, a few older ATMs still require you to put bills into the designated envelopes they provide prior to depositing.
You will usually have the opportunity to confirm the deposit’s amount during this step, which is a valuable checkpoint.
As with any situation where you’re feeding bills into a machine, it’s possible that the machine may spit one back out if it reads it as damaged or potentially counterfeit. And, of course, any time you are handling cash, you want to take note of your surroundings and make sure you feel safe when conducting your transaction.
Sign Out
Last of all, you can ask for a receipt, if you like (you will usually be offered the option of a printed or an email receipt; either can help with record-keeping). Also make sure you are signed out of the ATM before you leave, which is a wise move whenever you use one of these terminals.
Can You Deposit Cash at Any ATM?
You can’t necessarily deposit cash at any ATM. If you are a customer of the bank, you probably can utilize their ATMs, but if a machine is out-of-network, you may or may not be able to deposit your bills there and have them land in your account.
For this reason, it’s important to check to see which ATMs are part of your bank’s network and accept cash. This can save you a wasted trip to an ATM, only to learn that the device doesn’t accept bills from clients of your financial institution…or doesn’t accept bills at all.
If you are permitted to deposit cash, you may have to pay a fee. Currently, out-of-network fees average $4.73 per transaction. In addition, you may have to wait an extra couple of days to have the funds turn up in your account (more on that in a moment).
Can You Deposit Cash at an ATM for an Online Bank?
Customers of online-only banks may be concerned that they won’t be able to deposit cash at an ATM. However, some of the leading online-only banks partner with ATM networks so you can enjoy this aspect of banking. For example, you may find that you can access more than 50,000 global ATMs for free (whether you want to withdraw or deposit cash, or conduct other business) with some of the key players.
When Depositing Cash at an ATM, Is It Available Immediately?
At some ATMs, cash deposits are made available immediately, while with other ATMs you may experience some lag between the moment you feed the money into the machine and the moment the funds become available.
The FDIC requires banks to make cash deposits available within a certain amount of time. In the case of an in-network ATM, availability is not required until the second business day after the deposit. At an out-of-network ATM, however, funds don’t have to be made available until the fifth business day, so it’s wise to take that into account.
Again, your bank may have more information available on their website as to their specific policies.
Things to Consider When Depositing Cash at an ATM
Most of the time, depositing cash into an ATM goes smoothly and may happen for free. But there are a couple of scenarios to be aware of and potential hiccups to be prepared for.
Depositing Cash at an ATM That Isn’t Your Bank
As mentioned above, you may or may not be able to deposit cash in an out-of-network ATM. For instance, if you have an account at Bank of America, you probably can’t stick a couple of hundred-dollar bills into a Chase ATM.
What’s more, if you can make a deposit at an out-of-network ATM, there may be fees involved. It will likely take longer to process and become available to use than if you’d stayed in your own network.
If you keep your money at an online-only bank, you may want to stick to their network or make sure your financial institution offers a fee-reimbursement feature. You can usually locate in-network or partner ATMs by checking your bank’s app or website or by calling their customer service number.
Potential Problems
Technology can offer many benefits, such as speed and convenience, but it isn’t perfect. When you are trying to deposit cash at an ATM, you might in rare cases hit a snag. Perhaps the machine won’t accept your bills, or it miscounts the amount deposited.
If an issue like this happens, make sure to note down the details, such as the date, time, location, and what transpired. You can then report the issue to your bank and/or the owner of the ATM to get the matter resolved. If you lost money in this way, you may want to involve the Consumer Financial Protection Bureau to help you get refunded.
Fees
You are unlikely to encounter a fee if you make a deposit at your bank’s ATM. The same can hold true if you keep your accounts with an online-only bank and use their network of terminals.
However, life can get complicated, and you may need to deposit cash when an in-network device isn’t anywhere nearby. In that case, you are likely to incur an out-of-network ATM fee. As noted above, these are currently averaging $4.73 a pop, according to one recent survey, so this can really add up.
Check with your bank ahead of time to get a better grasp of their specific ATM fee policies and avoid these unnecessary fees when possible.
Limits
There can be limits on how much you can deposit at a given time at an ATM. Typically, this isn’t a dollar amount but rather a cap on how many bills can be inserted. For instance, if an ATM allows no more than 50 bills at a time, that might mean you can only deposit $250 if you have $5 bills or as much as $5,000 if you have $100 bills.
You can usually deposit cash in an ATM in a few simple steps, which can be a convenient way to get money into your checking or savings account. Depending on whether you insert your bills at an out-of-network vs. in-network machine, the transaction may involve fees and potentially a delay in the funds becoming available. It can be wise to do a little research on your options and rely on in-network machines whenever possible.
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.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.
🛈 SoFi only offers ATM withdrawals at this time. For members looking to deposit cash into their SoFi Checking & Savings account, you can follow these instructions.
FAQ
How do you deposit cash at an ATM?
To deposit cash at an ATM, you’ll need an ATM that accepts cash, your bank card, and PIN. Then you simply follow the directions on the machine’s screen. However, it’s good to research first where ATMs in your network are or how much of a fee will be charged to deposit cash at an out-of-network ATM.
Can you deposit checks at an ATM?
Yes, you can usually deposit a check into an in-network ATM, though some machines may not accept them.
Are there ATM deposit fees?
Whether you will pay to use an ATM varies. Typically, you will not be assessed a fee to use an ATM that belongs to your bank or the network of ATMs it partners with. However, if you use an out-of-network machine for a transaction (withdrawal or deposit), you will likely be charged a fee of a few dollars.
How much cash can be deposited in an ATM?
There may be a limit on the number of bills you can deposit at an ATM vs. a limit on the dollar amount. For example, some ATMs accept no more than 50 bills at a time.
How can I deposit money without going to the bank?
You can often deposit cash at one of your bank’s ATMs or a machine that’s part of your bank’s network. Another method would be to buy a money order made out to yourself and then use mobile deposit to get it into your bank account.
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. 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.
*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.
Checking accounts and debit cards are both key to storing and accessing your money for making everyday payments. Think about how often you use them as you pay bills, grab a latte, and check your balance to see if you can afford some new shoes.
Though they are linked, they are two separate financial tools — and it’s possible (though uncommon) to have one without the other.
Key Points
• A checking account allows individuals to store and access funds for daily transactions, often featuring options for writing checks and electronic transfers.
• A debit card provides a convenient method for making purchases and withdrawing cash from a linked checking account, requiring a PIN for secure transactions.
• Both checking accounts and debit cards offer various features, such as direct deposit capabilities and mobile wallet integration, enhancing accessibility and usability.
• Checking accounts are typically insured by the FDIC, while debit cards are linked to these accounts, providing an easy way to manage finances without incurring debt.
• Choosing the right checking account and debit card involves considering personal needs, such as fee structures, interest rates, and banking features that align with individual financial goals.
What Is a Checking Account?
A checking account is a type of bank account that allows you to access your money when you need it for paying bills or making purchases. Unlike other deposit accounts (like saving accounts), checking accounts allow you to make regular withdrawals by writing checks, swiping your debit card for purchases, or taking money out of an ATM.
Most checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or NCUA (National Credit Union Administration), meaning your funds are protected up to $250,000 per depositor, per bank, per ownership category. You can typically fund your checking account through bank transfers and via direct deposit from your employer.
You can also connect your checking account to a peer-to-peer payment app like Venmo or Cash App to send money to and receive money from friends and family. Some banks may even offer built-in payment programs through their mobile apps.
Some checking accounts charge monthly fees while in other situations you can open a free checking account. Banks charging fees for accounts may offer ways to waive the fees. Other “fine print” details to consider when selecting a checking account include minimum balance requirements, overdraft fees, and annual percentage yield (APY).
A debit card is a form of payment that gives you access to the funds in your checking account.
You can use a debit card online and in person to make purchases, wherever that card is accepted. You can even add your debit card to mobile wallets, like Apple Pay or Google Pay. You typically must use a unique personal identification number (PIN) to use the card for in-person purchases and ATM withdrawals.
Unlike a credit card that allows you to loan money from the card issuer, a debit card only gives you access to the funds in your checking account. If you don’t have enough funds in your account to cover a purchase, the transaction may be declined or you may overdraw the account (and face overdraft fees).
You can also use a debit card to withdraw cash at ATMs. Most banks and credit unions offer a network of fee-free ATMs where you can safely take out cash without incurring charges. You may also be able to request cash back at the point of sale at some businesses when paying with your debit card.
While we typically think of debit cards as a component of a checking account, consumers without a checking account can purchase a prepaid debit card, load funds onto it, and spend it at stores like a bank debit card.
Do You Automatically Get a Debit Card When Opening a Checking Account?
Most checking accounts come with debit cards nowadays, but it’s always a good idea to confirm before opening up a new account. Upon account creation, the bank or credit union will generally send your debit card in the mail. In some cases, you may have to request the debit card.
Not all debit cards are created equal. When looking for a checking account with a debit card, you may want to prioritize one that:
• Has a large network of ATMs
• Doesn’t charge fees for card replacements
• Doesn’t charge foreign transaction fees
• Offers cash back on debit card purchases.
Can You Have a Checking Account Without Having a Debit Card?
While most checking accounts come with debit cards these days, it’s still possible to encounter a checking account that doesn’t have a debit card. However, you’re more likely to find a checking account that no longer supplies free paper checks to members.
Debit Card vs. Checking Account
Let’s break down the difference between a checking account vs. a debit card.
Checking Account
Debit Card
Deposit account at bank or credit union that is typically federally insured
A card that allows you to make purchases and withdraw cash, typically tied to a checking account
May earn interest
May earn cash back
May have monthly maintenance fees
May have foreign transaction fees and overdraft fees
Can be used for online transactions
Can often be used for online transactions
Can be linked to P2P app
Can be linked to P2P app
Federally insured
Insured if tied to insured account
The best way to think about the difference between checking accounts and debit cards? A checking account is a deposit account for storing and spending your money; a debit card is a common tool to access the money in that deposit account.
Pros and Cons of Checking Accounts
Now that you know how a debit card vs. checking account stacks up, here’s a closer look at checking accounts. These accounts are a staple of personal finance and, as such, offer plenty of benefits to consumers. There are also some downsides to be aware of.
Here are some of the pros and cons of checking accounts:
Pros
• Easy access to funds: A checking account allows you to make purchases (in person or online), pay bills, and receive direct deposit paychecks.
• Security: Checking accounts are typically insured by the FDIC or NCUA.
• Banking benefits: Depending on the checking account, you may enjoy premium features like mobile check deposit, automatic savings tools, and early paycheck access.
Cons
Checking accounts have a specific and necessary purpose for most consumers, but they do have drawbacks:
• Low or no interest: In terms of checking vs. savings accounts, checking accounts typically have low APYs — if they earn interest at all.
• Fees: Some checking accounts may have monthly maintenance fees, overdraft fees, account inactivity fees, and other charges that can add up.
• Minimum balance requirements: Some checking accounts may require you to maintain a specific amount of funds in your account. They may also require a minimum deposit to open the account.
Here are the pros and cons of checking accounts in chart form:
Pros of a Checking Account
Cons of a Checking Account
Easy access to funds
Low or no interest
Security
Fees
Banking benefits
Minimum balance requirements
Pros and Cons of Debit Cards
To better understand the difference between a debit card and a checking account, it can be helpful to consider debit cards’ unique features. These cards also have their fair share of pros and cons.
Pros
Advantages of debit cards include:
• Easy way to spend and withdraw cash: Debit cards are more convenient than paper checks and give you quick access to your cash at ATMs.
• No risk of debt: Unlike credit cards, debit cards don’t let you spend money on credit. This means you don’t risk overspending and falling into high-interest credit card debt.
• No fees or interest: Debt isn’t the only risk of credit cards. You also have to worry about annual fees and annual percentage rates (APRs) when opening a credit card. Neither applies to debit cards.
Cons
Debit cards have drawbacks, as well:
• Less fraud protection: Credit cards may pose more debt risk, but they typically offer better fraud protection than debit cards.
• Ability to overdraft: Some banks and credit unions charge fees if you accidentally overdraft using your debit card.
• Daily spend limits: Your debit card likely has a daily spend limit, and it may be less than you think (possibly $300 or $400). Before using your card for a big purchase, you may want to check with your bank to see if they need to increase the limit temporarily.
Take a look at how these pros and cons look in chart form:
Pros of a Debit Card
Cons of a Debit Card
Easy way to spend and withdraw cash
Less fraud protection
No risk of debt
Ability to overdraft
No fees or interest
Daily spend limits
Tips for Finding the Right Checking Account and Debit Card
How can you find the right checking account and debit card for you? Each person’s banking needs are different, but here are a few tips to get you started:
• Think about the features that are right for you: It’s likely that no checking account will tick all the boxes for you, so it’s a good idea to make a list of the most important features of your ideal checking account. Maybe you want an interest-bearing account that also has a cashback debit card, or perhaps you just want a standard account with no monthly fees or overdraft fees. Deciding on your wish list will help you narrow down the options.
• Ask friends and family: Getting recommendations from people you trust is a great way to instill confidence in any big financial decision.
• Consider online banking:Online banks can often offer lower (or no) fees and higher interest rates because of their low overhead. With the advent of mobile banking, including mobile check deposit, online bill pay, and P2P payments, you may find that you don’t miss your brick-and-mortar bank — while enjoying the checking and debit features.
• Bank in one place: It’s possible to have checking and savings accounts at separate institutions, but you may appreciate the convenience of banking in one place (or in one app). If you already have a credit card or savings account with a specific institution, it might be worth researching their checking account and debit card offerings.
Banking With SoFi
Looking for a new checking account with a debit card? Open an online bank account with SoFi. Our Checking and Savings account allows you to unlock a wealth of banking features, including a competitive annual percentage yield (APY), no account fees, automatic savings tools, and cashback on select local purchases when swiping your debit card.
Bank smarter with SoFi, and see why people love the SoFi debit card and Checking and Savings Account.
FAQ
Is a checking account a debit card?
A checking account is not a debit card. Rather, a debit card is a common way for consumers to spend and withdraw cash from their checking accounts.
Can you withdraw cash without a debit card?
It is possible to withdraw cash without a debit card. If your bank has a physical branch, you can go in person to take out funds. Some banks offer ATM cards for ATM withdrawals, and others may even offer cardless ATMs that allow you to access your funds through a mobile app.
Do checking accounts come with a debit card?
Most checking accounts come with a debit card. The bank may automatically send you the card upon account creation, but in some cases, you may have to request the card before the bank will send it.
Photo credit: iStock/Phiromya Intawongpan
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.
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.
At some point in your financial life, you’re likely to want to sign over a check to someone else instead of depositing it or cashing it. Maybe you received a check but don’t currently have a bank account so a friend will cash the check for you. Or perhaps you want to endorse a check you received and give it to your landlord as part of your rent payment.
To sign a check over to someone else isn’t hard, but you do need to follow the right protocol. In a few simple steps, the check can be ready for processing by the person you’re giving it to.
Here’s a quick guide on how to sign over checks to someone else, plus some points to consider before accepting a check that has been endorsed to you.
Key Points
• Signing over a check involves a few important steps to ensure it is valid and acceptable by the recipient’s bank.
• Verifying the check’s date is crucial, as banks typically only accept checks that are less than six months old.
• Endorsing the check requires writing your signature along with “Pay to the order of [Recipient’s name]” on the back of the check.
• Confirming the recipient’s bank policies regarding third-party checks is essential to avoid complications during the cashing or depositing process.
• Alternatives to signing over a check include using money transfer apps or opening a bank account if unable to cash the check directly.
5 Steps to Signing Over a Check
Generally, when someone writes you a check, you (the payee) are the only person who can cash it or deposit it into your bank account.
But can you sign a check over to someone else? Yes. These five steps detail how to sign a check over to someone else (you may hear a check that’s been signed over referred to as a “third-party check,” incidentally).
1. Make Sure the Check is Still Good
Before you begin the process of signing over a check, it’s a good idea to take a look at the date it was written by the payer, especially if the check has been lying around for a while.
How long are checks good for? Generally, checks are good for six months. After that, the bank may refuse to accept it.
If the bank does accept a check older than six months, the check could potentially bounce if the issuer no longer has the funds in their account.
2. Get the Okay From the Recipient
Before endorsing a check to a third party, whether that’s a person, a business, or a landlord, it can be wise to first reach out to that third party and confirm that they are open to accepting this form of payment.
When moving through the signing over process, it’s important that you and the recipient both agree to the transfer.
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3. Verify the Bank Will Allow the Signed Over Check
Banks often have different rules and requirements when it comes to accepting third-party checks.
To help ensure the process will go smoothly, it can be a good idea to call the recipient’s bank and ask about their policies before you endorse the check.
That way, you can avoid adding extra signatures and names to the back of the check (which can create confusion and delays if you later need to cash or deposit it somewhere else).
You may also want to find out what kind of identification the recipient will need to bring to the bank or if there is anything special they should do or know before bringing the check to the bank.
4. Endorse The Check Correctly
The next step in how to sign a check over is to endorse or sign it. Checks that typically come in your checkbook have an area on the back that reads “Endorse Check Here.”
On the line just below that, you will want to sign your name in pen, writing it just as it appears on the front of the check.
Underneath your signature, you’ll then want to write, “Pay to the order of [Recipient’s name].”
It’s a good idea to clearly write out the recipient’s name as it appears on their driver’s license or other photo identification they will use at the bank when depositing the check.
Check’s often say “do not write, stamp or sign below this line” beneath the endorsement area. You’ll want to try to avoid running into this area. If you do, the bank may refuse the check.
Once you’ve endorsed the check, you will have a “third party check” that you can give to the person you signed it over to so that they cash or deposit the check into their bank account.
While it may not be essential, you may also want to consider accompanying the recipient to their bank with your own photo identification to ensure it’s a seamless transaction and in case the bank teller has any questions.
If you decide you will be going to the bank together, you may want to hold off signing over the check until you get there. That way, you can endorse the check right in front of the teller after showing your ID.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 3.80% APY on savings balances.
Up to 2-day-early paycheck.
Up to $3M of additional FDIC insurance.
Can You Deposit Someone Else’s Check in Your Account?
Depending on your bank, you may or may not be able to deposit or cash a check that has been signed over to you.
As mentioned above, some banks might not want to accept an endorsed-to-you check because there’s a chance it could be a fraudulent check. Many check-cashing places won’t accept this form of a check either.
That’s why it’s a good idea to check with your bank before accepting a third-party check as a form of payment.
In addition, you may want to keep the following considerations in mind before accepting a signed-over check as opposed to one written directly to you.
• They can be less convenient. Unlike a regular check, you typically can’t deposit a third-party check at an ATM or upload it via your bank’s mobile deposit app. Getting the check cashed or deposited generally requires a trip to the bank.
• It could be a scam. There are lots of fake check scams out there (see below for more details).
• It could potentially bounce. Even if you know and trust the person who is signing the check over to you, there may still be a bit of risk involved. That’s because you can’t be certain the original person who wrote the check has the funds to cover it. If they don’t, it will be a case of the check bouncing, and you won’t get the money.
Alternatives to Signing a Check Over to Someone
Perhaps you discover that your bank won’t take a third-party check. Or what if the person you wanted to sign a check over to says “no thanks”? Now what? Try these options.
Use a Money Transfer App
If you wanted to sign a check over to someone because you are trying to pay them, you could instead deposit the check and use a money transfer app, such as PayPal, Venmo, or Cash App.
Open a Bank Account
If the reason you want to sign over a check is that you don’t have a place to deposit it, you could open a free checking account. Or, if you have had issues with your banking in the past (such as too many overdrafts or an account being closed by your bank), you might look into what is known as a second chance checking account. These can have some restrictions but allow you access and may eventually be transitioned to a standard checking account.
Try a Check-Cashing Business
If you have a received check but don’t have an account to deposit it into and need to get funds to someone, you could try a check-cashing business. While this can be a convenient option, the fees can be quite high.
Not all banks accept checks signed over to someone else. That is why it can be a smart move to check first before you try to go this route. You or the person to whom you signed over a check could wind up discovering that the check is not accepted for deposit once you arrive at the bank. Or it could be rejected if mobile or ATM deposit is used.
Also, if the bank does accept these checks and you are going the in-person route to deposit it, you may want to ask what sort of identification may be required. You may need some additional ID in order for the check to be cashed or deposited.
Watch Out for Check Cashing Scams
Third-party checks may be used as a ploy in fraudulent transactions, so be wary. You could become a victim of one if someone you don’t know offers to sign over a check to you (often for a large amount) as payment or in exchange for cash. For instance, if you were selling a used mobile phone for $400 and a person offers to sign over a check for $500 to you and tells you to keep the excess, that’s a major red flag.
That’s why it can be wise to only accept an endorsed check from a person you know and trust or verify the check before depositing.
Opening a Checking Account With SoFi
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.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.
FAQ
How can you cash a check that is not in your name?
If you want to cash a check that is not in your name, you could have the person to whom the check is made out endorse the check to you. Then, make sure that your bank will accept it. Another option is to request a new check from the payor if it was mistakenly made out to the wrong name. Or contact your bank for guidance.
Can you mobile deposit a check signed over to you?
It is likely that you can mobile deposit a check that has been signed over to you, but it can be wise to double-check your financial institution’s policies to be sure.
Can someone deposit a check for you without your signature?
Generally, banks require a signature on the back to deposit a check. If someone is depositing a check for you, it will likely need to say “For deposit only” and have your signature to be accepted.
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. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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