3 Summer Jobs Ideas for College Students

When summer rolls around, many college students decide to take a break from their academic courses and take on a summer job. Working isn’t just a way to earn some extra money. In some cases, it could also be a chance to gain valuable professional experience.

Of course, not all jobs are created equal. Let’s take a look at what to consider when seeking a summer gig and three job ideas that may be well suited for college students.

Key Points

•  Summer jobs can help you build your resume and gain valuable skills.

•  You’re more likely to find a suitable summer job if you apply early.

•  Three top job options for college students are online tutoring, freelance web design, and retail sales.

•  Benefits of these jobs can include flexible schedules and opportunities for professional growth.

•  Challenges may include managing time zones and dealing with difficult customers.

Summer Job Considerations

Ideally, a college student’s summer job will mesh with their skills, passions, and career goals. So when brainstorming jobs you might want to go after, think about the unique talents, goals, and experiences you bring to the table. For example, a student athlete can make money by offering personal training sessions, mentoring younger athletes, or working as a camp counselor.

Another strategy is to zero in on gigs that are available for professionals in your field of study. For example, if you’re on the education track, you may want to look into common side jobs for teachers. Which ones could you qualify for now? Possibilities may include being an online tutor or test scorer or doing freelance writing, editing, or proofreading.

You could also focus on side hustles with low startup costs, like building websites for people, making and selling handmade items, creating a fee-based online course, or delivering food and groceries.

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When to Start Applying for Summer Jobs in College

 
In general, the sooner you apply for summer work, the better. This is especially true if you’re planning to live and work in fields or areas where the job market is more competitive. Some employers start posting summer job openings in the winter to give them time to find the best candidates. Even if an employer doesn’t start the process that early, they’ll still need time to collect and review applications, conduct interviews, hire employees, and get their staff ready to begin work by summer.

 
 

Pros and Cons of a Summer Job

While the idea of relaxing all summer may be appealing, having a job comes with its share of benefits. Working is an excellent opportunity to build a strong resume, because you can pick up hands-on, relevant experience and sharpen essential soft skills like communication and problem-solving. It’s also a chance to discover more about your working style, preferences, and strengths and find out if you like working in a particular industry or field before committing more fully to it.

A summer job is a good way to expand your professional network, which can come in handy when you graduate and start looking for full-time employment. Managers and co-workers from your seasonal gig can provide references or even keep you in mind if a permanent position opens up at their company.

Plus, the money you earn from a summer gig can help be put in savings or used to pay for school and living expenses. A spending app can help you to more effectively manage your finances.

Depending on your situation, there are some potential drawbacks to working in between school years. You’ll likely have less time for other activities, such as hanging out with your friends or relaxing. You may not also be able to take summer classes, which could help you graduate more quickly.

​​Recommended: Jobs That Pay for Your College Degree

Tips to Finding a Summer Job

If you want to work in the summer, there are plenty of jobs available — especially if you know where to look. Colleges often post listings of available jobs on or near campus, so be sure to check in with your school’s career services center.

It’s also a smart idea to tap into your network, including professors, parents, mentors, and former employers. They may know of an open role or suggest people you can contact.

Online job sites are another good source of job leads. Many allow you to search for openings by industry, location, employment type, and experience level.

Top 3 Summer Jobs Ideas for College Students

Some summer jobs are especially well suited for college students. They can be done in the short term, provide an opportunity for students to apply what they’ve learned in school, or offer some control over schedule and pay rate. Three jobs to consider: online tutoring, freelance web designer, and retail sales associate. Here’s what to know about each.

Online Tutoring

An online tutor typically helps individual students understand their lessons, assists them with homework assignments, and provides extra work as needed. Some tutors prefer to rely on word of mouth for clients, while others offer their services through an online tutoring website.

In general, online tutors set their own hours and rate. The average starting rate is around $18-$21 per hour, according to Care.com, but that amount can increase significantly based on experience, grade level, subject matter, and other factors.

If you apply with an online tutoring site, you will likely need to provide information about your educational and work history. Educational requirements can vary widely by platform, so be sure to research what’s needed. Background checks are typically part of the process, and the company may also want to know the type of computer you plan on using and whether you have high-speed internet access.

Pros

•   Flexibility — you will likely be able to control when and where you work.

•   The money can be good for a side gig.

•   You can make a real difference in students’ lives.

Cons

•   Internet issues and technical glitches can disrupt your tutoring.

•   Working with students in different time zones may be challenging.

•   Many online platforms have strict policies against canceling tutoring times.

Freelance Web Designer

Developing and managing websites for clients can be a good fit for college students, especially those who prefer to work independently or are looking for jobs for introverts. You can find customers by listing your profile on websites for freelance designers or through recommendations from family, friends, and colleagues.

On average, a web designer can charge anywhere from $30 to $80 per hour, depending on the complexity of the project. Some technical skills are typically required — HTML, JavaScript, and CSS, for example — and it’s a good idea to stay up to date on the latest tools and technologies.

Pros

•   You’re your own boss, which means you can determine when and where you work.

•   The hourly rate is higher than other summer jobs.

•   You can work on a variety of interesting projects.

Cons

•   The work typically requires you to sit for long periods of time.

•   You’ll need to keep up on new developments, which may be easier if you’re already studying web design in school.

•   You may need to juggle multiple projects at once.

Retail Sales Associate

In many ways, a retail sales job can be an excellent summer gig. Often, the work is fairly straightforward, work hours are scheduled, on-the-job training is usually provided, and you usually don’t need a college degree. Students with a friendly, upbeat attitude and strong customer service skills may find a sales job particularly rewarding.

The average hourly rate of a salesperson is around $15, but this can vary based on your company, the store’s location, and how much experience you have. Some companies also offer extra perks, such as employee discounts.

Pros

•   Work is often indoors and may not be as physically demanding as other jobs.

•   Having a work schedule means you know when you’ll have free time.

•   You have opportunities to develop your people skills.

Cons

•   Your take-home pay can fluctuate if you earn a commission.

•   Dealing with difficult customers can be stressful.

•   Depending on where you work, you may need to be on your feet for several hours.

Recommended: 10 Money Management Tips for College Students

The Takeaway

Though there are ways to make money during winter break, the summer is typically when many students get a short-term job. A summer gig allows you to earn extra cash and potentially gain valuable professional experience, especially if you’ll be working in the field you’re studying. Your college career services center, professors, family, friends, and former employers may be able to provide you with potential leads.

Three types of jobs you may want to explore are online tutoring, web design, and retail sales. Online tutoring and retail sales typically allows you more chances to interact with people, but web design tends to command a higher hourly rate.

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

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FAQ

What should college students do with their summer?

As a college student, you can get a job or internship, go on a vacation with friends or family, volunteer at a non-profit agency of your choice, or go to summer school to potentially graduate more quickly.

Where do most college students work in the summer?

Whether you’re planning to work outdoors, in a store or restaurant, or for a company, there is no shortage of summer job opportunities for college students. To help you narrow down your options, look for roles that match your interests and skills.

How can college students make money over the summer?

Many summer jobs pay by the hour, and that rate might depend on factors such as location, the type of work, and your experience and skills.


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How to Stop Payment On a Check_780x440

Issuing a Stop Payment on a Check

At some point in your financial life, you may need to issue a stop payment on a check to prevent it from being cashed. This might happen because a check gets lost or stolen. Or perhaps you need to cancel a check because you filled it out with the wrong information, such as an incorrect payee or amount. Or maybe you accidentally issued a duplicate payment and are worried about overdrawing your bank account.

If you take action quickly, you can prevent a check or an electronic payment from being processed with a stop payment order. It can be as simple to complete as contacting your bank.

Key Points

•   Issuing a stop payment can prevent a check you wrote from being cashed.

•   Stopping payment on a check can be useful if a check was filled out incorrectly or if the check writer believes it is lost or stolen.

•   Stop payments can be issued by contacting a financial institution by phone, in a banking app, in writing, or in person.

•   There is typically a charge (often about $30) to issue a stop payment on a check.

•   Stop payments can only be enacted if the check’s payment has not yet been processed.

What Is a Stop Payment on a Check?

A stop payment on a check is a way of requesting that a financial institution cancel a check or other payment that hasn’t been fully processed yet. It’s a way of intervening to stop a payment you initiated, perhaps because you filled out incorrect information or you have reason to think the check may have been lost or stolen.

Doing so can help lessen your financial stress if you have a check that’s circulating with incorrect information on it or that could cause you to overdraft your account.

Typically, you will pay a fee for this checking account service, and it can only happen if the check or other payment has not yet been processed. If the recipient of the funds has cashed the check, you cannot reverse that.

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Issuing a Stop Payment on a Check

If you are in a situation where you want to stop payment on a check (say, you filled the check out for the wrong amount or to the wrong person), there are steps you can follow. This can also be a method for canceling an ACH payment vs. a check; say, a recurring electronic payment you set up.

Here are the specifics on how to stop payment on a check:

1. Checking Your Bank Account to See if the Check Cleared

Before you start the process of canceling a check or payment, it’s a good idea to make sure it hasn’t already been processed.

You can do this by pulling up your account online, in-app, or calling the bank’s automated phone line to see if the check or payment has already been deducted from your account.

If the amount has been processed, your opportunity to stop payment is unfortunately gone. If it hasn’t, however, you can likely stop the check or payment from being cashed or deposited.

Note: You cannot stop payment on a cashier’s check or money order as these are prepaid forms of payment.

2. Compiling the Check Info

Next, in order to contact your bank with the full story on the check in question, gather the following information:

•   Your account number and routing number

•   The recipient’s or payee’s name

•   The date you wrote the check

•   The check number

•   The amount of the check

For ACH payments, you may be asked to supply the company name, bank account number, ACH merchant ID, and the payment amount.

3. Contacting Your Bank

The next step in how to stop payment on a check is contacting your financial institution. You’ll want to do this as quickly as possible. Here’s how this typically works:

•   You might call your bank’s customer service number or reach out online. Some people prefer to go in person to a brick-and-mortar branch if they keep their accounts at a traditional bank vs. an online bank. You may be able to stop payment in your financial institution’s app.

•   It’s possible that your bank will want you to fill out a stop-payment form in order to initiate the process. You may need to complete this within 14 days to prevent the stop-payment order from expiring.

•   You may need your ID handy to prove your identity.

Once your bank authorizes your stop-payment request, the check or payment should no longer be valid.

4. Getting in Touch With the Payee

Depending on your reason for requesting a stop-payment order, you may also want to contact the payee in order to let them know about the stop payment. You can then arrange for a new payment if needed.

Recommended: What Is a Duplicate Check?

5. Extending the Stop Payment if Needed

A stop-payment order is a formal request to cancel a check or ACH payment (such as a recurring monthly bill payment) before it’s been processed.

Stop-payment orders on checks typically last for six months. This is the same amount of time as how long personal checks are good after being issued. So that should therefore be a sufficient amount of time to prevent the check from being cashed.

However, many banks allow you to renew a stop-payment order if the check is still outstanding. If your bank charges a stopped check fee, they may also charge a fee to renew the stop-payment order.

Stop-payment orders on ACH payments last indefinitely.

Recommended: Guide to Altered Checks and How to Spot One

How Much Does It Cost to Stop Payment on a Check?

Now that you know how to stop a check, here’s how much it will likely cost you. Just as with cashing a check, fees for stopping payment on a check vary from one bank to the next. The typical fee is around $30. Some banks may waive the stop-payment fee for customers with premium-tier checking accounts.

Recommended: How to Write a Check

Alternatives to Stop-Payment Orders

A stop-payment order is one way to prevent a payment from being processed. With an electronic payment, another option may be to contact the business or vendor directly.

Whether it’s your electric bill or a monthly streaming service, companies can typically stop or delay billing on request. A couple of considerations:

•   If you stop a bill payment via the bank without reaching out to the service provider, the company can respond by cutting off your access to its services.

•   If you instead delay the automatic debit by working with the vendor, you may be able to avoid a disruption in service, and also avoid paying a stop-payment fee to the bank.

The Takeaway

Mistakes and miscommunication can happen, and checks sometimes get lost or stolen. That’s when a stop-payment order can come in handy, canceling a check or electronic debit payment that’s waiting to be processed. While handy in some situations, note that stop payments often incur a fee that can typically cost about $30. Some banks may waive this fee.

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FAQ

How long does a stop payment on a check take?

The time required for a stop-payment request will depend on your financial institution. You may be able to do it very quickly in person, by phone, or electronically with your bank (especially if you have all the pertinent details handy) and have it authorized within minutes. At other banks, you may need to fill out and submit a stop payment request and wait for the bank to process it. Once in place, stop payment orders typically last six months.

Is a stop payment the same as canceling a check?

Yes, a stop payment is the same as canceling a check that has not been processed or paid yet. Note, however, that there is a more complex process of check cancellation that is sometimes available for prepaid checks such as a cashier’s check or money order.

How much does it cost to put a stop payment on a check?

Typically, a stop payment will cost about $30 when you issue this order. In some cases, a bank may waive the fee; you can check with yours to see if this is possible.


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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.

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

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What Are Inactivity Fees?

Inactivity Fees: What They Are & Ways to Avoid Them

Sometimes, a financial account like a checking account will sit dormant, or unused, for an extended period, and an inactivity fee will be charged. Usually, a bank, credit union, or other financial institution will start to assess an inactivity fee after six months of no activity in the account. However, some banks may wait up to a year before applying inactivity fees to the account.

To better understand and steer clear of this annoying fee, read on. Below, we’ll explore how inactivity fees work, including how much they cost and how to avoid or reverse these fees.

Key Points

•  Inactivity fees are charges for accounts with no transactions over a certain period of time.

•  Regular account activity prevents inactivity fees and helps you stay on top of your finances.

•  An easy way to avoid inactivity fees is to set up a recurring transaction, such as direct deposit of your paycheck or automatic bill pay.

•  After prolonged inactivity, banks may close accounts and transfer funds to the state.

•  Reclaiming escheated funds is possible but may involve additional effort.

What Is an Inactive Account Fee?

Banks or other financial institutions apply inactivity fees or dormancy fees when financial accounts just sit, without money going in (deposits) or out (withdrawals). Perhaps the account holder isn’t conducting any kind of activity at all; not even checking the balance for a stretch of time.

Financial institutions can apply these inactivity fees to all sorts of accounts, like brokerage or trading accounts, checking accounts, and savings accounts. These fees are a way for banks to recoup some of the costs they incur when maintaining dormant accounts and can trigger the account holder to reactivate the account.

Recommended: What Happens if a Direct Deposit Goes to a Closed Account?

How Do Inactive Account Fees Work?

Here’s a look at the sequence of events that can lead to inactivity fees:

1.    No transactions occur within the account. Let’s say you opened a high-yield savings account to fund your next vacation. But life got in the way, and you forgot about it for six months, leaving it inactive. Keep in mind, the definition of inactivity may vary by the financial institution. So, while some banks may only require you to conduct a balance verification to keep the account active, others may require, say, a bank deposit or a withdrawal, to keep the account active.

2.    The account is flagged for inactivity. Since money isn’t flowing in or out of the account, the financial institution flags the account. After this happens, some financial institutions may send a notification to the account holder before they begin charging a fee. The notice allows the account holder to take action before fees begin racking up. But other banks may not send a notification before they begin charging you inactivity fees. That means you are responsible for keeping tabs on your accounts so you can ensure they are active and up-to-date.

3.    The financial institutions begin charging inactivity fees to the account. Usually, the financial institutions will begin charging an inactivity fee between several months to a year after the last transaction took place within the account.

If these fees go unnoticed for a few years, the account will be deemed a dormant bank account. Every state has a different timeline for determining when accounts are dormant. For example, California, Connecticut, and Illinois considered accounts dormant after three years of inactivity. On the other hand, an account requires five years of inactivity in Delaware, Georgia, and Wisconsin to move to the dormant category.

Once the account is considered dormant, the financial institution will reach out to let you know that if you don’t attend to the account, it must be closed and transferred to the state — a process called escheatment. But, even if your account funds end up with the state, the situation isn’t hopeless. There are several ways to find a lost bank account and hopefully retrieve any unclaimed money.

How Much Do Inactive Account Fees Cost?

 
Inactive account fees can range between $10 to $20 per month, depending on the bank.

 
Remember, not all banks charge inactivity fees. However, if your account does have inactivity or dormancy fees, guidelines must be outlined in the terms and conditions of the account. Check the fine print or contact your financial institution to learn the details of these and other monthly maintenance fees.

 

Why Do Banks Have Inactive Account Fees?

One of the primary reasons banks why charge inactivity fees is that states govern accounts considered inactive and abandoned. Usually, an account that has had no activity for three to five years is considered abandoned in the eyes of the government.

Depending on the state’s laws, the financial institution may have to turn over the funds to the Office of the State treasurer if the account is deemed abandoned. At this point, the Office of The State Treasure is tasked with finding the rightful owner of the unclaimed asset.

Since banks do not want to hand over funds, they may charge an inactivity fee as a way to keep the account active. Thus, the financial institution won’t have to give the account to the state, keeping the money right where it is.

Additionally, inactive accounts cost financial institutions money. So, to encourage the account holder to start using the account, they charge inactivity fees. While some financial institutions send inactivity notices, others may not. Therefore, if your account has been inactive for a long time, you may only notice the fee once your bank account is depleted. At this point, the financial institution may choose to close the account.

Recommended: Can You Reopen a Closed Bank Account?

Can You Reverse an Inactive Account Fee?

It never hurts to call your bank and request a reversal of inactivity fees. However, if the financial institution is unwilling or unable to reverse the fees, you may want to compare different account options to find a type of deposit account that better suits your needs.

Make sure to compare all fees and any interest rates that might be earned to identify the right account for your needs.

Tips to Avoid Inactive Account Fees

Inactive account fees are a nuisance. Fortunately, there are several ways you can avoid them entirely. Here’s how:

•   Set up recurring deposits or withdrawals. Establishing a direct deposit into your account or regular transfer out of your account can help keep it active and avoid inactive account fees.

•   Review accounts regularly. Checking your financial accounts and spending habits regularly can help you keep tabs on your money and also decide if keeping a specific account open is worth it.

•   Keep contact information up-to-date. If your account becomes inactive, some banks may attempt to contact you before charging you an inactive account fee. If you have the wrong information on file, you may never receive a heads-up about the additional fee.

•   Move money to another account. If you don’t want to maintain an account, it’s best to move the money to an account you actively manage. Then close the account once the money has been transferred. That way, you’ll dodge fees and streamline your financial life.

The Takeaway

When you don’t use an account, your financial institution could begin assessing an inactivity fee. You can avoid these charges by keeping watch of your bank accounts and setting up automatic deposits or withdrawals. If you discover you’re not using your account, you can empty and close it, so you don’t have to worry about extra fees.

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

Can a bank shut your account down if you have an inactive account fee?

Yes. If there has been no activity on your account for a while (the timeframe varies by financial institution), your bank generally has the right to close your account. Plus, it’s not required that they notify you of the closure.

Are inactivity fees the same as dormancy fees?

Yes, inactive and dormancy fees are the same. They both refer to fees that are applied to an account when it’s inactive for an extended time.

Besides inactivity fees, what other fees do banks often charge?

ATM fees, maintenance fees, overdraft fees, and paper statement fees are just a few fees banks levy on their bank accounts. Before you open an account, make sure you understand the type of fees that accompany your account, so there are no surprises down the road.


About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



Photo credit: iStock/Prostock-Studio

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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.

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.

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

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

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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Can You Withdraw Money From an Annuity?

Annuities are an insurance contract that you can purchase with a lump sum premium, or by paying small premiums over time. The rules governing how and when you can withdraw your money vary depending on the annuity policy.

Can you withdraw some or all of your money from an annuity early? In some cases, yes, and there are some legitimate reasons why you might choose to do so. However, many annuities have restrictions on withdrawals, and an early withdrawal could impact future income from the annuity, and trigger penalties and taxes. It depends on the type of annuity you own, as well as the regulations in your state.

Key Points

•   An annuity is an insurance contract that you can purchase by making premium payments, and designed to provide a stream of income in retirement.

•   It’s possible to withdraw funds early from an annuity, although you’ll likely face a 10% if you’re under 59 ½.

•   Annuities typically come with a surrender period, during which withdrawals are not allowed. Any money withdrawn during the surrender period could incur a 7% penalty, on top of the 10% early withdrawal if you’re not yet 59 ½.

•   Annuities are complex and it’s important to understand the terms of the contract before committing to an annuity purchase.

Understanding Annuities and Annuity Withdrawals

An annuity is a type of insurance contract that’s designed to provide a predictable stream of income in retirement. Typically, the owner would purchase an annuity with a lump sum premium, and take payments from the annuity according to the agreed-upon terms.

Generally, the annuity company agrees to provide a stream of income at a future date (or immediately), for a specific period of time or until the death of the annuity holder, also called the annuitant. In some cases, there may be a death benefit paid to a beneficiary, such as a surviving spouse.

Annuities can be a useful part of your retirement plan, but because they are insurance products, not securities, the terms of an annuity may not be familiar to many investors.

Recommended: Annuity Definition

The Complexity of Annuities

Unlike putting money into an IRA or 401(k), which is fairly straightforward and governed by a set of rules determined by government laws and agencies, buying an annuity is vastly more complicated — and this impacts how and when you can withdraw money from an annuity.

The rules governing these products vary from company to company, and from policy to policy. For example, some annuities are considered “fixed annuities,” because they earn a fixed rate of interest. Some are “variable annuities,” because the funds in the annuity may fluctuate because they’re invested in the market.

Annuity holders can tailor their annuities to some degree, by purchasing riders, or special terms that provide for inflation adjustments, lifetime payments, survivor benefits, and other factors. SoFi does not sell annuity products.

How an Annuity Works: The Basics

When purchasing an annuity, you (the account holder) might pay a lump sum premium, or make a series of premium payments over time to build up the value of the policy.

Sometimes, the funds within an IRA or 401(k) can be used to purchase an annuity or pay annuity premiums, when the annuity is held within one of those qualified retirement accounts.

After this accumulation phase, the company begins making regular income payments. This is known as annuitization. The annuity holder can decide, as part of the annuity contract, exactly when payments will begin and how long the distribution phase will last.

For example, you might structure your annuity payments over 10 years, or you might set up guaranteed payments for the rest of your life. The annuity terms and fees depend on the structure of the distribution phase.

The Surrender Period

Money paid into the annuity typically can’t be withdrawn for a certain amount of time without owing a stiff penalty; this is called the surrender period and those terms, and any exceptions, are set by your insurance company.

Again, annuities generally have different rules about early withdrawals, but during the surrender period taking a withdrawal could incur a 7% penalty, in addition to a potential 10% penalty if you’re under 59 ½.

Your choice of annuity will influence your withdrawal options.

Types of Annuities

There are many types of annuities you might choose from to support your financial goals in retirement.

Fixed and Variable Annuities

A primary consideration when selecting an annuity is whether your money earns a steady rate of interest, which is the hallmark of a fixed annuity, or whether it’s invested in underlying assets and tied to market performance to some degree (e.g., via mutual funds or index funds). This would create a variable income stream.

•   Fixed annuities offer a guaranteed minimum income benefit (or GMIB) for a set period.

•   Variable annuities generate returns based on the performance of underlying investments and the rate of return is not guaranteed.

Within these two branches, fixed and variable annuities, there are other categories.

Other Annuity Categories

•   Immediate. When you buy an immediate annuity, you fund it with a lump sum and payouts to you can begin in as little as one year.

•   Deferred. Deferred-income annuities can be funded with a lump sum or multiple smaller payments, and payouts to you can begin several years after the purchase.

•   Indexed. Indexed annuities generate a rate of return that’s based on the performance of an underlying stock market index, such as the S&P 500.

It’s not unusual to see these terms combined. For example, you might purchase an immediate fixed annuity or deferred variable annuity, based on your needs.

Withdrawal Options for Annuities

The two main considerations here are: First, whether you’re over the age of 59 ½ and second whether you’re still within the surrender period. For example, if you’re younger than 59 ½, and thus taking an early withdrawal, that would trigger a 10% penalty — similar to taking an early withdrawal from an IRA.

The penalty would be steeper if the early withdrawal was also within the surrender period.

If You’re Not Taking an Early Withdrawal

If you’re over 59 ½ and past the surrender period, you would be able to take a withdrawal without a penalty, but you would owe ordinary income tax on the earnings portion of the withdrawal.

If your annuity is held within a 401(k) or tax-deferred IRA account, you would owe tax on the full amount of the withdrawal.

Bear in mind that state regulations may also come into play.

•   Partial surrender. If your annuity has not yet been annuitized, meaning your regular payments have not begun, you may be able to make a partial surrender of its value to withdraw cash.

•   Full surrender. You could opt to make a full surrender instead if you no longer need the annuity. A surrender fee may apply to partial or full surrenders, and you typically have only a few years after purchasing the annuity to exercise either option.

•   Periodic payments. You might have the option to take recurring payments from your annuity, separate from the amounts you’re entitled to receive once the contract has been annuitized.

A 1035 exchange is another option if you’d like to have an annuity but aren’t happy with your current one

Early Withdrawal Penalties

The IRS imposes a 10% early withdrawal penalty when you take money from tax-advantaged accounts before age 59 ½. That rule extends to annuities held within an IRA, unless you qualify for an exception.

For example, you could avoid the penalty if you’re making an early withdrawal because you:

•   Become totally and permanently disabled

•   Plan to use the money to fund a birth or adoption, higher education expenses, or the purchase of a first home

•   Are subject to an IRS levy

•   Have unreimbursed medical expenses that exceed 7.5% of your adjusted gross income

If you’re subject to a 10% early withdrawal penalty on top of income tax, on top of surrender charges that could quickly make an early withdrawal from an annuity expensive.

Required Minimum Distributions (RMDs)

Required minimum distributions or RMDs are amounts you’re required to withdraw from certain retirement accounts, typically beginning at age 73. The amount you’re expected to withdraw is based on your account value, age, and life expectancy, as established by the IRS.

Qualified accounts, including qualified annuities, are subject to these rules under the Internal Revenue Code. If you have a qualified annuity and do not begin taking RMDs on time, you could be hit with a penalty. The penalty is equal to 25% of the amount you were required to withdraw.

IRA annuity withdrawal rules allow you to skip RMDs if you have a Roth account. However, if someone inherits a Roth IRA annuity from you, they would be subject to RMDs.

Factors to Consider Before Withdrawing

Rather than asking, Can I withdraw all my money from an annuity? the better question may be whether you should tap your annuity early. There are advantages and disadvantages to weigh before making a move.

Impacts on Lifetime Income Stream

If you plan to withdraw money from an annuity early, ask yourself what that might mean later if you’re relying on that income for retirement. Taking money from your annuity now can affect its growth, potentially leaving you with smaller payments later on.

You’d have to consider how smaller payments might affect your broader retirement picture. For example, if your payouts would shrink from $2,000 per month to $1,200 per month, would you be able to make up the gap with other retirement savings or Social Security benefits?

If not, then you may need to rethink your early withdrawal plans. This retirement planning guide offers more tips on how to plan your income strategy.

You can also use a retirement calculator to estimate what you’ll need.

Surrender Charges and Fees

Annuity companies may let you take money from an annuity early but they don’t allow you to do it for free. You may have to pay a surrender fee, which can eat into your withdrawal amount. For example, if you’re taking out $20,000 and the surrender fee is 7%, you’re handing over $1,400 to the annuity company.

Surrender charges may decrease as time goes on, so you might save a little money if you can wait a few years to make a withdrawal. If you’re not thrilled about paying the fees, however, you might consider other ways to access cash.

Alternatives to Withdrawals From an Annuity

If you no longer need your annuity, you could sell some or all of the payments owed to you for cash. The amount you can get will depend on your contract’s current value and the company you’re working with. You’ll need to find a reputable annuity buyer, and you may want to compare offers to find the best deal.

If you want to keep your annuity, you might consider other ways to borrow the cash that you need. Your options may include:

•   Selling or cashing out a cash-value life insurance policy you own

•   Taking out a home equity loan or line of credit

•   Borrowing from your 401(k)

•   Taking an early withdrawal from an IRA

•   Getting a personal loan or line of credit

Some of these options have more pros and cons than others. Borrowing from your 401(k), for example, can shrink your retirement nest egg and potentially trigger tax penalties if you don’t pay it back on time. Weighing all the possibilities can help you decide on which path to take.

Strategies for Withdrawing from an Annuity

If you’re interested in how to withdraw money from an annuity while minimizing penalties and fees, there are a few things to keep in mind. These tips can help you figure out the best way to withdraw from your annuity.

Annuity Withdrawal Calculators

Annuity withdrawal calculators can help you estimate what you can get from your annuity, should you decide to withdraw early. They can also tell you how much you might owe in taxes and penalties for an early withdrawal.

Seeing the numbers can put the true cost of an early withdrawal in perspective. You might decide that it makes more sense to choose another option if what you’d pay to make the withdrawal outweighs what you’d gain.

Tax Planning and Optimization

The last thing you want is to end up with a surprise tax bill following an early annuity withdrawal. If you know how much you plan to withdraw, consider how that’s going to affect you tax-wise. Specifically, consider whether it would:

•   Push you into a higher tax bracket for that tax year

•   Trigger a 10% early withdrawal penalty, based on your age

If a withdrawal would bump you into a higher tax bracket, even temporarily, you may need to think about how you could offset it. For example, could you make a tax-deductible contribution to an IRA or a donation to an eligible charity? Or, would it be possible to wait and take the withdrawal next year, if you expect your income to be lower then?

Thinking ahead can help you avoid a situation where you’re stuck with a tax bill you can’t afford.

Consulting a Financial Advisor

Annuities can be complicated products and if you find it challenging to make sense of your contract’s terms or have questions about the tax consequences, it’s probably in your best interest to talk to a financial advisor.

A professional advisor can walk you through your withdrawal options, based on the terms of your annuity contract, and guide you through the potential tax impacts. And if you decide that an annuity withdrawal isn’t right for you, an advisor can suggest other possibilities for getting the cash you need.

The Takeaway

How do you withdraw money from an annuity? With careful thought, if you intend to minimize what you pay in taxes and fees.

If you have an annuity, or you’re thinking of adding one to your financial plan, it’s important to understand what you’re getting and what you might pay if you decide to take cash from your contract early. After all, an annuity is one part of your overall retirement plan — which may include an IRA, a 401(k) or other accounts. Whatever you decide should make sense in light of your other investments.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help build your nest egg with a SoFi IRA.

🛈 SoFi does not offer annuities to its members, though SoFi Invest offers investments that may provide income through dividends.

FAQ

What is the penalty for withdrawing from an annuity early?

The IRS imposes a 10% early withdrawal penalty when you withdraw money from an annuity before age 59 ½. The withdrawal is also subject to ordinary income tax and you may be required to pay a surrender charge to the annuity company if the withdrawal is during the surrender period.

Can you withdraw the entire annuity balance at once?

As long as your annuity contract permits it you can make a full or partial withdrawal. A full surrender would effectively cancel your contract, while a partial surrender might still allow you to receive annuitized payments later.

How are annuity withdrawals reported for tax purposes?

Withdrawals from qualified annuities are subject to ordinary income tax on the entire withdrawal amount. Nonqualified annuities are subject to income tax only on the earnings withdrawn. Both types of annuities are subject to a 10% early withdrawal penalty when you take money out before age 59 ½, unless an exception applies.


About the author

Rebecca Lake

Rebecca Lake

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



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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.

S&P 500 IndexThe S&P 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. It is not an investment product, but a measure of U.S. equity performance. Historical performance of the S&P 500 Index does not guarantee similar results in the future. The historical return of the S&P 500 Index shown does not include the reinvestment of dividends or account for investment fees, expenses, or taxes, which would reduce actual returns.
Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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

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Silver Certificate Dollar Bills: What Are They Worth?

Silver certificates are a type of money, or paper bill, issued by the United States government between the years 1878 and 1964.

Although they resemble ordinary currency, and can still be used as legal tender, silver certificate bills are generally worth more than their face value. How much more depends on the type, the size, and several other factors. The rarer the certificate, the higher its likely value. In some cases, certain unusual or historic silver certificates may be worth large sums at auction.

Silver certificates are more like collectibles, in that their value can also fluctuate based on demand or trend factors. There is also the risk of fraud, and it’s wise to consult a professional before buying or trading silver certificates.

Key Points

•   Silver certificates, issued from 1878 to 1964, are a unique form of U.S. currency that could, at one time, be exchanged for silver.

•   They can now be used as legal tender, and are typically worth above face value, sometimes a lot more, depending on rarity.

•   Two types of silver certificates exist: large (pre-1929) and small (1929-1964) certificates, differing in size and production period.

•   Value depends on condition, age, denomination, serial number, design, with some rare certificates fetching thousands at auction.

•   Preservation involves using protective sleeves and storing in cool, dry, dark places to maintain condition.

What Are Silver Certificates?

Silver certificates, which were issued only between the years 1878 and 1964, could at one time be redeemed for their designated amount in silver: either coins or silver bullion.

History of Silver Certificates

Silver certificates are no longer printed or produced by the U.S. Mint, and haven’t been since the mid-1960s. As such, they’re somewhat rare, and may be worth more than their face value. Each series of silver certificates displays its own combination of design flourishes and security elements that also reflect artistic trends of the day, as well as technological developments.

The Mint stopped producing silver certificates in 1964 after Congress passed a law repealing the Silver Purchase Act — which had allowed certificates to be exchanged for silver. They were gradually replaced by Federal Reserve notes, which solidified the era of fiat currency: legal tender not backed by a precious metal, but rather the U.S. government’s guarantee.

Uses for Silver Certificates

Silver certificates can, however, still be used as cash even today. Depending on the type of silver certificate, they may vary slightly in appearance from other bills, but they are considered legal tender.

For collectors or investors, silver certificates may be considered a type of alternative investment, similar to collectibles like art, rare books, and antique sports cards. While they aren’t necessarily high-risk investments, silver certificates are beholden to certain risk factors, like potential fraud from counterfeit certificates, as well as a lack of transparency in the market for these items.

At this time, SoFi does not offer silver certificates.

💡 Quick Tip: How do you decide if a certain online trading platform or app is right for you? Ideally, the online investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

Types of Silver Certificates

Generally speaking, there are two types of silver certificates: Large and small silver certificates. The description actually refers to when the certificates were produced, as well as the difference in their physical dimensions. Because silver certificates are basically a type of collectible — in that their value isn’t derived from their face value — they fall under the rubric of alternative assets.

Large-Size Silver Certificates (pre-1929)

Large silver certificates are, as the name suggests, physically larger than small silver certificates, and measure around seven inches long by three inches wide. These certificates were produced between 1878 and 1923, and came in nine denominations, ranging from $1 to $1,000.

Small-Size Silver Certificates (1929-1964)

Small silver certificates conform to modern bill sizes, measuring at a bit more than six inches long, and two-and-a-half inches wide. They were produced beginning in 1928, after the Mint redesigned bills, and were printed until 1964. They come in only three denominations: $1, $5, and $10. And, like their modern standard counterparts, they feature portraits of either George Washington, Abraham Lincoln, or Alexander Hamilton.

Recommended Comprehensive Guide to Alternative Investments

Factors Affecting the Value of Silver Certificates

There are quite a few variables that ultimately determine the value of a silver certificate today, just as there are a range of factors that impact the value of various types of stocks.

Perhaps the most important is the physical condition of the silver certificate itself, or “grading,” as numismatics would say. Similar to collecting rare coins, there are professionals who assess the condition of paper money and bills, and give them a specific grade to convey that condition.

The grade includes a number between one and 70 (70 indicates that the bill is in mint condition), and a letter, signifying that it is either in good, very good, very fine, extremely fine, about uncirculated, or gem uncirculated condition. The absolute best condition you could hope for would be a “70 Gem Unc.”

Beyond the condition and grade of a silver certificate, the value can be affected by its age, its denomination, and even its serial number, or whether or not it contains a minting error (bills with errors are rarer than those without errors, increasing their value to collectors). Further, where a bill was produced can affect its value, as can its specific design — again, some are more scarce than others.

Recommended: Alternative Investments, Explained

Common Silver Certificate Denominations and Their Worth

The most common silver certificate denominations on the market are $1, $5, and $10 varieties, although older bills may come in a wider range of denominations. And while their values depend on some of the factors discussed (most importantly, their grading), potential investors or collectors may want a ballpark figure of what they might pay to get their hands on one — or what they could reap if they were to sell it.

It’s likely worth it to speak with a specialist or numismatist to get a more accurate valuation of a specific bill.

•   $1 silver certificates: Depending on the certificate (grading, year, etc.), $1 silver certificates may be worth a bit more than their face value, or they could be worth hundreds of dollars.

•   $5 silver certificates: For the more common $5 silver certificates on the market, values are likely to be somewhere between 10% and 30% above face value. But again, some may be worth much more, into the hundreds of dollars, for rarer bills.

•   $10 silver certificates: Values for common $10 silver certificates are similar to $5 varieties, typically 10% to 30% above face value. For specific, rare certificates, the values could be much higher.

Owing to the wide range of factors that come into play regarding the actual current value of a silver certificate, it may be best to consult with a professional before buying, trading, or investing in silver certificates.

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Rare and Valuable Silver Certificates

As mentioned, there are some rare and more valuable silver certificates out there, too. While the more common certificates are not worth much more than their face value, these hard-to-find bills can fetch hundreds, or even perhaps thousands of dollars from the right buyer. Here are a few examples.

•   1896 $1 Silver Certificate Educational Series: Featuring an elaborate design and portraits of George and Martha Washington, this rare bill has sold for as much as $10,000.

•   1886 $5 Silver Certificate (Ulysses S. Grant): This certificate, featuring a portrait of Ulysses S. Grant on the front, is another old, rare bill. These specific certificates often sell for as much as $50,000 at auction, and sometimes more.

•   1891 Series $20 Silver Certificate: This bill has a portrait of Daniel Manning, and there are only a handful of them that still exist. Given its rarity, these bills can sell for as much as $50,000 at auction.

How to Determine the Value of Your Silver Certificate

Determining the value of a silver certificate isn’t easy, and may best be left up to professional numismatists to ensure you’re getting an accurate estimate. But you could begin by trying to assess the grade yourself — that is, determining the overall condition of the bill. Again, this may not be easy to do, but if the bill is damaged in specific ways, you may be able to use a grading guide to help you figure things out.

Beyond that, you can also look up the specific mintage or production information to get a sense of how rare a certificate is. That may also help you get a ballpark idea of the value of your certificate. But again, you may want to go to a professional — perhaps at a local coin shop or auction house — to get a professional appraisal, or more information.

Collecting vs. Investing in Silver Certificates

Perhaps the primary difference between collecting and investing in silver certificates is that investors are actively trying to generate a positive return. So, while a collector may be willing to pay higher prices, or even lose some money in order to get their hands on a specific silver certificate, an investor looking at various types of alternative investments likely won’t be willing to do the same, owing to the lack of transparency and liquidity.

Recommended: Why Alternative Investments?

Where to Buy and Sell Silver Certificates

Whether you’re collecting or investing in silver certificates, there are many online stores or retailers that sell silver certificates, and there are even auction houses that may offer the chance to buy rarer bills. Many physical coin or bullion stores may have silver certificates available for purchase, too, and be willing to buy them as well.

Preserving Silver Certificates

In order to keep silver certificates safe and their condition intact, it’s best to try and put them in some sort of protector, and control the environment in which they’re stored. That means likely purchasing currency sleeves — which can be purchased from many retailers — made of rigid plastic. That will help protect the bill from physical damage.

But you’ll also want to aim to keep your silver certificates in a place that is relatively cool, dry, and dark. Heat, humidity, and direct sunlight can and will damage paper bills, so if you can find a safe spot to keep them, it should help keep their integrity for longer.

The Takeaway

Silver certificates are paper bills that, at one time, could be exchanged for silver coins or silver bullion. They have not been produced since the mid-1960s, and as such, are something of a rarity on the market today — although they can still be used as legal tender to make purchases. Some are rarer than others, naturally, and can have higher values, and that’s made them attractive to investors and collectors alike.

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FAQ

Can silver certificates still be redeemed for silver?

No, silver certificates can no longer be redeemed for silver coins or bullion, but can be used as legal tender to conduct transactions — or bought as a collectible.

What makes some silver certificates more valuable than others?

The primary variables that determine the value of a silver certificate are its denomination, grade, age, and mintage or production information — in general, the rarer a bill, the higher its value.

How do you determine if a silver certificate is genuine?

The best thing to do in order to determine whether a silver certificate is genuine or not is to take it to a professional numismatist.


Photo credit: iStock/svetikd

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