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Most estimates suggest that you would need to make around $130,000 a year to qualify for a $400,000 mortgage. Considering that the latest average annual income is around $64,000, and the average home price was $513,100 in the first quarter of 2024, today’s homebuyers need an above-average income to purchase an average-priced home.

Let’s look at what factors lenders consider when qualifying you for a mortgage, what to do if you can’t afford a down payment, and what alternative financing sources are available.

How Much Do You Need to Make to Get a $400,000 Mortgage?

Assuming a 30-year fixed-rate mortgage loan, a down payment of 7% (on a home priced at $430,000), and an interest rate of 7.00%, you would need to earn $130,000 per year to qualify for a $400,000 mortgage. Your estimated monthly mortgage payment of $3,494 would include property taxes and insurance, among other costs. This assumes that you don’t have any other significant debts — so let’s look more closely at how debt affects your mortgage situation.

What Is a Good Debt-to-Income Ratio?

If you have significant debt payments each month, you will need to earn more to qualify for a mortgage because your ability to make payments may be compromised. Lenders look at your debt-to-income (DTI) ratio, which is the percentage of your monthly gross income that goes to paying your monthly debt payments, to determine your borrowing risk and your loan terms.

Lenders typically prefer that your DTI be no higher than 36% with no more than 28% to 35% of that debt going toward a mortgage payment. The lower your DTI, the less of a risk you are to a lender and the better your terms will be.

What Determines How Much House You Can Afford?

How much you earn is one factor that determines how much house you can afford. Two other factors that could be considered under your control are how much debt you are carrying and how much of a down payment you can afford. In addition, there are factors you cannot control, such as interest rates on the different types of mortgage loans, as well as house prices.

If you have significant debt payments each month, the required income for a $400,000 mortgage will go up. The interest rate offered by a lender will also affect your monthly mortgage payments. If the interest rate is 7.5%, you might need to earn more than if the interest rate is 7%.

The more you can afford as a down payment, the lower your monthly payment will be, particularly if you can put down 20% or more of the home’s price. This is because a down payment of less than 20% will result in the lender requiring you to have private mortgage insurance, or PMI. (Conventional loans are not insured by a government agency so PMI protects lenders if owners default.) A mortgage calculator with taxes and insurance will help you determine the monthly cost of owning a house, factoring in the extra costs.

Going through the mortgage preapproval process can help you get even closer to your specific numbers.

What Mortgage Lenders Look For

Lenders like borrowers who do not pose too much of a risk regarding paying back the loan. If you have a good credit score, minimal debt, and a steady income, you are exactly what they are looking for.

Your Credit Score

Making timely payments on any credit cards or loans that you have and not applying for new credit or debit cards around the time that you apply for a mortgage will help cultivate a credit score that lenders find attractive.

Your Debt

Lenders also look at your credit utilization ratio. This is an indicator of how much of your available credit you are currently using. The less you are using the better, and a ratio of under 30% is preferable. For example, if your credit card has a $15,000 limit, keep your balance at $4,500 or below.

Your credit report will indicate to a lender whether you have ever declared bankruptcy, or if you are an authorized user on someone else’s credit card.

Other Assets

A mortgage lender may also look at other assets, such as checking, savings, retirement accounts, stocks, and property. If you have such assets, the lender might consider you less of a risk because you have a way to pay the loan if you experience a financial emergency.

$400,000 Mortgage Breakdown Examples

Everyone’s financial situation is unique. Looking at examples of different down payments, debt levels, and interest rates from Fannie Mae’s mortgage calculator can help give you a sense of where you might fit in.

$400,000 30-year mortgage with 7% down payment and PMI and 7.00% interest

•   Principal and interest: $2,661

•   Taxes and insurance: $717

•   Private mortgage insurance: $207

•   Total monthly payment: $3,585

$400,000, 15-year mortgage with 7% down payment, and PMI, at 7.00% interest

•   Principal and interest: $3,594

•   Taxes and insurance: $717

•   Mortgage insurance: $207

•   Total monthly payment: $4,518

$400,000, 30-year mortgage with 20% down (no PMI), at 6.50% interest

•   Principal and interest: $2,427

•   Taxes and insurance: $800

•   Total monthly payment: $3,227

How Much Will You Need for a Down Payment?

Many lenders will give you the best interest rates if you can put 20% or more down on your home. However, some conventional loans have much lower down payment requirements.

The less you pay as a down payment, the higher your loan-to-value (LTV) ratio, and the greater the risk you pose to a lender. For example, if your LTV is 90%, you have put down 10%. The lender is taking on a larger proportion of the debt than if you put down 20%, and they may require you to pay private mortgage insurance (PMI) to offset the higher risk.

SoFi’s mortgage calculator shows how much you can save on your mortgage with different down payments.

Can You Buy a $400,000 Home With No Money Down?

Some mortgages require no money down for some people. For example, a VA loan through the U.S. Department of Veterans Affairs requires nothing down, as does a loan from the U.S. Department of Agriculture (USDA).

Can You Buy a $400K Home With a Small Down Payment?

Depending on your situation, you may be eligible for a government-backed loan that allows you to put down very little. Loans through the Federal Housing Administration (FHA) require as little as 3.5% down.

Is a $400,000 Mortgage With No Down Payment a Good Idea?

You will need a government-backed loan, meaning that it is insured by the federal government in case you stop paying back the loan, to get a mortgage with a zero down payment. Two examples of government-insured mortgages are those from the VA and USDA, mentioned above. Each of these types of loans have strict qualifying criteria, such as being an active-duty service member, veteran, reservist, or a surviving spouse for a VA loan, or buying a home in a rural area for a USDA loan.

If you qualify for these loans, it is a good idea to take advantage of them because they offer lower interest rates and better overall loan terms.

Recommended: The Most Affordable States

Can’t Afford a $400,000 Mortgage With No Down Payment?

The monthly payments on a $400,000 mortgage with no down payment can be high even with a government-assisted loan. Here are some suggestions to help you cover them.

Pay Off Debt

If you have high-interest debt, your DTI ratio will be high, and you will not get the best interest rate from a lender. A personal loan can be used to consolidate credit card debt and lower the interest you pay overall. A personal loan can help you pay off some of your debt quicker so that you can improve your credit rating and qualify for a mortgage with better terms.

Look Into First-Time Homebuyer Programs

If you are a first-time homebuyer, government or charity-sponsored programs and grants can lower the costs. Some programs may help with a down payment and closing costs. You may qualify as a first-time buyer if you haven’t had any form of homeownership in the last three years.

There are also various tax deductions that can help lower your taxable household income making it easier to afford your mortgage payments. Check with your state or local government to find out what government programs are available to you or go to the U.S. Department of Housing and Urban Development website.

Take Advantage of Tax Deductions

You can save money on your taxes through various tax deductions. Federal and state deductions can lower your taxable household income. For example, for tax year 2024, the mortgage interest deduction could allow you to deduct the cost of mortgage interest paid on debt of up to $750,000 on a primary residence and one second home. Married taxpayers filing separately could deduct interest on up to $375,000 of indebtedness each. You may also qualify for mortgage credit certificates (MCCs). Your tax preparer can help you determine what you qualify for.

Care for Your Credit Score

Your credit score will have a huge impact on the terms that a lender gives you for a mortgage loan. Borrowers can cultivate a healthy credit score by using a credit card wisely. Pay off the balance each month and pay monthly bills, like utilities and rent, on time. Also, as noted above, watch your credit utilization ratio and only use up to 30% of your available credit.

Start Budgeting

If you don’t budget, you will not know how much you can afford to spend each month on housing or other expenses. When creating a budget, think about what your goals are for the next three months, the next year, and five years into the future. The cost of living in your state will be a factor in your planning, so think about whether you will be living in the same place for the long haul.

Track your take-home pay and your expenses. Then, look at areas where you can make positive changes. For example, if you eat out less each week, can you put an extra $100 into a savings account? Using a money tracker can help you keep to a budget.

Recommended: Home Loan Help Center

Alternatives to Conventional Mortgage Loans

The traditional route to buying a home is to take out a conventional mortgage with a bank. You will pay a set amount each month for the life of the loan, typically 15 to 30 years. There are alternative ways to finance a home, each with its own advantages and disadvantages. Here are a few of them.

Borrow from a Retirement Account

If you have significant funds in your 401(k) account or an IRA, you could withdraw them and use them to buy a home. However, if you’re under 59½ years old, you will have to pay a 10% penalty on the withdrawal and taxes on it. If you lose your job, the money has to be repaid within 60 days. Lastly, a withdrawal from a 401(k) (not a Roth IRA) is considered income and may put you in a higher tax bracket.

Borrow from Family

Some companies facilitate home loans between family members. If you choose this option, consult a lawyer and an accountant to make sure legal documents are in order and you will not be subject to the gift tax.

Borrow From an Insurance Policy

Depending on the insurance policy, you might be able to take out a loan against the principal. The cash value can be used to secure the loan, and the premiums used as the repayments. Check with a financial advisor to see how this would affect your future finances and your heirs, and to decide if this is a good option.

Find a Cosigner

Finding a cosigner might help you to qualify for a mortgage or get better loan terms.

Seller Financing

You might be able to secure a seller financing arrangement where the seller takes on the role of the bank and you make mortgage payments to them. The terms of the loan are agreed in advance. This is an option if the buyer cannot secure a conventional mortgage perhaps due to poor credit.

Rent-to-Own

A rent-to-own agreement might work if a buyer has sufficient funds for a down payment. If so, the seller might agree to accept some of the monthly rent as credit for a sale. Another way this could work is if the seller ups the final sales price and all of the rental payments go toward the down payment until the final sale. There are potential downsides to this approach; seek a lawyer’s advice if you are entering into a rent-to-own agreement.

Mortgage Tips

Before you settle on a lender, research all the options available to you. For example, are you a first-time homeowner? Can you qualify for an FHA loan with a lower interest rate and down payment?

Here are some additional tips on how to qualify for a mortgage.

1. Understand the Terms

Your mortgage contract will contain lots of fees and charges in addition to the terms. Have a lawyer assist you in understanding all the details including the payment schedule, penalties for missed or late payments, and penalties for paying off the loan early. Understand whether you have an interest rate that may go up over time and how high it can go.

2. Make Timely Payments

Your credit rating depends on your making timely payments. If you don’t, not only will your credit score suffer, but you will risk foreclosure on your loan if you fall behind on the payments.

3. Avoid Additional Debt

Before you take on the responsibility of a mortgage, it’s wise to pay down your debt so that you can get the best interest rate. It’s also wise to not take on additional debt after you take on a mortgage. If you do, you might find yourself with mounting interest payments and facing bankruptcy if you cannot afford to pay your monthly bills.

4. Shop Around for Home Insurance

You will have to take out a home insurance policy. However, shop around before you choose a provider to get the best quote.

5. Know What You Can Afford

It’s better to take on a mortgage for less than you are approved. For example, if you are approved for a $400,000 loan, you could accept a loan for $300,000. That will buy you some wiggle room and make the payments less stressful.

6. Watch Your Credit Score

As you build equity in your home, at some point you might decide to refinance, particularly if interest rates drop. Refinancing allows you to restructure your debt and pull out equity as cash. If interest rates are lower, your monthly payments might be less. When you maintain a good credit score and manage your debt well, you stand a better chance of qualifying for a relatively low interest rate with a reputable lender.

The Takeaway

It’s quite likely that you will need to earn around $130,000 a year to qualify for a $400,000 mortgage. However, if you can make a large down payment and you have little debt, you are in a much better position. A lender will look at your LTI ratio when considering you for a loan as well as your credit rating. Therefore, paying off high-interest debt, making regular payments to credit cards, and paying off the balance will make you an attractive borrower to a lender.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What income is needed for a $400,000 mortgage?

The income needed for a $400,000 mortgage will depend on your existing debt, your credit rating, and other assets, but in general, you’d probably need an income of around $130,000 a year to qualify. Each lender will look at different factors when assessing you as a risk.

Can I afford a $400K house with a $70,000 salary?

It would only be possible to afford a $400,000 home with a salary of $70,000 if you can put down a very large down payment. Alternatively, if you qualify for a government-backed FHA loan, you may be able to afford a $400,000 home with a 10% down payment, although you would want to have a close look at your household budget and other expenses before taking this step.

What is the average monthly payment on a $400,000 house?

The national average mortgage rate for a 30-year fixed-rate mortgage is 6.95% as of June 2024. If you bought a $400,000 house with 5% down, your monthly mortgage payment would be $3,295. That would include almost $800 per month in property taxes, insurance, and private mortgage insurance (PMI).

Photo credit: iStock/skynesher

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

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.

This article is not intended to be legal advice. Please consult an attorney for advice.

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

SOHL-Q224-1906606-V1

Outside of housing and transportation, Americans spend more on food than anything else. According to the Bureau of Labor Statistics, the average household spends $5,703 annually on food in the home (not including takeout and dining out). That figure is more than $1,000 higher than three years ago.

While food is an essential expense — you have to eat to survive, after all — you can lower your grocery costs while still enjoying great-tasting and nutritious meals. Here are 22 ideas for saving on food purchases to get you started.

How to Save Money on Groceries

Ready to start trimming your grocery costs? Read on.

1. Have a Plan

Before you craft your grocery list, it’s wise to plan what meals and snacks you want to prepare for the week or weeks ahead. If you write it all down and then create your shopping list, you’re less likely to forget key items for certain recipes. You’ll know exactly what you need when you enter the store and will be less inclined to wander the aisles and pick up impulse purchases.

2. Scan Your Fridge

While you’re making your meal plan, check your pantry and refrigerator for items you already have on hand. Not only can you avoid buying duplicates, but you may find some hidden veggies in the fridge you’d forgotten about. You can put them to good use before they spoil.

3. Go Semi-Vegetarian

Meat tends to be one of the most expensive ingredients in many meals. But there are plenty of tasty recipes out there that use other sources of protein, such as beans, eggs, and tofu. Also, don’t count out using tasty veggies or grains as the star of a dish.

Planning just one or two meatless meals each week can automatically cut your food spending — and also help you eat a little healthier. You might start by searching online for “Meatless Mondays” recipes and seeing what inspires you.

💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure mobile banking app.

4. Stick to a Grocery Budget

If you don’t include your groceries when making your budget, you may want to consider doing so. It can help you track exactly how much you’re spending and where you can cut back (like those cookies or snacks you may not always need but are in the habit of buying). Or you might realize that the fancy coffee beans you usually buy cost way more than the excellent French roast ones at your supermarket. By looking at the numbers, you’ll gain valuable insights.

5. Use Only Cash

Do you “get inspired” when you’re at the supermarket and find yourself snagging a container of pricey cashews here and some fancy cheese there, even though they aren’t on your list? It can be easier to overbuy when you use a credit card for your purchases. By paying with cash or your debit card, you can often do a better job of sticking to your grocery list.

6. Outsmart the Supermarket Selling Tactics

Grocery stores use a number of marketing tricks to get shoppers to spend more. These include stocking the most expensive items on the shelves right at your eye level, using end caps to grab your attention, and placing staples like milk, eggs, and bread at the back of the store so you’re forced to pass through several aisles of delicious food to get to them.

You can avoid falling for these marketing ploys by carrying a list (and sticking to it), and also by keeping your eyes on the upper and lower shelves, as this is where you’ll tend to find the more affordable brands.

7. Go Generic

Brand name products in the supermarket can often cost considerably more than store brands. Yet many store brands offer essentially the same quality as their brand name counterparts, and in some cases are produced at the same facilities (just packaged with a different label). One recent report found that you can save up to 40% by buying store brand. In other words, you could almost cut some grocery expenses in half.

While not all store brands are built the same, it’s worth trying a few if you’re grocery shopping on a budget. If you find that you can’t tell the difference, you may be able to enjoy some solid savings.

8. Use Store Loyalty Apps

If you shop at a large grocery store chain or mass retailer, you can often get special promotions and additional savings by downloading the store’s app.

Target, Walmart, Wegmans, Whole Foods, and other major stores have apps and programs that offer exclusive coupons to frequent shoppers. Often, taking advantage of these deals is as simple as letting the cashier scan a barcode on your phone as you’re checking out.

9. Prune Your Produce

Before you put fruits and veggies in the plastic bag and head to the register, you may want to take a moment to remove any stalks, leaves, or stems that aren’t edible. Since you’re paying by weight, anything that you remove to lower the weight lowers the price.

10. Shop In Season

Fruits and vegetables tend to be cheaper, and also taste better when they are in season locally. While you may be able to purchase fresh strawberries year-round, they’ll likely be more expensive (and less sweet) in the winter when they’re being harvested and shipped from somewhere far away.

You can check out this seasonality chart to find out when foods are in their prime where you live, and then adjust your menu planning accordingly.

11. Avoid Pre-Cut Products

If you just love that bag of grated cheese, you may want to consider comparing it to the price of the non-grated block. There’s a big difference in price, and grating cheese is really not a daunting task. The same goes for precut fruits and vegetables. Sure, they’re handy for snacking, but extra money in your savings account could be nicer. The same goes for salad kits and similar items that wind up costing you for the convenience.

12. Eat Before You Shop

Yes, this may be a common tip, but it’s a good one. Going grocery shopping while hungry can increase your chance of impulse buying. Expensive snacks can look especially enticing.

Shopping after you’ve already had a meal is a great way to keep any hunger pains from adding items to your shopping cart.

13. Keep an Eye on Unit Price

Comparing price and value can be tough when items don’t come in the same size. When in doubt, you can always turn to unit prices, which are often listed on the shelf tag. Unit price gives you an apples-to-apples comparison, such as ounces to ounces or liters to liters.

For example, the cheapest bottle of olive oil on the shelf might not be the best value. If you bought a larger one, it might cost a few bucks more, but its overall cost per ounce is lower, saving you more in the long run.

14. Use Rewards Credit Cards

Some credit cards offer extra cash back for groceries and even eating out. If you use one of these cards for your purchase, you could end up saving a pretty nice amount of money each month — sometimes as much as 5% depending on which card you carry.

Recommended: Examining the Price of Eating at Home vs Eating Out

15. Shop at Discount Grocery Stores

Some stores are simply more economically priced than others. According to one recent study, shoppers say these stores offer the best grocery deals for your buck: Food 4 Less (a subsidiary of Kroger), BJs, WinCo Foods, Giant Eagle, Grocery Outlet, Market Basket, Wegmans, Aldi, Costco, and Sam’s Club. There are a lot of Trader Joe’s fans out there as well.

Meal planning entails thinking ahead and creating a menu for the week, then using your menu to create a shopping list. You don’t have to plan every meal to the letter, but picking a few simple recipes you can whip up for dinner can save you from having to get take-out after a long workday.

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

16. Join a Wholesale Club

You might have noticed that a few of the stores mentioned in the tip above are wholesale clubs or warehouse clubs. These chains typically charge an annual membership fee. In return, you’re likely to find large, institutional size grocery items at discounted prices.

If it feels like too big a quantity for your household alone to get through before the food goes bad, you might partner with a friend. You can split the costs and share the bounty that you buy.

17. Buy in Bulk

Another way to shave down your grocery bill is to consider buying in bulk. Often, these retailers have a green angle and promote reusable packaging (such as bring your own container policies or using glass and metal vessels) to buy everything from nuts to cereal to pasta to olive oil from jumbo bins. The savings on packaging can be passed along, making these purchases more affordable. You may hear these stores referred to as refilleries; search this directory of refilleries for one near you.

Recommended: Does Buying in Bulk Save Money?

18. Reduce Food Waste

The average U.S. household wastes 38% of the food it buys, according to Feed America. That’s a huge number, totaling $92 billion pounds of food per year. It’s also expensive: Those figures mean almost four out of 10 of your hard-earned grocery dollars is basically being thrown away.

Focus on using what you buy so you don’t have to run to the grocery store and replace what’s spoiled. For example, you can increase the lifespan of lettuce by wrapping it in a paper towel to absorb moisture while it sits in your fridge.

19. Take Advantage of Rebate Apps

When you’re searching for easy ways to save money, it’s worth checking out all the many grocery rebate apps that are now available.

Apps like Ibotta, Receipt Hog, and Checkout 51, will often give you cash back for things you’d purchase anyway. While rebates don’t give you a discount upfront (like a traditional coupon), you should see savings in the long run.
Some apps send checks once you reach a certain cash back amount, such as $20.

20. Start a Kitchen Garden

Fresh herbs at the grocery store can be expensive, and often, recipes call for only a few sprigs or leaves, leaving the rest of a purchase to go to waste.

To avoid having to buy fresh herbs at the store, you may want to consider setting up a windowsill garden containing the herbs you reach for most often, such as parsley, mint, thyme, or basil.

Start-up costs are minimal, and these plants tend to be easy to grow — no green thumb required.

21. Hit the Farmer’s Market Later in the Day

If you love shopping at the local farmer’s market but don’t enjoy the dent it makes in your wallet, you may want to consider showing up near closing time.

At the end of the day, farmers often don’t want to pack up their food and take it home with them. If you walk around and make a reasonable offer on a box of produce they have left, you might score a great deal on fresh (and delicious) fruits and veggies.

22. Watch for Seasonal Deals

After major holidays like Halloween, Christmas and Easter, you can often get good deals on holiday-related items like candy. (And February 15th can be a great day to get a yummy heart-shaped box of chocolates at a deep discount.) If you don’t care about themed wrappers, you can save a nice chunk of change.

23. Shop Online

Buying dry goods and other non-perishables online instead of at the grocery store can end up saving you a lot of money, especially if you buy in bulk sizes and get those items delivered on a regular schedule. For example, Amazon offers up to a 15% discount for consumers who schedule auto-shipments for their products. However, do be cautious about using home-delivery food services, which can be pricey once the fees for delivery are added.

What’s the Average Cost of Groceries per Month?

The average cost of groceries per month will vary depending on several factors, such as the size of the household, the age of its members, location, and dietary habits. Someone who loves fish (wild-caught, not farmed, thank you) a few times a week and lives in San Francisco or Boston will likely be spending more than a person who lives in the Midwest and is a vegetarian who eats a lot of rice and beans.

That said, here are some figures on the cost of groceries per month:

•   Per person, the average cost of groceries in America in 2023 is $415.53 a month per person, according to Numbeo data.

•   Wondering about the highest and lowest costs? Move.org found that those living in Honolulu, Hawaii, pay the most for food every month (a steep $638.57), while residents of Cheyenne, Wyoming, have the lowest tab at $335.97.

The Takeaway

Wondering how to save money on groceries? With a little planning and a few fresh habits, you may be able to slash your food bills without sacrificing quality, taste, or nutrition. The cash you free up can then be put toward savings or another financial goal.

You may find that setting up a monthly food budget — and targeting spending amounts per week — can also help you spend less on food. Using a money management app can help you stick to your food budget.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How can I make my grocery bill cheaper?

There are many ways to lower your grocery costs, such as planning meals in advance and sticking to your list; buying (and eating) less meat; shopping at discount supermarkets and wholesale clubs; and learning how to compare prices per ounce vs. the price tag.

How can I cut my grocery bill in half?

Cutting your grocery bill in half could be possible with dedication and planning. One quick way to start saving is to buy store brands (sometimes called generic brands); this can save as much as 40% vs. brand names.

What are some discount grocery stores?

Some discount grocery stores include BJs, Costco, Food 4 Less, Aldi, and WinCo Foods.

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SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer 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 Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% 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 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 a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% 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 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 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 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 Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% 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 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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