Concerned about the rising price of eggs? You’re not alone. Prices have soared around the country as a widespread avian flu outbreak affects the availability of eggs. As of January 2025, the average cost of a dozen eggs in the U.S. is $4.95, according to data from the U.S. Bureau of Labor Statistics (BLS). This is higher than in previous years, including the $4.82 consumers paid on average in January of 2023, when concerns about egg shortages sent the cost of eggs skyrocketing.
Why does knowing the cost of a dozen eggs today matter? If you’re trying to manage your household budget, then keeping food costs as low as possible might be a priority. Where you live can play a part in determining how much you’ll pay for a dozen eggs.
• Egg prices in the U.S. average $4.95 per dozen as of January 2025.
• Avian flu, severe winter weather, and inflation are the main factors driving egg price increases.
• Hawaii and California have some of the highest egg prices in the country.
• The USDA predicts egg prices will decrease to $2.10 per dozen by the third quarter of 2025.
• Shopping at farmer’s markets and buying in bulk can help consumers find cheaper eggs.
What Is the Average Cost of a Dozen Eggs Today?
On average, Americans are paying $4.95 for a dozen Grade A large eggs, based on the BLS data. That price reflects the most recent Consumer Price Index (CPI) data available as of January 2025. The CPI Consumer Price Index tracks prices for a basket of consumer goods and services over time.
In tracking egg price data, the CPI looks at average numbers by city, rather than state. Prices are based on the cost of a dozen eggs only and don’t take into account pricing for smaller or larger quantities of eggs sold, or pricing for different sizes of eggs. The CPI’s egg price data offers a snapshot of how egg prices have moved up or down over time. The average cost of a dozen eggs increased sharply in the beginning of 2023, declined for a while, and then began going back up in July 2024. Whether you live alone or are supporting a family, these types of fluctuations can impact your grocery budget.
If you’re trying to manage a higher-than-normal grocery bill, tracking your spending can help.
Where the Cost of Eggs Is Highest
As evidenced by the price data, some states are more expensive than others when it comes to what you’ll pay for a dozen eggs on average. In descending order, here are the 10 states that had the highest cost overall for a dozen eggs:
• Hawaii
• California
• Florida
• Alabama
• Nevada
• California
• Arizona
• Georgia
• Wyoming
• Maine
• Colorado
Where the Cost of Eggs Is Lowest
Where is the average cost of a dozen eggs the cheapest? Shoppers paid the least for a dozen eggs in these states:
• Missouri
• Nebraska
• Indiana
• Ohio
• Kansas
• Iowa
• Kentucky
• Pennsylvania
• Alaska
• West Virginia
As you can see, most of these states are located in the central, southern, and eastern U.S., though Alaska is the outlier. Assuming food costs are lower overall in these states, the average grocery budget for a family of 5 is likely to be less compared to the states where eggs are more expensive.
Why Did the Cost of Eggs Increase
The current spike in egg prices is largely fueled by scarcity. An outbreak of avian flu sent egg production into decline as more than 20 million laying hens were lost to the disease or depopulation efforts just in the last quarter of 2024. With fewer eggs in supply but demand not easing, egg prices began to climb. Severe winter weather events across the country didn’t help matters.
But inflation can also be pointed to as a contributing factor to rising egg prices. In simple terms, inflation is a rise in prices for things consumers buy, like eggs and other household items. Knowing how to find the inflation rate and what’s considered to be a normal range matters for making the most of your money.
You don’t need a money tracker to know that when inflation is higher, everything costs more and your money doesn’t go as far. A difference of a few cents in the price of a dozen eggs might not seem like much. But when everything else is going up in price too, and inflation doesn’t appear to be easing any time soon, it can take a serious toll on your wallet.
When Will the Cost of Eggs Go Down?
While it’s nearly impossible to know exactly when egg prices will decline, the USDA is predicting that it will happen by April 2025. Prices are projected to fall to $2.50 per dozen in the second quarter of the year and to $2.10 by the third quarter.
Monitoring prices for different goods and services can help you stay on top of your budget. Making and sticking to a spending and savings plan is one of the most basic steps for building wealth and increasing your net worth. Being able to measure your liquid net worth can give you an idea of how well you’re doing financially when it comes to accumulating assets and paying down debt.
Tips on How to Shop for Cheap Eggs
Shopping for eggs on the cheap can save you money and make it easier to live below your means. Living below your means benefits you in a few ways. For one thing, you may be less reliant on credit cards to cover expenses if you always have extra cash in your budget. And for another, it can make it easier to adapt to economic changes that can affect your budget and spending.
With that in mind, here are a few quick tips to help you pay less for eggs.
• Shop the farmer’s market. Buying eggs locally from a farmer’s market vs. a supermarket could save you money if you’re able to find lower prices. You may even be able to work out a barter or trade with a local farmer or neighbor who has a backyard flock, which could allow you to get eggs for free.
• Choose store brands. Store-brand products, including eggs, typically cost less than name-brand ones. If you’re not partial to any one egg brand, you may save a little money by choosing your local store’s brand.
• Buy eggs in bulk. Buying in bulk could save you money if you’re paying a lower unit price per egg. But the catch is that you have to be sure you’re actually going to use them all; otherwise, you could be wasting money.
• Use fewer eggs. A simple way to save money on eggs is to not consume as many. For instance, you might opt to get your daily protein from other sources or swap out your favorite baking recipes for ones that don’t incorporate eggs.
• Shop with coupons and cash back apps. Couponing may seem tedious but supermarkets make it easier by allowing you to load digital coupons to your store loyalty card. You can pair coupons with a cash back app that pays you a percentage back when you shop at partner grocery stores, which can add to your savings.
The Takeaway
The average cost of a dozen eggs might not be something you think about on a day-to-day basis. But knowing how much you’ll pay for eggs matters when it’s time to go to the grocery store and do your weekly shopping. Keeping an eye on egg prices and implementing some different hacks for finding cheap eggs can help you keep your food budget in check.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
How much did a dozen eggs cost in 2023?
As of July 2023, the average cost of a dozen eggs was $2.09, according to Consumer Price Index data. Overall, egg prices were on the decline by mid-2023 after peaking at $4.82 on average per dozen at the beginning of the year.
What state has the most expensive eggs?
Hawaii residents pay the most for a dozen eggs. On average, a dozen eggs there costs just under $10.
Do eggs last longer than sell by date?
Eggs can stay fresh past the sell by date, but there are limits on how long you’ll be able to use them. A simple way to tell if an egg is fresh is to place it in a glass or bowl of water. Eggs that float to the surface are no longer fresh, while ones that lie flat on their side are the freshest.
Photo credit: iStock/nd3000
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
As you prepare for life after graduation, one important step is figuring out whether you’re required to make monthly student loan payments right away or if you have what’s called a “grace period.”
Read on to learn what a grace period is, when it starts, and how you might extend yours. You’ll also find a simple financial to-do list to tackle before you start making student loan payments.
Key Points
• Grace periods allow new graduates time to get settled before starting student loan payments.
• Federal student loans typically have a six-month grace period; some Perkins loans have nine months.
• Private student loans may or may not offer a grace period. Those that do typically offer a six-month grace period for undergraduates.
• Interest accrues during the grace period for most federal and private student loans.
• Making early payments can reduce interest costs and the principal balance of student loans.
What Is a Grace Period for Student Loans?
A student loan grace period is a window of time after a student graduates and before they must begin making loan payments. The intent of a grace period is to give new graduates a chance to get a job, get settled, select a repayment plan, and start saving a bit before their student loan payment due dates kick in. Most federal student loans have a grace period, and some private student loans do as well.
Grace periods also apply when a student leaves school or drops below half-time enrollment. Active members of the military who are deployed for more than 30 days during their grace period may receive the full grace period upon their return.
How Long Do Student Loan Grace Periods Last?
The grace period for federal student loans is typically six months. Some Perkins loans can have a nine-month grace period. When private lenders offer a grace period on student loans, it’s usually six months as well.
Keep in mind that, as noted above, not all student loans have grace periods.
Which Student Loans Have a Grace Period?
Whether you have a grace period depends on what kind of loans you have. Student loans fall into two main buckets: federal and private student loans.
Federal Student Loans
Most federal student loans have grace periods.
• Direct Subsidized Loans and Direct Unsubsidized Loans have a six-month grace period.
• Grad PLUS loans technically don’t have a grace period. But graduate or professional students get an automatic six-month deferment after they graduate, leave school, or drop below half-time enrollment.
• Parent Plus loans also don’t have a grace period. However, parents can request a six-month deferment after their child graduates, leaves school, or drops below half-time.
Keep in mind: Borrowers who consolidate their federal loans lose their grace period. Once your Direct Consolidation Loan is disbursed, repayment begins approximately two months later. And if you refinance, any grace period is determined by your new private lender.
Private Student Loans
The terms of private student loans vary by lender. Some private loans require that you make payments while you’re still in school. When private lenders do offer a grace period, it’s usually six months for undergraduates and nine months for graduate and professional students.
At SoFi, qualified private student loan borrowers can take advantage of a six-month grace period before payments are due. SoFi also honors existing grace periods on refinanced student loans.
If you’re not sure whether your private student loan has a grace period, check your loan documents or call your student loan servicer.
Will Interest Accrue During the Grace Period?
For most federal and private student loans, interest is charged during the grace period — even though you aren’t making payments on the loan. In some cases, this interest is then added to your total loan balance (a process called capitalization), effectively leaving you to pay interest on your interest.
In 2023, federal regulations changed so that the interest that accrues during a borrower’s grace period is not capitalized. According to the federal student aid website, “the interest that accrues during your grace period will be added to the outstanding balance of your loan, but it will not be capitalized.”
Smart Ways to Use Your Student Loan Grace Period
If you are in a financially tight spot after you graduate or during your break from school, a student loan grace period can offer some much-needed breathing room. Here’s how you can put your grace period to good use.
Organize Your Finances Before Payments Begin
Take this time to create a new post-grad budget. Which approach you use is up to you: the 70-20-10 Rule, the envelope budget method, or zero-based budgeting. The important thing is to determine your monthly income and expenses, setting aside enough to pay down debts and save a little.
Enroll in Autopay to Avoid Late Fees
Missed student loan payments can incur penalties and hurt your credit score. Setting up autopay means one less thing you have to remember. Some student loan lenders (like SoFi!) will even discount your interest rate for setting up automatic payments.
Make Early Payments to Reduce Interest Costs
Just because you don’t have to make payments toward student loans during a grace period doesn’t mean you can’t. If you are in a financial position to make payments — even interest-only payments — during a grace period, you should. It can help keep your loan’s principal balance from growing on certain types of student loans and the accruing interest from potentially capitalizing during your grace period.
Explore Repayment Plan Options Before the Grace Period Ends
Once your grace period is over for your federal loan, you’ll be automatically enrolled in the Standard Repayment plan. However, if you’re concerned about making your payments, several income-driven repayment plans are available. These plans generally reduce your payment to a small percentage of your discretionary income.
Consider Consolidating or Refinancing Your Student Loans
These two terms are often used interchangeably, but there are important differences between them. Both consolidation and refinancing combine and replace existing student loans with a single new loan.
A Direct Consolidation Loan allows you to combine several federal student loans into one new federal loan. The resulting interest rate is the weighted average of prior loan rates, rounded up to the nearest ⅛ of a percent. However, as noted above, borrowers who consolidate their federal loans lose their grace period.
Student loan refinancing is when you consolidate your student loans with a private lender and receive new rates and terms. Your interest rate — which ideally would be lower — is determined by your credit history.
Can You Extend Your Student Loan Grace Period?
If your loan doesn’t qualify for a grace period or you want to extend your grace period, you have options. You may delay your federal student-loan repayment through deferment and forbearance.
What’s the difference? Both are similar to a grace period in that you won’t be responsible for student loan payments for a length of time. The difference is in the interest.
When a loan is in forbearance, loan payments are temporarily paused, but interest will accrue during the forbearance period. This can lead to substantial increases in what you’ll pay for your federal loans over time. You’ll want to consider forbearance very carefully, and look into other options that might be available to you, like income-driven repayment plans. (The good news is that for most types of loans, the interest that accrues during forbearance no longer capitalizes.)
During deferment, by contrast, interest will not accrue on Direct Subsidized Loans, Subsidized Federal Stafford Loans, Federal Perkins Loans, and subsidized portions of Direct Consolidation Loans or Federal Family Education Loan Program (FFEL) Consolidation Loans. Other types of federal loans may still accrue interest during deferment, and that interest will capitalize upon exiting deferment unless you were enrolled in an income-driven repayment plan.
While grace periods are automatic, you’ll need to request a student loan deferment or forbearance and meet certain eligibility requirements. In some cases — during a medical residency or National Guard activation, for example — a lender is required to grant forbearance.
Pros and Cons of Using Your Full Grace Period
A grace period can be beneficial since it gives you time to get your financial situation in order before you need to start repaying your loans. However, there are also disadvantages to a grace period. Here are some pros and cons to weigh as you’re thinking about when to start paying student loans.
Pros
• A grace period gives you time to find a job after graduation and start earning a salary.
• You can create a budget and start saving money to put toward your student loan payments.
• For those with Direct Subsidized loans, interest does not accrue on these loans during the grace period
Cons
• With many student loans, interest does accrue, which increases the overall amount you need to repay.
• The interest may also capitalize and be added to the principal balance of your loan so that you’re effectively paying interest on the interest.
• Having more debt to repay can increase your debt-to-income (DTI) ratio, which could impact your credit score and your ability to borrow money for other purposes, such as taking out a mortgage.
The Takeaway
Federal student loan grace periods are typically six months from your date of graduation, during which you don’t have to make payments. Most federal student loans have grace periods. Private student loan terms vary by lender. However, some lenders, like SoFi, match federal grace periods for undergrad loans.
During your grace period, you may want to make payments anyway, even interest-only payments, to prevent your balance from growing. The grace period is a good time to create a new budget, choose a repayment plan, and set up autopay.
If you have trouble making your payments, you have options, from income-driven repayment plans to loan consolidation to refinancing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
How do I know if my student loan has a grace period?
To find out if your student loan has a grace period, check your loan documents. As part of the terms and conditions stated on the documents, you should find information about a grace period if there is one, including how long it is. If you can’t find your loan documents or you’re still not sure if your loan has a grace period, call your loan servicer.
Can I start making payments before my grace period ends?
Yes, you can start making payments before your grace period ends. If you can afford to do so, making early payments can help keep your principal balance from growing and interest from accruing and potentially capitalizing. Even if you make interest-only payments, it can help reduce the total interest you’ll pay on the loan.
What happens if I don’t make a payment after my grace period?
If you fail to make student loan payments after your grace period ends, your loan could eventually go into default. A student loan is considered in default once you are nine months late on your payments. This could damage your credit rating and your future ability to take out a loan. If you’re having trouble making your loan payments, contact your loan servicer right away to see what your options are. You may be able to apply for income-driven repayment, forbearance, or deferment.
Does refinancing affect my grace period?
Whether refinancing affects your grace period depends on the lender. Some private lenders, like SoFi, will honor your grace period, but with others, student loan repayment may begin right away. Check with your refinancing lender.
Are grace periods the same for federal and private student loans?
No, grace periods are not the same for federal and private student loans. Federal student loans typically have a six-month grace period, though some Perkins loans have a nine-month grace period. Not all private lenders offer a grace period. Those who do typically offer a six-month grace period for undergraduates, and nine months for graduate students.
SoFi Student Loan Refinance Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Your vested 401(k) balance is the portion you fully own and can take with you when you leave your employer. This amount includes your employee contributions, which are always 100% vested, any investment earnings, and your employer’s contributions that have passed the required vesting period.
Here’s a deeper look at what being vested means and the effect it can have on your retirement savings.
Key Points
• 401(k) vesting refers to when ownership of an employer’s contributions to a 401(k) account shifts to the employee.
• 401(k) contributions made by employees are always 100% vested; they own them outright.
• Vesting schedules vary, but employees become 100% vested after a specified number of years.
• 401(k) vesting incentivizes employees to stay with their current employer and to contribute to their 401(k).
• Companies may use immediate, cliff, or graded vesting schedules for their 401(k) plans.
What Does Vested Balance Mean?
The vested balance is the amount of money that belongs to you and cannot be taken back by an employer when you leave your job — even if you are fired.
The contributions you personally make to your 401(k) are automatically 100% vested. Vesting of employer contributions typically occurs according to a set timeframe known as a vesting schedule. When employer contributions to a 401(k) become vested, it means that the money is now entirely yours.
Having a fully vested 401(k) means that employer contributions will remain in your account when you leave the company. It also means that you can decide to roll over your balance to a new account, start making withdrawals, or take out a loan against the account, if your plan allows it. However, keeping a vested 401(k) invested and letting it grow over time may be one of the best ways to save for retirement.
401(k) vesting refers to the process by which employees become entitled to keep the money that an employer may have contributed to their 401(k) account. Vesting schedules can vary, but most 401(k) plans have a vesting schedule that requires employees to stay with the company for a certain number of years before they are fully vested.
For example, an employer may have a vesting schedule requiring employees to stay with the company for five years before they are fully vested in their 401(k) account. If an employee were to leave the company before reaching that milestone, they could forfeit some or all of the employer-contributed money in the 401(k) account. The amount an employee gets to keep is the vested balance. Other qualified defined contribution plans, such as 401(a) or 403(b) plans, may also be subject to vesting schedules.
Get a 1% IRA match on rollovers and contributions.
Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1
1Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.
Importance of 401(k) Vesting
401(k) vesting is important because it determines when an employee can keep the employer’s matching contributions to their retirement account. Vesting schedules can vary, but typically after an employee has been with a company for a certain number of years, they will be 100% vested in the employer’s contributions.
401(k) Vesting Eligibility
401(k) vesting eligibility is the time an employee must work for their employer before they are eligible to receive the employer’s contribution to their 401(k) retirement account. The vesting period varies depending on the employer’s plan.
401(k) Contributions Basics
Before understanding vesting, it’s important to know how 401(k) contributions work. A 401(k) is a tax-advantaged, employer-sponsored retirement plan that allows employees to contribute a portion of their salary each pay period, usually on a pre-tax basis.
For tax year 2024, employees can contribute up to $23,000 annually in their 401(k) accounts, with an extra $7,500 in catch-up contributions allowed for those age 50 or older. For tax year 2025, employees can contribute up to $23,500, with an extra $7,500 in catch-up contributions allowed for those age 50 or older. For 2025, those aged 60 to 63 may contribute an additional $11,250 instead of $7,500, thanks to SECURE 2.0.
The Internal Revenue Service (IRS) also allows employers to contribute to their employees’ plans. Often these contributions come in the form of an employer 401(k) match. For example, an employer might offer matching contributions of 3% or 6% if an employee chooses to contribute 6% of their salary to the 401(k).
In 2024, the total contributions that an employee and employer can make to a 401(k) is $69,000 ($76,500 including catch-up contributions). In 2025, the total contributions that an employee and employer can make to a 401(k) is $70,000 ($77,500 including standard catch-up contributions, and $81,250 with SECURE 2.0 catch-up for those aged 60 to 63).
Employer contributions are a way for businesses to encourage employees to save for retirement. They’re also an important benefit that job seekers look for when searching for new jobs.
There are several benefits of 401(k) vesting, including ensuring that employees are more likely to stay with a company for the long term because they know they will eventually vest and be able to keep the money they have contributed to their 401(k). Additionally, it incentivizes employees to contribute to a 401(k) because they know they will eventually be fully vested and be entitled to all the money in their account.
401(k) vesting also gives employees a sense of security, knowing they will not lose the money they have put into their retirement savings if they leave their job.
Drawbacks of 401(k) Vesting
While 401(k) vesting benefits employees, there are also some drawbacks. For one, vesting can incentivize employees to stay with their current employer, even if they want to leave their job. Employees may be staying in a job they’re unhappy with just to wait for their 401(k) to be fully vested.
Also, using a 401(k) for investing can create unwanted tax liability and fees. When you withdraw money from a 401(k) before age 59 ½, you’ll typically have to pay a 10% early withdrawal penalty and taxes. This can eat into the money you were hoping to use for retirement.
How Do I Know if I Am Fully Vested in my 401(k)?
If you’re unsure whether or when you will be fully vested, you can check their plan’s vesting schedule, usually on your online benefits portal.
Immediate Vesting
Immediate vesting is the simplest form of vesting schedule. Employees own 100% of contributions right away.
Cliff Vesting
Under a cliff vesting schedule, employer contributions are typically fully vested after a certain period of time following a job’s start date, usually three years.
Graded Vesting
Graded vesting is a bit more complicated. A percentage of contributions vest throughout a set period, and employees gain gradual ownership of their funds. Eventually, they will own 100% of the money in their account.
For example, a hypothetical six-year graded vesting schedule might look like this:
Years of Service
Percent Vested
1
0%
2
20%
3
40%
4
60%
5
80%
6
100%
Why Do Employers Use Vesting?What Happens If I Leave My Job Before I’m Fully Vested?
If you leave your job before being fully vested, you forfeit any unvested portion of their 401(k). The amount of money you’d lose depends on your vesting schedule, the amount of the contributions, and their performance. For example, if your employer uses cliff vesting after three years and you leave the company before then, you won’t receive any of the money your employer has contributed to their plan.
If, on the other hand, your employer uses a graded vesting schedule, you will receive any portion of the employer’s contributions that have vested by the time they leave. For example, if you are 20% vested each year over six years and leave the company shortly after year three, you’ll keep 40% of the employer’s contributions.
Other Common Types of Vesting
Aside from 401(k)s, employers may offer other forms of compensation that also follow vesting schedules, such as pensions and stock options. These tend to work slightly differently than vested contributions, but pensions and stock options may vest immediately or by following a cliff or graded vesting schedule.
Stock Option Vesting
Employee stock options give employees the right to buy company stock at a set price at a later date, regardless of the stock’s current value. The idea is that between the time an employee is hired and their stock options vest, the stock price will have risen. The employee can then buy and sell the stock to make a profit.
Pension Vesting
With a pension plan, vesting schedules determine when employees are eligible to receive their full benefits.
How Do I Find Out More About Vesting?
There are a few ways to learn more about vesting and your 401(k) vested balance. This information typically appears in the 401(k) summary plan description or the annual benefits statement.
Generally, a company’s plan administrator or human resources department can also explain the vesting schedule in detail and pinpoint where you are in your vesting schedule. Understanding this information can help you know the actual value of your 401(k) account.
Test your understanding of what you just read.
The Takeaway
While any employee contributions to 401(k) plans are immediately fully vested, the same is not always true of employer contributions. The employee may gain access to employer contributions slowly over time or all at once after the company has employed them for several years.
Understanding vesting and your 401(k)’s vesting schedule is one more piece of information that can help you plan for your financial future. A 401(k) and other retirement accounts can be essential components of a retirement savings plan. Knowing when you are fully vested in a 401(k) can help you understand how much money might be available when you retire.
There are many ways to save for retirement, including opening a traditional or Roth IRA. To get started with those, you can open an online retirement account on the SoFi Invest® platform.
Find out more about investing with SoFi today.
FAQ
What does 401(k) vesting mean?
401(k) vesting is when an employee becomes fully entitled to the employer’s matching contributions to the employee’s 401(k) account. Vesting typically occurs over a period of time, such as five years, and is often dependent on the employee remaining employed with the company.
What is the vesting period for a 401(k)?
The vesting period is the amount of time an employee must work for an employer before they are fully vested in the employer’s 401(k) plan. This period is different for each company, but generally, the vesting period is between three and five years.
How does 401(k) vesting work?
Vesting in a 401(k) plan means an employee has the right to keep the employer matching contributions made to their 401(k) account, even if they leave the company. Vesting schedules can vary, but most 401(k) plans have a vesting schedule of three to five years.
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
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.
Being a train conductor allows you to take people and essential goods where they need to go, see the country, and get paid while doing it. In fact, a competitive salary is often one of the big draws of the field. But just how much does a train conductor make? According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for a train conductor is $72,220.
If that salary sounds appealing, keep reading to learn what train conductors do, how much they stand to make in different states, and the pros and cons of the job.
• The median annual wage for a train conductor is $72,220.
• Salaries for train conductors vary by state, ranging from $57,450 to $82,530.
• Train conductors receive health, dental, vision insurance, and a retirement savings plan.
• Minimal educational requirements and job training provided by employers are advantages.
• Challenges include federal licensure, physically demanding work, and irregular scheduling.
What Is a Train Conductor?
If you’ve ever dreamed of yelling “all aboard” and taking the wheel of a train, then you may find satisfaction as a train conductor. This type of trade job is responsible for organizing and overseeing various activities within a railroad yard, industrial plant, or similar locations. They play a vital role in coordinating the actions of the train crew, whether on passenger trains or freight trains. Additionally, yardmasters take charge of reviewing train schedules and switching orders while ensuring smooth coordination among workers involved in railroad traffic operations, including train assembly, disassembly, and yard switching tasks.
Working as a train conductor can be stressful and requires attention to detail. However, introverts may find that they love this job as it requires minimum interactions with other people.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
How much money does a train conductor make? According to the latest BLS data, annual salaries range from a low of $54,610, which is most likely what entry-level conductors earn, all the way up to $99,210 or more. As workers gain more years of experience, they can expect to see their salary increase. At the very least, they should always expect to make the minimum wage in their state.
No matter your income, online tools make tracking your spending easy. You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.
What Is the Average Salary for a Train Conductor?
While most people don’t focus their job search on trying to find the highest-paying job in their state, it’s a good idea to do salary research before pursuing a new career path.
So how much does a train conductor make per hour? Typically, train conductors earn a median hourly wage of $34.20, according to the BLS but that rate differs by state. Take a look at the following table to get an idea of what train conductors can earn in different states.
Most train conductors work full time and are eligible for employer benefits on top of their salary. Benefits like health insurance and paid time off can be valuable and increase the overall value of a compensation package.
Savvy employers know that alongside offering a competitive salary, a robust benefits package can attract and retain top talent. Common employee benefits that train conductors may expect to see include:
Like any job, working as a train conductor comes with a unique set of advantages and disadvantages that are worth being aware of.
Pros
• Minimal educational requirements, making it accessible to a broader range of individuals
• Job training is provided by employers, allowing for on-the-job skill development
• Regular rest hours are enforced, ensuring a reasonable work-life balance
Cons
• Federal licensure requirements add an additional step to the process
• The job can be physically demanding, especially in challenging weather conditions
• Work weeks may extend beyond the standard 40 hours, leading to potential overtime hours
• Irregular scheduling is common, which can make it challenging to maintain a consistent routine
The Takeaway
Considering a job as a train conductor? Though rewarding, this line of work is also high stakes, and anyone considering this career path needs to be prepared to take the responsibility seriously. It’s also important to understand what the position typically pays and what your earning potential could be. The median annual salary train conductors earn is $72,220, but train conductors with many years of experience can expect to earn more than this.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
What is the highest paying railroad job?
If someone is looking to make the most money possible as a train conductor, they may want to consider working for their state government. According to BLS data, train conductors who work for state governments earn a median salary of $80,970 per year.
Do train conductors make six figures?
How much does a train conductor make per year, and can they earn a six-figure salary? The good news is that it is possible to earn six figures as a train conductor. While the average train conductor earns a median salary of $72,220, train conductors employed by state governments earn a median of $80,970 each year.
What is the average age for a train conductor?
Many people find fulfilling careers as train conductors at all different ages. That said, the average age for a train conductor is 42.
Photo credit: iStock/Laser1987
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Lifestyle creep is defined as spending more as you earn more. Perhaps you’ve noticed that as your income rises, you may not grow your wealth, including your retirement account or that fund for the down payment on a house.
It may well be human nature that, when you get a salary hike, you decide to splash out on a fancier car lease, a bigger home, or a luxurious vacation. However, your spending may actually be outpacing your salary and even ringing up more credit card debt.
That’s lifestyle creep in action: Spending on “fun” non-essentials instead of putting that money to work for a more stable financial future. Learn more about it and how to rein it in while still enjoying the things money can buy.
Key Points
• Lifestyle creep involves increasing non-essential spending as income grows, impacting financial goals.
• Signals of lifestyle creep can include not saving more despite higher earnings, abandoning budgeting, and rising credit card debt.
• Social and psychological pressures, like keeping up with peers, can cause lifestyle creep.
• Managing lifestyle creep effectively involves creating a budget for savings, debt, and discretionary spending.
• Automating bill payments and savings contributions can help curb unnecessary spending.
What Is Lifestyle Creep?
Lifestyle creep can be a common phenomenon experienced as one progresses through their career. The meaning of lifestyle creep, sometimes known as lifestyle inflation, is the process by which discretionary expenses increase as disposable income increases.
Disposable income is income that isn’t already budgeted for necessities like housing, transportation, and food.
It could include anything from concert tickets to morning lattes to a second home— basically anything that is likely to fall more into a “want” category rather than something strictly “needed.”
Lifestyle creep can put you squarely behind the 8-ball when it comes to getting out of debt, saving for retirement, or meeting other big financial goals. And it’s one reason people can’t escape the vortex of living paycheck-to-paycheck.
Signs of Lifestyle Creep
Here are some specific signals that you may be experiencing lifestyle creep:
• Despite earning more, you are not saving more.
• You have stopped following your budget because you assume you’re earning enough not to have to worry about spending.
• You feel as if you can afford to buy whatever you want and no longer stick to previous limits (such as, say, not spending more than a certain amount on an item of clothing or a piece of furniture).
• While your salary has increased, your credit card debt has risen vs. been paid down.
What Causes Lifestyle Creep?
Graduating from the penny-pinching college life to your first full-time job is only one instance that can trigger lifestyle creep. It also can happen with any type of bump in cash flow that’s not part of your monthly budget, such as a raise, bonus, tax refund, gift, or winning a scratch-off ticket.
There are also psychological factors at play here, including the sometimes compulsive urge to keep up with the Joneses.
And before you blow it off as just envy with a lack of willpower, consider this: One landmark examination of a lottery winner’s effect on the neighborhood found that the larger reward the lucky gambler collected, the more likely their neighbors were to incur more debt and even file for bankruptcy.
The social pressure to keep up with the consumption habits of family and friends, even when it’s conspicuous, can cause real and serious financial stress.
Social media can make matters even worse, with studies showing that post envy could be causing people to live beyond their means just so their feeds can reflect their acquaintances’.
But how do you resist the urge to upgrade your 2015-era sedan when your neighbor rolls up in a shiny new SUV? The answers might be simple on paper, but switching your mindset from “Should I spend this on a shopping spree or a vacation?” to “Should I put this money into savings or invest it?” can be easier said than done.
Discerning Needs Versus Wants
First, a quick refresher on needs vs. wants: A need is something vital to survival, while a want is something that’s nice to have but strictly speaking not critical.
It’s normal to want to celebrate a new raise, but to avoid lifestyle creep, it can be important to make sure not to celebrate with something that will increase costs to the point of making the raise irrelevant.
Examples of Needs vs Wants
Here are a couple of examples of how needs and wants can compare:
• A need is clothing to wear to work, to keep you warm in cold weather, and to enable you to go about your daily life.
• A want would be those two pairs of shoes you bought not because you needed them but because they were cute and on sale.
• A need is groceries to feed your household.
• A want would be buying a pricey salad for lunch every day vs. bringing food from home or going out for a deluxe sushi dinner every Friday night to celebrate the end of the work week.
• A need is basic health care expenses and new running shoes when your old ones wear out.
• A want would be getting massages and hiring a personal trainer.
As you see, lifestyle creep could entice you to spend significant amounts on the “wants” in life because they are fun and you feel you can afford them. But allowing those purchases to increase instead of putting money toward debt reduction and longer-term aspirations can be problematic. After all, part of financial wellness is prioritizing goals such as being able to contribute to your child’s education and having a healthy retirement savings account.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 3.80% APY on savings balances.
Up to 2-day-early paycheck.
Up to $3M of additional FDIC insurance.
Tips for Avoiding Lifestyle Creep
Giving every extra penny of a cash windfall to a credit-card company doesn’t sound like much fun. But just knowing that lifestyle creep exists, and recognizing it in your own life, can put you ahead of the game when it comes to making better decisions with your money.
Here are a few possible ways you can avoid lifestyle creep while still enjoying the good things in life.
Celebrating Small
If you earn a raise, you should absolutely celebrate — especially if it’s higher than the average 3.7% forecast for 2025. But to outsmart lifestyle creep, you may want to take a deep breath and resist the urge to run to the store for that expensive thing you’ve had your eye on. Instead, consider a small way to congratulate yourself, like a dinner with friends.
Creating a Budget
One way to avoid lifestyle creep may be to give all income a job to do. That extra $200 a month shouldn’t just be chilling in a checking account with no purpose, like a freeloading cousin camping out on the couch.
Letting that extra money hang out in the checking account too long with nothing to do might lead to unplanned spending. If you see the money sitting idle, you might splurge on a weekend trip or that budget-busting espresso maker. Putting that money to work (earning interest in a high-yield savings account or paying down debt) could be a wise move. And if you have a solid budget in place, using money that way can be effortless.
Building a Budget to Control Lifestyle Inflation
With the advent of online banking, most people are likely equipped with everything needed to make a budget right on your phone or computer. Many financial institutions offer tools that can help with tracking of your money as it flows in and out of your accounts.
Don’t have a basic budget already? Getting a raise can be a great time to crunch the numbers and be financially stable and responsible with that money. There are many different budget techniques you can experiment with, such as the envelope system or the 50/30/20 budget rule. If there’s already a budget in place, a new raise is a great time to reconfigure the budget to make sure it still ticks all the financial boxes.
Avoiding Mindless Spending
Mindless or pointless spending might happen when there is unexpected extra cash sitting in the bank account. Much like the itch to spend that crisp, new $20 bill included in a childhood birthday card, there may be psychological and emotional temptation to spend money in the bank account without considering whether or not a new, say, brand gaming system is really needed.
Casually buying unnecessary items could indicate compulsive or impulsive spending. This in turn could mean missing an opportunity to put money to work for the future, sustainably upgrading a lifestyle by planning ahead for financial growth.
Tracking Your Spending
When it comes to managing money, losing track of expenses could not only lead to a blown budget, but also overdraft fees, returned checks, or other unnecessary fees that could put you even further behind.
Tools to Track Spending
If you really struggle with this one, there’s an app for that. As mentioned above, many financial institutions offer tools for budgeting and tracking exactly where your money is going. Start there, and see if what is available works well for you. If not, there are various third-party apps that you can explore.
Turn on the Auto-Pilot
One of the easiest ways to ensure that you’re only spending what’s in the budget is to automate as many payments and contributions as possible. After all, money you don’t have is a lot easier to not spend.
This strategy can start at work. If you get a raise, you might elect to increase your 401(k) contribution (or start one if you haven’t yet). And while it means that your take-home pay may not change, your money transferred into a retirement account can painlessly grow.
You also can automate online bill payments and savings and investment contributions, all with the intention of getting the money out of your tempted hands ASAP.
Outlining Clear Goals
What’s your endgame? Do you want to retire early with a million dollars or more in the bank? Is owning a home a part of your plan? One key to avoiding lifestyle creep is to set long-term financial goals and keep your eye on the prize.
Two financial goals that can be beneficial to almost everyone include growing a short-term emergency fund and longer-term savings plan. But from there, the sky’s the limit and your goals are entirely up to you.
You can use an online emergency fund calculator to simplify the math while accruing cash. Financial experts suggest having at least three to six months’ worth of living expenses in the account.
Avoiding New Debt
This might seem like a no-brainer, but you aren’t likely to get out of debt if you keep adding new debt to the pile. One key way to avoid debt is to use credit cards responsibly.
Minimizing your debt (and the important credit utilization ratio, which compares what you owe to your credit limit) can be a smart step when avoiding lifestyle creep.
Lifestyle creep likely isn’t impossible to reverse, but one could argue that the further you’ve allowed yourself to fall into the luxury lifestyle, the harder it could be to pull yourself out.
One way to get your head in the game is to make lists, starting with your needs (electricity) vs. wants (electric car.) From there, you could prioritize your “wants” and start to cut from the bottom.
Are there things in your life that just exist because they can? Consider eliminating them completely or finding clever ways to save money, such as shopping consignment vs. retail or eating lunch out one day a week vs. all five.
Choosing Your Friends Wisely
Peer pressure is a powerful motivator, but the perceived wealth of your friends, neighbors, and acquaintances can be a far cry from the actual state of their finances.
If you seem to find yourself in situations where there’s pressure to overspend, including family Disney holidays with all the bells and whistles, nights out on the town, or an invite to a destination wedding, you may want to consider finding a circle of friends who share the same financial goals and lifestyle as you.
After all, it’s a lot easier to say “Let’s just cook at home to save money” to a friend who won’t pressure you to try the trendy new restaurant in town.
Spending a Raise
So what exactly should someone do with extra money after a raise? Paying more into a retirement account, paying off debts, or just putting some extra dollars towards a specific savings goal are some approaches to take. This can allow you to boost your financial wellness and meet your long-term goals vs. getting caught up in impulse buying.
Lifestyle creep is defined as spending more as you progressively earn more. By spending, you miss out on the opportunity to pay down debt and save for future financial goals, such as buying a home or eliminating student loans. By being aware of lifestyle creep and minimizing it, you can stay on budget and manage your money better. Having the right banking partner can also help with that.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.
FAQ
How does lifestyle creep impact long-term financial goals?
Lifestyle creep can make it challenging to achieve long-term financial goals. For example, if you get a raise and spend it on fun purchases, you may struggle to accrue enough money to meet long-term goals, such as saving for retirement.
How can I spend mindfully while still enjoying life?
One way to spend mindfully while still enjoying life is to have a budget that includes a small fund for “fun” spending. If you know you have some cash allocated for enjoyable activities or purchases, you may not feel deprived. You might, say, choose not to spend your “fun money” one month and then have twice as much the next month to use.
How do I recover financially after falling victim to lifestyle creep?
A budget can help you stay on track vs. falling victim to lifestyle creep. By carefully tracking your spending, you can avoid overdoing it. Also, you might consider whether social media is triggering you to overspend, or if your current group of friends typically value spending over saving and you therefore follow suit. Minimizing those influences could have a positive effect on your finances.
Can lifestyle creep impact my retirement goals?
Lifestyle creep can impact your retirement goals. If you receive raises but spend the increase in your paycheck on dining out or vacations, you may then be unable to meet your retirement goals and other long-term financial aspirations.
Are there tools to help combat lifestyle creep?
One good tool to help combat lifestyle creep is to have a budget that you can stick with. It can be worthwhile to experiment with different methods to find one that suits you. Also, using tech tools, such as spending trackers, can help you avoid lifestyle creep. They can help you keep tabs on where your money goes. Also, some financial experts advise unsubscribing from marketing emails that advertise sales and can encourage unplanned spending. Similarly, disabling one-click shopping on social media could help combat lifestyle creep.
SoFi members with direct deposit activity can earn 3.80% 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 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 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 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 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.
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.
*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.
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/. 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 content is provided for informational and educational purposes only and should not be construed as financial advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
