Bank accounts can be frozen for such reasons as your financial institution suspecting fraud or illegal activity. Your funds can also be made inaccessible if your bank is adhering to a court order about unpaid debts you owe. In addition, the government can freeze your account if you have unpaid student loans or taxes.
Regardless of the reason, having a bank account locked can be an upsetting situation that makes your basic financial life difficult. You might be left scrambling to pay bills and cover daily expenses.
Read on to take a closer look at this situation, including why bank accounts are frozen and what you can do if you find yourself facing this scenario and want your money unlocked.
Key Points
• Bank accounts may be frozen due to suspected fraud, such as unusual large transactions or activities in unfamiliar locations.
• Unpaid debts like taxes, student loans, or child support can lead to account freezes without a court judgment.
• Illegal activities, including money laundering or funding terrorism, might result in a bank freezing an account.
• The duration of an account freeze varies, depending on the resolution of the issue that caused the freeze.
• To unfreeze an account, contacting the bank promptly and providing necessary documentation or resolving debt issues is essential.
What Is a Frozen Bank Account?
When a bank account is frozen it means the bank will no longer let you perform certain transactions. You can still access your account information and monitor your account. You will still be able to make deposits, including manual or direct deposit of your paycheck.
However, you won’t be able to make any withdrawals from the account or transfer money from the account to a different account.
Typically, any previously authorized payments or transfers will not go through either. That means that any bills you have set up on autopay likely won’t get paid.
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Why A Bank Would Freeze Your Account
Banks have the authority to freeze, or even close, a bank account for a range of reasons. These reasons generally fall into the following three categories.
1. Suspected Fraud
A bank’s reputation relies heavily on its ability to keep money safe, so account security is typically taken very seriously.
Banks are familiar with how you tend to spend your money, so an unusually large purchase or cash withdrawal can indicate fraud and trigger an account freeze.
Banks are also familiar with where you typically spend your money. A transaction that occurs in a different city or especially a different country can be a red flag that could trigger an account freeze.
It can be a good idea to inform your bank about travel plans both nationally and internationally to help prevent any account freezes during a trip.
If your bank flags suspicious behavior you’re certain you weren’t responsible for, it could be due to identity theft.
2. Unpaid Debts
Missing a single bill payment isn’t generally something that would disrupt access to your bank account, but a longstanding overdue bill might.
Collection agencies that purchase unpaid debts can secure court judgments for those debts, giving them the power to freeze (or “attach”) the bank accounts of debtors until they paid the money they are owed.
Most creditors can not have your account frozen unless they have a judgment against you. However, not all. Government agencies that collect federal and state taxes, child support, and student loans do not need to have a court judgment to attach your account.
Any of the following types of outstanding debt could be the cause of a frozen account.
• Unpaid Taxes
• Student Loans
• Mortgages
• Car Loans
• Personal Loans
• Civil Lawsuits
• Divorce Settlements
• Child Support.
3. Illegal Activity
A bank account that is used to conduct criminal activity, or shared with someone who might be, can lead to the account being frozen.
Banks also work directly with law enforcement agencies and will freeze accounts of individuals that have been convicted of a crime or are under investigation.
Some specific activities that could lead to an account freeze include:
Writing Bad Checks. A single bounced check isn’t cause for alarm, but knowingly writing multiple checks from a bank account that doesn’t hold the funds to support them is illegal. If a bank observes too many bad check transactions, they may be inclined to freeze the account and alert the police.
Money Laundering. This is the process of generating money through illegal activity, and attempting to make it appear legal via multiple financial transactions. All banks and financial institutions are required to comply with federal anti-money laundering regulations and report any suspected activity directly to the authorities.
Terrorist Financing. Funding or organizing funds for terrorist groups and organizations is an illegal activity that can also result in an account freeze. Banks comply with federal laws that help prevent terrorism by freezing and reporting any accounts that exhibit suspicious activity related to terrorists.
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How Long Can A Bank Account Be Frozen?
Banks don’t typically follow any set rules regarding how long an account can be frozen. The length of time generally depends on how long it takes for the account holder to notice the freeze, contact the bank, and can resolve the issue that caused the freeze.
How Does a Frozen Bank Account Affect You?
Having a frozen bank account essentially means not having access to your money, and it can be especially difficult if it is your primary bank account.
Frozen funds means not being able to make purchases with a debit card, or withdrawals from an ATM. It can also mean that any auto-payments linked to that account will likely not be fulfilled, and any scheduled transfers won’t be completed.
Because these payments can bounce, you could also incur a non-sufficient funds charge, which may be deducted from your account.
If you don’t have enough in the account to cover it, you could end up with a negative balance, putting you into an overdraft. In this case, you could end up having to pay additional bank fees and interest to cover the shortfall.
Those with frozen accounts often must resort to using credit cards and can end up accumulating debt in order to cover their expenses while they sort out the issue with their bank.
If the bank suspects you’ve been using the account illegally for any reason, it could close your account completely. It can also report your account activity to authorities.
It can be a good idea to contact your bank as soon as you notice a freeze on your account. When discussing the issue, it can help to have a clear account of your most recent locations and transactions, and be prepared to share any information and supplemental documentation that can help clear up the issue.
If you can show that there’s no reason for the freeze, the bank will likely release the suspension and grant you full access to the account again.
If your account is frozen over unpaid debts, it can be a good idea to get the creditor’s contact information from your bank and then reach out to them directly. Once you have a better idea of what’s going on with your account, you may be able to work out a payment arrangement.
The Takeaway
When a bank freezes your account, it can mean there is something wrong with your account or that someone has a judgment against you to collect on an unpaid debt.
The government can also request an account freeze for any unpaid taxes or student loans.
Once the bank account is frozen, you cannot make withdrawals but can only put money in your account until the freeze is lifted.
If your account is suddenly inaccessible, it can be a good idea to contact your bank immediately to find a resolution.
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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.
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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.
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.
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.
Situations can crop up all the time where you want to send money to someone you know. Perhaps your coworker brought you back a cold brew (nice) or you need to pay your roommate for your share of the utility bill. Fortunately, there are plenty of ways to move cash from your account to theirs, from using mobile payment apps to traditional money transfer services like Western Union.
Which method you choose to transfer funds will depend on to whom you are sending the money, where the recipient is located, how much money you need to send, and how fast the money needs to get there.
Read on to learn all about several safe, quick, and easy ways to send someone money.
Key Points
• Various methods are available for sending money online, including mobile payment apps and traditional services like Western Union.
• The choice of method depends on the recipient’s location, the amount, and urgency.
• Money transfer services may allow sending to a bank account or for pickup at a physical location.
• Bank-to-bank transfers are common for domestic transactions, often without fees.
• Personal checks, though less common, are still used for payments and require recipient details for mailing.
1. Money Transfer Services
Money transfer companies have been around for decades, and some — like Western Union and MoneyGram — still have locations all around the world where you can send money to a person so they can go and pick it up. In some cases, you may be able to send money directly into a person’s bank account or mobile wallet.
• What you need: The recipient’s full name, phone number, address, bank name and account details for electronic transfers to them. For a recipient who will pick up the money in person, you may just need the person’s full name and address.
• Fees: The fees for money transfer services can vary based on how you’re paying (with a credit or debit card, or directly from your bank account), where you’re sending the money, and how much you’re sending.
• Timing: Depending on the delivery and payment methods, the money may arrive within a few minutes or in a few days.
• Reach: Unlike many other money transfer options, these services typically offer both domestic and international transfers. Western Union, for example, specializes in the ability to send or receive cash quickly overseas.
• What you need: You will likely need the routing number and account number where you are sending funds to, and you may have to verify your identity before completing the transfer.
• Fees: Many banks allow you to click on their transfer feature and send money to a bank account at another bank, often with no fees involved.
• Timing: It usually takes just a day or two to move the funds.
• Reach: These are typically done domestically. If you want to send funds internationally, you may need to complete an international wire transfer.
3. Send a Check Via Your Bank
Although they may not be as popular as they once were, checks are still a reliable way to send money to someone.
• What you need: You will need the name of the person receiving the check (the payee) and possibly their mailing address if you are sending a check.
• Fees: Checks are typically included at no charge when you open a bank account. If you don’t have any checks handy, you can order checks from your bank or retailers. This can be done online, and check prices can range from five cents to more than 20 cents per check.
• Timing: Once deposited, the money should move into the recipient’s bank account and be available in a couple of days or possibly up to a week, depending on such factors as when it is deposited and how.
• Reach: In the US, it should be no problem to deposit a check (even if it’s from an international account). However, if you are planning to mail a check to someone in a foreign country, you may want to check with them to make sure they can deposit it at their bank without any issues.
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No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
4. Wire Transfers
Wire transfers offer another way to send money to someone. They can be a good option for sending a large amount of money that is needed extremely quickly, for both domestic and international transactions.
• What you need: In terms of how to wire money, you can call, visit, or go online with your bank or a wire transfer company. For a domestic transfer, you will need the recipient’s name, address, and bank account and routing number.
For international transfers, you will also need the bank’s SWIFT code plus possibly the International Payments System Routing Code.
• Fees: Domestic wire transfers may be free for some banking customers, but the median charges tend to be $25 for outgoing wire transfers and $15 for incoming wire transfers (meaning your recipient may be assessed a fee for receiving funds this way).
Internationally, the figures are a median of $15 for incoming international wire transfers and $45 for outgoing international wire transfers.
• Timing: Typically, domestic wire transfers can be completed in one day (perhaps even within hours or sooner), and international ones can take up to a few days.
• Reach: Bank policies vary; some may offer only domestic wire transfers, others also do international transfers, and some offer neither service.
5. Third Party Person-to-Person (P2P) Apps
A growing number of P2P services (also known as person-to-person or peer-to-peer services) allow customers to use an app or website to send money from a bank account, a credit card, or a debit card to someone else.
You are probably familiar with these apps. If you went out with friends for dinner but didn’t have money on you, your pal might pay for the whole meal. You could then pay your friend without cash by using an app to send them what you owe. These services can possibly provide an answer to the questions, “How to send money instantly to a friend or family member?”
The set-up, services, and transaction times can vary somewhat from one app to the next. Generally, however, they’re easy to use and are typically free, although there may be fees involved (say, to expedite the transfer of funds to a bank account, or when paying using a linked credit card).
Some, though not all, providers may require both the sender and receiver to set up an account within the same transfer service.
Here are some popular P2P providers to consider:
PayPal
PayPal is the grandaddy of money transferring apps. It remains popular because it’s so ubiquitous, tends to be easy to use, and offers a variety of payment methods.
• It’s free to register for an account, and when you send money to another PayPal account holder, the money can be transferred to that person’s bank account as soon as the next day.
• Sending money to someone in the US through a PayPal account balance or linked bank account is free, but there may be extra costs if you use a credit or a debit card, or if the money is going overseas.
Cash App
Cash App is another P2P money transfer app that’s used in the US and the United Kingdom.
• Both parties involved in a transaction must download the app and log in.
• There are no extra charges to send funds, although your bank might assess a fee if you move money internationally, and you’ll be assessed a fee if you use a credit card to fund your transaction.
• There are limits to how much you can send at first: $250 during the first seven days after you sign up, but after a month, you can send up to $1,000 at a time.
Venmo
Venmo is a subsidiary of PayPal, and the process and costs for sending money to someone work in much the same way.
• There’s also a social aspect to Venmo that has made it popular. You can add friends, share posts, and use emojis. Or you can change your settings to keep things a bit more private.
• Transfers between Venmo accounts are instantaneous.
• If you realize you made a mistake, the transfer cannot be undone.
Facebook allows users to send and receive money free of charge through both the Messenger app and Meta Pay (previously known as Facebook Pay).
• Both the person sending and the person receiving the money need to live in the U.S. and link a debit card or PayPal account to Facebook or Messenger.
• Meta Pay works similarly to Messenger, but unlike Messenger, it allows users to send and receive money across its platforms (Facebook, Messenger, Instagram, and WhatsApp).
• Meta Pay also enables users to purchase things, such as games and items for sale on Facebook Marketplace and Instagram, and to link a major credit card, in addition to a debit card or PayPal account.
• As with other services listed here, you can’t cancel a payment after you send it.
Apple Cash
Apple Cash is a digital card that is built into the wallet of iPhones. It allows you to spend in stores and online and in apps with Apple Pay.
• You can load the card with cash and use it where Apple Pay (the technology behind it) is accepted.
• You can send and receive Apple Cash from friends and family with iPhones through Messages or your Apple Wallet.
• You can use Siri to send money using spoken instructions.
• Within a seven-day period, you can send or receive a maximum of $10,000.
• Children with iPhones can send and receive cash this way.
• There’s no fee to send, receive, or request funds with Apple Cash.
• You may be able to cancel an Apple Cash transaction if the recipient hasn’t yet accepted the payment.
Google Pay
Google Pay is another service you can use to send money. You’ll need either the Google Pay or Google Wallet app, plus at least one form of payment, such as a debit card or a credit card. Not all cards are compatible yet with Google Pay so do a bit of research to see if yours are.
• You can use Google Pay in stores and online.
• Within a seven-day period, you can send up to $5,000 if you’re verified (or $500 if your identity hasn’t been verified).
• It’s a free service to pay for goods and services.
• Google Wallet is currently available in dozens of locations globally.
• It may be possible to cancel some Google Pay transactions.
Is It Safe to Transfer Money Online?
You may wonder, “Are mobile payment apps safe?” Overall yes, but remember: Any time your personal information is online, the possibility exists that someone could access it and use it to steal your money.
So even though banks and other major money transfer networks are taking state-of-the-art steps to prevent hacking and cybertheft, no financial site or mobile app is entirely without risk. Bank account fraud and similar crimes can happen when scammers get a hold of your financial details.
Fortunately, there are some simple steps you can take to help safeguard your money:
Only Do Business with a Secure Network
If you’re making a transfer using a website, it’s a good idea to make sure the URL starts with (https://) and there’s a little padlock in front of the web address in the search bar. This shows that the site is secure and the data you enter will be encrypted.
If you don’t see these signs of a secure transaction, there is a chance that your personal and banking details could be visible to others during the transaction. This can in turn lead to fraud and identity theft.
Make Sure Your Device Is Protected
Even if you believe you’re dealing with a secure site, it’s wise to make sure you have the most up-to-date antivirus and antimalware programs enabled on your devices and run regular scans.
Yes, this may seem like a hassle, but the trouble caused by malware can be devastating. Malware can be downloaded onto your device, say, when you plug in to charge your phone at an airport or other public venue or when you click on a fraudulent link. It can then pull highly personal data off your phone and lead to you having to report identity theft.
Don’t Download Any App You Haven’t Vetted
Before you download a financial app, make sure that it’s the one intended. There are plenty of lookalike, sound-alike apps out there.
Then, make sure that you feel confident in the security protocols it has in place. Most financial apps list their security measures somewhere on their description in the app store (it might be under the privacy policy). You’ll also find reviews there.
Use a Strong Password
Here’s another important security protocol for financial apps or any app that involves your personal information. It’s a good idea to make your password as long and complicated as possible. Consider using a mix of numbers, upper- and lowercase letters, and throw in a symbol or two. Don’t use the obvious “password123” option, nor your birthdate, which could easily be available on social media sites.
Also, it’s best not to use the same password for every account you have. Use a well-reviewed password manager if you could use some help handling your passwords.
Vet People and Companies Before You Send Them Money
Do your research before hitting “send.” On some payment apps, you can friend people before you send any funds. This can help you make sure that you are sending money to the person you intend to vs. someone else with a very similar name or handle.
Also, because it’s so easy to transfer money to someone, it’s also easy to get scammed. And often there’s no going back on a transfer once the money is in the other person’s account. So be wary when using these apps to make purchases online.
Double-check All Your Info
Making sure you have the right name, address, account information, and other details for the person you’re sending money to. That can help keep your money from going to the wrong place. It’s easy to make a typo on mobile devices (and actually anytime you’re typing), especially when multitasking or transferring funds while on the go.
If you’re sending a large sum, you may want to send a small test amount first to confirm you have everything correct.
Keep a Record of the Transaction
Consider holding onto the proof of transfer until your recipient confirms that he or she has access to the money. The transfer might take a few minutes or a few days.
Typically, with wire transfers, you have hard copies from a brick-and-mortar bank or downloaded receipts via your banking app or website that you can keep on hand. With checks, the canceled check (or an image of it) can serve as proof that funds were accessed.
Transferring funds to another person has become increasingly quick and easy as technology and financial services have evolved, with such alternatives as a payment app, a wire transfer, a bank transfer, or money transfer service. Depending on the particulars of your transaction, whether you’re repaying a friend for the sushi they got you or making a purchase, there’s likely an affordable and reliable option or two.
Having the right banking partner can help make money transfers as well as all your other everyday financial transactions fast, simple, and safe.
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.
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FAQ
Can someone send me money if I don’t have a bank account?
If you don’t have a bank account, you can still receive money via services like Western Union (which can give you cash), and Cash App, PayPal, and Venmo (which can likely give you prepaid debit cards).
Can you send money by text?
Apple Cash and Google Pay (and possibly other services) make it possible to send money by text.
What is the fastest way to send money electronically?
If you want to start sending money online, services like Google Pay can be very quick ways to transfer money electronically. The money can be delivered within minutes. Wire transfers are also regarded as a fast way to move large sums or make international transfers.
How can I send money to someone instantly with routing and account numbers?
You can likely use your financial institution’s transfer feature as a way to transfer money to another account if you have the routing and account numbers. However, you will usually also need the recipient’s name and address, as well as their bank’s name.
How can I send money to someone instantly without a bank account?
If you don’t have a bank account, you can use a money transfer service (such as Western Union or Moneygram) and pay in cash. The funds will be then forwarded as you direct them. Services like Venmo and Cash App may be another good way to move money; you can link them to a prepaid debit card or a credit card.
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.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
There are plenty of budgets out there that promise to help you manage your money more efficiently, and some of them can get quite complicated. That’s why many people opt for the 70-20-10 budget rule. It’s a simple, percentage-based formula that can help you get and keep your personal finances in good order.
This system can help you get better acquainted with what you earn and where it goes, while tracking your daily spending (that’s the 70% of your after-tax earnings) plus debt repayment and saving (the 20% and the 10%). These aspects of the 70-20-10 budget are part of its appeal, and it can guide you to better money habits. Read on to learn how it works and can be adapted for your particular needs.
Key Points
• The 70-20-10 budget rule simplifies money management by allocating income into three categories: living expenses, savings/debt repayment, and investments/donations.
• Living expenses should consume 70% of after-tax income, covering necessities and discretionary spending.
• Savings and debt repayment are prioritized at 20%, focusing on high-interest debts and building emergency funds.
• The remaining 10% is designated for investments or charitable donations, supporting long-term financial growth and personal values.
• This budgeting framework can be adjusted based on individual financial situations and goals, ensuring flexibility.
What Is the 70-20-10 Rule?
The 70-20-10 rule is a way to allocate your monthly income into three categories:
• Living expenses
• Debt repayment and short-term savings
• Investing and donations.
Using these categories can help organize the way you think about your income — how it comes in, and importantly, how it goes out. It’s a simple and often very successful way to get a personal budget in place.
Note: If it sounds very familiar, it’s worth noting that there is also the 50/30/20 budget rule, a slightly different spin on budgeting that also works with easy-to-calculate percentages. To see a breakdown using this method, check out the 50/30/20 rule calculator.
Now, take a closer look at each of the three components of this budget tool.
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70% for Living Expenses
Living expenses are exactly what they sound like — expenditures you need or want to make each month. To see how much of your post-tax dollars go toward these costs every month, you’ll do a little math. You’ll add up the monthly payments that cover essentials such as housing, utilities, food, childcare, and medical expenses.
It also includes expenditures made only once or twice a year, such as auto or home insurance premiums or yearly car tune-ups. In those cases, you simply figure the total paid for the year, divide by 12, and add that number to the monthly figure.
For the purposes of the 70-20-10 rule budget, living expenses also include discretionary spending on things like shopping, entertainment, travel, gym memberships, and other non-essential items.
To get started, scan through a couple of months of your bank statements, credit card, utility, medical, housing, insurance, and cable and internet bills to see how you’re tracking. Use the common living expenses listed below as a guide.
Housing
• Rent or mortgage and property tax
• Utilities
• Maintenance
• Insurance
Transportation
• Car payments
• Maintenance
• Gas and tolls
• Parking
• Public transportation costs
• Taxis and ride shares
• Auto insurance
Childcare
• Day care
• After-school programs
• Tuition
• Babysitting
• Clothes, personal care, and related expenses
Insurance
• Health insurance premiums (if not deducted from your paycheck)
• Auto and home insurance premiums
• Life insurance premiums
• Disability income insurance premiums
Food
• Groceries
• Takeout and restaurants
Health
• Deductibles, copays, and coinsurance
• Medical and dental appointment costs not covered by insurance
• Prescriptions and over-the-counter drugs
• Eyeglasses and contacts
Entertainment
• Concert, theater, and movie tickets
• Paid streaming and podcast services
• Books
• Travel
Pets
• Food, equipment and accessories, and toys
• Flea and tick prevention/other medications
• Vet bills
• Pet insurance
Personal
• Clothing/shoes/accessories
• Hair care and other grooming
• Toiletries/cosmetics
• Gym membership
If your monthly number hits the 70% mark or less, congratulations. You’re living within your means. For most people, however, this first calculation will likely exceed 70%. More on what to do when that happens below. For now, keep looking at the big picture of tallying your 70-20-10 numbers.
20% for Saving and Debt Repayment
Next, you want to calculate how much it will take to hit the 20% goal of saving and debt repayment. (If you don’t have debt, hooray; you can zoom straight to saving. But many people need to use this bucket to pay off debt and save.)
If you have credit card debt, you’ll likely want to focus all or part of this 20% on paying that down so you can avoid the high interest payments. If you have college debt, the monthly repayment amount should be included here in the 20% category.
Once that’s done, you’ve cleared the decks for other savings, whether for an emergency fund (aim for three to six months’ worth of expenses) or a near-term goal such as a vacation or down payment for a home.
Depending on what and why you are saving, different kinds of savings accounts may make sense. Consider these smart options to get extra benefits:
• High-yield savings accounts make sense if you need your money liquid (accessible) but want to earn more interest than the current rate on traditional savings accounts. Online banks vs. traditional banks often offer the best rates.
• A certificate of deposit (CD) is another option. These accounts lock up your money at a specific interest rate for a period of time, usually from six months to a few years. What’s nice is you know how much money your money will earn, but keep in mind, if you pull your money out early, you’ll typically face penalty fees.
• Money market accounts (MMAs) combine some aspects of a savings account with features of a checking account. You’ll earn interest on your savings (possibly in the ballpark of high-yield accounts), and you may be able to access funds via debit card or checks.
Once you’ve taken a look at your savings/debt picture, you’ll determine how best to handle the 20% rule. Depending on the size of your debts and your living expenses, you may need to temporarily allocate more or less funds to this category. More on that below.
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10% for Donation or Additional Savings
The remaining 10% can be allocated to investing in your future, usually for retirement. Contributions to an IRA, 401(k) 403(b), self-employed retirement savings vehicles, or other long-term, tax advantaged savings plan can be best for this category. This is money that you won’t need in the short term, so it can be invested more aggressively than the savings in your 20% category.
In addition, part of this allocation can go to charitable donations. Perhaps there’s a cause you want to support, from animal rescue to medical research, or you like to donate to your college; it’s your call.
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Example of the 70-20-10 Budget Rule
In terms of calculations, say your monthly income after taxes is $6,000. Here’s how that money would look on the 70-20-10 budget plan.
• For living expenses, you would multiply 6,000 x 0.70, and see that you have $4,200 of after-tax dollars for housing, utilities, food, entertainment, and all the other items listed above.
• For savings, you would multiply 6,000 x 0.20, or $1,200 to put toward savings and debt.
• Lastly, you would multiply 6,000 x 0.10, and see that you have another $600 to put toward additional savings and/or donations.
Here’s the math: $4,200 + $1,200 + $600 = $6,000.
How to Customize the 70-20-10 Rule to Fit Your Needs
The beauty of the 70-20-10 plan is its simplicity — and flexibility. Once you create a budget this way, you can customize the allocations within reason to meet your own needs and financial goals over time. Creating a budget can give you peace of mind, because you’ll know you are taking care of your financial health. Here, a few tips for increasing your likelihood of success in following this plan:
Include Side Hustle Earnings and Windfalls
Bonuses, tax refunds, money from side hustles and other income should be factored in later, as they are earned; don’t consider them as part of your base income. The bulk of the extra income can be designated toward the area most in need of attention, such as paying off credit card debt or boosting emergency savings. But do feel free to set aside a small percentage of those earnings as a reward for your hard work and have some fun with it.
An important note: If not already evident, this budget technique works best for those with a steady income, who are on a payroll. If you are freelance, a gig worker, or seasonal employee and your income is variable, this may not be the best technique for you.
Adjust the Percentages When Needed
After tracking your spending and making possible cuts, you may find you still can’t fit living expenses into the 70% category. Maybe you are just starting your post-grad life, earn a lower income, or live in an area with a high cost of living.
Don’t stress out over this! If you have limited funds and lots of bills, you may have to allocate a bit more to that category and put less in short-term savings until that next raise or other income spurt comes through.
Protect the 10%
A quick note for people with lots of credit card debt: Those hefty bills are a sign that you may be spending more than your income level allows. You’ll probably do better with the 70-20-10 budget if you increase the paying debt/savings percentage to higher than 20% till your debt is lower. Take steps to reduce discretionary spending, perhaps even more than you have already.
In addition, you may find you need to make more drastic cost-cutting moves too, such as finding an apartment with less expensive rent or ditching the expensive car payments and switching to mass transit. The goal is to get costly debt under control so you can start saving for your priorities and peace of mind.
Prioritize High-Interest Debt
Whenever you find the need to adjust percentages, it may be best to avoid tampering with the 10% investing for the future allocation. The sooner you start saving for retirement, the more that money will add up over time. By the same token, older people who may need to catch up on retirement savings may want to increase this 10% allocation. One of the reasons the 70-20-10 plan can be successful is that it helps you balance both short-term needs with long-term financial planning.
If you do make percentage adjustments, be sure to continue to track expenses so you can see when you can readjust allocations back to the original 70-20-10 plan.
The Takeaway
The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis. You can also take steps toward achieving your financial goals in the short- and long-term.
As you establish a budget that works for you, don’t forget to find the right banking partner.
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.
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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.
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.
If you’re looking for a career that makes a lot of money, you might want to start your search in the health and medical field. Healthcare jobs are the highest-paid jobs in the U.S., and overall employment in this sector is expected to grow faster than the average for all occupations over the next eight years, according to the U.S. Bureau of Labor Statistics (BLS).
Outside of healthcare, professional athletes and corporate chief executive officers (CEOs) are among the highest-paid professions. Three other fields that also made the top 25: Airline pilots, computer/information systems managers, and financial managers.
Read on for a snapshot of the highest-paying jobs across the U.S., followed by a listing of the best-paying occupations by state.
Key Points
• Healthcare professions dominate the highest-paying jobs in the U.S., with cardiologists and orthopedic surgeons leading the list.
• Professional athletes and CEOs also rank among the top earners nationwide.
• The list of top-paying jobs includes various medical specialists such as pediatric surgeons and anesthesiologists.
• Each state has different top-paying jobs, with healthcare roles typically offering the highest salaries.
• The data for this ranking was sourced from the Bureau of Labor Statistics and includes projections for job growth and educational requirements.
25 Highest Paying Careers in the U.S.
To compile this list of highest-paying jobs, we reviewed data from BLS’s most recent National Occupational Employment and Wage Estimates report (May 2022). We also used government data to cite the minimum education requirements, projected growth, and which industries provide employment for each occupation. For more job description details, we tapped the Occupational Information Network (O*NET).
Here’s a look of the highest-paid jobs in the U.S., ranked from highest average salary to lowest.
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1. Cardiologist
Cardiologists diagnose, treat, manage, and prevent diseases or conditions of the cardiovascular system. They may further subspecialize in interventional procedures (e.g., balloon angioplasty and stent placement), echocardiography, or electrophysiology.
Average Salary
$421,330
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Administer emergency cardiac care for life-threatening heart problems.
• Advise patients about diet, activity, and disease prevention.
• Calculate valve areas from blood flow velocity measurements.
• Compare measurements of heart wall thickness and chamber sizes to standards to identify abnormalities using echocardiogram results.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Management of companies and enterprises
2. Orthopedic Surgeon
Orthopedic surgeons diagnose and perform surgery to treat and prevent rheumatic and other diseases in the musculoskeletal system.
Average Salary
$371,400
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.
• Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes related to musculoskeletal injuries and diseases.
• Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care Centers
• Colleges, universities, and professional Schools
3. Pediatric Surgeon
Pediatrics surgeons diagnose and perform surgery to treat fetal abnormalities and birth defects, diseases, and injuries in fetuses, premature and newborn infants, children, and adolescents.
Average Salary
$362,970
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.
• Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes.
• Consult with patient’s other medical care specialists to determine if surgery is necessary.
• Describe preoperative and postoperative treatments and procedures to parents or guardians of the patient.
• Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.
Projected growth (2022-2032)
Little or no change
Top Industries
• Hospitals
• Offices of physicians
4. Athletes and Sports Competitors
Athletes and sports competitors compete in athletic events.
Average Salary
$358,080
Typical Entry-Level Education
No formal educational credential
Primary Duties
• Participate in athletic events or competitive sports, according to established rules and regulations.
• Assess performance following athletic competition, identifying strengths and weaknesses and making adjustments to improve future performance.
• Attend scheduled practice or training sessions.
• Maintain optimum physical fitness levels by training regularly, following nutrition plans, or consulting with health professionals.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Spectator sports
• Other amusement and recreation industries
• Promoters of performing arts, sports, and similar events
• Colleges, universities, and professional schools
5. Surgeons
Surgeons operate on patients to treat injuries, such as broken bones; diseases, such as cancerous tumors; and deformities.
Average Salary
$347,870
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
Varies with specialty
Projected growth (2022-2032)
3% (as fast as average)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
6. Radiologists
Radiologists diagnose and treat diseases and injuries using medical imaging techniques, such as x rays, magnetic resonance imaging (MRI), nuclear medicine, and ultrasounds. They may also perform minimally invasive medical procedures and tests.
Average Salary
$329,080
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Perform or interpret the outcomes of diagnostic imaging procedures including magnetic resonance imaging (MRI), computer tomography (CT), positron emission tomography (PET), nuclear cardiology treadmill studies, mammography, or ultrasound.
• Prepare comprehensive interpretive reports of findings.
• Communicate examination results or diagnostic information to referring physicians, patients, or families.
• Obtain patients’ histories from electronic records, patient interviews, dictated reports, or by communicating with referring clinicians.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Medical and diagnostic laboratories
• Outpatient care centers
• Colleges, universities, and professional schools
7. Dermatologists
Dermatologists diagnose and treat diseases relating to the skin, hair, and nails. They may perform both medical and dermatological surgery functions.
Average Salary
$327,650
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Conduct complete skin examinations.
• Diagnose and treat pigmented lesions, such as common acquired nevi, congenital nevi, dysplastic nevi, Spitz nevi, blue nevi, or melanoma.
• Perform incisional biopsies to diagnose melanoma.
• Perform skin surgery to improve appearance, make early diagnoses, or control diseases such as skin cancer.
• Counsel patients on topics such as the need for annual dermatologic screenings, sun protection, skin cancer awareness, or skin and lymph node self-examinations.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Outpatient care centers
• Offices of other health practitioners
• Medical and diagnostic laboratories
• Personal care services
8. Emergency Medicine Physicians
Emergency medicine physicians make immediate medical decisions and act to prevent death or further disability. They provide immediate recognition, evaluation, care, stabilization, and disposition of patients. They may also direct emergency medical staff in an emergency department.
Average Salary
$316,600
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Analyze records, examination information, or test results to diagnose medical conditions.
• Assess patients’ pain levels or sedation requirements.
• Collect and record patient information, such as medical history or examination results, in electronic or handwritten medical records.
• Communicate likely outcomes of medical diseases or traumatic conditions to patients or their representatives.
• Conduct primary patient assessments that include information from prior medical care.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• General medical and surgical hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
• Management of companies and enterprises
9. Oral and Maxillofacial Surgeons
Oral and maxillofacial surgeons perform surgery and related procedures on the hard and soft tissues of the oral and maxillofacial regions to treat diseases, injuries, or defects. They also diagnose problems of the oral and maxillofacial regions, and may perform surgery to improve function or appearance.
Average Salary
$309,410
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Administer general and local anesthetics.
• Collaborate with other professionals, such as restorative dentists and orthodontists, to plan treatment.
• Evaluate the position of the wisdom teeth to determine whether problems exist currently or might occur in the future.
• Perform surgery to prepare the mouth for dental implants and to aid in the regeneration of deficient bone and gum tissues.
• Remove impacted, damaged, and non-restorable teeth.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of dentists
• Hospitals
• Outpatient care centers
10. Anesthesiologist
Anesthesiologists administer anesthetics and analgesics for pain management prior to, during, or after surgery.
Average Salary
$302,970
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine patient, obtain medical history, and use diagnostic tests to determine risk during surgical, obstetrical, and other medical procedures.
• Administer anesthetic or sedation during medical procedures, using local, intravenous, spinal, or caudal methods.
• Monitor patient before, during, and after anesthesia and counteract adverse reactions or complications.
• Record type and amount of anesthesia and patient condition throughout procedure.
• Provide and maintain life support and airway management and help prepare patients for emergency surgery.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
[bls]
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
• Offices of other health practitioners
11. Obstetricians and Gynecologists
Obstetricians and gynecologists provide medical care related to pregnancy or childbirth. They diagnose, treat, and help prevent diseases of women, particularly those affecting the reproductive system. They may also provide general care to women, and perform both medical and gynecological surgery functions.
Average Salary
$277,320
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Treat diseases of female organs.
• Care for and treat women during prenatal, natal, and postnatal periods.
• Analyze records, reports, test results, or examination information to diagnose medical condition of patient.
• Perform cesarean sections or other surgical procedures as needed to preserve patients’ health and deliver babies safely.
• Collect, record, and maintain patient information, such as medical histories, reports, or examination results.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
12. Ophthalmologists
Ophthalmologists diagnose and perform surgery to treat and help prevent disorders and diseases of the eye. They may also provide vision services for treatment including glasses and contacts.
Average Salary
$265,450
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Perform comprehensive examinations of the visual system to determine the nature or extent of ocular disorders.
• Diagnose or treat injuries, disorders, or diseases of the eye and eye structures including the cornea, sclera, conjunctiva, or eyelids.
• Provide or direct the provision of postoperative care.
• Develop or implement plans and procedures for ophthalmologic services.
• Prescribe or administer topical or systemic medications to treat ophthalmic conditions and to manage pain.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Offices of other health practitioners
• Outpatient care centers
• Colleges, universities, and professional schools
13. Neurologists
Neurologists diagnose, manage, and treat disorders and diseases of the brain, spinal cord, and peripheral nerves, with a primarily nonsurgical focus.
Average Salary
$255,510
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Interview patients to obtain information, such as complaints, symptoms, medical histories, and family histories.
• Examine patients to obtain information about functional status of areas, such as vision, physical strength, coordination, reflexes, sensations, language skills, cognitive abilities, and mental status.
• Perform or interpret the outcomes of procedures or diagnostic tests, such as lumbar punctures, electroencephalography, electromyography, and nerve conduction velocity tests.
• Order or interpret results of laboratory analyses of patients’ blood or cerebrospinal fluid.
• Diagnose neurological conditions based on interpretation of examination findings, histories, or test results.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
14. Pathologists
Pathologists diagnose diseases and conduct lab tests using organs, body tissues, and fluids. Includes medical examiners.
Average Salary
$252,850
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine microscopic samples to identify diseases or other abnormalities.
• Diagnose diseases or study medical conditions, using techniques such as gross pathology, histology, cytology, cytopathology, clinical chemistry, immunology, flow cytometry, or molecular biology.
• Write pathology reports summarizing analyses, results, and conclusions.
• Communicate pathologic findings to surgeons or other physicians.
• Identify the etiology, pathogenesis, morphological change, and clinical significance of diseases.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of physicians
• Medical and diagnostic laboratories
• Colleges, universities, and professional schools
• Local government, excluding schools and hospitals
• Scientific research and development services
15. Psychiatrists
Psychiatrists diagnose, treat, and help prevent mental disorders.
Average Salary
$247,350
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Prescribe, direct, or administer psychotherapeutic treatments or medications to treat mental, emotional, or behavioral disorders.
• Gather and maintain patient information and records, including social or medical history obtained from patients, relatives, or other professionals.
• Design individualized care plans, using a variety of treatments.
• Collaborate with physicians, psychologists, social workers, psychiatric nurses, or other professionals to discuss treatment plans and progress.
• Analyze and evaluate patient data or test findings to diagnose nature or extent of mental disorder.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• State government
16. Chief Executives
Chief executives determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body. They plan, direct, or coordinate operational activities at the highest level of management with the help of subordinate executives and staff managers.
Average Salary
$246,440
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Direct or coordinate an organization’s financial or budget activities to fund operations, maximize investments, or increase efficiency.
• Confer with board members, organization officials, or staff members to discuss issues, coordinate activities, or resolve problems.
• Direct, plan, or implement policies, objectives, or activities of organizations or businesses to ensure continuing operations, to maximize returns on investments, or to increase productivity.
• Prepare or present reports concerning activities, expenses, budgets, government statutes or rulings, or other items affecting businesses or program services.
Projected growth (2022-2032)
Decline (-2% or lower)
Top Industries
• Local and state government
• Management of companies and enterprises
• Elementary and secondary schools
• Computer systems design and related services
17. Dentists
Dentists examine, diagnose, and treat diseases, injuries, and malformations of teeth and gums. They treat diseases of nerve, pulp, and other dental tissues affecting oral hygiene and retention of teeth. They may also fit dental appliances or provide preventive care.
Average Salary
$233,430
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine teeth, gums, and related tissues, using dental instruments, x-rays, or other diagnostic equipment, to evaluate dental health, diagnose diseases or abnormalities, and plan appropriate treatments.
• Administer anesthetics to limit the amount of pain experienced by patients during procedures.
• Use dental air turbines, hand instruments, dental appliances, or surgical implements.
• Formulate plan of treatment for patient’s teeth and mouth tissue.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of dentists
• Federal executive branch
• Hospitals
• Outpatient care centers
18. Airline Pilots, Copilots, and Flight Engineers
Airline pilots, copilots, and flight engineers pilot and navigate the flight of fixed-wing aircraft, usually on scheduled air carrier routes, for the transport of passengers and cargo. This job requires a Federal Air Transport certificate and rating for the specific aircraft type used.
Average Salary
$225,740
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Start engines, operate controls, and pilot airplanes to transport passengers, mail, or freight, adhering to flight plans, regulations, and procedures.
• Work as part of a flight team with other crew members, especially during takeoffs and landings.
• Respond to and report in-flight emergencies and malfunctions.
• Inspect aircraft for defects and malfunctions, according to pre-flight checklists.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Scheduled air transportation
• Couriers and express delivery services
• Federal executive branch
• Support activities for air transportation
• Management of companies and enterprises
19. General Internal Medicine Physicians
General internal medicine physicians diagnose and provide nonsurgical treatment for a wide range of diseases and injuries of internal organ systems. They provide care mainly for adults and adolescents, and are based primarily in an outpatient care setting.
Average Salary
$225,270
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Treat internal disorders, such as hypertension, heart disease, diabetes, or problems of the lung, brain, kidney, or gastrointestinal tract.
• Analyze records, reports, test results, or examination information to diagnose medical condition of patient.
• Prescribe or administer medication, therapy, and other specialized medical care to treat or prevent illness, disease, or injury.
• Manage and treat common health problems, such as infections, influenza or pneumonia, as well as serious, chronic, and complex illnesses, in adolescents, adults, and the elderly.
• Provide and manage long-term, comprehensive medical care, including diagnosis and nonsurgical treatment of diseases, for adult patients in an office or hospital.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Colleges, universities, and professional schools
• Outpatient care centers
20. Family Medicine Physicians
Family medicine physicians diagnose, treat, and provide preventive care to individuals and families across the lifespan. They may refer patients to specialists when needed for further diagnosis or treatment.
Average Salary
$224,460
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury.
• Order, perform, and interpret tests and analyze records, reports, and examination information to diagnose patients’ condition.
• Collect, record, and maintain patient information, such as medical history, reports, or examination results.
• Monitor patients’ conditions and progress and reevaluate treatments as necessary.
• Explain procedures and discuss test results or prescribed treatments with patients.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
• State government
21. Orthodontists
Orthodontists examine, diagnose, and treat dental malocclusions and oral cavity anomalies. They design and fabricate appliances to realign teeth and jaws to produce and maintain normal function and to improve appearance.
Average Salary
$216,320
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine patients to assess abnormalities of jaw development, tooth position, and other dental-facial structures.
• Study diagnostic records, such as medical or dental histories, plaster models of the teeth, photos of a patient’s face and teeth, and X-rays, to develop patient treatment plans.
• Fit dental appliances in patients’ mouths to alter the position and relationship of teeth and jaws or to realign teeth.
• Adjust dental appliances to produce and maintain normal function.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of dentists
• Hospitals
22. Nurse Anesthetists
Nurse anesthetists administer anesthesia, monitor patient’s vital signs, and oversee patient recovery from anesthesia. They assist anesthesiologists, surgeons, other physicians, or dentists. They must be registered nurses who have specialized graduate education.
Average Salary
$205,770
Typical Entry-Level Education
Master’s degree
Primary Duties
• Manage patients’ airway or pulmonary status, using techniques such as endotracheal intubation, mechanical ventilation, pharmacological support, respiratory therapy, and extubation.
• Respond to emergency situations by providing airway management, administering emergency fluids or drugs, or using basic or advanced cardiac life support techniques.
• Monitor patients’ responses, including skin color, pupil dilation, pulse, heart rate, blood pressure, respiration, ventilation, or urine output, using invasive and noninvasive techniques.
• Select, order, or administer anesthetics, adjuvant drugs, accessory drugs, fluids or blood products as necessary.
• Select, prepare, or use equipment, monitors, supplies, or drugs for the administration of anesthetics.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Offices of other health practitioners
• Colleges, universities, and professional schools
23. Pediatricians
Pediatricians diagnose, treat, and help prevent diseases and injuries in children. They also refer patients to specialists for further diagnosis or treatment, as needed.
Average Salary
$203,240
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury in infants and children.
• Examine children regularly to assess their growth and development.
• Treat children who have minor illnesses, acute and chronic health problems, and growth and development concerns.
• Examine patients or order, perform, and interpret diagnostic tests to obtain information on medical condition and determine diagnosis.
Projected growth (2022-2032)
Little or no change
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional Schools
24. Computer and Information Systems Managers
Computer and information systems managers plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming
Average Salary
$173,670
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Direct daily operations of department, analyzing workflow, establishing priorities, developing standards and setting deadlines.
• Meet with department heads, managers, supervisors, vendors, and others, to solicit cooperation and resolve problems.
• Review project plans to plan and coordinate project activity.
• Assign and review the work of systems analysts, programmers, and other computer-related workers.
• Provide users with technical support for computer problems.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Computer systems design and related services
• Management of companies and enterprises
• Software publishers
• Management, scientific, and technical consulting services
• Computing infrastructure providers, data processing, web hosting, and related services
25. Financial Managers
Financial managers plan, direct, or coordinate accounting, investing, banking, insurance, securities, and other financial activities of a branch, office, or department of an establishment.
Average Salary
$166,050
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Establish and maintain relationships with individual or business customers or provide assistance with problems these customers may encounter.
• Oversee the flow of cash or financial instruments.
• Plan, direct, or coordinate the activities of workers in branches, offices, or departments of establishments, such as branch banks, brokerage firms, risk and insurance departments, or credit departments.
• Recruit staff members.
• Evaluate data pertaining to costs to plan budgets.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Credit intermediation and related activities
• Management of companies and enterprises
• Securities, commodity contracts, and other financial investments and related activities
• Accounting, tax preparation, bookkeeping, and payroll services
• Insurance carriers
Highest Paying Jobs by State
The top-paying occupations in the U.S. vary by location, so here’s a look at the best-paid jobs by state based on the BLS’s State Occupational Employment and Wage Estimates. This listing goes in alphabetical order and includes all 50 states plus the District of Columbia.
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Alabama
Career: Cardiologist Average Salary: $466,030
Alaska
Career: Surgeon Average Salary: $311,440
Arizona
Career: Plastic Surgeon Average Salary: $430,870
Arkansas
Career: Orthopedic Surgeon Average Salary: $365,580
California
Career: Dermatologists Average Salary: $371,450
Colorado
Career: Anesthesiologists Average Salary: $384,860
Connecticut
Career: Dermatologists Average Salary:$308,230
Delaware
Career: Orthopedic Surgeons Average Salary: $509,820
District of Columbia
Career: Orthopedic Surgeons Average Salary: $509,820
Florida
Career: Cardiologist Average Salary: 428,810
Georgia
Career: Neurologists Average Salary: $332,760
Hawaii
Career: Orthopedic Surgeon Average Salary:$554,520
Idaho
Career: Cardiologists Average Salary: $521,690
Illinois
Career: Dermatologists Average Salary: $360,560
Indiana
Career: Athletes and Sports Competitors Average Salary: $702,270
Iowa
Career: Dermatologists Average Salary: $398,590
Kansas
Career: Surgeons Average Salary: $374,300
Kentucky
Career: Orthopedic Surgeons Average Salary: $410,760
Louisiana
Career: Surgeons Average Salary: $534,920
Maine
Career: Surgeons Average Salary: $450,330
Maryland
Career: Cardiologists Average Salary: $456,280
Massachusetts
Career: Dermatologists Average Salary: $414,270
Michigan
Career: Orthopedic Surgeons Average Salary: $412,260
Minnesota
Career: Dermatologists Average Salary: $514,330
Mississippi
Career: Surgeons Average Salary: $362,430
Missouri
Career: Cardiologists Average Salary: $370,910
Montana
Career: Surgeons Average Salary: $435,940
Nebraska
Career: Anesthesiologists Average Salary: $422,040
Nevada
Career: Dermatologists Average Salary: $344,980
New Hampshire
Career: Orthopedic Surgeon Average Salary: $425,620
New Jersey
Career: Chief Executives Average Salary: $414,350
New Mexico
Career: Emergency Medicine Physicians Average Salary: $332,590
New York
Career: Pediatric Surgeons Average Salary: $415,810
North Carolina
Career: Surgeons Average Salary: $429,010
North Dakota
Career: Psychiatrists Average Salary: $390,140
Ohio
Career: Athletes and Sports Competitors Average Salary: $648,120
Oklahoma
Career: Emergency Medicine Physicians Average Salary: $312,940
Oregon
Career: Anesthesiologists Average Salary: $395,060
Pennsylvania
Career: Cardiologists Average Salary: $478,340
Rhode Island
Career: Radiologists Average Salary: $343,450
South Carolina
Career: Ophthalmologists Average Salary: $386,460
South Dakota
Career: Oral and Maxillofacial Surgeons Average Salary: $347,390
Tennessee
Career: Surgeons Average Salary: $324,550
Texas
Career: Cardiologists Average Salary: $413,510
Utah
Career: Dermatologists Average Salary: $402,230
Vermont
Career: Orthopedic Surgeon Average Salary: $413,870
Virginia
Career: Neurologists Average Salary: $368,650
Washington State
Career: Anesthesiologists Average Salary: $419,950
Washington, D.C.
Career: Surgeons, Except Ophthalmologists Average Salary: $286,160
West Virginia
Career: Surgeons Average Salary: $365,560
Wisconsin
Career: Dermatologists Average Salary: $455,200
Wyoming
Career: Family Medicine Physicians Average Salary: $295,570
The Takeaway
Whether you look at the top-paying fields nationally or by state, healthcare professions dominate the list. However, a few other careers also consistently show up in the highest-paid job rankings, including professional athletes, chief executives, airline pilots, and computer/information systems managers.
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You may enter into marriage with shared goals and plans for the future, but what about debt? Whether your partner’s debt becomes your responsibility when wed depends on the state you reside in, the kind of debt, and other specifics.
You’ll learn more about that ahead. This guide covers the difference between common law and community law states and the different sorts of debt that may be managed in a marriage. Read on to learn the details.
Key Points
• Responsibility for a spouse’s debt depends on the state’s laws, specifically if it’s a common law or community property state.
• In community property states, debts incurred during marriage are usually shared.
• Separate debts before marriage generally remain the individual’s responsibility.
• Joint account holders are liable for any debts accrued through those accounts.
• Specific state laws and the type of debt influence whether one is responsible for their spouse’s debts.
How Does Debt in Marriage Work?
Here’s a quick course in marital property and marriage guidelines:
• Marital property refers to assets acquired as a couple, such as real estate, bank accounts, and investments. Debt can also be a facet of marital property.
• The state in which you live (meaning where your permanent address is) determines whether you are in a community or common law state and governed by its rules.
• Most states are common law states. If property is acquired during a marriage by one partner and in only that partner’s name, it’s their sole property. So if you were married and bought a Tesla in your name, the car is yours.
• In a community property state, however, assets and debts acquired by one spouse in a marriage are considered to be the property of both partners.
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In Which States Are You Responsible for Your Spouse’s Debt?
You are probably curious about which states have community property law. Here’s the list or the nine that do:
• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin
What’s more, Alaska, the Commonwealth of Puerto Rico, South Dakota, and Tennessee have enacted elective community property laws. These are “opt-in” if a couple chooses to do so.
There are exceptions to these rules, such as if one partner receives an inheritance or if one owned property prior to marriage.
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Am I Responsible for My Spouse’s Credit Card Debt?
Whether or not you are responsible for your spouse’s credit card debt can depend on which state you reside in.
In a common law state:
• In a common law state, your partner’s credit card belongs only to them. The law provides that one spouse owns a particular asset unless you both put your names on it. That includes property like houses, automobiles, and even credit cards. If your spouse has a credit card with their name on it, it’s theirs alone. Therefore, the credit card debt liability also falls entirely on their shoulders.
• You would need to become a joint account holder in order to own any part of that debt. However, you could also be on the hook for that debt if you co-signed on the account.
• If your spouse made you an authorized user, though, that still leaves the credit card entirely in their name and not yours, meaning you hold no responsibility for paying any associated debts.
In a community property state:
• In a community property state, if they get a credit card while you’re married, that debt now belongs to both of you. Both partners are liable, regardless of who might have opened the account or accrued the debt.
• There is an exception: If you and your spouse are separated before they begin racking up the debt in question, you may not be held responsible. Each situation is different, however, and the state could hold you responsible for the debt in question should it be proved the debt was incurred for the benefit of the marriage.
• It’s good to keep in mind that if you have debts from before the marriage, such as a car loan, those will belong only to you. However, if you get another car loan after getting married, that is now a communal debt that you and your partner share.
Am I Responsible for My Spouse’s Medical Debt?
As you might guess, in community property states, a spouse is likely to be held responsible for a spouse’s debts, though the specifics may vary state by state. This includes medical debt.
In a common law state, you typically would not be responsible for debts your spouse alone incurred, but again, there are exceptions to this rule. (For instance, if you cosign when a partner is admitted for medical treatment.) You’ll learn more about these scenarios below.
Situations Where You May Be Responsible for Your Spouse’s Debt
When it comes to debt and marriage, there are some scenarios worth considering. If you are the kind of person to wonder, “How can I protect myself from my husband’s debt?” or “wife’s debt,” then read on.
When You Are a Joint Account Holder
Even if you live in a community property state, if your spouse racks up debt on a credit card you jointly hold, you may indeed be liable.
When You Live in a Community Property State
As you read above, if you live in a community property state, your spouse’s debts acquired during marriage will become yours as well.
When You “Opt in” into Community Property
As noted above, Alaska, the Commonwealth of Puerto Rico, South Dakota, and Tennessee have laws that can allow you to opt into community property arrangements although the states may default to common law guidelines. If you do so, you will become liable for debt that your partner incurs.
When You Cosign for Medical Payments
In a situation where you live in a common law state, if your spouse were to enter medical care or a medical facility, and you agree to cosign, you will become liable for the expenses related to this treatment.
Possibly When Your Spouse Dies
Much as no one wants to think about death, there are situations in which you could be liable for a deceased partner’s debts. These include if you live in a community property state, if you cosigned on a loan or for medical care, or if you had a joint account, among other scenarios.
Will My Partner’s Debt Affect My Credit Score?
Regardless of whether you live in a community property or common law state, your credit score is yours alone. Being married doesn’t mean that you and your spouse now have the same score or that your scores get merged.
However, if you and your spouse both sign up for a joint credit card or take out a loan together, that information will show up on each of your credit reports.
What Happens to Debt If We Separate Or Divorce?
When couples decide to separate, one of the first questions may be “How much will a divorce cost me?” That is typically very quickly followed by, “What happens to our debt?” The answer to the latter will likely be: It depends.
• Debt responsibility in a divorce isn’t as simple as dividing things in half. For example, if you have a credit card that is only in your name, that debt remains entirely with you in a common law state. However, if you have a joint credit card, most states will see that as joint debt if you separate or divorce, meaning you’ll both be responsible for that debt. It doesn’t matter who was making payments or running up bills; the law will see it as a shared burden.
• If, however, you live in a community property state and your spouse rings up a considerable amount of credit card debt, that could be seen as a shared burden. A creditor might be able to seek repayment from both of you. There are various factors to consider, so working with a legal professional with expertise in this realm can be a smart move.
• If you have a house, you may want to consider selling it off and splitting the money. Trying to untangle a mortgage (a form of consumer debt) if one of you will be moving out can get dicey. The partner who’s staying in the home may need to buy out the partner who’s leaving, for instance.
• If you did any investing as a couple during your marriage, that property will need sorting out. Investments come with legal and tax obligations, on top of the financial complexity. If you invested together, you may want to split the shares or account. Or you might think about selling off those investments and dividing the proceeds during a divorce. However, a lot of investments like that come with tax burdens, so keep that in mind if you have to go this route.
Of course, the courts might answer this and other questions for you. Divorces play out in different ways, including whether they are contested or uncontested. Working with a divorce attorney can help you understand the options and possible outcomes as your marriage ends.
Even if you decide to merge your financial lives completely, finances can become complicated in a marriage. In terms of debt and whose is whose, there is the question of whether you live in a community property or common law state. There will also be the matter if debt was held before marriage or after the wedding. And then there are such concerns as whether you and your spouse cosign or become joint holders on loans and/or accounts or keep things separated. All of these factors (and more) can impact whether or not you are liable for your spouse’s debt.
When you marry, your personal banking will be impacted as well as your lines of credit and debt. You could completely merge your banking, keep things separate, or have both a joint and separate account. SoFi can offer you options to suit your particular needs.
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Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
FAQ
Will my partner’s debt affect my credit score?
Credit scores are specific to each individual. However, if you cosign a loan or open a joint credit card, the specifics of that account will turn up on each partner’s credit reports and could impact each spouse’s score.
Am I responsible for my spouse’s debt after death?
Whether or not you are liable for your deceased spouse’s debt will depend on various factors, such as whether you live in a community property or common law state, whether the debt was incurred before or during the marriage, and whether the debt is in a joint or cosigned form.
Are married couple’s responsible for each other’s debt?
Married couples can be responsible for each other’s debt in certain circumstances, such as if the debt was incurred during the marriage in a community property state or if the debt was cosigned for or accrued with a joint credit card, among others.
Can I be forced to pay my spouse’s debt?
There are a couple of situations in which you could be forced to pay your spouse’s debts, such as if you live in a community property state or if you are a joint account holder.
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.
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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