Jan
12
2026
Short-Term vs Long-Term Investments
Unsure of the difference between long-term and short-term investments? We examine the characteristics of each and when to use them.
Read more
Jan
12
2026
Using Technical Analysis to Research Stocks
Using technical analysis to research stocks includes using data and indicators to help identify trends and patterns that can help guide investing or trading decisions. It’s one of the two main forms of stock analysis, the other being fundamental analysis.
Using technical analysis indicators to evaluate stocks isn’t necessarily easy, and can be risky for investors who may not know exactly what they’re doing. With that in mind, it may take a long time for investors to feel comfortable with their technical analysis skills — but knowing the basics of technical analysis can be helpful for investors of all experience levels.
Table of Contents
Key Points
• Technical analysis evaluates stock performance using various data points and indicators to help guide short-term trading decisions.
• Technical analysis differs from fundamental analysis, which examines a company’s intrinsic value through financial statements and other factors.
• History tends to repeat itself in technical analysis, with patterns and trends recurring over time.
• Candlestick charts display price data through distinct “candlesticks” with three parts: the body and two lines (wicks or shadows).
• Technical analysis involves various tools, including chart trends, momentum indicators, volume analysis, support and resistance levels, and moving averages.
What Is Technical Analysis?
Technical analysis uses numerous data points and indicators to evaluate stock performance, and help guide short-term trades. Technical analysis is an investment strategy by which investors try to forecast how a stock price will move based on data about its past movements.
Technical analysis relies on various stock movement indicators, such as price and volume, to identify patterns and trends. Technical analysis only considers a stock’s price and does not consider other factors, such as how a company operates, its earnings, or its assets.
How Technical Analysis Works
Technical analysts chart this data to help them identify patterns while trading stocks. Think of these charts as trails that stocks leave behind them as prices move up and down.
One of the basic tenets of technical analysis is that history tends to repeat itself. By examining market volatility more closely, analysts may see patterns emerge and can thereby make an educated guess about where stock prices might be headed when current patterns line up with historical patterns.
For example, it may become clear that stock prices move a certain way at a certain time of year on a stock chart. A retailer that might see an uptick in share price during the holiday season, for instance.
Or, maybe it becomes clear that a stock reacts a certain way during specific market conditions. For example, when the price of steel rises, analysts may see a shift in the stock price of auto manufacturers.
Anyone can use technical analysis while investing online, though some of the indicators that traders use to analyze stocks may be a bit on the complicated side. However, knowing some basics can be useful even for lay investors to help them make informed decisions about the stocks they choose.
What Are the Core Concepts of Technical Analysis?
Investors who use technical analysis have a number of tools available to help them analyze stock. That generally includes reading different types of stock charts, identifying market trends, as well as common market indicators.
How to Read Different Types of Stock Charts
Technical analysis is all about keeping track of the trail that stocks leave behind. One of the ways that investors and analysts organize this data when doing self-directed investing is with stock charts, including bar, line, and candlestick charts. These charts can cover wide or short time frames and show the patterns of how trades are executed.
You’re likely familiar with line and bar graphs in which the height of the bar or line illustrates the up and down movement of the stock. Candlestick charts may be a little bit less familiar and can be an extremely useful tool if you can read them.
Candlestick Charts
Candlestick charts are made up of distinct pieces, called “candlesticks,” that look like a cylinder with a line coming out of the top and bottom. The cylinder and the lines should be read as three parts. There are four pieces of data represented in each candlestick: opening price, closing price, and the high and the low.
Additionally, each candlestick represents a period of time. Say one candlestick represents five minutes. Within that five-minute period, the bottom of the body of the candlestick represents the opening price of a stock and the top of the body represents the closing price.
The line extending downward from the body represents the low within that time period, and the line extending upward represents the high. If the closing price is higher than the opening prices, the candlestick is colored green, and if it’s lower, the candlestick is colored red.
Each candlestick is read in the context of the other data points around it, and gives analysts a detailed look at how investors are buying and selling stocks over a given period of time. Certain candlestick shapes can be an indicator of distinct changes in the market.
A hammer candlestick has a low, low price, but its closing price is close to its opening price, indicating that prices have potentially hit a low and are reversing. Its inverse, a shooting star candlestick, indicates that prices may have peaked and are on their way down.
Identifying Chart Trends (Uptrend, Downtrend, Sideways)
Technical analysis looks for trends that can help indicate the direction a stock price is moving.
• As the stock price goes up, it is on an upward trend.
• As it goes down, it’s on a downward trend.
• If a price remains relatively constant, the chart will look flat, or sideways.
By comparing current trends to historical data, technical analysts may be able to predict where the trend is headed and what points may represent its highs and lows.
Understanding Common Momentum Indicators (RSI, MACD)
Analysts can measure the strength of trends and movement in price by taking a look at momentum indicators. This indicator compares the most recent closing price to previous closing prices. In a stock chart, the momentum indicator is represented as a separate line from the price line.
Momentum indicators may be expressed as the difference between the current closing price and the closing price a certain number of periods ago. Or it may be expressed as a percentage, or rate of change, by dividing the current closing price by a past closing price.
In general, momentum indicators are used less to provide a signal that investors should make a trade than they are used to help support trades made based on other price actions. For example, if the price of a stock is moving down but downward momentum is slowing, it may help provide confirmation it’s a good time to buy if other indicators also show it’s a good time to buy.
There are numerous indicators, including the relative strength indicator (RSI), and moving average convergence divergence (MACD).
RSI
The relative strength index, or RSI, looks at price fluctuations during a given time period, and calculates average price losses and gains. It ranges from 0 to 100 — a score higher than 70 is considered overbought and under 30 is thought to be oversold. The RSI may identify a divergence, when the indicator moves in opposition to the price.
MACD
The Moving Average Convergence Divergence (MACD) helps investors gauge whether a security’s movement is rising or falling, and helps gauge the momentum of the trend. The MACD uses two different exponential moving averages (EMAs) to do so.
Volume
Stock volume is a measure of the number of shares that are being bought and sold during a given period. Another way to look at volume is that it represents investor interest in a stock. The more stock being traded, the heavier the volume and the greater the interest.
Investors can look at volume as an indicator that prices are changing, and rising volume can be a sign that stock price is starting to move in a significant way.
That said, it is possible that high volume can represent the end of a trend. For example, investors hoping to take advantage of a rise in a stock price may pile on at the end as the stock price is reaching its peak and just about to fall.
Support and Resistance Levels
One of the patterns that analysts will look out for when looking at stock charts are certain thresholds at which stock prices tend to rise or fall. The support level is a point to which a stock will sink but won’t usually fall any further before rising again.
It is essentially the level at which demand is strong enough to bolster the price. Conversely, there is also frequently a price ceiling that stocks will hit that may cause prices to fall back down.
This is the resistance level, the level at which selling is strong enough to prevent prices from rising. Investors may pay attention to these levels, choosing to buy when prices are near the support level or sell as prices meet the resistance level.
Moving Averages
Price movement over a given period of time can make a stock chart overwhelming to look at. The ups and downs of the line can be visually confusing and messy to look at. A way to simplify and show trends more clearly is by using a moving average.
This indicator focuses less on day-to-day movement and more on average price over time. A simple moving average (SMA) takes the sum of the closing prices over a given period of time and divides by the number of prices used. So if you were looking at a three-month period, you would add all the closing prices up over that period and divide by 90.
What Are Chart Patterns and What Do They Signal?
In the simplest terms, chart patterns reflect stock market data, and can be used to identify certain pricing trends. As discussed, there are several types of charts, and thus, several types of chart patterns that may be used to try and parse out market signals.
Those patterns could include candlestick patterns, mult-bar patterns that generate “triangles” or “rectangles,” and more. Trying to discern if these patterns are indeed signaling specific price movements, is a high-level endeavor undertaken mainly by professional traders. That is, they may be a bit too advanced for many inexperienced investors.
Technical Analysis vs. Fundamental Analysis
Fundamental analysis is another school of thought you may encounter when evaluating stocks. This strategy is quite distinct from technical analysis. For technical analysts, price movements are paramount. That’s why technical analysts are always looking at price, and always looking for price patterns that can indicate which positions to take.
The fundamental analysis school of thought takes a deeper dive into a stock’s intrinsic value by looking at factors such as the underlying company’s financial statements, its assets and liabilities, how the company is governed, and the overall market and economy.
Whereas technical analysis is focused almost entirely on numbers, fundamental analysis looks at both qualitative and quantitative measures to determine the fair market value of a stock and compare whether its current price on the market is over- or under-valued.
That said, technical analysts would argue that the factors examined through fundamental analysis are already accounted for in the price of stock. As a result, they might say that examining price and trends is a more efficient form of analysis.
How Beginners Can Start Using Technical Analysis
The average investor interested in experimenting with technical analysis can turn to a variety of sources to find data sets and indicators to track the past price and performance of stocks. This is primarily for short-term trades; technical analysis typically does not factor into long-term investment strategies like asset allocation.
It should be noted that accurately predicting the future price movement of stocks is impossible. In fact, the efficient market hypothesis states that because markets are efficient, a stock’s price reflects all available information about a stock. And nobody has a crystal ball — so, no matter how confident you are about a stock’s future movement, remember that there’s always risk involved.
Common Mistakes to Avoid With Technical Analysis
There are potential mistakes that investors can make when utilizing technical analysis tools. These can include things like emotional or impulsive trading, which could happen if an investor sees an emerging trend in the data and decides to make a quick decision, perhaps at odds with their broader investment strategy.
In short, the data or trends that technical analysis may uncover could spur investors to take actions that may be premature or otherwise outside of their intended strategy.
That could also include making investment decisions based on whatever data is in front of the investor, rather than sticking to a plan.
It’s also possible that investors can become overconfident in their skills or analysis abilities, leading to poor trading decisions. Investors could also use too many indicators or tools, overrely on a single indicator, and even misinterpret the data they are seeing.
Suffice it to say, there are myriad mistakes investors can make with technical analysis, which is why it may be a good idea to take a slow approach to it, and test your methods over time.
The Takeaway
Technical analysis refers to a series of tools and indicators that traders use for evaluating stocks or other securities. It leans on market and trend analysis tools to identify price patterns, and place trades to increase potential returns based on short-term price movements. It’s risky, of course, and there are many mistakes that investors can make while utilizing technical analysis.
Technical analysis is a sophisticated set of techniques that are best used by experienced traders.
Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.
Opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.¹
¹Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.
FAQ
What is the best indicator for technical analysis?
There is no single best indicator for technical analysis, as it may depend completely upon an investor’s preference as well as the security they’re tracking. That said, some broad indicators may be popular, as they can give investors the largest top-down view of the market.
Can technical analysis predict a stock’s future price?
Nothing can accurately predict a stock’s future price, but technical analysis attempts to give investors an idea of where a stock’s value may be headed. It may be correct sometimes, and others, incorrect.
How long does it take to learn technical analysis?
An investor may never be “done” learning technical analysis, so there is no set time limit. That said, some investors can familiarize themselves with the basics in weeks or months, while others may practice for years.
Is technical analysis better for short-term or long-term trading?
Technical analysis is likely better for short-term trading, as it attempts to uncover short-term market trends or movements, which may not hold over long periods of time.
What are some free tools for practicing technical analysis?
Many brokerages and trading platforms provide technical analysis tools to investors or clients free of charge. There are also other web-based tools that can be accessed for free that investors can use to practice.
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SOIN-Q425-052
Jan
12
2026
What Credit Score Is Needed to Buy a House?
What’s your number? That’s not a pickup line; it’s the digits a mortgage lender will want to know — your credit score for a mortgage application. Credit scores range from 300 to 850, and for most mortgage-seekers, a good credit score to buy a house is at least 620. The lowest interest rates usually go to borrowers with scores of 740 and above whose finances are in good order, while a score as low as 500 may qualify some buyers for a home loan, but this is less common.
Table of Contents
Key Points
• A credit score of at least 620 is generally needed to buy a house, but FHA loans may accept scores as low as 500 with a higher down payment.
• Paying attention to credit scores before applying for a mortgage can lead to lower monthly payments.
• A higher credit score can save borrowers money by securing lower interest rates over the loan’s term.
• When two buyers are purchasing a home together, lenders look at both buyers’ credit scores.
• Credit scores are not the only factor; lenders also evaluate employment, income, and bank accounts.
Why Does a Credit Score Matter?
Just as you need a résumé listing your work history to interview for a job, lenders want to see your borrowing history, through credit reports, and a snapshot of your habits, expressed as a score on the credit rating scale, to help predict your ability to repay a debt.
A great credit score vs. a bad credit score can translate to money in your pocket: Even a small reduction in a homebuyer’s mortgage rate can save thousands of dollars over time.
Do I Have One Credit Score?
You have many different credit scores based on information collected by Experian, Transunion, and Equifax, the three main credit bureaus, and calculated using scoring models usually designed by FICO® or a competitor, VantageScore®.
To complicate things, there are often multiple versions of each scoring model available from its developer at any given time, but most credit scores fall within the 300 to 850 range.
Mortgage lenders historically have focused on FICO scores. Here are the categories:
• Exceptional: 800-850
• Very good: 740-799
• Good: 670-739
• Fair: 580-669
• Poor: 300-579
Here’s how FICO weighs the information:
• Payment history: 35%
• Amounts owed: 30%
• Length of credit history: 15%
• New credit: 10%
• Credit mix: 10%
Mortgage lenders will pull an applicant’s credit score from all three credit bureaus. If the scores differ, they will use the middle number when making a decision.
If you’re buying a home with a non-spouse or a marriage partner, each borrower’s credit scores will be pulled. The lender will home in on the middle score for both and use the lower of the final two scores (except for a Fannie Mae loan, when a lender will average the middle credit scores of the applicants).
Recommended: 8 Reasons Why Good Credit Is So Important
What Is the Minimum Credit Score to Buy a House?
The median FICO score for homebuyers in late 2025 was a very healthy 735, according to Realtor.com® data. Fortunately, not everyone buying a home will need a score this high to qualify for a home loan. After all, the median credit score in the U.S. is 715. (Using the median versus the average credit score necessary to buy a house helps ensure that unusual buyers with extremely high or low scores don’t throw off the calculations.) How low can you go and still buy a house? The answer hinges on your mortgage.
Credit Score Requirements by Loan Type
What credit score do you need to buy a house? The answer will depend on the type of mortgage loan you’re seeking. If you are trying to acquire a conventional mortgage loan (a loan not insured by a government agency) you’ll likely need a credit score of at least 620. The best credit score to buy a house is 740 or better, because that will help you obtain a lower interest rate. But many buyers purchase a home with a lower score.
With an FHA loan (backed by the Federal Housing Administration), 580 is the minimum credit score to qualify for the 3.5% down payment advantage. Applicants with a score as low as 500 will have to put down 10%.
Lenders like to see a minimum credit score of 620 for a VA loan, though some will go lower, to 600.
A score of at least 640 is usually required for a USDA loan, though borrowers with strong compensating factors, such as a healthy savings, might qualify at 620.
A first-time homebuyer with good credit will likely meet FHA loan requirements, but a conventional mortgage will probably save them money over time. One reason is that an FHA loan requires upfront and ongoing mortgage insurance that lasts for the life of the loan if the down payment is less than 10%.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
Steps to Improve Your Credit Score Before Buying a House
Working to build credit over time before applying for a home loan could save a borrower a lot of money in interest. A lower rate will keep monthly payments lower or even provide the ability to pay back the loan faster. Here are some ideas to try:
1. Pay all of your bills on time. “Payment history makes a bigger impact on a person’s credit score than anything else — 35%. So the most important rule of credit is this: Don’t miss payments,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.
2. Check your credit reports. Be sure that your credit history doesn’t show a missed payment in error or include a debt that’s not yours. You can get free credit reports from the three main reporting agencies. To dispute a credit report, start by contacting the credit bureau whose report shows the error. The bureau has 30 days to investigate and respond.
3. Pay down debt. Installment loans (student loans and auto loans, for instance) affect your DTI ratio, and revolving debt (think: credit cards and lines of credit) plays a starring role in your credit utilization ratio. Credit utilization falls under FICO’s heavily weighted “amounts owed” category. A general rule of thumb is to keep your credit utilization below 30%.
4. Ask to increase the credit limit on one or all of your credit cards. This may improve your credit utilization ratio by showing that you have lots of available credit that you don’t use.
5. Don’t close credit cards once you’ve paid them off. You might want to keep them open by charging a few items to the cards every month (and paying the balance). If you have two credit cards, each has a credit limit of $5,000, and you have a $2,000 balance on each, you currently have a 40% credit utilization ratio. If you were to pay one of the two cards off and keep it open, your credit utilization would drop to 20%.
6. Add to your credit mix. An additional account may help your credit, especially if it is a kind of credit you don’t currently have. If you have only credit cards, you might consider applying for a personal loan.
How Long It Takes to See Changes in Credit Score
Working on your credit scores may take weeks or longer, but it can be done. Should you find an error in a credit report, you can expect it to take up to a month for your score to change. And if you haven’t been paying bills on time, it could take up to six months of on-time payments to see a significant change.
Other Factors Besides Credit Score That Affect Mortgage Approval
Credit scores aren’t the only factor that lenders consider when reviewing a mortgage application. They will also require information on your employment, income, debts, and bank accounts. Your down payment will be a factor as well. Putting 20% down is desirable since it often means you can avoid paying PMI, private mortgage insurance that covers the lender in case of loan default. But many homebuyers — particularly first-time buyers — put down less than 20% and simply factor PMI into their monthly budget.
Other typical conventional mortgage loan requirements a lender will consider include:
Debt-to-Income Ratio
Your debt-to-income ratio is a percentage: the total of your monthly debts (car payment, student loan payment, alimony, etc) divided by your gross monthly income. Most lenders require a DTI of 43% or lower to qualify for a conforming loan. Jumbo loans may have more strict requirements.
Employment and Income History
A mortgage lender will want to verify your employment and income and may request pay stubs and w-2 statements. Don’t be surprised if the lender also reaches out to your employer to confirm your employment. If you are self-employed, you may be asked for a profit-and-loss statement for your business and for more than a year or two of tax returns. Lenders are looking for borrowers who have a steady income source and can be relied upon to repay a large sum over a long period of time.
Available Savings and Assets
Having cash reserves or investments that you can liquidate in the event that you need to pay your mortgage bill is another factor a prospective lender will consider. So lenders will ask you for information about your accounts, including savings and 401(k) accounts. The lender is also looking to be sure that you have the resources to cover the down payment amount and closing costs related to the home purchase.
A lender facing someone with a lower credit score may increase expectations in other areas like down payment size or income requirements.
If you want to see how all these factors come together in your financial profile to determine what size loan you might be approved for, you can first prequalify for a mortgage with multiple lenders. Ultimately, you may want to seek out mortgage preapproval from at least one lender so you have a very clear picture of your home-buying budget and can move forward swiftly when you find a home you love.
Recommended: 31 Ways to Save for a House
The Takeaway
What credit score is needed to buy a house? The number depends on the lender and type of loan, but most homebuyers will want to aim for a score of 620 or better. A better credit score is not always necessary to buy a house, but it may help in securing a lower interest rate.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
What credit score is considered good for buying a house?
Generally speaking, you’ll want a credit score of 620 or better if you are looking at a conventional loan or VA loan. A USDA loan would require at least 640 from most borrowers. An FHA loan offers more lenient terms: You could qualify with a score as low as 500, though 580 will allow you to put down a low, 3.5% down payment.
Can I buy a home with a low credit score?
It is possible to get a mortgage and purchase a home with a credit score as low as 500 if you obtain an FHA loan and put down a 10% deposit. If you are looking at a different loan type, then you will likely need at least a 620 score, though if you have a healthy savings and solid income, you may be able to squeak by with a slightly lower credit score.
Do mortgage lenders use FICO or VantageScore?
Mortgage lenders have historically relied on FICO scores but now can use either FICO or VantageScore for loans delivered to Fannie Mae and Freddie Mac, the two entities that buy mortgages from lenders, thereby guaranteeing most of the mortgages in the U.S.
How can I improve my credit score before applying for a mortgage?
The most important thing you can do to help nurture your credit score before applying for a loan is to make your payments in full and on time. Other things, such as requesting credit line increases (but not spending up to the limit) or diversifying your credit mix by adding a personal loan to your credit cards, can help. So can not closing old, unused credit cards. But by far, on-time payments should be your number-one goal.
What other factors do lenders look at besides credit score?
A lender considering a mortgage application will look at your income (both the raw number and how consistent your earnings have been). Your debts, and the ratio of debts to income, will also be important, as will your savings in cash and other assets. Your down payment amount could also factor into a lender’s decision about qualifying you for a loan.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency. †Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency. Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
SOHL-Q126-006
Read moreJan
12
2026
Real Estate Trading: Can You Trade Houses with Someone?
House trading involves selling your home to someone while buying their property. You essentially swap residences. This can spare both parties the irritation of showings and the expense of agent commissions while giving each party their new next home.
Trading homes isn’t done every day, but it can occasionally be an option that works for the parties involved. Learn more here.
Table of Contents
Key Points
• House trading is a permanent, simultaneous swap of homes between two parties.
• The process requires two simultaneous processes, including mortgage qualification, inspection, and title search for both homes.
• The buyer of the more expensive home pays the difference to its seller at closing.
• Benefits include potential savings on agent commissions and an easier time qualifying for a new mortgage.
• Downsides include a limited market for partners and the risk of briefly paying two mortgages.
What Is House Trading?
House trading means that you sell your home to someone and simultaneously buy their place.
You’re likely familiar with home exchange programs when it comes to vacations. You dash off to a lovely apartment in Paris, and the owners come to your city to enjoy all that it has to offer. Both parties enjoy a vacation with a much lower price tag. Maybe you’ve even thought, “Can I trade my house for another house?” and daydreamed about a permanent swap with another homeowner.
With real estate trading, this kind of switch is made permanent. Perhaps you’re outgrowing your compact two-bedroom house as your family expands, and the empty nesters down the street in a four-bedroom are looking to downsize their home. You could proceed with a house trade, selling and buying each other’s places simultaneously.
💡 Quick Tip: SoFi’s mortgage loan experience means a simple application — we even offer an on-time close guarantee. We’ve made $9.4+ billion in home loans, so we know what makes homebuyers happy.‡
How Does House Trading Work?
Think of trading real estate as a win-win. You want to sell your house. You find a home you like, and the homeowner is interested in buying your home too. It happens.
What comes next? Can you trade houses with someone? Yes. There will be two transactions at once. You sell your home to the Joneses, and they buy yours, typically on the same day. Because you’re selling and buying at the same time, it’s much like a trade. This is not a simple transaction, though. You want the stars aligned on that day.
However, there are some similarities to buying a home the traditional way. Expect the home-buying process checklist to be the same:
• Qualifying for a home loan
• Getting a home inspection
• Doing a title search
• Closing with simultaneous transactions.
You pay off one mortgage, if you have one, and take on a new one if needed. At the same time, the other party will sign their purchase and sale agreement.
As much as doing all this at once may feel overwhelming, the upside is that you won’t have two mortgages on your hands at the same time. If both homes are owned free and clear, then the only money matters are transfer taxes and closing costs.
You’ll probably want a real estate lawyer who knows how these deals work at your side.
Recommended: How to Buy a House When You Already Have a Mortgage
What If the Homes Are Unequal in Value?
It’s quite probable that the two homes won’t be of equal value. That’s not a deal-breaker, though. What matters is whether each house meets the needs and desires of the other party.
It’s important for both parties to order home appraisals. If one home is more valuable than the other, the buyer of the more expensive home pays the seller the difference at closing.
How Common Is House Trading?
Home trading is not something that happens every day, but as people continue to search for creative ways to fulfill their dreams and technology helps connect like-minded folks, house trading has its place in the array of home-buying options out there.
Recommended: What Is a Bridge Loan and How Does It Work?
Pros and Cons of Trading Your House
Here’s a look at the upsides and downsides of trading houses. On the one hand, there’s something to be said for this unconventional way of buying and selling a home.
• You may be able to buy a house without a Realtor®. If there is no real estate agent involved in the trade, both buyer and seller keep the money they would have shelled out to their agent.
• You eliminate some of the hassle of moving day. Because both parties are working in concert, it makes orchestration of the move easier.
• You skip the whole dog-and-pony show of potential buyers traipsing through your home and the stress of having it look perfect for showings.
• You also may find that getting financing when trading a home is easier. Some homeowners encounter hurdles qualifying for a mortgage before their home is sold. However, if you have a contract to sell your current house (which you would in a home trade), your lender won’t count your monthly mortgage payments as debt if you apply for a mortgage.
Having this improved debt-to-income ratio can allow you to qualify for better terms on your new mortgage, which just might save you a ton of money as well.
Real estate trading isn’t without its issues, however. These are some of the concerns related to trading houses instead of selling in a conventional manner.
• If you’re in a hurry to move, you may not be able to find someone who wants a house swap as quickly as you want to move.
• In a big-picture way, house trading may mean you have fewer options, you may not get the neighborhood you have in mind, or you may not find a home with all your dream features.
• If you owe more on your mortgage than your home is worth, you may have trouble getting financing. The only way a trade would work is if you pay the lender the difference between what you sell your house for and what is still owed on the mortgage.
• Issues could arise as you think about how to swap houses with mortgages. If for some reason the purchase and sale don’t happen at the same time, you could be stuck for a time with two mortgages.
thumb_up
Pros:
• You may not need to use a real estate agent
• Getting financing may be easier
• Avoid the hassle of showing your home to multiple potential buyers
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Cons:
• May not find a home as quickly as you want
• Fewer options
• Could have to temporarily pay two mortgages
Who Typically Trades Homes?
Home trading is usually a transaction between individual homeowners, although sometimes investors who own properties might trade homes within their portfolio with one another. Friends or relatives, older homeowners who wish to downsize, and people moving for work are among those who may be more likely than the average homeowner to engage in a house trade.
Common Scenarios for House Swaps
Here are a couple examples of how a house trade might play out:
The upsize, downsize trade A couple living in a small two-bedroom home is expecting their second child. They decide they would like to look for a larger place. They want to stay in their neighborhood, as it has great schools and their eldest child is starting kindergarten in the fall. And given that the baby is due in a few months, they want to move soon.
Meanwhile, an elderly couple living in a large house around the corner is thinking about downsizing into a smaller place. They, too, wish to remain local, as their children and grandchildren are in the area. Word travels quickly that each is looking to buy a house, and soon enough they are connected by a neighbor and start talking about a trade. Both properties are appraised, and the young couple agrees to pay the downsizers the difference between the two home prices. The larger house is a bit bigger than they were looking for, but there is very little for sale in the local market so they decide to move forward.
Once they are able to secure a mortgage for the new, larger home, the two families schedule a double closing. Each is represented by a lawyer in the transaction, and they also have to pay for title searches and title insurance. But no real estate agent is involved in the trade.
The job-transfer trade A marketing manager in a midwestern office of a large packaged-goods company sees an opportunity to move into a better job with her company by transferring to the Philadelphia headquarters. She owns a small house that she inherited from her grandparents, and she puts it on the market, but also posts on her social-media accounts that she is open to trading her midwestern house for a place in Philly.
To her surprise, she receives a message from a woman in Philadelphia who is looking to sell her condo and move back to her midwestern hometown. The two schedule virtual house “tours” and swap appraisal information. The Philly resident is head over heels for the midwesterner’s house. Meanwhile, the condo is satisfactory to the midwesterner as well — maybe it doesn’t have everything she wants, but as a first stop in the city, it’s fine, and she thinks it will hold its value.
In this case, the properties are valued about equally, and the two agree to a trade. Since neither of them has or needs a mortgage, the deal moves ahead with speed.
When House Trading Makes the Most Sense
As demonstrated in the two scenarios above, house trading makes the most sense when owners want to move soon and are willing to be somewhat flexible about what property they are buying. House trade has the added benefit of saving on real estate agents’ fees, so it may be especially appealing to cost-conscious consumers.
Trading Houses vs Conventional Selling
With home trading there’s a good chance you will be able to avoid using a real estate agent if you find your trading partner on your own, be it a relative, colleague, friend of a friend, or from a website. You can also avoid the hassle of staging your home and showing it to prospective buyers.
There are some things that are pretty much the same. Both parties may need new mortgages, and both may want home inspections. Both will probably want attorneys present.
| Trading Homes | Conventional Sale |
| Likely no real estate agent | Usually buyer’s and seller’s agents involved |
| Small market | Wide market |
| Deal with one buyer | Handle multiple offers |
Legal and Financial Considerations When Trading Homes
Owners who are trading properties will want to hire an attorney who is familiar with real estate trades to help ensure that the trade is binding and all the appropriate paperwork is filed. And they will go through most of the same steps as anyone purchasing a house in the conventional way.
Mortgage Transfers and Financing
If one or both of the homeowners in a house trade needs a home loan, the first step will be to secure financing if one or both parties doesn’t already have mortgage preapproval. A lender will require an appraisal of the home, and each owner will need to determine the size of their down payment, screen potential lenders, and decide on a lending partner.
In rare cases, one or both parties may have a mortgage that is assumable, meaning the mortgage can be transferred with the house to the new owner of the property. This can be an attractive feature when mortgage rates are high, but it’s a pretty unusual situation. Both parties will also need to arrange for homeowner’s insurance on their new property.
Title, Inspection, and Closing Requirements
A title search will be necessary to ensure that the person selling the home does in fact own it. And one or both homebuyers may want to arrange for an inspection of the property they are acquiring to safeguard against any costly surprises after they take possession. If the inspection reveals any serious issues, it may be necessary to remedy them or to negotiate a change in home price before the closing. Good communication is essential throughout these processes so that both parties involved in a house trade can arrive at the closing date with all their ducks neatly in a row.
The Takeaway
Trading homes is a viable option for house hunters who find a trading partner who wants to own their home. While the home exchange approach is decidedly nontraditional, the steps of securing a home loan (if needed) and closing will be familiar.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
Does house trading have tax benefits?
A house trade is still a sales transaction, so the tax situation is the same as it would be in an ordinary sale. When you sell your residence, you have to pay capital gains tax if your profit is more than $500,000 (for a married couple) or $250,000 (for a single person). It’s a good idea to seek advice from a tax advisor when preparing your return after a home sale.
Can two people just trade houses without buying and selling?
In theory, two people could trade houses without two sales transactions, but the likelihood that this would happen is small. The two houses would need to be of equal value, which is unlikely. The deed would still need to be recorded which involves a title search and lawyers. And if one or both parties has a mortgage, that would further complicate matters.
What salary do you need for a $400,000 mortgage?
Assuming a down payment of 7% (on a home priced at $430,000), and an interest rate of 7.00% on a 30-year loan, you would need to earn $130,000 per year to qualify for a $400,000 mortgage. Your credit score, income, and debts will influence the exact salary number for you.
How do mortgages work when you trade houses?
If one or both parties in a house swap has a mortgage, the process will probably work much the way it does if you were selling or buying a house as an isolated transaction. You’ll pay off your mortgage and take out a new loan, and the other party will do the same. If all goes well, having both transactions happening at the same time can prevent either of the parties from having to hold two mortgages simultaneously.
Is house trading a good option in a slow real estate market?
House trading may be a smart choice in a slow real estate market because, provided you can find someone to trade with, you won’t have to list your home and keep it open for viewings for months on end. Nor will you have to sit through round after round of price cuts in order to get a buyer. If you can find a trading partner, the deal can be done quickly and without involving a real estate agent (though you will want to hire a lawyer familiar with house trades).
Photo credit: iStock/AndreyPopov
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will give you a credit toward closing costs or additional expenses caused by the delay in closing of up to $10,000.^ The following terms and conditions apply. This Guarantee is available only for loan applications submitted after 04/01/2024. Please discuss terms of this Guarantee with your loan officer. The mortgage must be a purchase transaction that is approved and funded by SoFi. This Guarantee does not apply to loans to purchase bank-owned properties or short-sale transactions. To qualify for the Guarantee, you must: (1) Sign up for access to SoFi’s online portal and upload all requested documents, (2) Submit documents requested by SoFi within 5 business days of the initial request and all additional doc requests within 2 business days (3) Submit an executed purchase contract on an eligible property with the closing date at least 25 calendar days from the receipt of executed Intent to Proceed and receipt of credit card deposit for an appraisal (30 days for VA loans; 40 days for Jumbo loans), (4) Lock your loan rate and satisfy all loan requirements and conditions at least 5 business days prior to your closing date as confirmed with your loan officer, and (5) Pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. This Guarantee will not be paid if any delays to closing are attributable to: a) the borrower(s), a third party, the seller or any other factors outside of SoFi control; b) if the information provided by the borrower(s) on the loan application could not be verified or was inaccurate or insufficient; c) attempting to fulfill federal/state regulatory requirements and/or agency guidelines; d) or the closing date is missed due to acts of God outside the control of SoFi. SoFi may change or terminate this offer at any time without notice to you. *To redeem the Guarantee if conditions met, see documentation provided by loan officer. 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.
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.
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SOHL-Q126-002
Read moreJan
12
2026
What Is a Good Interest Rate for a Savings Account?
Interest rates on savings accounts determine how quickly your money grows while it sits in the bank. If you research the average rate for savings accounts, however, you might be surprised to find that the interest rates across banks can vary significantly.
At the time of publication, the national average savings account rate is 0.39% annual percentage yield (APY). By contrast, the APY for high-yield savings accounts may be close to 3.00% to 4.00% or sometimes higher.
The gap is significant, and can mean earning just a few dollars versus hundreds over the course of a year. Rather than settling for the national average, it can be worth seeking out a savings account that pays a meaningfully higher rate.
Table of Contents
- What Is the National Average Savings Rate in 2026?
- How Do Average Rates at Traditional Banks Compare?
- Why Are Online Savings Account Rates Typically Higher?
- How Can You Find the Best Interest Rate for Your Savings?
- What to Look for When Comparing Savings Accounts
- How Will the Federal Reserve Affect Savings Rates in 2026?
- The Takeaway
- FAQ
Key Points
• The national average savings account rate is 0.39% APY as of late 2025, per the FDIC.
• The FDIC’s national average tends to be much lower than the best available rates.
• Interest rates at large, traditional banks tend to be lower than the national average.
• High-yield savings accounts, typically offered by online banks, often pay many times the national average.
• The difference between a top-tier APY and the national average can amount to hundreds of dollars per year.
What Is the National Average Savings Rate in 2026?
As of December 15, 2025, the APY for a U.S. savings account stood at 0.39%, according to the Federal Deposit Insurance Corporation (FDIC). For comparison, money market accounts averaged 0.58%, while the average six-month certificate of deposit (CD) paid 1.58% APY.
Those headline averages hide a dramatic divide. Large, legacy banks frequently pay very little — some branches still advertise 0.01% APY for basic savings accounts. Meanwhile, many online banks and smaller institutions may offer an APY of 3.00% or higher.
For savers, this means the “average” tells you approximately what many banks may pay, not what’s available if you’re willing to shop around.
How the National Average Savings Rate Is Calculated
The FDIC calculates the national average savings account rate by collecting interest rate data from FDIC-insured banks for savings deposit products.
To avoid skewing the data towards smaller institutions offering niche rates, the FDIC uses a weighted average based on each bank’s share of total deposits. Because many of the biggest banks offer low savings rates, the national average ends up being pulled down — even below what some large banks themselves pay.
Recommended: How to Calculate Interest in a Savings Account
How Do Average Rates at Traditional Banks Compare?
If you keep your savings at a large national bank, you may see very low interest rates on standard savings accounts. As of late 2025, many of the largest banks were still offering near-zero yields.
Here’s a look at the APYs for basic savings accounts as of December 16, 2025 at the five largest banks in the U.S.
| Bank | APY |
|---|---|
| Chase | 0.01% |
| Bank of America | 0.01% |
| Citibank | 0.03% |
| Wells Fargo | 0.01% |
| U.S. Bank | 0.05% |
This doesn’t mean that big banks never offer competitive products. Some provide promotional or tiered-rate accounts that offer higher yields. But for everyday savings held in standard brick-and-mortar accounts, the numbers tend to remain low.
Why Are Online Savings Account Rates Typically Higher?
Online savings account rates are typically higher because these institutions typically have lower overhead costs compared to traditional banks. Without a vast network of physical branches to maintain, online banks can avoid major expenses such as rent/mortgage, utilities, maintenance, and a large on-site staff. These savings can then be passed on to customers in the form of higher APYs and lower (or no) fees.
For customers, this difference can be substantial. While a traditional savings account might offer an APY of around 0.01%, online high-yield savings accounts often provide rates of 3.00% or more. All FDIC-insured online banks help ensure your money is safe (up to insured limits), just like traditional banks.
How Can You Find the Best Interest Rate for Your Savings?
You don’t have to accept the national average savings interest rate. Here are some of the most effective ways to earn a higher APY:
Focus on High-Yield Savings Accounts (HYSAs)
High-yield savings accounts (HYSAs) typically pay rates many times higher than the national average, allowing your money to grow faster while remaining safe and accessible. HYSAs are often provided by online banks, which can offer better rates due to lower operating expenses. Some credit unions, which operate as not-for-profit institutions, also offer competitive rates, though they may require specific membership criteria.
Compare APY, Not Just the Interest Rate
When looking for a competitive rate for a savings account, it’s important to focus on annual percentage yield (APY), not just the interest rate. The interest rate is the basic rate at which your money earns interest, but the APY offers a more accurate picture of how much your account will grow because it includes the effect of compounding, which is the process of earning interest on both your initial principal and the accumulated interest.
The frequency of compounding can vary between financial institutions (e.g., daily, monthly, quarterly, or annually), so an account with a slightly lower stated interest rate might actually yield more if it compounds more frequently.
By standardizing returns to one year with compounding included, APY allows you to compare savings accounts apples to apples and choose the best return.
Recommended: High-Yield Savings Account Calculator
What to Look for When Comparing Savings Accounts
In addition to APYs, here are several other factors to consider when choosing a savings account:
• Minimal balance requirements: Some savings accounts require a sizable opening deposit or a minimum ongoing balance to qualify for the highest APY. You’ll want to make sure your balance meets these thresholds so you don’t miss out on the top rate.
• Bank fees: Monthly maintenance fees can quickly eat into your interest earnings. To avoid them, you can either choose a savings account with no account fees (common with online banks and credit unions) or meet requirements set by banks that charge fees, such as maintaining a certain minimum balance or linking a checking account.
• Accessibility: Consider how you’ll be able to access and manage your money. Ideally, you want to choose a bank that offers a wide network of free-free ATMs, plus a robust mobile app with features like mobile check deposit, automatic transfers, and account alerts.
How Will the Federal Reserve Affect Savings Rates in 2026?
Savings account interest rates are typically variable, not fixed, and tend to move in response to changes in the Federal Reserve’s benchmark federal funds rate, though the timing and magnitude can vary by bank.
When the Fed raises interest rates, savings account yields generally increase. When the Fed cuts rates, APYs usually fall. In 2025, the Fed lowered the federal funds rate three times. While competitive rates are still available, they have begun trending downward.
Banks also adjust rates based on supply and demand. If a bank needs more deposits to support lending, it may raise savings rates to attract funds. If deposits are plentiful and loan demand is weak, rates may decline. Competition among banks and broader economic conditions further impact this constantly shifting landscape.
The Takeaway
The national average savings interest rate, at approximately 0.39% APY as of late 2025, significantly understates the potential for savings growth. Rates at large traditional banks are often near-zero, but high-yield savings accounts (HYSAs) from online institutions often pay 3.00% APY or more, offering a substantial difference in earnings.
By comparing APYs, looking for accounts with low fees, and prioritizing FDIC-insured HYSAs, you can maximize the return on your savings and ensure your money works harder for you.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What is a typical interest rate for a savings account at a large national bank?
Traditional savings accounts, particularly those offered by large, brick-and-mortar banks, generally offer a low interest rate. As of late 2025, the national average annual percentage yield (APY) for a savings account is 0.39%, according to the FDIC. However, some large banks offer rates significantly below this average, sometimes as low as 0.01% APY on their standard savings products.
What is considered a high-interest savings account?
A high-interest savings account, often referred to as a high-yield savings account, is one that offers an annual percentage yield (APY) significantly above the national average. Given that the national average APY for savings accounts is around 0.39% as of late 2025, an account offering an APY of significantly higher than that number may be considered “high-interest.” Some online banks and credit unions offer high-yield accounts that may be upwards of 3.00% to 4.00% APY, making them a popular choice for savers looking to maximize their returns.
How much more interest can you earn with a high-yield savings account?
The amount of extra interest you can earn with a high-yield savings account (HYSA) is often substantial, especially when compared to the national average or the rates offered by large traditional banks. For example, if you have a $10,000 balance and earn 0.01% APY, you would earn $1 in interest over one year. If you move that same $10,000 to a top-tier HYSA offering 3.00% APY, you would earn $300 in interest over one year, a difference of $299. The larger your savings balance and the greater the rate difference, the more pronounced this gap in earnings becomes over time.
How is APY calculated?
The annual percentage yield (APY) is calculated by taking the interest rate and factoring in the effect of compounding over the course of one year. This means it shows you the total return on your savings, including both the base interest earned and the interest earned on that interest. The formula for APY is: APY = [1 + (i / n)]n − 1, where:
• “i” is the interest rate
• “r” is the stated annual interest rate (as a decimal)
• “n” is the number of compounding periods per year.
Are high-yield savings accounts safe?
Yes, high-yield savings accounts (HYSAs) are generally safe, provided they are offered by institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) for banks, or the National Credit Union Administration (NCUA) for credit unions.
FDIC or NCUA insurance protects your deposits up to $250,000 per depositor, per account ownership category (such as single, joint, or trust account), per insured institution, in the event the bank or credit union fails. When choosing an HYSA, always confirm the institution’s insurance status, regardless of whether it is a traditional or an online bank.
Do I have to pay taxes on the interest I earn in a savings account?
You are generally required to pay taxes on the interest you earn from a savings account. The interest is considered ordinary income by the IRS, and it is taxable at your regular federal income tax rate. If you earn $10 or more in interest in a given year, your bank will issue you a Form 1099-INT detailing the amount of interest earned. You must report this amount when filing your annual tax return.
Can a savings account interest rate change?
Yes, a savings account interest rates can change at any time. Banks often adjust rates based on market conditions, such as changes in the federal funds rate or overall economic trends. Unlike fixed-rated products like certificates of deposit (CDs), savings accounts usually have variable interest rates, so your earnings may increase or decrease over time.
Photo credit: iStock/MicroStockHub
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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