27 Tips For Finding The Top Travel Deals

27 Tips For Finding The Top Travel Deals

This past summer, almost 42% of Americans (that’s 108 million people) said they planned to travel more than in the recent past. As you might guess, increased demand can send the cost of a trip soaring.

But that doesn’t mean you have to pay sky-high prices or sit at home because everything is too pricey. By doing some detective work and deploying some smart travel tricks, you can score deals on airfare, lodging, food, and more.

Whether you’re dreaming of a tropical vacay, a trip to a European city, or just getting home to see your family for the holidays, try these strategies.

How to Find the Best Vacation Deals

Here are 27 insider tricks and smart travel hacks that can help keep vacation costs in check.

1. Using Credit Card Rewards

Here’s a top way to be a frugal traveler: If you’ve racked up a large amount of reward points on your credit card, you may be able to redeem them for free or reduced-price airfare, hotels, car rentals, cruises, dining, and other travel expenses.

Some credit cards also offer free trip cancellation insurance, auto rental insurance coverage, and lost luggage insurance. If you learn how to maximize your credit card rewards, you might be ready to take that next trip sooner than you think.

2. Looking Into Local Destinations

One surefire way to slash vacation costs is to take airfare out of the equation. You might want to consider taking a road trip to some not-too distant destinations. For ideas on where to go and what route to take (along with local deals), you can check out AAA’s TripTik.

3. Going Where the Dollar is Strong

If you travel to a country where the U.S. dollar is strong, your money will go farther than it would at home or in a country where U.S. currency is weak. Before booking travel, you may want to check out a currency exchange table, like the one at X-Rates, to find out how the U.S. dollar is stacking up to other currencies.

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4. Traveling During “Dead Zones”

There are two times of the year, the so-called “dead zones,” when travel tends to be cheapest: Early December (after the Thanksgiving rush but before the Christmas travel season) and the last three weeks in January into early February.

5. Being Flexible With Your Destination

If price, rather than a place, is the prime concern, you may want to use a destination search engine like Skyscanner. You can plug in your origin and some potential travel dates and then see flight prices for destinations across the country as well as around the world.

6. Getting a Vacation Package

Here’s another way to find a top travel deal: Buying a vacation as a package, rather than booking your flight, hotel, and rental car separately can often yield significant savings. It’s a good idea, however, to keep an eye out for resort fees and airline baggage fees, which aren’t always included in the package price. A few places to find travel packages include Expedia, Priceline, Kayak, and Costco Travel.

Recommended: 12 Tips for the Cheapest Way to Rent a Car

7. Comparing Airbnb and Hotel Prices

Before booking a hotel, you may want to do a quick search on Airbnb and other short-term home rental sites. Even if you’re only staying a few nights, a rental could end up being cheaper than a hotel room. It may also come with a kitchen, which can help you save on dining as well.

Recommended: 25 Things to Know When Renting Out an Airbnb

8. Signing up for Fare Alerts

Rather than checking airfares every day (or every hour) looking for them to come down, you may want to set up a fare alert for one or more destinations and dates at a travel site like Google Flights or Kayak. You’ll receive an email (or notification on an app) when the price of the flight changes.

9. Booking on the Right Day

The day you book your flight typically doesn’t make a huge difference in price. But surveys show that if you’re booking at least three weeks in advance, you may be able to save some money by buying your airfare on a Tuesday. If you’re booking last-minute, however, you may get your best price by snagging your tickets on a Sunday.

10. Not Booking Too Far in Advance

A smart travel hack is to time your plane ticket purchase right in another way. The lowest prices on domestic flights are typically available about 45 days in advance of departure. For international flights, you may want to book about 75 days out to get the best airfare.

11. Eating Like the Locals

Tourist trap restaurants can end up being expensive — and crowded. Instead, you may want to chat up some locals and ask for their restaurant recommendations. Another fun and affordable option, if you’re staying at a rental: Hit the farmer’s market, pick up some locally grown or sourced ingredients, and then cook a meal.

12. Opting to Stay With Friends

Staying with friends can be a great way to save money on vacation. You can end up saving not just on lodging, but also laundry, meals, and transportation with the help of your friends. Of course, you’ll likely want to pitch in and chip in any way that you can to show your appreciation.

13. Paying With a Credit Card Overseas

One easy way to save when you’re vacationing abroad is to use a credit card for most or all of your spending, preferably one that avoids foreign transaction fees. Credit cards typically give you the best exchange rate of the day. Plus, you may be able to rack up rewards, and also get fraud protection.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.00% APY on savings balances.

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14. Looking Beyond Tourist Attractions

Just because a destination is known for a certain attraction, that doesn’t mean you have to go there. You can often get to know a place just as well, or even better, by going on a free or low-cost walking tour or by checking out the local parks, neighborhoods, and cafes on your own.

15. Checking out Public Transportation

While hopping into an Uber or taxi can be convenient, the cost of these trips can add up quickly. You may want to Google the public transportation options before calling a cab. They may be just as, or even more, convenient.

16. Flying at Odd Times

You can often get a good deal on a flight by going when no one else wants to, such as early mornings and late nights. The cheapest days to fly tend to be Tuesdays, Wednesdays, Saturday (afternoons), Thanksgiving, and the eves and days of Christmas and New Year’s.

17. Contacting the Hotel Directly

Hotel price aggregator websites may not always have the lowest prices. It can be worth contacting the hotel directly and getting a quote. Even if the price listed on a travel site is lower, you may be able to get the hotel to match it. Booking directly could be better because the hotel’s cancellation policy might be more flexible.

18. Using Groupon

Groupon can be a good place to check for deals on hotels and resorts in popular destinations. The site can also be useful for finding discounts on local activities and dining that you can use once you get to your destination.

19. Trying a Travel Auction Site

At travel auction websites, such as SkyAuction.com, companies will list hotels, flights, or packages, and then travelers can bid on them. It can be a good idea to understand what fees will be additional (and not included in the auction price) before you bid.

20. Checking Into “Senior” Discounts

Even if you’re under 65, you may qualify for a senior discount. Some airlines, hotels, and rental car companies offer discounts to adults age 55 and over, and a few offer senior prices to anyone over 50.

21. Researching Student Discounts

If you’re a student, carrying your student ID and asking if you can get a student discount can pay off. You may also want to check out StudentUniverse, which offers exclusive deals on flights, hotels, and tours to students and adults under age 26.

22. Consider Going on a Cruise

Depending on the cruise line and destination, going on a cruise could end up being cheaper than paying for a flight and hotel accommodation in the Caribbean or other beach destinations. To find deals on cruises and current promos you may want to sign up for e-letters from the major cruise lines.

23. Adding Items to the Cart (but Not Buying)

Sometimes travelers can snag deals by adding an item to their cart, but not going through with the purchase. This shows the merchant that you’re interested in making a purchase but may need some persuasion to actually go through with it. The merchant may then send you a coupon in order to get you to buy.

24. Signing Up for Loyalty Programs

If you travel frequently, being loyal to one particular airline, hotel chain, or rental car company (and signing up for their loyalty programs) can pay off. You may be able to rack up enough points or miles to get discounts and freebies on future travel.

25. Avoiding Baggage Fees

These days airline tickets often do not include the cost of checking a bag. To keep baggage fees down, you may want to see if you can get away with just a carry-on. Other ways to minimize baggage fees include: signing up for the airline’s loyalty or “frequent flier” program, getting an airline-branded credit card, and weighing your bags before you leave home (to avoid excess weight charges).

26. Finding a Flight With a Layover

You may be able to visit an additional destination for free, or a minimal additional cost, by booking a flight with a 24 hour-plus layover. A number of international airlines offer a free stopover within their home country when you are en route to another country.

27. Fighting Back Against Resort Fees

Some hotels will tack resort fees onto your bill that you weren’t expecting and significantly inflate your bill. You may be able to get these fees removed if you are a rewards member with the hotel, or if there were any problems with your stay. To make sure you have time to negotiate, you may want to ask for a copy of your final bill the night before you check out. Or you might want to consider all-inclusive resorts.

The Takeaway

Pent-up demand for travel can make reservations and deals a little harder to come by these days.

But by doing a little bit of extra research, signing up for travel alerts, and being flexible on when and where you want to go, you may still be able to score great prices on airfare, hotels, rental cars, cruises, and more.

Ready to start planning and saving for your next getaway? Then it can be wise to open a travel fund at an online bank where interest rates are likely to be higher.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.


Photo credit: iStock/onurdongel

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.


Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.


Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


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.

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25 Smart Things To Do With Your Graduation Money

If you recently graduated from college or are about to, congratulations. You know it’s a significant rite of passage and that you’ve accomplished a major goal.

Those closest to you will typically celebrate your achievement, and some gifts may come rolling in, often in the form of cash.

As you get ready to start the next chapter of your life, you may wonder what to do with any money you receive. Should you pay down debt, invest the funds, go shopping?

The answer will depend upon your personal finances and your goals, but here are 25 ideas to inspire you.

1. Jump-Starting an Emergency Fund

Establishing an emergency fund can be a great first step toward financial stability. Having this cushion can help you to handle a financial setback, such as a costly car repair, trip to the ER, or loss of income, without having to rely on high interest credit cards.

A good target is to have enough money set aside to cover three to six months of living expenses. It’s fine to start small, however, and build this fund up over time.

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2. Paying Off Credit Card Debt

It’s not uncommon to accumulate credit card debt in college. Laptops and textbooks can be costly, and it can be hard to have time to work a significant number of hours. The sooner you pay off any balances you are carrying, however, the less you’ll pay in the long run and the easier it will be to handle new expenses, like rent and car payments.

3. Buying Interview Clothes

Whether you graduated from college early or just completed grad school, you may be job hunting. While the knowledge, skills and attitude you can bring to a company may be what’s most important, how you dress for the interview can also form a lasting impression on potential employers. Depending on your industry, that might mean a suit for men and a suit or dress for women.

Get up to $300 when you bank with SoFi.

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4. Reducing Your Student Loan Debt

If you took out a student loan for college or graduate school, you may want to use some of your graduation money to start paying down your loan balance. The more you can knock down your loans, the less interest you’ll owe and the less you’ll pay overall.

If you make an extra payment, however, it can be a good idea to make sure that your loan officer applies the extra amount to the balance, rather than next month’s payment.

5. Saving up for an Apartment

If you’ll be moving into your own place after graduation, you’ll likely need to come up with your first and last month’s rent, plus a security deposit, in one fell swoop. You may also want to save up for furniture and household items, like dishes, cookware and linens, to set up your new place.

6. Investing in Mutual Funds

While investing can sound intimidating, one easy way to get started is to invest in one of the different types of mutual funds. While these funds typically charge an annual fee and involve risk, they are managed by professional investors who spread your money over a mix of securities, such as stocks and bonds. You can choose a mutual fund based on its past performance, how aggressive (or stock-heavy) it is, and the type of fees they charge.

7. Opening a High-Interest Savings Account

Traditional savings accounts typically offer very low interest. If you are saving your graduation money for a short-term goal, like buying a car or building an emergency fund, you may want to put it in an account that offers higher interest than a traditional savings account, but is still safe and allows easy access to your money. Some good options include: a high-yield savings account, money market account, online savings account, or checking and savings account.

💡 Quick Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.

8. Getting a Start on Retirement Saving

It’s never too early to start saving for retirement. Thanks to compounding interest (which is when the interest you earn on your money also earns interest), the earlier you start putting money aside for retirement, the easier it will be to meet your goal. If your employer offers a matching program for your 401(k), you may want to consider taking full advantage of it and contributing at least up to their match.

Recommended: The Average 401(K) Balance by Age

9. Going on a Trip

Before you jump into the working world, you may want to take some time off and explore some new destinations. Traveling is not only fun, it can also be a way to learn more about the world, gain insights into different cultures, and potentially even make some new connections.

The experience of traveling may also energize you and help you gain clarity about what you want your future to look like.

10. Saving up for Grad School

If you’re planning to pursue a higher degree, you may want to use your graduation money to jump start your grad school fund. In general, it can be better to pay for your education out of pocket rather than taking out student loans which, thanks to interest, make the cost of higher education even higher.

11. Putting Money Into Real Estate

You may not have enough money to purchase a home yet, but you could try investing money into a REIT (real estate investment trust). Modeled after mutual funds, REITs offer a lower-cost way to invest in the real estate market and you can typically invest in a fund with as little as $1,000 and up.

These trusts are also liquid, which means you can sell at any time. Like stocks, you can buy and sell REIT shares on an exchange. As with any investment, investing in a REIT involves some risk.

12. Buying a Car

If you’ll be needing a car to get around, it can be a good idea to start saving for a downpayment or, even better, paying for the car in cash. Whether you buy a used or new vehicle, the more cash you can put down initially, the less you’ll have to finance–and the less you’ll end up paying for that car.

13. Joining AAA

Whether you already have a car or you’re planning to buy one, you may want to use a bit of your graduation money to join AAA. Having a AAA membership can provide peace of mind when you’re out on the road, and can end up paying for itself should you get a flat tire or two, or need a tow in the wee hours of the morning. AAA membership also gets you discounts on many hotels, rental cars, and other products and services.

14. Starting a Business

If you are planning to launch your own business straight out of college, you may want to funnel your graduation money right into your new venture. If you need additional cash for your start-up, you might also consider taking out a small business loan or crowdfunding your idea on a site like GoFundMe and Kickstarter.

15. Joining a Wholesale Club

As you transition from dining hall or parent-supported dining, you may want to look into joining a wholesale club like Costco, BJ’s, or Sam’s Club. These member-only stores can save you a lot of money when you buy in bulk, and could especially come in handy if you’re splitting costs with your roommates.

16. Donating to Charity

Donating some money to charity can be a solid option when you’re deciding what to do with graduation money. If you have a particular cause you’re passionate about, you can look for relevant charities on Charity Navigator.

If you give to a tax-exempt 501(c)(3) organization, you may be able to write the charity donation off on your taxes.

17. Taking Your Parents to Dinner

If your parents helped pay for your college education, you might want to show your gratitude by taking them out to dinner. It doesn’t have to be anything fancy; the idea is to let them know that you truly appreciate their love and support. This could apply to a grandparent, family member, or a friend who funded your education as well.

18. Saving for a Home

While owning a home might not be in your immediate future, you may want to use your graduation money to start saving up for a down payment.

To get a sense of how much you might need, you can start looking at real estate prices in the area where you would like to live. Ideally, you would want to put 20 percent of the purchase price down and avoid private mortgage insurance.

19. Saving for Your Wedding

Weddings can cost on average more than $30,000 for the ceremony and reception. Of course, there are ways to have a cheaper wedding, such as keeping it small or having it in your backyard, but wedding costs can still add up quickly. If you’re engaged or planning to be soon, you might want to use some of your graduation money to start a wedding fund.

20. Paying for Additional Classes or Certifications

Even though you graduated with a degree, you may find that you need some additional training to stand out in your field.

To be more competitive when it comes to the job market, you might want to use your graduation money to pay for additional classes or certifications. This could possibly lead to an increase in your salary as well.

21. Paying for Personal Care

When you go in for job interviews, you’ll want to look your best. Along with buying professional clothes for your interviews, you may also want to invest in other aspects of your personal appearance, such as getting your hair cut or styled, getting your nails done, or having your teeth whitened. Putting your best foot forward can help you feel more confident.

22. Moving to an Area with a Stronger Job Market

If your home town doesn’t have the best job market for your field, you may want to consider moving somewhere that offers more opportunities. You could put your graduation money towards moving expenses, such as renting a truck or professional movers.

23. Hiring a Career Coach

If you’re having trouble finding the job you want, you might consider using your graduation money to hire a professional career coach. These pros can help you revise your resume, improve your LinkedIn profile, build your network, and help you plan out your career. Typically, the best career coaches will have extensive experience in human resources and/or recruiting.

24. Getting Health Insurance

If you graduated from college later than your peers or you’re finishing up grad school, then you may no longer be on your parents’ health Insurance. You may want to start by looking for a health insurance policy on the government marketplace. As you compare policies, it can be a good idea to keep your medical needs, such as prescriptions and specialty doctors’ visits, in mind.

25. Paying Back Anyone You Owe

If you borrowed any money from family or friends during college, you may want to use graduation money to settle up. This shows that you are responsible and true to your word. If you end up in a bind again in the future and need to borrow, your family and friends will know that you can be trusted to pay them back.

The Takeaway

If you’re not sure whether to spend or save your graduation money, it can be helpful to look at both your short-term needs, such as paying off credit cards and buying a car. as well as your long-term goals, like creating a comfortable retirement nest egg.

The answer to how to use graduation money is different for everyone, but it can be a good idea to weigh all of the options before you make any major spending decisions.

Whether you’re saving for something specific or storing cash until you’re ready to invest, finding a bank account with low or no fees and a good interest rate can be a smart move.

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


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.

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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Everything You Need to Know About No Credit Check Loans

Everything You Need to Know About No Credit Check Loans

Quick loans for bad credit can look mighty attractive. However, products like payday loans and auto title loans can have major drawbacks, including short repayment periods and sky-high interest rates.

In fact, short-term loans can be so expensive that borrowers often end up paying exponentially more than they would if they’d financed the purchase some other way. And many loan holders end up re-borrowing, starting a vicious cycle that can quickly spin out of control.

So when you need money now, what should you watch out for — and what are some savvier alternatives to predatory loans? In this article, we’ll lay it all out.

Key Points

•   No credit check loans can provide quick cash without assessing credit history, but they often come with extremely high interest rates and fees.

•   Payday loans and auto title loans are common types of no credit check loans, both of which can lead to significant financial burdens if not repaid promptly.

•   Many borrowers find themselves in a cycle of debt due to the high costs associated with these loans, including fees and rollover charges.

•   Alternatives to no credit check loans include negotiating with creditors, borrowing from friends or family, or obtaining loans from credit unions, which offer more favorable terms.

•   Understanding the terms and potential pitfalls of no credit check loans is essential to avoid falling into a debt trap and negatively impacting credit history.

What Are No Credit Check Loans?

No credit check loans, as their name implies, are loans that offer quick cash to borrowers without requiring a credit check. This means the lender doesn’t review your credit history or credit score when deciding whether to give you a loan. However, not requiring a credit check makes these loans risky for the lender, which is part of how they can justify high interest rates and fee schedules.

And when we say high, we mean high. It’s not hard to find payday loans with effective interest rates of about 400%, and sometimes they go much higher.

Recommended: What Is Considered a Bad Credit Score?

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No Credit Check Loans: Borrower Beware

Rather than a set interest rate, payday loans will often charge $10 to $30 for every $100 borrowed. If a payday lender charges $15 for a $100 two-week loan, that’s the equivalent of a 391% APR.

Here’s how those numbers can work out when it comes to real money. If a payday lender charges $10 for every $100 borrowed, you would owe $50 in interest for a $500 loan, and the $550 would be due on your next payday. If you are unable to repay the loan in full when it’s due, you will typically get hit with a fee, and then the cycle repeats itself. After a few months of rollovers, you can end up owing more in interest than the actual loan amount.

Another word to the wise: The fine print on short-term predatory loans can include a variety of fees, including change fees, mandatory subscription charges, and early repayment fees. These fees can quickly add up. On average, borrowers end up paying $520 in fees on a two-week payday loan for $375.

It’s clear to see how these loans, though small in size, can lead to big financial problems. Even under the best of circumstances, it can be difficult to get ahead of short repayment terms and steep interest rates and fees.

Recommended: What is Consumer Debt?

Who Offers No Credit Check Loans?

Two of the most common types of these no-credit check loans are payday loans and auto title loans.

•   Payday loans As you might have guessed, payday loans are designed to be repaid on the borrower’s next payday — generally within two to four weeks. Because payday loans do so often carry predatory interest rates and terms, some states have limited the size and interest rate of payday loans, but even small loans with lower interest rates can lead to financial trouble.

•   Auto title loans Also referred to as “title loans,” these are another common type of short-term personal loan that doesn’t require a credit check. In the case of a title loan, the borrower gives the lender the title of their car as collateral for a cash loan of up to about 50% of the value of the car. The borrower is still allowed to drive the car, but the loan principal plus interest is generally due within 30 days — again at astronomical rates. If the borrower is unable to pay the loan, they risk having their car repossessed.

Other lenders offer similar types of short-term, high-interest rate personal loans, sometimes advertising online loans with “no credit check required” or “guaranteed loan approval.”

Even if they aren’t called payday loans or title loans, borrowers would be wise to pay attention to the loan’s terms and conditions, particularly interest rates, fees, and expected repayment schedules.

Generally speaking, too-good-to-be-true financial products are often just that. Staying informed about the full implication of the loan’s terms and doing the math to work out how much you will end up paying over time can help borrowers avoid a potentially disastrous financial situation.

Recommended: Can You Get a First-Time Personal Loan With No Credit History?

Alternatives to No Credit Check Loans

As financially harmful as no check credit loans can be, there still might be instances in which borrowers need quick access to money. Fortunately, there are some alternatives worth consideration.

For starters, borrowers might turn their attention to why they need the money in the first place. Short-term loans are often taken out to repay existing debt, an approach that might result in the borrower going even further into debt to try to scramble out of the hole.

In this scenario, attempting to negotiate the existing debt with current lenders might be a better tactic. Sometimes, credit card issuers and other lenders might offer repayment options to ease the immediate financial burden. It’s a tactic that’s worth asking a creditor about.

Another option: borrowing from friends and family. While this can come with its own set of pitfalls, family loans are unlikely to create the same kind of debt spiral short-term cash loans might.

In order to keep things friendly, you’ll want to set out a formalized loan agreement with interest rates and terms, similar to what you’d expect to sign for a traditional loan from a financial institution. This avoids any confusion and helps keep the transaction as objective as possible.

Credit unions are another source of small-dollar, payday loan alternatives — and importantly, credit unions are subject to a federal interest rate cap and other limits that keep these loans from becoming exorbitantly expensive.

And although they’re generally not an ideal solution, credit cards may carry lower interest rates than short-term cash loans. Some borrowers might also be able to utilize a promotional 0% interest rate period in order to aggressively pay off debt during the promotional period without paying interest.

Another alternative is a traditional personal loan from an online lender. While these loans usually do require a credit check and specific approval requirements, some online lenders will extend loans to applicants with imperfect credit histories. Rates are typically higher. However, they likely won’t be nearly as high as payday loans. You may be able to get a better rate by applying for a secured personal loan (which requires using an asset as collateral) or including a co-applicant on the loan agreement.

The Takeaway

While no credit check loans can certainly be attractive, their high interest rates and associated fees can make them costly over time. Borrowers may not be able to repay the loans plus interest in the short repayment term required, which could lead to a debt treadmill scenario and, possibly, negative credit history consequences.

If you’re interested in exploring other personal loan options, SoFi could help. SoFi’s unsecured personal loans come with competitive, fixed interest rates and there are no fees required. Checking your rate will not affect your credit score.

See if a personal loan from SoFi is right for you.


Photo credit: iStock/FG Trade

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


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.

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Should You Sign a Cohabitation Agreement With Your Partner?

Do you live with your romantic partner but aren’t hitched? Or did you and your significant other just decide to move in together? If so, it could be worth considering whether you’d like to both sign what is known as a cohabitation agreement.

Of course, sharing a household can bring many benefits. But there are also complicated situations that can emerge and some financial and legal risks.

A cohabitation agreement is a mutually agreed-upon document that helps protect you legally and make sure that both members of the couple are aligned on key aspects of living together. It also typically covers what would happen if you two decided to split up.

Here, you’ll learn the definition of a cohabitation agreement, what it covers, and key considerations when you and a partner decide to share a home.

What Is a Cohabitation Agreement?

Also known as a living together agreement, non-marital contract, or “no-nup,” a cohabitation agreement is a legally binding contract signed by two people who live together or are planning to move into the same home.

Like a prenup or postnup agreement, a cohabitation agreement is designed to address the variety of personal and financial issues you and your partner may face in the event of an emergency or a breakup, such as who will retain ownership of property acquired before the relationship started and who will keep property purchased together.

This formal agreement not only protects assets that you bring into the relationship, but can also be a way to ensure clarity during your relationship and help you and your partner start talking about money.

Your cohabitation agreement might, for example, detail how living expenses will be divided or whether your money will be kept separate, fully combined, or partially combined.

A cohabitation agreement can also include health care directives and address issues involving your children or children from previous relationships.

💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, and transfers from one online bank account with SoFi.

Who Should Get a Cohabitation Agreement?

People who are older, and therefore tend to have more assets and more complex financial lives, may be more likely to benefit from the protection provided by a cohabitation agreement than those who are younger and just starting out.

However, any couple can benefit from a cohabitation agreement because your lives automatically become financially intertwined when you move in together.

When you live with someone, you will likely both be responsible for paying the rent or mortgage (and related expenses) and for paying any bills, such as utility bills. And, both of your names may be on the lease or the mortgage.

Plus, you’ll both be counting on this as a place to live. You also may join other aspects of your lives, such as buying furniture together, getting a pet together, or having children together.

A cohabitation agreement can spell out how you will share responsibilities during the time you are living together. It can also help you in the event that you decide to part ways and need to determine who gets what. It can be easier to discuss and agree on these issues when you’re in love than during a potentially difficult separation.

(If you are unmarried and buying a property together, that will likely require a different agreement.)

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How Do I Get A Cohabitation Agreement?

Because cohabitation agreements are legal contracts, it can be a good idea for each partner to get an attorney to help negotiate and draft the agreement. Getting legal help ensures that the contract will be enforceable and that each party knows his or her rights.

If you’ve already discussed and agreed on most of the parameters, hiring a lawyer to draft the document shouldn’t be all that costly (and can save you a great deal of money if a dispute arises down the line).

💡 Quick Tip: If your checking account doesn’t offer decent rates, why not apply for an online checking account with SoFi to earn 0.50% APY. That’s 7x the national checking account average.

If you’d prefer not to hire a lawyer, you can find free templates for cohabitation agreements online. You can also write your own contract, but you may want to keep in mind that this may make it less likely the agreement would be legally enforceable. The contract can still be useful, however, if you’re both willing to abide by it.

Regardless of how you choose to create your agreement, here are some things you may want to consider including in your cohabitation agreement:

•   Whether one or both names will be on the lease.

•   How rent will be divided.

•   Whether owned property will have both names on the deed and who will be responsible for paying the mortgage.

•   Who will pay bills, utilities, insurance, and other household expenses.

•   Whether you will keep finances completely separate or create a joint account.

•   How shared purchases, such as furniture, will be made.

•   Who will remain in the home in the event of a breakup and how the other partner would be compensated.

•   What property is considered separate and what property is considered joint (say anything from furniture to a joint brokerage account) and how will the latter be divided in the event of a breakup.

•   Who will assume responsibility for any pets if a breakup occurs.

•   Who is responsible for managing or paying off debts incurred by the couple during cohabitation.

•   Who is responsible for debts incurred prior to cohabitation.

•   Whether a higher-earning partner will be responsible for paying any support to the other partner after a breakup.

•   Whether or not the agreement will remain in effect if you get married.

•   What happens to shared property if either party passes away.

If you have children and/or are planning on having children together while cohabitating but not married, there may be additional issues you will want to address in your agreement. In this case, getting legal advice can be a wise idea due to the added complexity of your situation.

Once the agreement is written, each partner will need to sign it and keep a signed copy for themselves. It can also be a good idea to have your signatures notarized. While notarization won’t guarantee that a court will find your agreement legal, it will make it easier to prove that both of you signed and agreed to it if you ever have to go to court.

Recommended: Tips for Sharing Expenses with a Roommate

The Takeaway

When you move in with a romantic partner, you will likely be sharing more than a place to live but also expenses and other financial interests.

A cohabitation (or living together) agreement protects the assets you acquired before living together and also specifies how assets and debt acquired during cohabitation will be shared.

A cohabitation agreement can protect your rights and also help you and your partner communicate about big issues, such as how you will divide up the rent and other household expenses and purchases, and whether you will keep your finances separate or open up a joint account.

If you decide to merge at least some of your money, you may want to consider opening a new bank account.

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


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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Reasons to Balance Your Bank Account Every Month

Reasons to Balance Your Bank Account Every Month

You may wonder if anyone balances their bank account manually anymore given how many aspects of personal finances have become electronic.

Today, paychecks are deposited digitally, automatic bill pay whisks money from one account to another, and smartphones enable check deposits anytime, from anywhere.

Nevertheless, tracking withdrawals and deposits via a checkbook ledger and tallying up amounts can have value.

Monitoring your checking account in this way can help you identify errors or fraud. It can reveal charges and fees you may not have known you were being assessed. It can also put you in better touch with your money and your spending. All those things are definitely positives.

This guide will help you learn the step-by-steps for balancing your checkbook as well as its benefits.

What’s The Purpose Of Balancing Your Checking Account?

Back in the not-so-distant past, most people who had a bank account received a paper statement once a month in the mail.

On the first few pages, the statement listed the past month’s transactions — checks that had cleared, deposits that had posted, ATM and other withdrawals — along with the account balance as of the day the statement was printed.

On the back page, there was a reconciliation worksheet. There, account holders could add or subtract anything that was missing on the statement (deposits or withdrawals that hadn’t yet posted) to be sure the balance they thought they had actually matched the one the bank was reporting.

While some considered the process of balancing or monitoring a bank account tedious and frustrating, others diligently did the math every month.

Times have changed. Though financial institutions are legally required to mail those old-school statements to customers who want them, most have been touting the benefits of going paperless for years. Plus, customers now have 24/7 access to their account information using a website or an app.

Many banks also will provide a monthly online statement with the same data as the old paper statement, usually in the same or a similar format. They’ll even send a notification when the statement is ready.

But since this requires taking the time to log on, review the numbers, check for errors, and maybe do some math, many people procrastinate or simply skip regular account reviews. This can be especially true if they have multiple bank accounts.

But monitoring and balancing a bank account still plays an important role in responsible money management.

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

People – and Institutions – Sometimes Make Mistakes

Even if you are a fastidious record keeper, logging every cash withdrawal, bill payment, and deposit into a paper ledger, spreadsheet, or app, we all make mistakes from time to time.

Maybe an ATM receipt went missing or bill payment was forgotten or recorded incorrectly. By reconciling an account regularly, these little mistakes can be quickly fixed. This will allow you to have an accurate picture of your account, and help avoid overdraft charges and/or bounced checks.

Banks also can make errors. Duplicate charges are rare, but they can occur. Automatic payments may occasionally go awry. And it’s possible for deposits to land in the wrong account.

Even though the mistake might be the bank’s fault (because of human or technical error), it’s up to the account holder to bring it to someone’s attention — either by calling or writing to the financial institution.

In most cases, the Electronic Fund Transfer Act (EFTA) gives an account holder 60 days after receiving the bank statement with evidence of an error to challenge a problem with a direct deposit, ATM use, phone transfer, and other transactions.

But the time frame for reporting other bank errors may vary — rules may differ from bank to bank. Consumer advocates advise making contact as soon as possible upon spotting a mistake.

Reviewing an account regularly can help limit a consumer’s liability.

It also can be a good idea to check on vendor charges. Reviewing debit card, pay-by-phone, and even recurring automatic charges on a bank statement every month can help catch small errors before they become bigger problems.

A bank statement can provide the official documentation needed to dispute the charge with the vendor or financial institution.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

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Scammers Hope People Aren’t Paying Attention

Every time a person makes an ATM withdrawal, pays for gas with a debit card, or places an order online, there’s a chance someone is out there, waiting to steal their identity and their money.

Scammers sometimes start by making small purchases and, if no one seems to notice, bump up the spending to a more serious level.

Consumers who check their accounts regularly may have a better chance of spotting fraud faster, limiting their own liability and helping the bank deal with potential problems.

Reconciling Regularly Can Help Manage Automatic Payments

Automatic bill payments are convenient and can help an account holder avoid late payments (and late fees).

But the downside is that those bills might not get the same attention as those we have to make some effort to pay ourselves every month by check, phone or online. Ready or not, the money comes out of the bank account as scheduled, and if the account is low on the payment date, it can lead to bounced checks and overdraft fees.

Account holders who check their statements regularly may find they’re more aware of and prepared for the amount and timing of their autopay charges. They also might find they’re ready to dump or reduce the cost of some of the services and subscriptions they’ve been paying for every month or year.

💡 Quick Tip: Are you paying pointless bank fees? Open a checking account with no account fees and avoid monthly charges (and likely earn a higher rate, too).

Reviews May Offer Insights into Spending and Saving Behaviors

Reviewing their bank statements may help those who need or want to take more control of their spending to see exactly where their money is going every day, week, or month.

Regularly scheduled reconciliations enable people to see exactly how much they’re spending every week on nonessentials, such as in-app purchases or happy hours. This kind of information can help people budget more effectively and help bring them closer to their savings goals, such as a downpayment on a home.

Identifying Unnecessary Fees Can Save Money

Bank fees can eat away at a bank balance so slowly, an account holder might not even notice. The average monthly fee for a checking account now runs around $12. An out-of-network ATM withdrawal fee currently averages more than $4. Overdraft fees are typically $35 a pop.

Those charges can quickly add up — but if it’s all laid out there in black and white on a statement, it might be harder to ignore how much money is slipping away every month. (It also might provide more motivation to find a way to avoid those fees in the future.)

Recommended: ATM Withdrawal Limits — What You Need To Know

How to Balance Your Checking Account

Of course, account holders can always check on their available balance by using an ATM, or by logging into their account online or with an app. But that’s just a snapshot — and the picture could change in just a few minutes, depending on what transactions hit the account throughout the day.

By reconciling your records with your monthly online or paper statements on a regular basis, account holders can dig into the details of where their money is going, and be confident they aren’t missing any mistakes or paying fees or bills they aren’t aware of.

•   Start by gathering the receipts and records for any spending and deposits for the period chosen. (If you use a check register, grab that. If you write your purchases down in a notebook or use software or a spreadsheet, use those. If you collect ATM receipts, pull that pile together, too.)

•   Match those records with the bank statement. If you missed something the bank has listed and you’re sure it’s accurate (an ATM fee, for example, or a birthday check you deposited and forgot about), add it to your records.

•   Take the statement balance and subtract payments that are in your records but haven’t yet cleared the bank, and add in any deposits that haven’t yet been posted.

•   The amount you come up with should match with the balance you have in your register/notes/spreadsheet. If it doesn’t, you may have to do a closer check to see what you might have missed or if your math is a little off.

•   If you’re confident that the bank made a mistake or you notice anything else askew, contact the bank by phone, email, messaging, or in-person right away to let them know about the inconsistency.

The Takeaway

With so many other tech tools available to help track saving and spending, reconciling a bank statement every month may seem unnecessary or even archaic.

But the process can serve as an important backup and safeguard, especially for those who have multiple accounts, or who have turned over certain financial tasks (deposits, withdrawals, bill-paying, and budgeting) to automation and apps. It can also help you avoid unnecessary fees and spot mistakes or fraud.

It might even point the way toward better budgeting and money management, and help you reach your short- and long-term financial goals sooner.

Looking for Something Different?

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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.


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.

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