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The average annual salary for a personal trainer is $51,360 a year, according to the latest data from the U.S. Bureau of Labor Statistics (BLS), which groups them with exercise trainers and group fitness instructors. However, salaries typically fall somewhere between $27,580 (10th percentile) and $82,050 (90th percentile).

How much you can make as a personal trainer depends on several factors, including where you live, who you work for, your training experience, and your areas of expertise. Let’s unpack this.

What Are Personal Trainers?

A personal trainer develops customized exercise programs for clients based on individual skill levels, health goals, physical limitations, and other considerations. These professionals work with clients of all ages and skill levels to improve their strength, flexibility, and endurance; complete workouts safely and without injury; support them on their weight loss journey; and more.

Trainers are often paid hourly, but they may earn a yearly salary if they work for a gym or high-end client. How much money a personal trainer makes depends on the range of services and level of attention they provide — in general, the more, the better.

In addition to exercise and training skills, it also helps if you have good people skills, as you’ll be working closely with clients. (Not much of a people person? You may want to look into jobs for introverts instead.)

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Personal Trainers Make an Hour?

The average entry-level wage for a personal trainer in the United States is approximately $21 per hour, or $43,677 a year, according to the International Personal Trainer Academy. But depending on a host of factors, personal trainers with more experience can earn anywhere from $13.26 to $39.45 or more an hour, according to the BLS.

So is it possible to make $100,000 a year or more as a personal trainer? Short answer: yes. A six-figure income may be attainable once you gain enough experience and establish a steady client base. But keep in mind that those things often take time to develop.

Recommended: What Is Competitive Pay?

What Is a Personal Trainer’s Yearly Salary by State?

Location can play a major factor in a personal trainer’s income. A professional who’s established in their career may earn an average of $51,380, but as the chart below shows, take-home pay can vary significantly from state to state.

Recommended: The Highest-Paying Jobs in Every State

Personal Trainer Job Considerations for Pay and Benefits

When you’re just starting out as a personal trainer, there are many factors that may influence the direction of your career. For instance, working at an established commercial gym can offer an opportunity to gain experience, build up a client network, and receive job benefits.

If you’re a self-starter and prefer more independence, working as a self-employed personal trainer might be the better fit. You’ll have the ability to set your own hours and hourly rate. However, you’ll also have to pay for health benefits and set money aside for retirement.

Here are some questions to ask yourself when starting a career as a personal trainer:

•   How many hours are you willing to work?

•   Would you rather work for someone else or be your own boss?

•   Do you need health insurance benefits?

•   Where do you see yourself in five to 10 years?

•   What type of clients do you want (for example, senior citizens, athletes, or some other group)?

•   Are you willing to commute or relocate?

•   What additional certifications might you need?

•   What are your financial goals?

Establish what you need to earn as a personal trainer in order to cover your expenses and maintain the lifestyle you want. It can help to sit down and create a budget.

As your personal trainer career gets going, you can lean on financial tools like a money tracker app to help you monitor your spending and saving.

Tips to Increase a Personal Trainer’s Salary

Clients can come and go for a number of reasons, but there are some things you can do as a personal trainer to keep the ones you have and attract new ones. Here are some strategies to consider:

•   Listen to your clients, and be willing to adapt to their needs.

•   Sharpen your motivational skills. Learn from other successful trainers and how they inspire their clients.

•   Be empathetic. Many clients may struggle during their workouts, both physically and psychologically.

Empathy can go a long way toward maintaining healthy client relations.

•   Go where you’re needed. Investigate niches where your expertise can be of use, be it an elderly care center, a health center, or a new neighborhood gym.

•   Network and market yourself. Chat up members at your gym and discuss their fitness goals.

You can also promote your own fitness journey and methods on social media.

•   Earn new certifications. Get certified in CPR, yoga, Pilates, and nutrition, for example.

The more you know, the more in-demand you may be.

Pros and Cons of Being a Personal Trainer

As with any job, there are pluses and minuses to working as a personal trainer. Here are some of the benefits and challenges of the field:

Pros:

•   Flexible hours. You can often schedule clients when you want to.

•   Professional control. You’re able to build up your business through marketing and networking, adding clients as you raise your earning goals.

•   Staying physically fit. You’ll be able to practice what you preach. Staying in shape is a job requirement.

•   Personal satisfaction, especially when you help a client meet their goals.

Cons:

•   Fluctuating income/job security. There’s no way to predict how many clients you may have month-to-month or year-to-year.

•   Lack of benefits. Many personal trainers work for themselves and have to pay for their own health and dental insurance, plus save for retirement.

•   Nontraditional work hours. Although you have the ability to make your own schedule, most of your working clients will likely request early morning, evening, or weekend sessions.

•   Shorter career lifespan. Even the most in-shape trainer ages, and there may come a day where you struggle physically to keep up with your clients.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

A personal trainer’s earnings can rise and fall with the ebb and flow of clients, but there is also no limit to the amount of money you can make. Whether you’re working with a few dedicated clients or creating your own global fitness brand, being a personal trainer can be a great way to earn a salary while keeping yourself and your finances in shape.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is the highest-paying personal trainer job?

Personal trainers who work for wealthy clients and celebrities typically command lucrative salaries. The most popular fitness influencers on TikTok and Instagram, for example, may be able to make more than $1 million a year.

Do personal trainers make $100k a year?

A well-established personal trainer may be able to make $100,000 a year with experience, marketing savvy, good time management skills, and a loyal client base.

How much do personal trainers make starting out?

The average starting wage for a personal trainer in the United States is $21 per hour, or $43,677 a year.

Photo credit: iStock/Drazen Zigic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SORL-Q425-019

When it comes to managing your financial life, technology can be your friend. By toggling on banking alerts, you can stay on top of your bank accounts and possibly avoid such issues as overdraft, late fees, and unauthorized use of your banking details.

Setting up automated alerts can be quick and easy, but you may need help knowing which are the right ones to use to suit your needs. Here’s a guide to 10 of the most valuable online banking alerts that you may find useful.

What Are Bank Account Alerts?

How mobile banking works can typically involve alerts sent by email and/or text that keep you updated on the status of your accounts. These can share important information about your finances (such as, say, that you are about to overdraft your account) or they can help protect your account by informing you of a new log-in.

In many cases, you can customize how you want to receive mobile banking alerts, whether by email, text message, and/or push notification. You can also personalize the alerts. For example, one person might want a low balance alert when their account balance falls under $200, while another person might want to be notified when their account gets down to $25.

Why Should You Set Up Mobile Alerts for Your Bank Account?

Mobile banking alerts can help keep your bank account safe online and protect your financial status in the following ways:

•   Allow you to monitor your banking activity

•   Help you avoid unauthorized activity

•   Prevent scams and fraud

•   Alert you to low balances so you can steer clear of overdraft and related fees

•   Help you manage debit card purchase behavior

•   Know when an important payment or debit is made

•   Feel more in control and secure of your finances.

How to Set Up Bank Account Notifications

How to set up bank account notifications will vary from financial institution to financial institution, but the basic steps typically are as follows:

•   Go to your bank’s website or mobile app, and log in.

•   Find the section where you can manage your notifications (it may have a name like “Alerts,” “Profile & Settings,” “Notifications,” or “Tools”), and choose the specific bank account you want to manage alerts for.

•   Find the kind of alert you want to customize, such as account activity or security, and set it. You might need to determine details (such as to receive an alert when your balance falls below $150 or when a purchase is over $100).

•   Specify how you want to receive your alerts, such as by text (SMS), email, or push notification.

•   Save your selections.

10 Essential Bank Account Alerts to Activate Now

Here are 10 important mobile banking alerts. See which ones might suit your particular situation and needs.

1. Low Balance

Cars have gas indicators to warn drivers when fuel is close to empty, so why shouldn’t bank accounts? A low balance alert lets you know when funds have dipped below a predetermined amount — it could be $20, $1,000, or any amount you set. This can help keep you from overspending, having a negative bank balance, and triggering expensive overdraft or NSF fees.

2. Direct Deposit

Constantly checking your account to see if your paycheck has been deposited can be a nuisance, particularly if you only recently set up direct deposit (which can take one or two pay cycles to get going).

If you sign up for a direct deposit notification, however, you’ll know exactly when money sent electronically to your account has been deposited and is ready to use. Being notified of direct deposits can also help you know that you have enough money in your account to cover automatic payments you have set up. Bonus: Some banks allow you to get paid early, up to two days before the actual payday.

3. Suspicious or Unusual Activity

Unfortunately, more than a million people report fraud and identity theft to the Federal Trade Commission (FTC) each year. Setting up a suspicious or unusual activity mobile account alert can save account holders a lot of headaches, as well as time and money, should their accounts ever become compromised.

A suspicious or unusual activity alert notifies consumers when there’s a change in their account status that’s outside the norm. For example, if a large amount of money gets transferred out of the account and this is something that rarely occurs, you would receive a suspicious or unusual activity alert. (It could be that you’re transferring it to a savings vault, or it could be an unauthorized transaction.) Or an alert might let you know if purchases are being made outside your typical travel area.

By alerting you the moment a potential fraud takes place, you can take action quickly, report the transaction as needed, and/or possibly freeze your account. Your bank’s customer service or fraud alert rep may also advise you on how to secure your account.

4. New Log-In Alert

Another helpful way to protect your accounts against bank fraud and theft is to set up a new log-in account alert. This alert lets you know when someone has logged into your account from a device, location, or browser that has never been used to access your account before.

If you weren’t the one logging in, you can possibly block the fraudster by immediately changing your password and/or freezing your account to prevent spending.

Some financial institutions also allow customers to set up multifactor authentication on their account (which requires users to provide multiple pieces of identifying information, not just a username and password to access an account), which can further protect your money.

5. Large Purchase or Debit Transaction

Some banks allow users to set up a customizable large purchase or debit alert. With this kind of online banking alert, you will usually receive a message whenever a purchase over a certain dollar amount (which typically you determine) is about to be debited from your account.

If you see the alert and don’t recognize the purchase, you may then be able to block the transaction.

Having a large purchase alert set up can help prevent not only fraud but also human error. If a restaurant server accidentally adds an extra zero to a dinner bill, a large purchase alert could go off. That could save you the hassle of reporting the purchase later and trying to have it reversed.

This mobile bank alert may be especially helpful if you are not in the habit of monitoring your bank account on a regular basis.

6. Overdraft Alert

If you overdraw your account using a check or debit card, your bank might allow the transaction, letting you spend more money than you actually have in your account.

Typically, this comes with a price — an overdraft or NSF fee (which can cost you up $40). And, if you don’t realize you’re overdrafting your account, you might continue to make purchases and incur a fee on each one. Depending on the bank, if your account remains in a negative balance for an extended number of days, your account could even be closed.

To avoid these problems, If you get an overdraft alert, you may want to:

•   Add money to your account as quickly as possible to prevent any more overdrafts with subsequent bill payments. If you move quickly, you might possibly be able to avoid the first overdraft fee (check if your bank has a deadline to deposit money that might help you avoid an overdraft fee).

•   Some banks have no overdraft fees up to a certain dollar amount; check and see if yours offers this feature.

7. Personal Information Change (Password, Address, etc.)

Personal information change bank alerts notify you if someone has tried to change your password, username, or any personal information in your profile, such as contact information or opting out of bills through mail.

If you see something was changed and you didn’t make the changes, you’ll likely want to change your password ASAP and alert the bank to help protect your account.

8. Large ATM Withdrawal Alert

Setting an alert for withdrawals from an ATM lets a person know when cash has left their account. This might be helpful in the event that there are multiple authorized users on the card (so you are aware of a change in the account balance) but also if the card has been stolen or lost. This kind of alert can help you quickly spot fraud and act on that knowledge.

According to the FTC, the maximum loss for a person who reports their card as lost within two days of discovery is $50. That means even if a thief steals a debit or ATM card and wipes out the account’s balance, the account holder would not be out more than $50.

If a person doesn’t notice their ATM or debit card has gone missing, a withdrawal notification could be the first thing to alert them.

9. Card Not Present Transaction

Also known as a CNP, a card not present alert notifies you that a purchase is being attempted online, by phone, or by mail, and a physical card wasn’t involved. This can help inform you of fraudulent activity, allowing you to protect your finances in real time. You might be able to decline the transaction, freeze your bank account, and get a new card issued.

Remember, if you report misuse of your card number within two days of the event, you are not liable for more than $50, per the Electronic Funds Transfer Act. In this way, online banking activity alerts could help you avoid having to pay for fraudulent charges.

10. Upcoming Payment Alert

An upcoming payment alert can be a good way to stay posted on recurring or one-time scheduled payments. For instance, if you had scheduled a payment of a medical bill a couple of weeks ago to happen right now, the alert could nudge you to check your balance and make sure you’re in good shape to cover the expense.

Or an upcoming payment alert could remind you that you are paying for, say, a streaming channel you haven’t been watching and you might decide to cancel and save some money.

What Should You Do After Receiving a Bank Security Alert?

If you receive a mobile banking alert or bank notification, you may or may not need to take action.

•   If the message tells you something you already knew or expected (say, that you received your paycheck or your mortgage was paid per your instructions), no action is needed.

•   If you receive an alert that your bank account is low and/or you are at risk of overdraft, you can transfer funds to avoid problems and fees.

•   If you are informed that a transaction or log-in occurred that you do not recognize, you can (and should) alert your bank’s customer service ASAP to avoid fraudulent activity and related issues, such as identity theft. In addition, you may want to change passwords or freeze your account.

The Takeaway

Online banking alerts can help you manage your financial life more conveniently. They can provide you with important and timely account information, such as when your account balance falls below a certain amount or when your paycheck has been electronically deposited. This can help you better manage and protect your finances. Setting up alerts is a personal decision and can be changed as your needs evolve or as your financial institution adds new options.

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 types of bank accounts are eligible for account alerts?

Typically, a variety of bank accounts are eligible for alerts, including checking and savings accounts, as well as certificates of deposit (CDs). You can also have alerts for your ATM and debit card.

How can I tell the difference between a real bank alert and a phishing scam?

Here are some ways to tell if a bank alert is real or if it’s phishing: Ask yourself if you have opted into this kind of message from your bank. Know that your bank will not ask for confidential information by text. Be aware that a sense of urgency or needing to send money to resolve a “problem with your account” right away can signal a scam. Also look for slight misspellings, such as Citiibank instead of Citibank. You can contact your bank directly to know if an alert is real.

Are there any fees for setting up bank account alerts?

Most major banks do not charge for setting up bank account alerts. However, your mobile carrier might apply text or data charges if you get SMS alerts, so it can be a good idea to check with them about their policy.

Can I customize the dollar amount for my large purchase alerts?

Yes, you can usually customize the dollar amount for your large purchase alerts. For instance, one person might want to be notified of purchases over $100, while another might only want to know about ones that are over $500.

Do alerts for direct deposits arrive instantly?

Direct deposit alerts can arrive almost instantly when your bank makes the funds available. It can be wise to double-check with your bank about when payroll funds become available. Some banks offer an early pay benefit, which allows access before the official payday.

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.

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.

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.

If you have a bank account, you may be familiar with the monthly fees that many financial institutions charge their clients simply for having an account. These may be known as maintenance or service fees and tend to be assessed on checking accounts. However, some banks will charge them on savings accounts too.

These charges can add up over time. But it’s worth noting that some banks will lower them in certain situations, and others don’t collect them at all.

Since maintenance fees can eat away at your hard-earned cash, take a closer look here at how they work and how you might avoid them.

What Is a Monthly Maintenance Fee?

Banks often charge fees on personal and business checking accounts and sometimes even some types of savings accounts to help them offset operational costs or help to “maintain” your account.

Institutions may also charge these fees as a way to encourage customers to make larger deposits. Many banks will waive fees if customers keep their balances high or use their account more frequently, both of which benefit the bank. (Banks may also encourage activity by assessing inactivity fees if you let your account just sit.)

Monthly maintenance fees are usually automatically withdrawn from a customer’s account each month.

Why Do Banks Charge Monthly Service Fees?

Banks typically charge their clients monthly service fees to cover operational costs and make a profit. These fees help pay for services like maintaining accounts, processing transactions (such as mobile bank deposits), and covering the costs associated with setting up and keeping their infrastructure running.

How Much Are Typical Bank Maintenance Fees?

While not all banks charge a monthly maintenance fee, many of the large traditional financial institutions in the U.S. do charge monthly fees.

For Savings Accounts

Monthly maintenance fees on savings accounts can vary greatly. Typically, though, the average maintenance fee can range from $1 to $8 per month. Some banks may not charge any fee at all.

For Checking Accounts

How much a financial institution charges as an average maintenance fee per month for a checking account varies from one bank to another. One recent survey but the current average maintenance fee for a checking account at around $5.47 per month, while another found it to be $13.95.

While that may not seem like a lot of money when viewed as a one-time charge, it adds up to $65.64 to $167.40 per year. Add in other deductions, like for using an out-of-network ATM or triggering overdraft or NSF fees, and these surcharges can start to chip away at your hard-earned money.

Recommended: How to Cash Checks for Free

How Can You Get Monthly Maintenance Fees Waived?

Fortunately, there is often some wiggle room when it comes to maintenance fees. Here are some simple ways you may be able to minimize or even completely avoid this type of account fee.

Maintain a Minimum Balance

Many institutions will waive the monthly account fee if you keep a certain amount of money in your account, known as a minimum balance. That means If your average monthly balance dips below this amount, the maintenance fee would be triggered for that month and deducted from your account. If your average monthly balance is above this threshold, the bank would waive the fee for that month.

In some cases, linking your accounts (such as a checking and a savings account) can help you meet the balance requirement to avoid the monthly maintenance fee.

Set Up Qualifying Direct Deposits

Many checking accounts are free when you elect to have your paycheck or benefits check automatically deposited into your account.

Each bank may have slightly different qualifying criteria. Some banks waive the maintenance fee if you make a certain number of direct deposits to your account each month, while others might require you to deposit a minimum dollar amount.

Setting up direct deposit is usually a simple process. More than 95% of Americans are paid by direct deposit, according to National Payroll Week.

Recommended: Debit Cards With No Fees

Switch to a Bank With No Fees

Another option is to switch to a bank with no fees, which is often an online bank. Because online banks typically have lower overhead expenses than brick-and-mortar institutions, they can be less likely to charge their customers monthly fees. They often pay considerably higher interest rates as well and may have a network of fee-free ATMs for your convenience.

Credit unions can be worth checking out as well. As nonprofit, member-owned institutions, credit unions typically aren’t as focused on the bottom line as for-profit banks. This enables them to charge lower rates on credit products and levy fewer (and lower) account fees compared to banks.

The Takeaway

You don’t necessarily have to settle for paying high monthly checking account fees. Many financial institutions will waive monthly fees if you maintain a certain balance or sign up for direct deposit. Another way to avoid paying monthly fees is to consider a financial institution that doesn’t assess these fees, typically online banks and credit unions.

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’s the difference between a monthly service fee and a maintenance fee?

Typically, a monthly service fee and a monthly maintenance fee are the same thing. Financial institutions may just use different terminology to describe them.

Can I ask my bank to refund a maintenance fee?

Yes, you can ask your bank to refund a maintenance fee. Contact customer service, explain why you feel you should be refunded the fee, and stay polite even if they don’t honor your request. Often, a bank will refund a fee to maintain a positive relationship with a customer. Or you might consider banking at a financial institution that doesn’t charge these fees, such as many online banks and credit unions.

Which banks do not charge a monthly fee?

Typically, online banks don’t charge a monthly maintenance or service fee. Since they don’t have brick-and-mortar branches, their operating costs can be lower, and they may pass the savings on to their clients. Credit unions, which are nonprofits, also may charge no or lower monthly fees.

Do all checking accounts have monthly fees?

No, not all checking accounts have monthly fees. For instance, many online banks and credit unions don’t charge fees to maintain a checking account. Also, some checking accounts with qualifying direct deposits or minimum balances don’t assess fees.

Is it better to have a minimum balance or pay a fee?

In terms of bank accounts, it’s typically considered better to find an account with no fees so you don’t have to worry about this issue at all. However, if you need to choose between keeping a minimum balance or paying a fee, it can be better to maintain a minimum balance vs. spending your hard-earned money on fees. If you are maintaining a minimum balance, look for an account that pays so interest, to keep your money working for you.

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.

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SOBNK-Q425-038

Dividends are a portion of earnings that a company pays to certain shareholders who own dividend-paying stock. Dividends are generally paid quarterly, although the timing of dividend payments can vary depending on the company: some dividends might be monthly, or twice a year.

Most companies pay dividends in cash, or as additional shares of stock. Investors can take dividend payouts to supplement income or savings (or other goals). They can also reinvest their dividends as part of a dividend reinvestment plan, or DRIP.

Not all companies pay dividends, however. And just because a company pays dividends now doesn’t mean it will continue to do so. A company can stop paying dividends at any time.

Investors may be qualified to receive dividends depending on when they purchase shares of stock. It’s important to understand the key dates regarding dividend payouts.

What Are Dividends?

Companies will sometimes share a portion of their profits with shareholders, and this is called a dividend. Dividends are typically distributed as cash, although it’s also possible to receive a dividend in the form of stock (or some other asset).

Typically, dividends work on a per-share basis. Investors who buy stocks online or through a traditional brokerage can look for dividend-paying stocks. For example, if Company A pays a quarterly cash dividend of 50 cents per share, and an investor owns 50 shares, they would receive $25 in cash every quarter.

If a company pays a stock dividend, it’s usually a percentage increase in the number of shares an investor owns. So if Company A awards a 5% stock dividend and an investor owns 100 shares of Company A, they would have 105 shares after the dividend payout.

Remember that dividend income is taxable (see below), and dividends are not guaranteed. A company may start or stop paying dividends at any time.

Recommended: Stock Market Basics

How Often Are Dividends Paid Out?

In most cases in the U.S., dividends are paid quarterly, on the same schedule as the company must report earnings.

If you’re wondering why companies generally pay quarterly vs. monthly dividends, it makes sense that dividends would come only after a company has finalized its income statement and its board of directors has reviewed (and approved) the numbers.

Some investments pay dividends on other schedules, such as twice a year, once a year, or monthly, for monthly dividend stocks, or on no schedule at all (called “irregular” dividends, though this isn’t typical in the United States). Ultimately, the dividend payout schedule is up to a company’s board of directors.

It’s also possible for a company to pay a special one-time dividend. Usually a special dividend is paid out when a company has had a stronger-than-usual earnings period or has excess cash on hand — from the sale of a business, perhaps, or the liquidation of an investment, or a major litigation win. These special one-time dividends may be paid as cash, stock, or property dividends.

When it comes to mutual funds that invest in dividend-paying companies, they may pay dividends on a more frequent basis, such as monthly or even weekly. It may be possible to invest in dividend funds, or even dividend stocks, when you open an IRA.

Important Dividend Dates

There are four essential dates involved in the payment of dividends. It’s important for investors to pay attention to these dates, to ensure they’re getting the dividend payout they hope for.

1.    Declaration date. Also called the announcement date, this is the day that a company’s board of directors states their intention to pay a dividend. It’s typically announced every quarter.

2.    Date of record and ex-dividend date. The record date and the ex-dividend date used to be separate dates. Now owing to the T+1 settlement rule, whereby trades must settle within one business day, they are typically the same in the U.S.

Nonetheless, they signify two different actions by the company which can impact investors. The first is the date of record: shareholders must be on the company books before this date in order to get the dividend. Shareholders who buy stock on or after this date, which is also the ex-dividend date (i.e., the date that quarter’s dividend expires), will not qualify for the dividend and it will go to the seller for that quarter.

Note that if the date of record falls on a weekend or holiday, the ex-dividend date in that case is the business day before.

3.    Payment date: This is when dividends are paid to company shareholders.

Typically, investors can get information about a company’s dividend dates by visiting its investor relations page. To find this, search for the company’s name and “investor relations” online. Or check a company’s dividend history online. Many investment websites, including Nasdaq.com, track this information.

When Are Dividends Paid?

Once a company’s board of directors approves a plan to pay out dividends, the company announces the dividend payment information, including: the dividend amount to be paid, the date it will be paid, and the date of record and the ex-dividend date (which typically occur together, unless the record date falls on a weekend or holiday).

On the payment date, the dividend is paid to investors who owned the stock before the ex-dividend date. Consider the following hypothetical example:

•   Company A announces its dividend payout on September 1, 2025. This is the declaration date for a dividend payout on Sept. 17.

•   Sunday, Sept. 14 is the record date. Shareholders must be on record as owning the company stock before September 14, in order to get the dividend.

•   The ex-dividend date cannot fall on a weekend or holiday, so it’s set to the business day before the record date: Friday, September 12, 2025. In order to get the dividend, an investor must buy shares before the ex-dividend date.

•   The dividend itself will be paid on Wednesday, Sept. 17, 2025.

Different Dividend Payout Methods

These are some of the ways dividends may be paid to investors.

Cash Dividends

Dividends are often paid in cash. Companies typically send cash dividends directly to an investor’s brokerage, where the money is deposited into their account. The company might also mail a check to stockholders.

Company Stock Dividends

In other cases, investors will be paid in company stocks. Some companies and mutual funds offer the option of a dividend reinvestment plan (DRIP) that will automatically buy additional shares for an investor with their dividends. This provides the advantages of both simplifying the process (since investors won’t have to receive the cash and buy more shares themselves) and potentially being more cost effective, since many DRIP programs don’t charge commissions.

Additionally, some DRIP programs discount the purchase of additional shares. For this and other reasons, some investors may specifically look to find dividend reinvestment stocks.

Property Dividends

More rarely, a company might award a property dividend instead of cash or stock payouts. This could include company products, shares of a subsidiary company, or physical assets the company owns.

Are Dividends Taxable?

Dividend income is always taxable, but tax treatment depends on the type of dividend the shareholder gets (qualified or nonqualified dividends), as well as the type of account in which the dividend stock is held.

The Type of Account Impacts How Dividends Are Taxed

For instance, if an investor is holding the investment in a retirement account such as a 401(k) or IRA, the dividend isn’t taxable the year it’s paid because it’s deposited in a tax-deferred account.

In this case, though, any dividend income would be taxed along with any other funds upon withdrawal in retirement.

If an investor holds dividend funds or dividend-paying stocks in a Roth IRA, the tax treatment is different. Here, contributions are after tax, and withdrawals are tax free.

If the investment is held in a taxable account, like a brokerage account, then a dividend is considered income, and the tax rate will depend on whether it’s a qualified dividend or nonqualified (ordinary) dividend.

Tax Rate for Qualified Dividends

These are dividends paid by a U.S. corporation or a qualified foreign corporation on stock that an investor has held for a certain period of time — generally more than 60 days during the 121-day period that starts 60 days before the ex-dividend date.

For some preferred stock, the investor must have held it for 91 days out of the 181-day period starting 90 days before the ex-dividend date. Taxes on qualified dividends (vs. ordinary dividends) are paid at long-term capital gains rates, which range from 0% to 20% based on an individual’s modified adjusted gross income.

In other words, the taxes investors pay on qualified dividends are based on their overall income tax bracket, and they could pay 0%, depending on their income. Because the long-term capital gains tax rate is lower than ordinary income tax rate, qualified dividends are preferable to nonqualified dividends.

2025 Tax Rates for Long-Term Capital Gains

Following are long-term capital-gains tax rates for the 2025 tax year, according to the IRS.

Additionally, note that those who have net investment income and modified adjusted gross incomes (MAGIs) over $200,000 — or couples filing jointly with MAGIs over $250,000 — may have to pay the Net Investment Income Tax (NIIT). This is 3.8% on either net investment income or the excess over the MAGI limits, whichever is less.

2026 Tax Rates for Long-Term Capital Gains

Following are long-term capital-gains tax rates for the 2026 tax year.

Again, note that those who have net investment income and MAGIs over $200,000 — or couples filing jointly with MAGIs over $250,000 — may have to pay the Net Investment Income Tax (NIIT). This is 3.8% on either net investment income or the excess over the MAGI limits, whichever is less.

Tax Rate for Nonqualified Dividends

The more common type of dividend is a nonqualified — or ordinary — dividend. When companies pay ordinary dividends, they’re considered ordinary income, so an investor will be taxed at ordinary income tax rates.

In general, investors should assume that any dividend they receive is an ordinary dividend unless told otherwise. (The payer of the dividend is required to identify the type of dividend when they report them on Form 1099-DIV at tax time.)

Can You Live on Dividends?

In general, retirees may want to live off a combination of Social Security, interest income from bonds, and selling a small portion of their investments each year. The 4% retirement rule maintains that if one withdraws no more than 4% of their portfolio each year, they’ll be able to make their nest egg last — although some financial professionals believe this formula is too conservative.

Investments that pay regular dividends may shift an individual’s retirement equation by providing steady income over time that may allow them to sell fewer investments — or no investments at all.

The amount of dividends a stock pays may grow over time as companies get larger and continue to increase their profits. But the reverse is also possible; a company could stop paying dividends, choosing to reinvest its cash in business operations.

Investing with an eye toward dividend income may allow an investor to create an income stream that could supplement their Social Security and other income in retirement.

The Takeaway

Dividends — cash or stock payments from a company to qualified shareholders — are typically paid quarterly. These financial rewards can be attractive to investors, who may seek out dividend-paying companies in hopes of boosting their income or savings.

Dividends may provide a source of consistent and predictable income, which may be a helpful addition to an individual’s portfolio, depending on their investing goals. Investors may choose to use dividend income to supplement other income or to reinvest in their portfolio.

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.

FAQ

How long do you have to hold a stock to get a dividend?

Investors must buy, or already own, shares of the stock before the ex-dividend date, which is now the same as the date of record. The date of record is when the company reviews its records to determine who its shareholders are, and who qualifies for a dividend payout. If the date of record falls on a weekend or holiday, the ex-dividend date is the business day prior, and shareholders who buy stock on or after that date will not receive a dividend until the following quarter (or relevant time period).

Are dividends taxed if they are reinvested?

Yes. Dividends that are reinvested are considered income, just like cash dividends, and must be reported on your tax return. The way you are taxed on dividends depends on whether your dividends are qualified or nonqualified. The more common type of dividend is nonqualified, and these dividends are taxed at ordinary income tax rates. Qualified dividends are taxed at long-term capital gains rates.

What happens if you see more dividends than profit?

Typically, a portion of a company’s earnings may go to paying dividends. This is known as the dividend payout ratio. Investors typically look for payout ratios that are 80% or less — meaning that the company is not paying all of its earnings in dividends.