Looking to get a better handle on your finances? You may want to consider a monthly bullet journal. Part calendar, part to-do list, part note keeper, this type of journal can help you organize your finances, track short- and long-term financial goals, and more. And because it’s highly customizable, you can modify your journal to suit your specific needs. Whether you’re trying to curb your spending, get out of debt, or improve your financial habits, read on for ways a bullet journal can help.
What Is a Monthly Log?
Having a daily to-do list is useful. But sometimes, it helps to see the larger goals and tasks you’ve set for yourself, especially if you’re working to develop good financial habits. Enter the monthly log, which is a key component of many bullet journals. The log gives you a snapshot of the things you’d like to accomplish that month and the progress you’ve made so far. You may choose to include it alongside your daily or weekly to-do list or keep it on a separate page.
How to Fill Out Your Monthly Log
Figuring out what should go in the log each month may take some time. You might find it helpful to make a big list of all upcoming events and tasks. Then, place each item in the correct month’s log, and be sure to add details such as important dates and milestones. You may also decide to categorize and color-code each entry for easy skimming.
• Get control of bills by listing when each bill is due, how much is due, and the payment method you plan on using.
• Keep tabs on your savings plan by noting when you intend on putting money into your savings account, how much you’re depositing, and where the money is coming from, such as your checking account or paycheck.
• Track your progress on paying down student loans, car loans, personal loans, credit cards, and other debt.
You can also use a monthly log along with your budget or a spending app to help you better understand your spending habits.
Track your credit score with SoFi
Check your credit score for free. Sign up and get $10.*
Benefits of Using a Bullet Journal
There are plenty of reasons why many people turn to bullet journaling to help them keep their finances on track. For starters, recording things like your expenses and spending, household budget, or savings goals can help you stay organized and increase productivity. There’s also the thrill of watching your savings balance go up or debt balance go down — and celebrating those accomplishments.
Visual learners may find monthly logs especially useful, particularly if they decide to color-code entries. But even just jotting down important details about your financial life can help keep your goals top of mind.
Here’s the beauty of a bullet journal: You can try out strategies others use or create a bespoke system for yourself. It can be as simple or complex as you’d like, and you may even find that it evolves over time. Here are four ideas on how to use bullet journaling in your financial life.
Use a Bullet Journal to Control Spending
You don’t have to have the classic signs of a shopaholic to want to curb your spending. A bullet journal can be a great tool to help you rein in the number of purchases you make.
One idea is to create a weekly bullet journal where you set how much you’ve allotted for discretionary spending that week and track any purchases made. Understanding how and where your money is going could help you avoid the bottom-dollar effect. This is when you may feel less satisfied with the last item you were able to buy with your budget.
Another option is the kakeibo budgeting method. This simple but effective strategy requires you to create a line item budget at the start of each month based on how much you plan on earning and spending, plus your savings goals. Throughout the month, you track every single penny you spend. At the end of month, review the log to see if you stayed on track spending-wise and are making progress on your savings goals.
Despite what you may think, you can learn about finance without having a finance background. In fact, boosting your financial literacy could improve how well you spend, save, and invest your money. And a bullet journal might help get you there. You can use it to track your progress in an online financial literacy course, for example, or as a place to write down the books or podcasts that will help build your personal finance knowledge.
Use Bullet Journal to Land a Job
Whether you’re searching for your dream job or the next gig, consider devoting a few pages of your bullet journal to your job search. You may want to start by listing your goals in an easy-to-see spot so you can refer to them throughout the process. Use other areas to note the roles you apply for, key details about the positions, notes on the companies you researched, and any upcoming interviews. You can also try creating daily, weekly, or monthly to-do lists in your journal to help you stay on track.
Use a Bullet Journal to Track Progress on Long-Term Goals
Let’s say that you’re saving for a big-ticket item, like a house or car, or setting a long-term goal, such as paying off a large credit card bill. Bullet journaling lets you set, monitor, and track your progress on those goals. You can also break them down into smaller, easier-to-manage tasks that you set on a daily, weekly, monthly, or quarterly basis.
The Takeaway
Bullet journals allow you to record tasks, deadlines, responsibilities, and more in a format that combines a to-do list with a calendar. Though it can serve a wide variety of purposes, a bullet journal can also help you organize your finances and maximize your productivity. Common ideas include journaling to control spending, boost your financial literacy, help with a job search, and work on short- and long-term financial goals.
A money tracker app can be another valuable tool. With SoFi, you can connect all of your accounts on a convenient mobile dashboard. This gives you a bird’s-eye view of all of your balances even while you’re on the go. You can also get spending breakdowns, financial insights, and credit score monitoring — all in one place.
Keep tabs on your finances by seeing exactly how your money comes and goes.
FAQ
What should be in a monthly bullet journal?
Monthly bullet journals are flexible, so use them to suit your needs. For instance, if you want to monitor and manage your personal finances, you can use the bullet journal to track when bills are due, when you plan to deposit money into a savings account, how much debt you have, and more.
How do you make a monthly bullet journal?
You can purchase ready-made bullet journals or make your own. If you go the DIY route, simple buy a notebook you like and personalize it. It’s a good idea to create an index that you can update when needed as well as a log to list your future goals. You can also create sections for monthly and daily logs, where you can add more details.
What are monthly spreads for?
A monthly spread is another name for a monthly log. This is where you lay out the tasks you have for a particular month. Typically, a spread runs two or more pages, but do whatever works best for you.
Photo credit: iStock/Twomeows_IS
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.
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.
When summer rolls around, many college students decide to take a break from their academic courses and take on a summer job. Working isn’t just a way to earn some extra money. In some cases, it could also be a chance to gain valuable professional experience.
Of course, not all jobs are created equal. Let’s take a look at what to consider when seeking a summer gig and three job ideas that may be well suited for college students.
Summer Job Considerations
Ideally, a college student’s summer job will mesh with their skills, passions, and career goals. So when brainstorming jobs you might want to go after, think about the unique talents, goals, and experiences you bring to the table. For example, a student athlete can make money by offering personal training sessions, mentoring younger athletes, or working as a camp counselor.
Another strategy is to zero in on gigs that are available for professionals in your field of study. For example, if you’re in the education tract, you may want to look into common side jobs for teachers. Which ones could you qualify for now? Possibilities may include being an online tutor or test scorer or doing freelance writing, editing, or proofreading.
You could also focus on side hustles with low startup costs, like building websites for people, making and selling handmade items, creating a fee-based online course, or delivering food and groceries.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
In general, the sooner you apply for summer work, the better. This is especially true if you’re planning to live and work in fields or areas where the job market is more competitive. Some employers start posting summer job openings in the winter to give them time to find the best candidates. Even if an employer doesn’t start the process that early, they’ll still need time to collect and review applications, conduct interviews, hire employees, and get their staff ready to begin work by summer.
Pros and Cons of a Summer Job
While the idea of relaxing all summer may be appealing, having a job comes with its share of benefits. Working is an excellent opportunity to build a strong resume, because you can pick up hands-on, relevant experience and sharpen essential soft skills like communication and problem-solving. It’s also a chance to discover more about your working style, preferences, and strengths and find out if you like working in a particular industry or field before commiting more fully to it.
A summer job is a good way to expand your professional network, which can come in handy when you graduate and start looking for full-time employment. Managers and co-workers from your seasonal gig can provide references or even keep you in mind if a permanent position opens up at their company.
Plus, the money you earn from a summer gig can help be put in savings or used to pay for school and living expenses. A spending app can help you to more effectively manage your finances.
Depending on your situation, there are some potential drawbacks to working in between school years. You’ll likely have less time for other activities, such as hanging out with your friends or relaxing. You may not also be able to take summer classes, which could help you graduate more quickly.
If you want to work in the summer, there are plenty of jobs available — especially if you know where to look. Colleges often post listings of available jobs on or near campus, so be sure to check in with your school’s career services center.
It’s also a smart idea to tap into your network, including professors, parents, mentors, and former employers. They may know of an open role or suggest people you can contact.
Online job sites are another good source of job leads. Many allow you to search for openings by industry, location, employment type, and experience level.
Top 3 Summer Jobs Ideas for College Students
Some summer jobs are especially well suited for college students. They can be done in the short term, provide an opportunity for students to apply what they’ve learned in school, or offer some control over schedule and pay rate. Three jobs to consider: online tutoring, freelance web designer, and retail sales associate. Here’s what to know about each.
Online Tutoring
An online tutor typically helps individual students understand their lessons, assists them with homework assignments, and provides extra work as needed. Some tutors prefer to rely on word of mouth for clients, while others offer their services through an online tutoring website.
In general, online tutors set their own hours and rate. The average starting rate is around $18-$21 per hour, according to Care.com, but that amount can increase significantly based on experience, grade level, subject matter, and other factors.
If you apply with an online tutoring site, you will likely need to provide information about your educational and work history. Educational requirements can vary widely by platform, so be sure to research what’s needed. Background checks are typically part of the process, and the company may also want to know the type of computer you plan on using and whether you have high-speed internet access.
Pros
• Flexibility — you will likely be able to control when and where you work.
• The money can be good for a side gig.
• You can make a real difference in students’ lives.
Cons
• Internet issues and technical glitches can disrupt your tutoring.
• Working with students in different time zones may be challenging.
• Many online platforms have strict policies against canceling tutoring times.
Freelance Web Designer
Developing and managing websites for clients can be a good fit for college students, especially those who prefer to work independently or are looking for jobs for introverts. You can find customers by listing your profile on websites for freelance designers or through recommendations from family, friends, and colleagues.
On average, a web designer can charge anywhere from $30 to $80 per hour, depending on the complexity of the project. Some technical skills are typically required — HTML, JavaScript, and CSS, for example — and it’s a good idea to stay up to date on the latest tools and technologies.
Pros
• You’re your own boss, which means you can determine when and where you work.
• The hourly rate is higher than other summer jobs.
• You can work on a variety of interesting projects.
Cons
• The work typically requires you to sit for long periods of time.
• You’ll need to keep up on new developments, which may be easier if you’re already studying web design in school.
• You may need to juggle multiple projects at once.
Retail Sales Associate
In many ways, a retail sales job can be an excellent summer gig. Often, the work is fairly straightforward, work hours are scheduled, on-the-job training is usually provided, and you usually don’t need a college degree. Students with a friendly, upbeat attitude and strong customer service skills may find a sales job particularly rewarding.
The average hourly rate of a salesperson is around $14, but this can vary based on your company, the store’s location, and how much experience you have. Some companies also offer extra perks, such as employee discounts.
Pros
• Work is often indoors and may not be as physically demanding as other jobs.
• Having a work schedule means you know when you’ll have free time.
• You have opportunities to develop your people skills.
Cons
• Your take-home pay can fluctuate if you earn a commission.
• Dealing with difficult customers can be stressful.
• Depending on where you work, you may need to be on your feet for several hours.
Though there are ways to make money during winter break, the summer is commonly when many students get a short-term job. A summer gig allows you to earn extra cash and potentially gain valuable professional experience, especially if you’ll be working in the field you’re studying. Your college career services center, professors, family, friends, and former employers may be able to provide you with potential leads. Three types of jobs you may want to explore are online tutoring, web design, and retail sales. Online tutoring and retail sales typically allows you more chances to interact more with people, but web design tends to command a higher hourly rate.
No matter what summer job you choose, a money tracker app like SoFi can help you monitor and manage the money you earn. The app makes it easy to see where you are financially at any given time. Plus, you can keep tabs on your credit score, see what you’re spending, and view the progress you’re making toward your goals at no cost — just for being a SoFi member.
Stay on top of your finances by seeing exactly how your money comes and goes.
FAQ
What should college students do with their summer?
As a college student, you can get a job or internship, go on a vacation with friends or family, volunteer at a non-profit agency of your choice, or go to summer school to potentially graduate more quickly. Starting to think about life post-graduation? Here are some intriguing things to do after college.
Where do most college students work in the summer?
Whether you’re planning to work outdoors, in a store or restaurant, or for a company, there is no shortage of summer job opportunities for college students. To help you narrow down your options, look for roles that match your interests and skills.
How can college students make money over the summer?
Many summer jobs pay by the hour, and that rate might depend on factors such as location, the type of work being required, and your experience and skills. Looking ahead? Here are the most rewarding jobs in 2023.
Photo credit: iStock/AndreyPopov
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.
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.
A cash management account or CMA provides an alternative solution for storing a large sum of money. Instead of using a checking or savings account from a traditional bank or credit union, you can park your money with non-financial institutions such as robo-advisors, online investment companies, or trading apps. While CMAs provide some of the features you receive from traditional banking, they also make managing your money more convenient since you can keep your banking and investing under one roof.
Here’s your complete guide to cash management accounts to discover if this type of account is right for you. We’ll share details on:
• What is a cash management account?
• How do cash management accounts work?
• What are the benefits and considerations of cash management accounts?
• Is a cash management account right for you?
What Are Cash Management Accounts?
Let’s explore what a cash management account is exactly. A CMA or cash management account provides a solution for managing your cash flow and your money. The cash inside the account usually earns interest, so your money can grow over time. You also may have checking writing capabilities, debit card access, or a combination of both. These non-banking institutions usually have no fees, another attractive aspect of using a cash management account. However, they typically make their money by charging fees for other services such as investing, retirement planning, or financial planning services.
While traditional banking accounts have similar benefits, the biggest draw to a cash management account is that you can bank and invest with one company. This way, you’re not toggling back and forth between several companies or platforms to manage your money.
How Do Cash Management Accounts Work?
Now that you know what a CMA is in big-picture terms, let’s drill down on how they work. Cash management accounts are interest-earning accounts that offer a safe place for cash. Since investment firms and robo-advisors are not banks, they don’t keep your money at their financial institution. Instead, they partner with several banks and spread your deposit out among them.
Like traditional banking accounts, account holders can deposit funds, withdraw funds, transfer money, set up direct deposits, write checks, and use a debit card. You can manage your personal cash flow statement by checking on your CMA regularly.
In addition, some CMAs earn interest like savings accounts and have checking account capabilities. Therefore, they can act as a way to merge these accounts into one. However, some CMAs may not have features of both accounts, so check with the institution to determine what features are available.
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.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
What Are the Pros of Cash Management Accounts?
Understanding the benefits of using a cash management account can help you determine if this is the right banking solution for your needs. With that in mind, here are several advantages of using a cash management account.
Convenience
The most significant pull for consumers to open a cash management account is that they can keep their investments and banking under one umbrella. Keeping everything in one place can simplify your money management efforts.
Traditional Banking Features
When you open a cash management account, you typically have access to tradition banking features like:
• Direct deposit
• Complementary ATM networks
• Electronic bill pay
• Third-party payment site access
But, before you open an account, make sure you check with the institution about their banking services. This way you can ensure they have everything you need.
FDIC Insured
The Federal Deposit Insurance Corporation (FDIC) protects your banking deposits from losses up to $250,000. Worth noting: Some banks participate in programs that extend the FDIC insurance to cover millions1.
So, if your bank fails for any reason, you can recover your funds. While non-banking firms are prohibited from offering FDIC insurance directly, their partner banks can extend coverage. Since nonbanks spread funds across several partner banks, each can offer $250,000 of FDIC insurance per depositor.
What Are the Cons of a Cash Management Account?
Now that we’ve considered the advantages of a cash management account, it’s only fair to review the potential downsides of these financial vehicles. Here are some points to keep in mind as you decide whether a CMA is right for you.
Lower Interest Rates
While these accounts do offer some earnings, you will often find better rates at online banks. Yes, it may as if low-interest checking accounts are the norm and that CMAs are in their ballpark, but dig a bit deeper. If you are planning on parking a large sum of cash in an account, it can literally pay to explore your options elsewhere and see what APY’s are available in high-interest accounts. You may find that a short-term savings account works better for your needs.
Cash management accounts may not offer the conveniences of checking accounts, like bill pay and other ways of making your financial life simpler.
No Physical Branches
Many cash management accounts are offered by online banks, which means you won’t have bricks and mortar locations to visit. Nor will you have a team of bankers to support you as you do at a traditional bank. If you are the kind of person who prefers personal interaction, this may be a significant issue for you.
Cash Management Accounts vs Checking Accounts
While cash management accounts offer similar services and features to traditional bank accounts, you might wonder what the differences are. If we break down CMAs compared to checking accounts further, these features are worth noting.
• Maintenance fees. There are usually no maintenance fees for CMAs. However, you may have to meet a minimum balance to keep your account active. On the other hand, depending on the bank, some high-yield checking accounts come with maintenance fees. It may be possible to get these fees waived if you meet specific bank stipulations, but it’s worthwhile to consider this point.
• Interest earning. Many cash management accounts earn interest, like what you find with high-interest online savings accounts. While it’s possible to earn interest on a savings account, it’s usually less than the interest cash management accounts earn.
• Account integration. Investment firms and robo-advisors usually offer cash management accounts and investments. You can usually link your CMA with your investments, making it easy to move money and automate contributions. Traditional banks may also offer retirement and investment services. However, that’s not their primary business. Also, if you have investments and banking accounts separate, there may be a time lag for transactions, which usually doesn’t happen with CMAs.
Considerations When Comparing Cash Management Accounts
Before you enroll in a cash management account, it’s wise to compare all of your options. You may also want to assess the pros and cons of each banking solution. So, when comparing your solutions, here are some things worth considering when determining if a CMA is suitable for your needs.
Customer Service
When you need an issue resolved with your money, it’s nice to know customer service is there to help. So, you will want to make sure that the company you’re considering offers a robust customer service solution to assist you with all of your questions or concerns. For online banks, check out the hours that support is available and find out if you’ll be interacting with a human or an automated assistant.
Minimum Balance Requirement
As we noted above, CMAs can have minimum balance requirements to keep the account active. Therefore, you’ll want to determine these requirements in advance to see if you have the appropriate sum of cash to deposit.
Investment Management
Most of the institutions that offer cash management accounts offer investment services. So, if you’re looking to use their investment service, make sure you select a company you trust and feel comfortable with. You’ll also want to ensure the investments offered are suitable for your needs.
Is a Cash Management Account a Good Fit for You?
A CMA is ideal for folks who like to manage their investments and bank accounts under the same umbrella. It may make managing your money somewhat simpler and smoother.
But, for those who feel a bit uncertain about using online banks or mobile apps to complete their daily transactions, a bank account may be a more viable solution. Also, if you would prefer to separate your investments and banking needs, a high-interest checking or savings account may make more sense that stashing your funds in a CMA.
The Takeaway
CMAs are interest-earning alternative solutions to traditional banking accounts like checking and saving accounts. Since investment firms usually offer CMAs, you can keep your investments and banking needs in one place, streamlining your money management efforts. As with most services, there are pros and cons to these accounts. Determining whether one is right for you will depend upon your reviewing all the features and seeing what is the best fit for your money management style and goals.
If you feel more comfortable with traditional banking, SoFi offers a smart, money-savvy solution. Our online bank accounts, when opened with direct deposit, are fee-free and earn a competitive APY. Also, you can access your paycheck up to two days earlier. We think it’s a great combination of convenience and money-growing features that you’ll love.
Ready to bank better? Come see what SoFi offers.
FAQ
What is the purpose of a cash management account?
Cash management accounts give consumers a way to complete everyday banking transactions like bill pay or direct deposit while managing investments, all under one roof.
What type of account is cash management?
A cash management account is like a traditional bank account, except it’s offered by non-banking firms, like online investment firms or robo-advisors. You can complete transactions (direct deposit, withdrawals, check writing, etc.) the same way with a traditional checking or savings account.
Is a cash management account the same as a money market account?
While cash management accounts and money market accounts have similar features (earning interest, withdrawals, deposits, etc.), they are not the same. Banks offer money market accounts, while nonbanks like robo-advisors offer cash management accounts.
Photo credit: iStock/MicroStockHub
1SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by banks in the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks.
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.
After you file the Free Application for Federal Student Aid (FAFSA®), you’ll receive a financial aid award from the colleges to which you’ve been granted admission. You may receive scholarships, grants, and loans. When you receive your financial aid awards from institutions, they may not cover every dollar of tuition, room, board, and fees. As a result, you may find that you cannot afford a particular institution.
It may be possible to negotiate your financial aid award with the financial aid office at each institution you’re considering. Continue reading for more information about how to negotiate financial aid awards and how to get more money from colleges.
What Is Financial Aid?
Financial aid is money you receive based on your financial aid award. There are different types of financial aid components that make up a financial aid award. You may want to think of it as a puzzle that could include grants, scholarships, work-study, and federal student loans. You can accept and decline different parts of the “puzzle” to create your own financial aid award. Applying for student loans, grants, certain scholarships, and work-study involves filing the FAFSA.
Grants and scholarships are forms of financial aid that you don’t have to pay back. Grants typically come from the federal government, states or colleges, and the amount you can get in grant money depends on your need and the type of institution you attend.
Scholarships on a financial aid award letter typically come from the institution for various reasons. They may be based on merit (for example, for good grades) or on talents you possess, such as music or athletic talent.
Work-study is a type of financial aid in which students who have financial need qualify for part-time employment on campus.
Federal student loans may also appear on your financial aid award. Federal student loans, which come from the federal government, must be repaid — with interest.
Every college offers a different amount of financial aid to the same student. In other words, if you apply and get accepted to five different schools, you will likely get five different aid awards. It’s worth learning more about how financial aid works at each institution by asking a financial aid professional at each institution you visit.
Yes, you can negotiate your financial aid amount. However, it’s important to realize that some pieces of the financial aid award are not negotiable. For example, first-year undergraduate dependent students can qualify for no more than $5,500 in subsidized and unsubsidized federal student loans. No more than $3,500 of this amount may be in subsidized loans.
In addition, it’s also important to understand that colleges may be limited in the amount they can offer you for additional financial aid. Even if you ask for all the gaps to be covered between the total cost and the amount you receive in financial aid, colleges may only be able to offer a small amount of additional financial aid.
5 Tips for Negotiating Financial Aid
Let’s take a look at a few tips for negotiating financial aid, from the presentation process to writing a letter for financial aid, as well as providing relevant supporting documentation.
1. Present the Financial Aid Office With a Specific Amount You Need
You can present the financial aid office with a specific amount you need, but before you do that, it’s a good idea to think through a few other factors beyond the numbers you see on your financial aid award. When you review financial aid awards, it’s important to go over each one with a fine-toothed comb.
Each financial aid award will list the financial aid you’ve received, but it’s a good idea to get an idea of the full costs, including tuition, room, board, and fees, before you choose a college. Some fees may not pop up until later, such as lab fees, club organization dues, athletic fees, parking fees, and more. Ask the financial aid office for a comprehensive list of fees that might crop up.
It’s also important to factor in tuition increases. You can ask the financial aid office for the average increase amount.
Note that scholarships usually don’t increase as tuition increases occur, which means that if scholarships don’t change and tuition increases, you’ll be responsible for making a larger tuition payment. Some schools do freeze tuition, so find out more about how that works at the institutions you’re considering attending.
After you’ve done all your homework, you can then decide on a specific amount of money you’d like to see from each financial aid office.
2. Put Everything in Writing
Ask the financial aid department about their financial aid appeal process or consult the website of the financial aid office to find out about the supportive documentation you need to provide to qualify for more financial aid. Following directions may help increase your chances of success.
Write a high-quality financial aid appeal letter to the director of financial aid, using a business letter format, and a formal tone — skip the fancy fonts! Your letter should be as businesslike and respectful as possible, but very direct. Explain how interested in the school you are and identify the forms you’ve submitted.
3. Explain Why You Should Get More Money
It’s important to shore up your desire to obtain more financial aid by demonstrating a need for more financial aid. In other words, you have to have a good reason to need more financial aid — in most cases, you can’t just say you simply want more financial aid. Financial aid offices also will likely not award you more aid just because a parent is unwilling to contribute to education costs or file the FAFSA or if a parent does not claim the student as a dependent.
The institutions you’d like more money from could require you to fill out a special circumstances form, which is a form that shares situations that affect your family’s ability to pay for college. A special circumstances form shares your family’s unique financial circumstances with the institution when you appeal.
The following situations may qualify as special circumstances and could allow you to receive more financial aidIf your family is:
• supporting multiple households,
• has experienced a one-time jump in income,
• has secondary or elementary school expenses,
• had to make a retirement fund withdrawal for emergency purposes,
• has funeral expenses or unreimbursed medical and dental expenses, educational debt, a job loss, or has had a significant reduction in income.
Read the instructions carefully to learn how to successfully submit the special circumstances form for your institution.
4. Provide Any Relevant Supporting Documents
When writing your letter and filling out your special circumstances form, you’ll likely need to provide evidence of your family’s situation, which could include:
• Divorce documentation or decree
• Court documentation to substantiate a separation
• Copy of parent marriage certificate
• Copy of family member death certificate
• Letter from employer documenting the last date of employment if no longer employed
• Documentation of year-to-date earnings, unemployment, and/or disability benefits
• Copies of three most recent paycheck stubs
• Documentation of termination of child support payments
• Documentation one-time income or benefits
• Documentation of medical expenses not covered by insurance for family members
• Documentation of elementary or secondary school tuition paid
Follow the instructions your school’s financial aid office includes.
5. Follow Up
You may need to allow several weeks for the financial aid appeal to be processed (sometimes four to six weeks), but if you don’t hear back from the financial aid office about a change in your award letter, you may want to reach back out to make sure you’ve submitted all the required documentation. You may have forgotten a critical component of the financial aid appeal, which could hold up a final decision.
Alternatives to Financial Aid
While financial aid can help you get through school, it’s not the only way to pay for college. There are alternatives to relying completely on financial aid to get through school. Consider working while in school, asking relatives for help, and accessing private student loans. Let’s take a look.
Working While in School
Working while in school or on breaks during the summer can help alleviate some of the costs of college. You may not be able to rely on the work-study award to pay for the full cost of college because work-study is limited to a specific number of hours, as determined by your financial aid award.
Finding a part-time job can help pay for a wide variety of college expenses and can offer valuable professional experiences.
Asking Relatives for Help
Relatives may be willing to help you pay for college. When parents, aunts, uncles, grandparents or other relatives chip in, it can alleviate a chunk of college costs, particularly when combined with a part-time job while in school.
It’s a good idea to make sure both you and your relative(s) agree that these types of payments are gifts, not loans. You don’t want to be surprised by a relative that expects repayment as soon as you’re done with school. You may even want to write down the amount of money, terms, and conditions involved, and have both parties agree and sign before you accept any money for college.
Private Student Loans
Private student loans are loans that, unlike federal student loans, do not come from the federal government. Private student loans typically come from private organizations, such as banks, credit unions, and other organizations. You can also check with the college or university you plan to attend for information about private student loans.
Like federal student loans, however, private student loans must be repaid along with interest payments. Repayment terms and benefits vary depending on the lender, and interest rates could be fixed or variable. (All types of federal student loans offer fixed interest rates only.)
Unlike federal student loans, private student loans may not offer the borrower protections afforded to their federal counter parts, so they are generally considered as a last-resort option. Take the time to shop around among several private student lenders before you land on the right one for you. Learn more about private student loans in our private student loans guide.
Explore SoFi’s Private Student Loan Options
If you think you may need to cover some of your college costs with a private student loan, SoFi offers private loans that could help you pay for your education. Explore and compare federal and private loan options, terms, and interest rates to determine the best option for your educational needs.
Worried about rising interest rates? SoFi offers competitive interest rates for qualifying private student loan borrowers.
FAQ
Can you negotiate your financial aid offer?
Yes, you can negotiate your financial aid offer. Check with the college, university, or other postsecondary institution(s) you receive a financial aid award about the process before you attempt to negotiate. The institution may have very specific requirements in order to negotiate your award.
How can I negotiate more money for college?
Requesting more financial aid can be done by following the financial aid appeals process at the college(s) you’re considering. Typically, you can present a letter to the financial aid office, fill out the special circumstances document provided by the institution, and provide supporting documentation. Follow up if you haven’t heard back from the institution between four and six weeks.
How do I ask a college to match the financial aid another school offered me?
If you received two financial aid awards from two colleges, you can use a negotiating college tuition technique by showing the school that offers you less the better aid award from the other school. Doing this may make the most sense if they are similar institutions, such as if they are both private liberal arts colleges or if they are both large state universities. You’re most likely going to get a better response if you compare apples to apples instead of apples to oranges.
Photo credit: iStock/jacoblund
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.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Financial literacy isn’t something that many of us are taught in school, but it’s essential when managing your money. It gives you the basic foundation of knowledge that can help you thrive.
If you feel you lack the knowledge you need, you might have to learn it on your own. Familiarizing yourself with some basic personal finance vocabulary can be a good place to start.
Finance terminology might seem confusing at first glance, but you don’t need to be a CPA or a financial advisor to make sense of it. Getting to know some of the most common personal finance words can help you build a stronger money foundation.
Read on to do just that, as you learn:
• What is financial literacy
• How a financial vocabulary can benefit you
• Key terms that will improve your financial literacy
What Is Financial Literacy?
You might hear a lot about financial literacy but not know exactly what it means. In simple terms, being financially literate means that you have some money knowledge as well as the ability to put it to work.
Money skills can be learned in the classroom, at home, and in the real world as you navigate things like opening a bank account or taking out student loans. Becoming financially literate is important because it can help you to:
• Act more responsibly with regard to saving and avoiding debt
• Build wealth and plan for the future
If there are gaps in your financial education, it’s never too late to fill them. Learning some personal finance basics for beginners, including key financial literacy vocabulary, can help you get on track with your money goals.
What Is Financial Literacy Vocabulary?
Financial literacy words are simply the various terms you’ll see used again and again when discussing different money topics. For example, there are personal finance words related specifically to banking, others that are focused on insurance, and more that deal with investing.
Do you need to be a walking dictionary to understand finance and make the most of your money? Not at all. But you can benefit from knowing what certain finance terminology means and why it’s important when making money decisions.
Understanding financial literacy vocabulary can also help you avoid potentially costly money mistakes. If you’re taking out a mortgage, for example, it’s important to understand concepts like amortization and closing costs so you know exactly what you’re paying to buy a home.
Ready to improve your financial knowledge? Here’s an alphabetical list of some important terms to add to your personal finance vocabulary.
1. Budget
A budget is a plan for deciding how to spend your money each month. Making a budget means adding up your income, then subtracting all of your expenses.
The goal of a budget is to ensure that you’re not living beyond your means and that you have money left over to work toward your goals.
There are different budgeting techniques, like the 50/30/20 rule or the envelope system, and there are different categories people want to set guidelines and guardrails for. For example, you might want to start an emergency fund or pay down debt.
2. Cashier’s Check and Certified Check
Cashier’s checks and certified checks are two types of official checks banks can issue as a form of payment. So what’s the difference between a certified vs. cashier’s check?
Cashier’s checks are drawn on the bank’s account while a certified check is drawn on an individual’s account. Between the two, a cashier’s check is generally considered to be a safer way to pay since the bank guarantees the amount.
3. Certificate of Deposit
A certificate of deposit (CD) is a time deposit savings account. When you open a certificate of deposit, you add money to the account and agree to leave it there for a certain amount of time, known as the term. The bank pays interest while your money is in the CD and when it matures (or reaches the end of the term), you can withdraw the initial deposit and the interest earned.
A CD is not the same as a regular savings account or a high yield savings account. With savings accounts, you can generally withdraw money up to six times each month or possibly more without any penalty. You’re not locked in the way you are with a CD.
4. Compound Interest
Compound interest means the interest you earn on your interest. That’s different from simple interest, which is paid on your principal balance only. Compounding interest is central to investing, since it’s what allows you to build wealth and increase your net worth over time.
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.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
5. Credit
Credit means borrowing money with the promise to pay it back. When you open a credit card account, for example, the credit card company issues you a credit line that you can make purchases against. You use the card to buy groceries, get gas, or cover other expenses, then pay that amount back to the credit card company.
A credit card is revolving credit, since your balance can go up or down over time as you make purchases and pay them back. Loans are a form of installment debt, since the balance only goes down over time as you make your scheduled payments.
6. Credit Score
A credit score is a three-digit number that measures how responsible you are financially. Your credit scores are generated from information in your credit reports. A credit report collects details about your debts, including payment history, balances, and available credit.
FICO scores are the most commonly used credit scores. These scores range from 300 to 850, with 850 being considered a “perfect” credit score. The better your credit scores, the easier it usually is to qualify for loans and credit cards.
7. Debt
Debt is money owed to someone else. A debt may be secured, meaning that it’s attached to a specific piece of collateral. Collateral is something your creditor can take possession of if you fail to repay the debt. So if you own a home, for example, your mortgage is a debt, and your home is the collateral.
Unsecured debts don’t have any collateral, so if you fail to pay them, your creditor has to pursue other means to collect what’s owed. Credit cards, medical bills, and student loans are examples of unsecured debt.
8. Debt to Income Ratio
Debt to income (DTI) is one of several important personal finance ratios to know if you’re trying to improve your financial literacy. Your debt to income ratio means how much of your income goes to debt repayment each month.
So why is that important? The more money you put toward debt, the less cash you have to save and invest. And when your DTI is too high, that could make it harder to qualify for a mortgage or other types of loans.
9. Emergency Fund
An emergency fund is money that you set aside for unplanned or unexpected expenses. When you save for emergencies, you’re saving for the unknown, versus setting aside money for a specific goal like a vacation or new furniture.
But you may wonder, how much emergency savings should I have? Saving three to six months’ worth of expenses is a commonly used rule of thumb but ultimately, your emergency fund should reflect the amount that you need to feel comfortable.
10. FDIC
The Federal Deposit Insurance Corporation (FDIC) is an independent agency that’s responsible for maintaining stability in the banking industry. One of the ways the FDIC does that is by insuring banks in the rare event of a failure. If you have accounts at an FDIC-insured bank, they’re covered up to $250,000 per depositor, per account ownership type, per financial institution.
11. Financial Planning
Financial planning means creating a plan or strategy for reaching your financial goals. Creating a financial plan is something you can do on your own or with the help of a financial advisor. If you’re not sure how to go about finding a financial advisor, consider what type of planning services you might need first. That can help you decide if you should work with an online advisor or seek out an advisor in person.
12. Gross Income and Net Income
Understanding gross income and net income are central to making a budget. Your gross income is all the money you earn before any deductions or taxes are taken out. Your net income is the money that hits your bank account, once you take out things like taxes, health insurance, and retirement plan contributions.
If you’re not sure about the difference between your gross pay and net pay, reviewing your pay stubs can help. You should be able to see a breakdown of everything you earned and everything that was deducted for the pay period.
13. Health Savings Account (HSA)
A Health Savings Account (HSA) is a savings account that’s attached to a high deductible health plan. An HSA allows you to set aside money for health care expenses on a tax-advantaged basis.
It’s easy to confuse HSA with other health insurance terms, like HMO. But the difference between HMO vs. HSA is that HMO stands for Health Maintenance Organization and is a type of health care plan. An HSA is a special type of health care savings account.
14. Inflation
Inflation is a rise in prices for consumer goods and services over time. In the United States, inflation is generally measured by the Consumer Price Index (CPI). When inflation rises, the things you spend money on every day cost more. Understanding inflation is important for managing your budget but it can also affect how you invest your money.
15. Investing
Investing money means putting it into the market or other vehicles in the hopes that it will grow in value. Investing money is not the same thing as saving it. When you save money, you might park it in a savings account, CD account, or money market account. There’s virtually no risk of losing money, especially if your bank is FDIC insured.
When you invest money, however, you’re using it to buy stocks, mutual funds, real estate, cryptocurrency, and other investments. You can potentially get a much higher rate of return with investing vs. saving, but you’re usually taking more risk. And if an investment doesn’t pan out, you could lose money instead of growing it.
16. Life Insurance
Life insurance provides a death benefit to your beneficiaries when you pass away. Buying life insurance can offer peace of mind if you’re worried about how your loved ones might be able to pay the bills if something were to happen to you. There are different types of life insurance to choose from, depending on your needs and situation. Life insurance, along with a will, are often part of a comprehensive financial plan.
17. Money Market Account
What is a money market account? In simple terms, it’s a deposit account that blends features of a savings account and a checking account. You can deposit money and earn interest on the balance. If you need to withdraw money, you may be able to do so using a linked ATM card or by writing checks. But those withdrawals are not unlimited; banks can still cap you at six withdrawals per month. Also known as MMAs, these accounts are not to be confused with money market funds, a kind of mutual fund.
18. Net Worth
Net worth is the difference between what you owe and what you own. To calculate net worth, you’d add up all of your debts, then subtract that amount from the value of your assets. An asset is anything that has a positive value, such as a home, retirement account, or CDs. Net worth can be positive if you have more assets than debts, but it can be negative if your debt outweighs your assets.
19. Overdraft
Overdraft is a banking term that means you’ve spent more money than you had in your account. Banks can allow certain transactions to go through, even if you don’t have enough cash in your account to cover them (say, paying a $100 check you wrote when there’s only $85 in your account). The bank covers the excess amount for you and charges an overdraft fee for that convenience.
Your bank may give you the chance to opt into overdraft protection. When you opt in, the bank can transfer money automatically from a linked savings account to cover overdrafts. You’ll still likely pay a fee, though it might be less than the standard overdraft fee.
20. Time Value of Money
Time value of money means the relationship between time, money, and interest. The longer the time frame during which you save or invest, the more money you save, and the higher the rate, the more your money will grow.
The Takeaway
Expanding your personal finance vocabulary can give you a better understanding of how your money works and how to make it work for you. Knowing these terms can grow your financial literacy and help you achieve your goals.
One of the fundamentals of good money management is having a bank account that works for your needs and lifestyle. When you open a SoFi bank account, you can get checking and savings together in one place. SoFi makes it easy to keep track of spending and income online and through the SoFi mobile app. When you open an account with direct deposit, you can earn a great interest rate and pay no account fees, which can help your money grow faster.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
FAQ
What are the four pillars of personal finance?
The four pillars of personal finance are income, expenses, assets, and debt. Income and expenses are important for creating a budget. Assets and debt reflect the difference between the things of value that you own and the money that you owe to other people.
What are financial skills?
Financial skills are the skills you use to manage money. For example, budgeting is a financial skill, since it requires you to understand the difference between income and expenses and prioritize spending in a prudent way. Financial skills can be learned at school, at home, or through daily experiences.
Why is financial literacy important?
Financial literacy is important for helping you to better understand your financial situation. When you know how to make a budget, create a plan for saving and investing, and use debt responsibly, it becomes easier to get ahead financially. On the other hand, lacking financial literacy skills could make you more susceptible to poor decision-making, like overspending or carrying high-interest debt.
Photo credit: iStock/Geber86
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.
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.
