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With the high cost of a college education, affording college with no money set aside might feel impossible. However, there are many forms of financial aid — whether from federal, state, school, or private organizations — that can help you pay for your college degree.

Learning how to pay for college with no money might require approaching your higher education costs from different angles. This includes cutting your college expenses, finding alternate financial aid sources, or both.

Average Cost of College

How much you can expect to pay for college varies, depending on the school you choose, your degree level, whether you’re an in-state resident, and other factors.

According to the College Board, the average tuition and fees for a full-time, in-state undergraduate student attending a public four-year school in 2023-24 is $11,260. Out-of-state students can expect to pay an average of $29,150 in tuition and fees for the same academic year. And students attending a nonprofit four-year private institution are charged an average $41,540 in tuition and fees.

Keep in mind that these figures are exclusively for tuition and fees. This cost doesn’t account for additional expenses that college students often face, like textbooks, school supplies, housing, and transportation.

Ways to Pay for College

The cost of being a college student can seem overwhelming when you don’t have savings available to directly pay for school.

If you want to go to college but have no money or you’re a parent who’s helping your child pay for college, here are a few ideas on how to go to college with no money saved.

Fill Out FAFSA® to See if You Qualify for Financial Aid

The best way to pay for college with no money — and really, the first step you should always take — is submitting a Free Application for Federal Student Aid, also known as the FAFSA®.

The FAFSA is the first step in finding out if you qualify for a federal financial aid program. You can see if you’re eligible for the Pell Grant, federal work-study, and Direct Loans. The information on your FAFSA is also commonly used to determine your eligibility for state, school, and other privately sponsored aid.

Grants

In addition to federal grants, search for grants from your state and school for additional funding. Grant funds generally don’t need to be repaid as long as you meet the grant program’s requirements.

Some organizations — nonprofit and for-profit — also host their own need- or merit-based grant programs for college students.

Recommended: Grants for College

Scholarships

Scholarships are considered gift aid, meaning they typically don’t need to be repaid. There are a plethora of scholarship opportunities that are awarded due to financial need or merit.

You can search for scholarships online from various companies, organizations, community groups, and more. Ask your school’s financial aid office for help finding these advantageous sources of aid.

Negotiate With the College for More Aid

If your financial circumstances have changed since you submitted your FAFSA, request a professional judgment to have your school reevaluate your financial aid package.

Not all schools accept this request, but if yours does, this process gives you a chance to provide additional documentation that’s used to recalculate your financial need.

Start With Community College and Transfer

If you want to go to college but have no money, one option is to attend a community college for the first two years of your college education. According to the same College Board report, the average 2023-24 cost for tuition and fees at a local two-year college is $3,990 for a full-time undergraduate student.

After completing your general education courses at a junior college, you can then transfer to a four-year school.

Choose a Less Expensive University

The type of school you choose can also help you afford college if you don’t have money saved. As mentioned earlier, the cost of college varies widely between a public versus private institution.

Additionally, choosing a public school in your home state generally costs less than attending an out-of-state school. When reviewing cost, be sure to factor in the scholarships and grants you may qualify for.

Live at Home

Room and board is one of the largest expenses facing students. Instead of having to account for costs toward a dorm room or off-campus housing, living at home and commuting to school can help you keep expenses lower.

Talk with your parents about whether living at home while you earn your degree is an option.

Study Abroad

Some students may explore pursuing their degree abroad as one solution to cut expenses. Thanks to government subsidies in some countries, attending university abroad can be less expensive than staying in the U.S. In some cases, American students may even qualify for free tuition.

Work-Study

The federal work-study program allows you to earn financial aid with part-time work through an employer partner.

Federal Student Loans

If you need to borrow money for college, a federal student loan is the first choice for students. The Department of Education offers subsidized and unsubsidized federal loans to students. These loans need to be repaid.

Undergraduate students might be eligible for subsidized federal loans in which the government pays for accrued interest while you’re enrolled in school, during your grace period, and while in deferment. These are awarded based on financial need.

Recommended: Types of Federal Student Loans

Private Student Loans

After exhausting all of your federal student aid opportunities, students may apply for a private student loan if they need additional cash to pay for college.

Private student loan rates and terms differ from federal loans. Generally, private student loans don’t offer borrowers income-driven repayment plans or flexible deferment or forbearance terms when you’re having trouble repaying your loan.

Also, loan details differ between lenders. To find a competitive private student loan, compare rates from a handful of lenders before choosing one.

Working Part-Time

To supplement the financial aid you’ve received, consider working part-time while you’re enrolled in school. Funds from a part-time job can help you pay for day-to-day costs as a student, like groceries, transportation, or general living expenses while you’re studying for your degree.

Borrowing From Family Members

If you have a money gap between the financial aid you’ve received and your college expenses, you could consider asking a close family member if they’re willing to offer you a loan.

Depending on your family’s financial resources and your relationship with your parents or relatives, you might have access to this alternative low-interest financing option. When borrowing money from family, be clear about how much you need, how the funds will be used, and expectations regarding repayment after you leave school.

Is College Right for You?

Attending a degree-granting, four-year college isn’t the only choice you have for furthering your education and career prospects. Enrolling in a trade school or seeking vocational training can help you advance your skills for more job-focused opportunities.

Trade School

A trade school offers programs that teach students the hands-on skills for a technical or labor-based profession.

Vocational Training

Vocational schools provide students with the education to earn a certification or formal training quickly for service-oriented professions.

Recommended: Guide to Student Loans for Certificate Programs

SoFi Private Student Loans

If you’ve decided that a traditional college education is for you, you might still need additional funds, despite exploring alternatives to afford college with no money.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Is there any way to go to college entirely for free?

Yes, but financial aid is highly variable and is determined based on your unique situation. Students might be eligible to enroll in college at no cost, depending on their financial need. Similarly, some students might be able to attend college for free based on merit, like with a full academic or athletic scholarship.

Is relying completely on student loans for college a good idea?

No, relying completely on student loans for college isn’t a good idea. To keep your student loan debt out of college as low as possible, it’s generally wise to seek out a mix of financial aid options. Prioritize aid that you don’t have to repay, like grants and scholarships, and use student loans as a last option when funding your college education.

Why is the cost of college so high in the US?

The high cost of college in the U.S. can be attributed to various factors. An increased demand for higher education and unrestrained administrative and facility costs have been cited as reasons for the ongoing rise of college costs.

Photo credit: iStock/Passakorn Prothien

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.

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.

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.

SOISL-Q324-059

High school is a pivotal time for students, filled with academic and personal growth. Among the four years, one is often considered the most challenging: junior year.

Many students find junior year particularly tough due to increased academic demands, the pressure to score high on standardized tests, and the time needed to spend researching and applying to college.

Keep reading to learn more on why junior year is often considered the hardest year in high school.

Why Every Year Matters

While many say junior year is the hardest year of high school, that’s not an excuse to cruise through the other three years.

Freshman and sophomore year are building opportunities. In these two years, many students will take prerequisite courses and join extracurriculars they’ll carry out the rest of their high school career.

As a freshman, students will have to adjust to high school and its academic rigor. Getting good grades and getting involved in activities during the first two years of high school can help set the pattern for the next two years.

And, many students may claim that senior year is the time to sit back and take it easy. But, letting grades slide in senior year can spell trouble for plans post graduation. Admission to college, even if already granted, could be rescinded if a senior underperforms in their final year.

Recommended: 11 Ways to Prepare for High School Graduation

Why Junior Year Can Be the Most Challenging

A student’s junior year has its own set of unique challenges and hardships. Here’s what can make junior year tougher than the rest:

Course Load

Junior year is the time to shine before students apply to college. It’s the last full academic year of grades a university will receive before deciding to accept or reject a student. Students may elect to take their most challenging course load during their junior year to show colleges that they’re capable of academic rigor.

Some students may be enrolled in advanced placement (AP) courses. AP classes give high school students the chance to prepare for college by tackling college-level material while still in high school. At the end of an AP course, students can choose to take the AP exams. Scores from those tests may grant students college credits so they can skip out of basic courses in their first years on campus.

Junior year can be an academic step-up for high school students if they decide to take advanced classes. In addition to harder classes, there’s a pressure to get good grades in them because it can be an indicator of performance for colleges.

Tests

On top of AP tests, juniors have more key tests to prepare for. Each test comes with its own strategies and approaches, meaning specialized study and prep. A junior might prepare for and take these tests during the year:

AP Tests: As mentioned above, if a student decides to take an AP course, they can choose to take the corresponding AP test, as well.

PSAT/NMSQT: Students can take the Preliminary SAT or National Merit Scholarship Qualifying Test as early as their sophomore year of school, but many take it their junior year. The PSAT/NMSQT has two sections; math, and reading/writing. Scores for each section fall between 160 and 760.

Offered in October each year, the PSAT doesn’t impact college admissions like the SAT, but it can help students qualify for National Merit Scholarships if they receive a certain score. Students are not required to take the PSAT test, but it can be one way to prepare for the SATs and potentially qualify for scholarships.

SAT/ACT: Scores from either the SAT or ACT test are required by many colleges for admission. But, even if they’re not required by a college, a strong SAT or ACT score can help give a student a leg up in the application process.

Most high school students choose to take the SAT or ACT tests in the spring of their junior year or the fall of senior year. Both tests have certain quirks and strategies associated with them, so the key to getting a great score may mean months of preparation.

College prep

Juniors not only have more academic pressure on them and tests to prepare for, but many will add college prep to their extracurriculars. Whether that means spending weekends touring campuses or researching schools at night, finding a school that’s the right fit can take up a considerable amount of time.

There’s no one way to ensure the right fit for all students. Some may choose a campus based on their desired degree, whereas others choose a campus for proximity to home or budget. No matter the motivator, finding the right school can take time.

Recommended: Ca$h Course: A Student’s Guide to Money

The Takeaway

Junior year challenges students to juggle their extracurricular activities, rigorous academic classes, and standardized testing on top of applying for college. Figuring out a way to pay for college shouldn’t be another challenge. As early as junior year, students can start considering the cost of college and the ways to pay for it.

Taking time to learn about student loans during college prep can help give juniors a better sense of what lies ahead of them. After applying for federal loans and aid, they might need to evaluate additional options to pay for their tuition. That could mean saving for college by picking up a part-time or summer job or researching scholarships or grants that can help pay tuition. It’s important a student knows their full menu of options to pay for school before committing to any single strategy.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What is the most crucial year in high school?

Junior year (11th grade) is often considered the most crucial year in high school. It’s when students take standardized tests, maintain grades for college applications, and start researching and visiting colleges. Strong academic performance during this year significantly impacts college admissions decisions.

Why is junior year the hardest year in high school?

Junior year is often the hardest in high school due to increased academic demands, including advanced courses and standardized testing like the SAT or ACT. Students face pressure to maintain high grades for college applications while balancing extracurricular activities, leadership roles, and planning for their future.

What is the easiest year in high school?

Freshman year is generally considered the easiest year in high school because students are adjusting to the new environment and typically take introductory-level courses. The academic and extracurricular pressures are usually lighter compared to later years, allowing students to gradually acclimate to the increased expectations of high school life.

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.

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.

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.

SOISL-Q324-041

Whether you’re moving from a community college to a four-year university, trying to find the right fit academically or socially, or looking to lower your tuition bill, transferring colleges could help you achieve a better college experience.

The process of transferring colleges involves careful planning and understanding various factors, such as evaluating transfer credits, meeting application deadlines, and ensuring your new school aligns with your educational and personal goals.

This guide will walk you through the essential steps of transferring colleges, from researching potential schools and preparing a compelling application to navigating the transition smoothly.

Why Transfer Colleges?

There are many reasons a student may want to transfer colleges. Sometimes, they start out at a college and it simply isn’t the right fit — it could be the wrong social or learning environment for the student.

Other times, students will transfer from a community college to a four-year university to complete their degree. Some students find they want to switch majors and their desired major isn’t available at their current school. Or, changes in financial aid or academic standing may lead them to transfer.

Regardless of the reason behind transferring universities, the ultimate goal is usually the same — to find a school that is the right academic and social fit for the student.

Recommended: What Is the Average Cost of College Tuition?

What Is a Transfer Student?

A transfer student is someone who switches from one academic institution to another in pursuit of a degree. For example, someone who completes their freshman year at one school, but then transfers for sophomore year and completes their degree at another school is considered a transfer student. Types of transfer students include:

Community College Transfer Student

Someone who begins their college education at a community college and then transfers to a four-year institution to complete their Bachelor’s degree is considered a community college transfer student.

Military Transfer Student

Individuals who are on active duty or are veterans of the U.S. military may be able to transfer to four-year colleges. Some schools will work closely with members of the military to ensure that credits earned while they were on active duty transfer to their new degree.

Recommended: Guide to Military Student Loan Forgiveness

International Transfer Student

International students who transfer colleges may have to complete additional requirements depending on the school. Some schools may require international students to fulfill English language requirements, for example.

Nontraditional Transfer Student

A nontraditional transfer student is generally defined as someone who has been out of high school for at least five years. This could include adult learners or people who choose to go back to school to make a career change.

Plan Your College Transfer

Transferring colleges is a bit different than applying for the first time. Your high school transcript and standardized test scores will generally carry less weight than the courses you completed at your current college.

Policies for transferring vary by college, but generally, potential transfers are expected to have completed a set number of college credits and met a certain minimum GPA. Additionally, certain program requirements may need to be met, and any study abroad plans should be discussed with your academic advisor.

Prep to Transfer Schools

As you prepare to transfer schools, make sure you do the following:

•   Figure out why you want to transfer: Understanding your reasons for wanting to transfer will give you an idea of what to look for in a new school. For example, if your current college is too expensive, it may help to focus on tuition rates when you’re comparing alternatives.

•   Speak with an advisor: Your college may have academic and financial advisors who can give you information and personalized advice based on your needs. It’s likely they’ve gone through the same process with other students and may be able to provide some perspective to help you navigate the transfer process.

•   Get letters of recommendation: Consider asking a current college professor for a letter of recommendation. While high school recommendations can help bolster your transfer application, a letter from someone who has seen you navigate college-level coursework may be beneficial.

•   Be aware of deadlines: The deadline for your transfer application can vary from college to college, so make sure to check the school’s website and write it down.

Financial Considerations for Transfer Students

When you transfer colleges, keep in mind that most federal financial aid will not transfer with you. For example, school-specific scholarships won’t transfer. Consider speaking with the financial aid office to see which types of aid, if any, will move with you to a new school.

Even though aid you currently receive may not transfer with you, you can apply for or update your current federal financial aid with the Free Application for Federal Student Aid (FAFSA®). This will determine whether you’re eligible for federal student loans and other forms of federal financial aid, including scholarships, grants, and work-study.

Federal Student Loans

Federal student loans are awarded to college students based on information provided in the FAFSA. Undergraduates may qualify for either Direct Subsidized or Direct Unsubsidized Loans.

The government covers interest that accrues on subsidized loans while the student is enrolled at least half-time in school. These are awarded based on financial need.

Students are responsible for all accrued interest on unsubsidized loans, and these are not awarded based on need.

Graduate or professional students may also qualify for Direct PLUS Loans. Grad students will need to fill out a grad school FAFSA to apply for PLUS Loans.

Grants and Scholarships

Filling out the FAFSA may help you secure some federal or school-specific grants or scholarships. Unlike loans, grants and scholarships typically do not need to be repaid as long as the student continues to meet the requirements.

To find scholarships, take advantage of SoFi’s scholarship search tool or other online scholarship databases.

Work-Study

Students who demonstrate financial need may be eligible for work-study. This program allows students to secure a part-time job to help them pay for college expenses.

Private Student Loans

If you’ve maxed out your federal loan allowance, an undergraduate loan from a private lender could help you bridge the gap. Keep in mind that private loans don’t necessarily offer the same benefits or protections — like loan forgiveness options — as federal student loans.

Typically, private student loans also require a credit check. College students who have a limited credit history may find a cosigner is needed to help them get approved for a private student loan.

Recommended: Private Student Loan Guide

The Takeaway

When transferring colleges, understand what credits will transfer and be aware of college transfer application requirements and deadlines. Planning ahead can help you streamline the college transfer application process.

Take the time to understand how the process works for the school of your choice and start thinking about financing options sooner than later. Options for paying for college include cash savings, grants, scholarships, and federal and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Is transferring to another college hard?

Transferring to another college can be challenging due to varying credit transfer policies, application requirements, and adjusting to a new environment. Typically, schools focus on your college GPA as opposed to your high school one, and certain program requirements may need to be met prior to transferring.

What is a good GPA to transfer colleges?

A good GPA for transferring colleges typically ranges from 3.0 to 3.5 or higher, depending on the institution’s selectivity. Meeting or exceeding the average GPA of admitted transfer students improves your chances of acceptance.

What should I consider before transferring colleges?

Before transferring colleges, consider factors like credit transfer policies, costs, location, academic programs, campus culture, and support services. Evaluate how the change aligns with your academic and career goals to ensure the transfer meets your long-term needs.

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.

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.

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.

SOISL-Q324-044

The whole goal of savings accounts is to offer a secure place to keep your cash, so it’s good to know that, yes, online savings accounts are generally very safe. There are many features that keep them that way, from typically being insured by the Federal Deposit Insurance Corporation (FDIC) to the latest security technology.

That can be reassuring news since online savings accounts can offer many perks to account holders. The annual percentage yields (APYs) offered by online banks tends to be considerably higher than that of traditional banks, and these accounts can also offer tremendous convenience, such as being able to move money around with a minimal number of clicks on an app or website.

Nothing is completely risk-free, but your hard-earned cash should be as secure in an online savings account as it would be in a traditional savings account. Learn more here, including:

•   What is an online savings account?

•   How do online banks keep savings secure?

•   How does the government protect online savings accounts?

•   What can account holders do to help keep their online savings accounts safe?

What Is an Online Savings Account?

You may already think of a traditional savings account as being “online” — especially if, like an increasing number of Americans, you prefer to use your computer or a mobile app to do most of your banking instead of heading to the local branch. In fact, according to SoFi’s Banking Survey of 500 U.S. adults, which was conducted in April 2024, 48% of respondents use online banking daily, and 26% use it several times a week, whether they’re with a traditional or online-only bank.

Thanks to the popularity of direct deposits and ATMs, many savers seldom see bank tellers anymore, but the banks and their employees are still there to do business.

True online-only financial institutions don’t offer in-person access. They don’t have physical branches, so customers manage all their transactions with a computer, a mobile app, or at an ATM.

Savers can still deposit checks, check their account balance, transfer money, and more. If they have a problem, they handle that online as well or make a phone call to customer service.

Because online banks vs. traditional banks generally have lower overhead costs since they don’t operate brick-and-mortar locations, they tend to pass their savings on to their customers. That means their clients are charged low or no fees, and they may earn interest rates that’s higher than a traditional savings account.

Consider that as of July 2024, traditional savings accounts were offering an average APY of 0.45%, while a number of online banks were offering 4.00% or higher.

How Do Online Banks Keep Savings Secure?

The digital world can be a dangerous place, with hackers and identity thieves constantly looking for new ways to get their hands on others’ hard-earned savings. Both traditional and online-only financial institutions regularly update the methods they use to protect their customers’ accounts.

You may be able to find a list of those security measures on a bank’s website, or you can ask before you open an account. Precautions you might want to look for include:

Secret Socket Layer (SSL) Encryption

Encryption is an Internet safety protocol that creates a secure connection when you log in to a site on your computer or with an app.

Basically, your data is scrambled and can be read (or decrypted) only by the intended recipient.

Tip: To be sure a site is using SSL encryption, you can look for a padlock and “https://” at the start of the web address.

Two-Factor or Multi-Factor Authentication

Two-factor (2FA) authentication adds an additional verification step to a normal log-in procedure. With single-factor authentication, you enter your username or email and a password, and then you’re done.

With 2FA, you must provide an additional verification credential before you can gain access to your account. For example, a financial site might text or email a one-time-only verification code to your smartphone (or another device you’ve pre-registered), and you must use that code within a limited amount of time to gain access to the account.

Firewalls

Like authentication, a firewall serves as a gatekeeper; it monitors the data coming in and out of a company’s computers and can block unauthorized access from certain websites or IP addresses.

Communication Policies

Your financial institution probably has a policy against asking customers to provide personal information (Social Security numbers, usernames, passwords, PINs, etc.) through unsolicited emails.

This can help customers spot requests that are actually bank fraud efforts and/or phishing scams that use personal information to gain access to financial accounts.

Alerts or Notifications

Some banks may offer different types of alerts that let customers know when there’s unusual activity on an account. (If there’s been a large ATM withdrawal, for example, or the balance drops below a certain amount.) You usually can set up text or email alerts through your account profile or account settings. If you receive a ping that several hundred dollars has been swept out of your account versus your typical $60 withdrawal, you can take steps to protect your account.

Automatic Logouts

If you forget to logout of your online account when you finish your business, your financial institution will probably do it for you. Many sites automatically log out users after a period of inactivity. This can help keep prying eyes from viewing your private information.

Limited Login Attempts

If at first you don’t succeed in logging into your account, you may get a warning from the site that you’ll have a limited number of times to get it right. After that, your account will be locked for a certain amount of time.
This security measure is designed to protect against “brute-force attacks,” when hackers try a variety of password combinations to break into a customer’s account. If this happens to you, the site will likely advise you to wait 24 hours before trying again.

Recommended: What Is a High-Yield Savings Account?

Does the Government Protect Online Savings?

It’s not just financial institutions themselves that are safeguarding online savings accounts. The government helps lower savings account risk in a couple of different ways.

The Electronic Funds Transfer Act

If your debit card is lost or stolen, the Electronic Funds Transfer Act (EFTA) limits your liability for any unauthorized activity in your account.

The limits are based on how quickly you notify your financial institution, so you’ll have no liability if you notify your bank before any fraudulent transactions are made.

•   You’ll be responsible for just $50 if you report it within two business days.

•   You’ll be responsible for $500 if you report the loss after two business days but within 60 business days.

But the EFTA isn’t just about fraudulent debit card use. If someone manages to hack directly into your savings account and takes your money, you generally won’t be liable as long as you report the unauthorized activity within 60 days.

After 60 days, everything changes. Whether the thief used your physical card or a computer to get your money, if you didn’t report the unauthorized transactions within the 60-day timeline, you could be facing unlimited liability. So it’s important to monitor your account and move quickly if you see anything that troubles you.

The Federal Deposit Insurance Corporation (FDIC)

Online banks, just like traditional banks, are eligible for FDIC coverage in the very rare event of a bank failure. Many online banks have FDIC insurance of $250,000 per depositor, per ownership category, per bank. The FDIC is an independent agency of the U.S. government and was created to protect the money Americans deposit in banks and savings associations. It currently insures 4,708 different financial institutions.

So your money is safer in a bank account with FDIC coverage, whether it’s online-only or has multiple locations in your neighborhood. To confirm the financial institution you are considering offers FDIC insured accounts, you can ask a representative, check their website, or visit the FDIC’s online tool BankFind to confirm.

How Can Account Holders Protect Themselves?

Forty-two percent of people say they are somewhat or very concerned about the security of their online bank accounts, according to the SoFi survey. Fortunately, as an account holder, you can have a significant role in protecting your savings. Here are some preventive steps you can take to keep your online savings account secure:

Making Protection a Priority

While you’re shopping around for savings accounts with the best interest rates and lowest fees, keep in mind that safety is also key.

And when you sign up for an account, remember to take advantage of what’s offered by enabling security features like two-factor authentication and fraud detection notifications.

Recommended: What Is a Bank Reserve?

Not Getting Passive with Passwords

To keep your account secure, change your password often. Try to select a password that is as strong as possible, with a mix of numbers, symbols, and upper- and lowercase letters. Avoid using predictable combinations like “Qwerty123” or ones that involve your birthdate or pet’s name.

To keep your account secure, change your password often.

Make it long (as many characters as you can). Don’t share it with anyone or keep it taped to your computer.
And try not to use the same password for everything you do online. If your password is compromised in a breach, it can make every account for which you use it more vulnerable.

Keeping Anti-Virus Software Updated

If you don’t already have anti-virus and anti-malware programs installed on your computer, you may be able to find a free or trial version online. You also can purchase security software at a local electronics store or buy it and download it.

A full protection package can monitor your computer and other devices, and could include features such as a password manager, a virtual private network (VPN), and some type of identity theft protection.

If you already have protection on your device, be sure it’s turned on and update it regularly, so your computer recognizes every new threat that’s out there.

Avoid Using Public Wi-Fi

Try not to use public Wi-Fi when you’re logged in to financial accounts, shopping online, or sending personal information. If you’re using a shared computer at work or at the library, don’t give the browser permission to save your password, and be sure you log off when you’re finished. You also may want to consider changing the settings on your mobile devices so they don’t automatically connect to the nearest Wi-Fi network.

If you must access online accounts through Wi-Fi hotspots, consider using a VPN app, which can encrypt the traffic between your computer and the Internet even when you’re using an unsecured network. (Carefully research the app you choose to be sure it’s a trustworthy brand, and review the permissions the app requests before agreeing to the terms.)

Staying Vigilant

It may seem unnecessary to monitor your savings on a regular basis — especially if you’re mostly depositing money into the account and almost never taking money out.

But by monitoring your bank account and keeping an eye on your balance, like the 38% of people in SoFi’s survey who check their bank account balances at least once a day, you might spot a problem before the bank does. And that could save you some major headaches if an identity thief decides to drain your funds.

Don’t reply to calls, texts, or emails that request personal information, even if your financial institution’s logo is on the email. It may be a phishing scam. The thief is hoping their targets will fall for the bait and hand over details that could be used to access your account and take your money.

If you get a call, say you’ll call back, hang up, and call the phone number on your savings account statement or the financial institution’s website to report your concerns. If it’s an email or text, check online for alerts on your account or call to get more information.

What SoFi Checking and Savings Can Offer

Online savings accounts can generally offer better interest rates, lower fees, and other benefits to account holders. They also typically are very secure as well.

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

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

*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.

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.

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