With so many credit card options out there, it may be hard to choose a new one.
Are you loyal to a particular airline or hotel chain? Perhaps you want to redeem credit card points as statement credits. Or you’re a big grocery or gasoline spender. Savvy consumers may be interested in innovative uses like paying down loan debt or investing. Is the interest rate important, an annual fee a dealbreaker?
If you can responsibly manage more than one credit card — and if you’re like most Americans, you have more than one — you can use different cards to optimize rewards (cash back, points, or miles), annual statement credits, and 0% and low introductory APR offers.
When deciding on a new credit card that is best for you, it boils down to two basic questions: What do you want from a card? And how strong is your financial history?
Here’s a glance at the credit card options available and provisos to consider.
If you are good about paying off your card every month and never incur interest, you might consider a rewards card. These cards may offer sign-up bonuses and give consumers rewards in the form of miles, cash back, or loyalty points.
There are variations on a theme, such as:
• Bonus offer + 0% period for purchases
• A set dollar amount in travel or bonus miles if you meet the initial spending requirements
• Flat-rate cash back
• Customizable rewards
A few cards offer an eye-opening 5% cash back in rotating categories, up to a limit (such as 5% back on $1,500 spent quarterly, after which all other purchases earn 1% cash back), and you’ll usually have to manually activate the offer each quarter.
But you can often lessen the work involved and earn more in total cashback rewards with a flat-rate cashback credit card, when all purchases earn the same amount.
Frequent travelers lured by premium travel rewards cards will want to weigh the perks against an annual fee of $450 to $550.
New reward offerings have bubbled up, such as allowing cardholders to put cash back toward loan payments, and are brewing, like increasing card acceptance for rent payments and offering cryptocurrency-related rewards.
When choosing a rewards card, think about your spending habits and redemption preferences, be aware of your credit score (these cards usually require a good score), and pay off your balance each month — rewards cards typically have higher APRs than balance transfer cards.
If you fall behind on payments or carry over balances, all the perks and rewards are unlikely to be worth it.
For college students with little or no credit history, there are student credit cards.
If you don’t have great credit, there are also secured credit cards. Generally, they require a deposit from the user. A secured credit card functions like a normal credit card except that it has a backstop: The user puts up an amount of money that the issuer will then use if the cardholder defaults.
The lender offers a certain amount of credit based on the promise that the user will pay off the balance in full every month.
If your account is upgraded to an unsecured account, thanks to good habits, or is closed in good standing, your deposit is returned.
Both of these options can help someone build credit and could lead to a card with more perks if the holder is diligent about paying off the balance every month.
Then there’s at least one brand of card that considers an applicant’s banking history in lieu of their credit score, has no annual fee, and comes with rewards.
A secured credit card is primarily intended for building credit, whereas a prepaid debit card is good for budgeting and convenience but does not affect your credit.
A prepaid debit card is preloaded with your own money, typically through direct deposit, cash or check deposits, or online transfers from a checking account.
The card is used for transactions until the money runs out. Since there is no line of credit, you cannot run up debt on the card.
This is a great option for a young person who needs to learn how money works or for adults with a bad credit history, though it will not improve their credit scores.
Credit Cards That Save You Money on Interest
If you’re prone to carry a balance month to month, you might want to consider a low-interest card. While these types of credit cards don’t come with bells and whistles like airport lounge access, it is the financially prudent option if you have an irregular income or you carry a balance each month.
It might be best to look for a card that offers an initial APR of 0% and then an ongoing low interest rate.
Keep in mind that low-interest credit cards usually require a good credit score to qualify. Generally, the better your credit score, the lower your interest rate. The lowest advertised APR isn’t always what an applicant gets.
If you are in credit card debt, a balance transfer credit card could help you pay off your debt at a lower interest rate.
Interest rates and terms vary widely with balance transfer credit cards. A balance transfer card will often come with a 0% APR introductory period, but once that ends, the interest rate shoots up.
It’s important to pay attention to the fine print if this is an option you’re considering.
The Takeaway
Choosing the most rewarding and suitable new credit card can become a research project. It’s best to think about your spending habits, needs, credit history, APR, any annual fee, and perks.
Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
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.
Most people know that paying bills on time is an important task. But it can also be tedious, time-consuming, and something you may want to put off till…later.
Regularly getting those bills paid on schedule can help you avoid doling out money on interest and fees.
It can also help maintain a solid credit score, which is something that could pay off in the future. It might help you snag the best interest rates when qualifying for loans or getting a credit card.
Figuring out how to organize those bills can have another benefit: I can reduce the time you spend on this to-do and also perhaps lower the stress of wondering if you’re on time with your payments or late.
Fortunately, organizing your bills isn’t hard. You might use an old-school accordion folder and a calculator to manage the process. Or you might decide to handle the whole process digitally.
Here are some smart ideas for how to organize those bills.
1. Setting Up a Bill-Paying Station
Do you have a convenient spot where you can open, organize, and pay your bills?
Consider setting up a dedicated desk or area, or (if space is tight) a box or roll-away cart. The goal is simply to keep everything in one place, instead of scattered around in your car, briefcase, purse, or on the kitchen counter.
It’s a good idea to stock your station with all the items you’ll need to get the job done. Depending on how you pay your bills, this might include: envelopes, stamps, pens, your checkbook, a calendar, a filing system for sorting paper bills as they arrive, and storing those you’ve paid.
Or, if you receive bills and account statements via email as many do today, consider setting up a separate virtual bill paying space. You might, for instance, set up an email account just for bills. This will ensure that you don’t overlook an electronic bill in the midst of the other emails you receive.
Or, you might use your current email and create a folder, with subfolders, for anything related to your finances. That way, you’ll know exactly where to look if you need to check on a bill or other financial correspondence.
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2. Making a Master List of Monthly Bills
Creating a list of every single bill you pay can be another way to help ensure that nothing falls through the cracks. It can also help you see where your money goes and how much money you have left after paying bills (if any).
You can do this with pen and paper, type it up in a document, or create a spreadsheet that includes a column for each month (allowing you to simply check off each bill as it gets paid).
You might be able to list some things from memory, like your rent and car payments, car insurance, or phone. But you also may want to check your bank and credit card statements for bills you pay less frequently (annual subscriptions, quarterly membership fees, tax bills, etc.), and anything that’s on autopay.
For each bill, consider including: the vendor/service provider/lender, the account number, contact information, the bill’s due date, the date you think you should send/make the payment so it’s always on time.
For loan/credit card bills, you may want to also include the balance owed, and the minimum monthly payment.
You can use this list to make decisions about which bills you might want to set up by automating your finances and which you’ll pay manually.
And once it’s done, you can keep a copy on your bulletin board and/or in your files to use as a checklist.
Looking for other ideas on how to organize bills? There are two basic automatic bill payment options.
• One is setting up automatic debit payments with a merchant or service, which involves giving them your checking account or debit card number and authorizing them to withdraw money on a recurring basis to pay a bill.
• Another way is to authorize your bank or credit union’s bill pay service to send recurring payments to a company.
Either way you set it up, there are both pros and cons to using automatic payments, or autopay.
Here are the pros:
• Autopay can help simplify your finances, since you don’t have to write out checks or log on to various websites to pay online every month.
• It also ensures that it happens. The money is whisked out of your account before you have a chance to think about it or forget to think about it. Automating this process can help you save on interest and fees.
Here are the cons, because that out-of-sight-out-of-mind factor has a downside.
• Autopay can make it easier to forget that you’re still paying for a subscription service you don’t use anymore, for example, or you might not notice when a bill’s amount is incorrect.
• If you don’t have enough money in your account when an autopay bill goes through, you could end up overdrafting your account, which can lead to overdraft or NSF fees.
If you generally have plenty of money in your account and you regularly check your bank and credit card statements to make sure the charges are accurate, autopay might be a good fit.
But if your account balance fluctuates, or you’re likely to forget about small or infrequent charges if they’re paid automatically, you may want to use a different payment method (or at least for certain bills).
One other point: If many of your bills hit on the same day of the month, you might talk to some of your payees about whether you can change your bill due date. That could help you spread out payments over the month is a way that eases your financial pressure.
4. Putting a Bill Paying System in Place
Once you’ve decided which (if any) bills you’ll manage with automatic payments, you can move on to choosing a strategy for paying all your other bills, as well as keeping track of autopayments.
You can go as full-on techie as you like, or handle it with classic pencil and paper. The key is simply having a system.
Some options to think about:
Paying Bills Right Away
There’s no reason you have to wait for a specific day of the week or month to pay your bills. With this method, you would just open and pay bills as they arrive in the mail or online.
Setting up Reminders
Another option is to set up reminders for when you need to pay each bill. You can write the due dates down in a traditional planner/datebook or use a digital calendar that will send you email reminders or text alerts.
There are also bill reminder phone apps that will alert you when a bill needs to get paid.
In addition, some companies and service providers allow you to sign up for bill reminder emails or texts.
Paying Bills on a Specific Day
If you don’t want to (or can’t always) sit down immediately to write a check or get online to pay, you could make it a weekly, biweekly or monthly routine.
With this method, you would file any bills that arrive in a “to pay” folder or in-box. You might also consider opening them and organizing them by the due date.
If the due dates are all over the place or difficult to manage, you may be able to get the dates adjusted simply by calling or emailing the company or service provider. (For example, you could try to time bigger bills so they’re due just after your paydays.)
On whatever day you designate for paying bills, you may want to set aside 30 minutes to an hour to go through your folder or stack of bills, as well as open any bills that came by email.
It’s also a good idea to go through autopay notices to make sure you agree with the amounts charged.
Choosing the Best Way to Pay Manually
Many service providers and lenders offer customers several different methods for paying their bills.
Besides autopay, you might be able to use an app, a website, an automated phone system, deliver a payment in person, or send it in the mail.
No matter which option you choose, try to remember to always keep some sort of record of the payment in your files.
5. Keeping Good Records
In addition to checking off each paid bill on your master list, you may also want to create a system for managing your records after you’ve made your payments.
One option is to file paper copies of all your bills, noting on each how much you paid, when you paid, and how you paid (including any confirmation numbers for online or phone payments or check numbers for payments you mailed).
You might file these all together in a folder labeled for that month, or create separate folders for each account, with the most recently paid bill filed on top.
If any of these bills are needed for tax purposes, you may want to make a copy and file it with your yearly tax documents.
Another option is to scan each bill and file them digitally on your computer’s hard drive or in the cloud, using a folder for the year that has subfolders for each month.
You may also want to create a real or digital file with all your credit and debit card receipts until you have a chance to reconcile them with your statements. (It’s a good idea to hold onto any receipt, bill, or statement until you’re absolutely sure you won’t need it for taxes or some other purpose, such as an insurance claim.)
6. Designating a Family Bookkeeper
Here’s another way to go about organizing your bills. If one spouse or partner has a knack for organization and bookkeeping and the other is less inclined, you might want to have the “numbers” person take the lead on the household’s bill-paying duties. (Have you ever missed a payment because you each thought the other would take care of it?)
Another option is to sit down together to work through the bills. Or, you might decide to alternate from month to month.
No matter which approach you choose, consider setting up a regular time to sit down together and review the household budget, see how you stand, and make sure you both have access to account information, including passwords.
You also may want to consider setting up a separate account for paying household bills.
7. Using Budgeting Tools/Apps
Technology can step in and help you manage your bills, too. There are an array of ways to track your spending and paying. Your financial institution may offer digital tools for this, or you can download apps for this purpose, whether free or paid options.
You’ll likely find a variety of methods, from spreadsheets to virtual pen and paper or envelopes. You might want to experiment with a few and see which suits you best.
8. Using the Cash Envelope Method
There are a variety of budget techniques you might use. One popular one is the envelope method, which involves setting key budget categories, writing the name of each on an envelope, and putting the designated amount of cash for the month ahead into it.
Then you pay the bills from the appropriate envelope as needed. Once the money from an envelope is gone, it’s gone. You either have to forego spending in that category or else borrow from another envelope.
For those who prefer not to use cash, this program can be adapted to involve debit card payments or checks.
The Takeaway
Setting up a simple bill organization system can save you time, stress, as well as money, and can also make it easy to access records you need come tax time.
Smart ways to organize your bills include creating a master list of all your monthly bills, deciding when autopay makes sense (and when it might not), and creating a virtual or actual filing system to track and streamline the bill paying process.
The best way to manage your bills is with a system that makes sense for you. And you might have to try a few different methods to figure out what works best for your situation.
Another move that might help you get your finances organized is signing up for a Checking and Savings account with SoFi.
SoFi Checking and Savings lets you spend and save in one convenient place, and offers a feature called Vaults. With SoFi Vaults, you can easily separate your spending from your savings while still helping your money grow.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.
FAQ
What bills are most important to pay?
While all bills are important to pay, basic living expenses (the things that keep you up and running, such as rent, utilities, and healthcare) and debt (student loan payments, for instance) can be priorities.
How do I organize my monthly expenses?
There are many ways to organize your monthly expenses, depending on your personal preferences and financial style. You might use an app or pencil and paper; you could try the envelope budgeting method or set up autopay. Many people try a couple of techniques before they land on one that suits them best.
How do you simplify bill payments?
Many people find that either using an app or automating their bills makes payment simpler. Your bank might offer a good app, or you can download one. And automating bill payments is something that vendors may set up for you or you can set up with your financial institution.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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You just came into a cash windfall. You’re happy about this, but you aren’t exactly sure about what to do with it. Should you spend it? Save it? Invest it?
Depending on the amount of money you now have and your financial situation, the answers are going to differ. Here are some things you can do with a financial windfall to ensure that you are handling it in the smartest way possible.
What Is Considered a Windfall?
There is no one specific definition for what is a financial windfall. Typically, it means that you’ve received some unexpected money of a significant amount. For some people, a windfall could be a few hundred dollars; for others, it could be millions.
Whatever the amount, if it feels as if you have come into a considerable amount of money that you weren’t anticipating, it makes sense to develop a plan for how to use it.
3 Tips to Help You Make the Most of Your Money Windfall
If you are fortunate enough to have a windfall land in your lap, consider these points before you take action (whether spending, saving, investing, or donating). These steps can help you make the most of your money:
• Get professional advice: Depending on the size and source of your windfall, you might owe taxes on it and it might push you into a different tax bracket. Consulting with an accountant or financial planner may help you identify the implications.
• Go slow: Of course it’s exciting to have cash coming your way, but it’s wise to take some time and reflect on how the money would be best spent versus deciding “Dinner’s on me!” for you and your 10 best friends to celebrate. For instance, could your windfall lower or wipe out some debt? Could it be invested? Don’t let the adrenaline rush drive you to make too quick a decision. Take some time to clarify your goals.
• Think long-term: If you’ve received a sizable sum, it may be tempting to drop everything and quit your day job to travel or take on a passion project. Again, financial counseling could be wise before you do such things. What sounds like a major sum may not actually finance those things (or at least allow you to go all in on them), so look at the implications carefully before making a big life change.
Remember That Taxes May Be Due on Your Windfall
As briefly mentioned above, taxes may be due on your windfall. Talking with a certified public accountant or financial planner could be a wise move. Some food for thought:
• A large inheritance (more than $12.06 million as an individual in 2022) from a relative other than a spouse would trigger federal taxes owed.
• A gift of more than $16,000 will require you to pay federal taxes.
• A lottery win is taxed as ordinary income.
What to Do With a $500 Windfall
Let’s say the amount of money you received was $500. While it isn’t a ton of money, it still is significant enough that you should figure out what to do with it. Here are a few ideas for what to do with a small windfall.
1. Investing in Real Estate
Did you know that you can become a real estate investor with just $500? The real estate crowdfunding platform DiversyFund allows you to invest in real estate investment trusts (REITs) with a minimum of $500. Although there is risk involved in real estate investing and it might tie up your money before you see a return, this might be a good way to get your feet wet when it comes to real estate.
2. Meeting With a Financial Advisor
Hiring a financial advisor to help you learn how to plan for your financial future might be a good use of this money. Financial advisor charges vary: Some might charge hourly while others are commission-based. If this professional will be managing a portfolio for you, it is fairly common to be charged 1% of the portfolio value.
3. Buying a New Wardrobe
You could refresh your wardrobe with a little extra money. Wearing the right clothes could make you feel more comfortable and give you the confidence to go after your professional goals. Or you might splurge on some clothes you’ve been eying that give you a self-esteem boost.
4. Traveling Somewhere Cheap
You may be able to save on hotel rooms and plane tickets when sales are running. Or, you could always take a road trip somewhere locally for only $500. Since you’re on a tight budget, you may want to use credit card rewards to finance any additional cost of your trip.
5. Investing in a Certificate of Deposit
Another thing you can do with a $500 financial windfall is put it into a certificate of deposit, which is a savings account with a fixed interest rate as well as the maturity date. It’s a low-risk way to invest your money.
6. Getting Your Car Fixed
Have you been putting off car repairs because they’re too expensive? Now that you have $500, it might be time to put it towards your vehicle so it’s less likely to break down when you’re on the road.
7. Buying Renter’s Insurance
If you’re a renter, your personal property is not covered under your landlord’s homeowners insurance policy. Your renter’s insurance policy, typically costing less than $500 per year, will cover the cost of your belongings should anything happen, as well as offer liability coverage if anyone gets injured on your property. How much does renters insurance cost? Prices will vary depending on where you live and the value of what you have to insure, but nationally the average cost is typically between $126 and $252.
8. Purchasing a Life Insurance Policy
Life insurance is designed to protect your family in the event that you pass away. The average cost of a life insurance policy is $26/month, so you could pay for the whole year upfront with just $500. Typically, life insurance rates increase as you age and your risk of dying increases. So it’s likely to be less expensive to purchase life insurance while you’re young, rather than waiting until you feel like you can afford it.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.20% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
9. Taking a Professional Development Class
While private colleges and universities may be pricier, you may be able to find a class online or at your local community college for less than $500. Finding something that is relevant to your career may even help you move up the ladder at your job.
What to Do With a $1,000 Windfall
Did you receive a $1,000 financial windfall? Here are some tips on what to do with windfall money of that amount.
10. Getting Started on Your Emergency Fund
Ideally, your emergency fund will be as robust as possible and include several months’ worth of expenses just in case you lose your job or otherwise face some financial hardships. However, if you don’t have anything saved up, then putting $1,000 into it is a great start. You will have a safety net at the very least.
11. Hiring an Estate Planning Lawyer
Another important thing you could do with a $1,000 cash windfall is meet with an estate planning lawyer to write your will, establish a trust, and determine your power of attorney. You may feel some peace knowing your family will be protected and your assets will go where you wish to distribute them.
12. Opening a 529 Plan
A 529 plan is a way to save for your child’s college education. With $1,000, you can get a nice head start on college savings and gain interest on your money at the same time. Plus, the money will be tax-deferred.
13. Doing Home Improvements
With $1,000, you could do some significant home improvements like replacing your curtains, put down a new kitchen floor, paint different rooms, or spruce up your backyard. If you do the work yourself, you may be able to stretch your financial windfall money even further.
14. Donating It
If there’s a nonprofit you always donate to, you could make a big difference by giving $1,000 to it. You could also write it off on your taxes if it’s a qualifying organization.
15. Opening a High-Yield Savings Account
A typical savings account tends to have low-interest rates. But a high-yield savings account could earn up to 25 times the interest of a regular savings account. Putting the $1,000 in your account and then setting up automatic transfers from your checking into your new savings account will help it continue to grow.
16. Opening an IRA
If you don’t have anything saved up for retirement and you suddenly get a $1,000 financial windfall, then it might be time to open up an IRA. It’s wise to speak with a financial advisor about the best type of account for your situation.
17. Investing in Your Side Hustle
To make money on your $1,000 financial windfall, you could start or invest in your own low-cost side hustle. For instance, perhaps you’re a freelance graphic designer on the side but you need to buy some software to be able to do more detailed work. Or maybe you need to purchase a domain name and hire a developer to create a business website. With this initial investment, you may be able to bring in much more money and improve your finances.
What to Do With a $5,000 Windfall
You just got a cash windfall of $5,000. Now what? Here are some ideas.
18. Saving Up for a Down Payment
In some instances, you could make a down payment on a home for only 3% to 5%. For instance, if you purchase a $100,000 home and you only need to put 5% down, you could use your financial windfall money as your $5,000 down payment.
19. Paying Off Credit Card Debt
The average American family has $7,951 worth of credit card debt. Even if you have more than that much debt, $5,000 could make a big difference.
20. Investing Via Robo-Advisors
Do you want to invest your $5,000 cash windfall, but you don’t know where to start? Robo advisors create a diversified investment portfolio based on your investment goals and the level of risk you’re willing to take.
21. Investing in Blue-Chip Stocks
If you’re willing to take some risk with investments, then blue-chip stocks could be good investments for you. These stocks are from well-established and financially stable companies that typically pay dividends to investors.
22. Investing in International Bonds
Bonds typically have a solid history of returns, although slightly lower than that of stocks. However, since US interest rates have been relatively low, it may be a good idea to look into international bonds for a better return rate. These can carry higher risk because of currency exchange rates, however, so it’s wise to choose carefully, based on the country where the bond is held. Having both stocks and bonds in a portfolio is a good way to achieve diversification in a balanced portfolio.
23. Taking a Luxurious Vacation
With $5,000, you and your family could potentially vacation in a luxury resort. By looking for all-inclusive experiences, you could do much more with your money. Check out sites like Expedia, Costco Travel, and Booking.com for deals.
What to Do With a $10,000+ Windfall
If you received a cash windfall of $10,000 or more (lucky you!), here are some things you could do with it.
24. Opening a Money Market Account
With $10,000 could enable you to invest in a money market account, which typically earns a higher interest rate than a regular savings account.
25. Paying Off Student Loan Debt
The average student loan debt is more than $32,000. If you have a $10,000 financial windfall, you could put a nice dent in your student loan payments.
26. Trying Peer-to-Peer Lending
You could lend your financial windfall money to someone who is looking for a loan and have the opportunity to earn a much higher interest rate than you might receive on other types of investments.
27. Making Mortgage Payments
You could make a large principal-only payment toward your mortgage loan with a $10,000 cash windfall. Using an amortization calculator on the remaining balance of a fixed-rate loan will show you how much sooner you could pay off the loan.
28. Going to College
While $10,000 won’t cover a bachelor’s degree unless you also get grants or scholarships, you may be able to earn your associate’s degree at your local community college with your financial windfall money. This may also cover several classes at a university that could lead to career advancement.
29. Starting Your Business
Let’s say you want to do more than start a side hustle, and you’re ready to open a small business. With $10,000, you can get the ball rolling on your business without the need to borrow money. It could be a good idea to talk to a successful business owner in your industry who has the experience and can give you some guidance on how best to allocate your money.
30. Putting it in Your 401(k)
If you have a 401(k) through your employer, you could put your $10,000 into it. If your employer matches your contributions, the money could go even further.
31. Moving to a Different Home
Moving can be expensive, and a $10,000 financial windfall could be useful when it comes to covering moving costs. A move may make sense if you can find a place that’s more convenient to your work, restaurants, and entertainment and/or gives you and your family more space or offers additional amenities.
The Takeaway
Receiving a financial windfall of any amount is probably best handled with careful thought. You might pay down debt, take a vacation, invest the funds, or pursue higher education…or even do a little of each. Sometimes, the best thing to do is to set it aside while you take your time to make a decision about how best to spend it.
Earning interest on the money during a “thinking it over” period can be a good thing, too. A SoFi Checking and Savings Account can be a good place to park your money; it will earn a competitive annual percentage yield (APY) and you won’t pay any account fees. Those two features can help you money grow.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.
FAQ
What amount of money is considered a windfall?
The amount of money that is considered a windfall will vary depending on your circumstances. If you are just starting out or earning a lower income, $500 might be cause for celebration. Typically, a windfall is considered $1,000 or more, and in some cases, it could be a major sum of six figures or more.
What to do with a $50,000 windfall?
There are many ways to use a $50,000 windfall. You could pay off high-interest debt, pump up your retirement account or savings for your children’s education, or you might invest it, whether in the stock market or your own business.
What can you do with a $100K windfall?
With a $100,000 windfall, you might pay off high-cost debt, stash money for future educational costs for yourself or your child, save for retirement, or invest the money or buy real estate with it.
SoFi members with direct deposit activity can earn 4.20% 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 4.20% 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 4.20% 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 10/31/2024. 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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
There are many reasons why you might need to hire a lawyer, from purchasing real estate to launching your own business to getting a divorce. When these moments hit, it’s time to get a good attorney involved to help you sort out the situation.
However, hiring a lawyer can take some know-how, and if it’s your first time tackling this, you may need some guidance. Personal referrals may be a good place to start, but it’s also vital to work with an attorney who has expertise that’s relevant to your particular legal situation.
Fortunately, there are plenty of resources that are available to help you find the right professional at the right price.
Here are some tips and tactics to help you navigate the process of hiring an attorney.
Finding the Right Attorney
Most lawyers concentrate in a few legal specialties (such as family law or personal injury law), so it’s important to find a lawyer who not only has a good reputation, but also has expertise and experience in the practice area for which you require their services.
Below are some simple ways to begin your search:
Word of Mouth Referrals
One of the best ways to find a lawyer is through word of mouth. Ideally, your family and friends may have worked with someone that they can refer you to. Better still if their situation is similar to yours.
But even if a recommended lawyer doesn’t have the right expertise, you may still want to contact that attorney to see if they can recommend someone who does.
You might consider asking your accountant for a recommendation as well, since these two types of professionals often refer clients back and forth.
Many companies offer legal services plans for their employees, so it’s worth checking with your human resources department to see if yours does.
You’ll want to understand the details, however, before you proceed. Some programs cover only advice and consultation with a lawyer, while others may be more comprehensive, and include not only advice and consultation, but also document preparation and court representation.
Those who need a lawyer, but can’t afford one, may be able to get free or low-cost help from the Legal Aid Society. You can often find out who to contact by searching online and typing “Legal Aid [your county or state]” in your computer’s search bar.
Consider reaching out to local accredited law schools as well. Many schools run pro bono legal clinics to enable law students to get real world experience in different areas of law.
Online Resources
There are a number of online consumer legal sites, such as Nolo and Avvo , that offer a way to connect with local lawyers based on your location and the type of legal case you have.
Nolo, for example, offers a lawyer directory that includes profiles of attorneys that clue you in on their experience, education, fees and more. (Nolo states that all listed attorneys have a valid license and are in good standing with their bar association).
Martinedale-Hubbell also offers an online lawyer locator, which contains a database of over one million lawyers and law firms worldwide. To find a lawyer, you can search by practice area or geographic location.
Doing Some Detective Work
Once you’ve assembled a short list, it’s a good idea to do a little bit of sleuthing before you pick up the phone.
This includes checking each attorney’s website. Does it look sloppily done or professional? Is there a lot of style but little substance?
By perusing the site, you can also get details about the lawyer or firm, such as areas of expertise, significant cases, credentials, awards, as well as the size of the firm. Size can actually be an important consideration.
A solo practitioner may not have much bandwidth if they have a heavy caseload to give you a lot of hand holding if that matters to you. However, their prices may be more budget-friendly than a mid-sized or larger firm.
While larger firms may be more expensive, they may have more resources and expertise that makes them the better option.
You may also want to make sure the lawyers on your consideration list are in good standing with the bar, and don’t have any record of misconduct or disciplinary orders filed against them.
Your state bar, once again, is a good place to get this kind of information. Some state bar websites allow you to look up disciplinary issues. The site may also have information on whether the attorney has insurance.
You may also be able to search the state bar’s site by legal specialty, which can help you confirm the lawyers you’re looking at really do have expertise in the area of law you need counsel in.
The Martindale-Hubbell online directory can be helpful here as well. It offers detailed professional biographies and lawyer and law firm ratings based upon peer reviews, which may help when choosing between two equally qualified candidates.
Asking the Right Questions
Many lawyers will do a free initial consultation. If so, you may want to take advantage of this risk- and cost-free way to get a sense of the attorney’s expertise and character. This is also a good opportunity to get a sense of the costs.
Whether you’re able to arrange a face-to-face meeting or just speak over the phone, here are some key topics and questions you may want to address:
• Do they have experience in the area of law that applies to your circumstances?
Further, you may want to get the percentage breakdown of their practice areas. If you need someone to help you with setting up a business and understanding business loans, for example, and that’s only 10% of what they do, that practice may not be the best fit.
• Do they work with people in your demographic? If the practice only represents high net worth clients, and you’re not in that income bracket, they could be a mismatch. You can also get a sense of their typical clientele by asking for references from clients.
• How much time can they commit to you? And, how do they like to communicate: phone calls? Email? Ideally, you want a lawyer who can make you a priority and is able to respond to your questions in a timely manner, rather than leave you hanging for days or weeks.
• What are the fees and how are they charged? This is an important one so you can budget properly, and it’s something to ask about whenever hiring a professional (say, a financial advisor). For example, they may charge hourly, or they may work on a contingency basis, meaning if you successfully resolve your case they get paid.
Also find out if they require a retainer (an upfront fee that functions as a downpayment on expenses and fees), as well as what is included in their fees, and what might be extra (such as, charges for copying documents and court filing fees). Ideally a lawyer will explain their fees and put them in writing.
You may also want to use this meeting or conversation to judge the lawyer’s character and personality, keeping in mind that chemistry counts.
The attorney you’re interviewing could have all the right credentials and awesome experience, but in the end, if their personality strikes you as a little prickly, or the vibe is off, even if you can’t exactly put your finger on it, you may want to trust your gut, walk away and keep searching.
The Takeaway
Choosing an attorney is an important decision. As much as you want to just get on with what may be a challenging or stressful situation that you need legal help with, it’s a good idea to invest some time, cast a wide net for referrals, then create and carefully vet your short list.
Finally, you’ll want to have an open conversation with any lawyer you are considering to make sure you feel he or she is a good fit for you and that you understand, and can afford, all the fees involved.
Whether you’re looking for a lawyer to help you buy a home, start a business or facilitate any other life transition, it’s a good idea to get your finances in order as well.
One simple move that can help is to open an online bank account with SoFi. With a SoFi Checking and Savings account, you can earn a competitive annual percentage yield (APY), spend and save, all in one account.
Another perk: SoFi Checking and Savings doesn’t have any account fees to nibble away at your hard-earned money.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.
SoFi members with direct deposit activity can earn 4.20% 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 4.20% 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 4.20% 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 10/31/2024. 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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
This article is not intended to be legal advice. Please consult an attorney for advice.
Just like having your home in order can make life easier and less stressful, having your financial house in order can save you time and worry. It can also help you spend less, save more, and work more effectively towards your financial goals.
Your “financial house” refers to all the aspects that go into your financial wellness, including the information found on your financial statements, any debt you have, your budget, and your retirement planning and accounts.
Getting your financial house in order typically involves taking stock of what you have, getting rid of things (or accounts) you don’t need, creating a budget, and setting up a few systems to make it easy to achieve your financial goals.
Below is a simple step-by-step for doing a financial clean-up.
1. Taking Stock
You can’t organize what you have if you don’t fully know what you have, so a good first step is to track down all of your financial statements and accounts, or access them online. If the password or log-in is long forgotten, you can reset your accounts or call customer service lines to get access.
You can then make a master list organized by category. This might include:
• Assets This includes traditional and online bank accounts, retirement savings, and other investments.
• Liabilities These are loans, such as mortgages, credit card debt, student loans, or other forms of personal debt.
• Income This would include all sources of income, such as salary, investments, and alimony.
• Fixed expenses These are bills you pay every month, such as rent, mortgage, and utilities.
This step can help you discover unpaid bills, as well as savings accounts or retirement accounts you may have forgotten about.
2. Clear the Clutter by Going Paperless
Electing to go paperless on bills and bank statements is not only good for the planet, but can also help you keep your finances in order by creating less physical mess. Getting bills in the mail and seeing them pile up can also evoke a sense of dread. In addition, some banks offer benefits to customers who sign up for paperless billing.
When you go paperless, you can designate a day for tackling monthly expenses. Then, on that day only, you can open those emails and pay them. If you prefer a paper trail, you can print out your receipts and file them away.
3. Consolidating Accounts
Having abandoned 401(k) accounts or multiple saving accounts across different banks can be confusing and hard to keep track of. If this is the case, it might be time to consolidate and simplify.
You can move old savings into more frequently used accounts by transferring money from one account or bank to another. You may also be able to roll over your 401(k) from a former employer into a new employer’s retirement plan.
While this step isn’t necessary, tidying up accounts can save you the hassle of dealing with statements and notifications from several different financial institutions.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.20% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
4. Tackling Debt
Once you’ve taken stock of your overall financial picture, you will likely have a better sense of how much money you owe. This can feel overwhelming, but also empowering. Once you know the numbers, you can deal with them head on, and come up with a debt reduction plan.
You may want to first determine “good” debt, such as student loans and mortgages vs. “bad” debt, like high-interest credit card debt and personal loans. When paying off debt, it can be a good idea to prioritize bad debt first.
There are a number of different ways to make paying off debt feel manageable, such as the snowball method or avalanche method. The key is to find an approach you feel you can stick with and to simply get started.
As you knock off debts, you’ll have fewer minimum payments to juggle. What’s more, you’ll be able to funnel the money you once spent on interest towards your financial goals.
5. Creating a Budget
After you’ve taken stock of all of your accounts and bills, you may want to go one step further and set up a monthly budget.
To do this, it can be helpful to pull out the last three months or so of your bank statements. You can then use them to figure out how much is coming in each month (your average monthly income after taxes are taken out) and how much is going out each month (your average monthly spending).
If the numbers are tight (meaning there’s little or nothing left over to put into savings), or you see you are actually going backwards, you may next want to create a plan to cut your spending.
This might include getting rid of certain monthly bills, such as streaming services you no longer really care about or quitting the gym and working out at home.
You may also want to set monthly spending targets, such as how much you will spend on nonessential categories, such as clothing, eating out, and entertainment, each month.
6. Setting Goals
Setting some financial goals can help motivate you to stick to your budget and put money into savings each month.
If you’re saving up for something fun (like, say, a vacation), you might be more inclined to cook at home instead of ordering in. Money goals can function like a compass that guides the direction of spending.
Not sure of a goal? Here are some common financial goals you may want to consider working toward:
• Putting money towards something fun, like a vacation or new wardrobe.
Goals won’t always look the same person to person, but having one (or two) can help guide your financial plan, making it easier to spend and save with confidence.
7. Automating
Saving, spending, and paying bills doesn’t have to mean reinventing the wheel every month. You can significantly reduce the amount of work involved in money management simply by relying more on automation.
One of the benefits of automating your finances is always paying your bills on time. This can save you money by avoiding late fees. Having a history of on-time payments can also help improve your credit.
In addition to setting up autopay for your regular bills, you may also want to automate savings. This means having a portion of your paycheck (and it’s fine to start small) automatically transferred from your checking account into your savings or retirement account after you get paid.
This ensures that saving will happen each and every month, since the money will be taken out before you have a chance to see it — or spend it.
Automation won’t take all the work out of keeping your financial house in order, but it can eliminate many of the chores — and many of the choices — you have to deal with each month.
The Takeaway
Getting your financial house in order isn’t as complicated or time-consuming as many people assume. And, you don’t have to do it all at once. You may want to set aside an hour or so one day a week to focus on financial house-cleaning, and just take it one step at a time.
Tidying up your financial home can take work, but you don’t have to go at it alone. A SoFi Checking and Savings Account can make the complicated a little easier. With SoFi, you can earn a competitive annual percentage yield (APY) and save and spend, all in one account. And SoFi Checking and Savings doesn’t have any account fees which could eat away at your savings.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.
SoFi members with direct deposit activity can earn 4.20% 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 4.20% 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 4.20% 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 10/31/2024. 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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
