money Archives | Page 2 of 167

Dec

2024

11 Ways to Make Money While You Drive

By Emily Greenhill Pierce | Financial Independence, Life & Career, money | Comments Off

If you enjoy driving and have access to a reliable vehicle, you may be able to use that everyday skill to make money. There are numerous ways to earn money while driving, whether through ridesharing, delivering food, or being a tour guide.

Not only is this an easy way to bring in some cash, it can be a very flexible gig. You can set your own hours or get behind the wheel when your schedule allows.

Want to learn more about all the ways you can get paid for driving? Then read on, and get ready to start your engine. Here are 11 tips on how to make money while driving.

Key Points

• Before you jump into making money by driving, consider the costs and wear and tear on your car.

• Ridesharing involves using apps like Uber or Lyft to pick up passengers.

• Food delivery through apps like Uber Eats or Grubhub is another way to make money while driving.

• Grocery delivery can be done via apps such as Instacart.

• Other options include delivering goods via services like Shipt or Amazon Flex and helping people move large items through platforms like Taskrabbit or Dolly.

What to Consider Before Using Your Car to Make Money

Before you set out on your new road to earning extra income, it’s wise to make sure that driving to make money is right for you. There are risks and complications when using your personal vehicle that may outweigh the potential side hustle benefits you would reap.

Consider the following before embarking on using your car to make money:

• Wear and tear on your car. Using your car to earn money while you drive can rack up a lot of miles. An uptick in use will put stress on your vehicle, leading to its overall depreciation and potentially more trips to the mechanic.

• Age of your vehicle. The age of your car may impact your ability to earn money. For example, some rideshare companies require newer cars.

• Car insurance. You will need proper insurance to cover yourself and possibly a passenger. There are usually specific insurance requirements to be eligible for ridesharing and other driving gigs, so scrutinize your policy to see how car insurance works for you in this situation.

• Taxes. If you earn more than $400 while driving your car to make money, the IRS considers you an independent contractor. Along with a Form 1040, you’ll have to fill out a Schedule C form. You’ll also be subject to the self-employment tax.

• Cost of doing business. This isn’t necessarily a low-cost side hustle, since you’ll be responsible for gas, vehicle maintenance, and repairs. But as a self-employed worker, you’ll be able to write off those expenses and others, such as mileage, on your tax return.

Bottom line: Make sure you know what you and your car are getting into. You don’t want a scenario where you end up wasting money and your valuable time instead of earning more income.

💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.

11 Ways to Earn Money by Driving

How can I make money driving my own car?

How can I make money driving my own car? The answer depends on where you live, the kind of car you own, other skills you may have, and your personal preferences. But whether you own your car or lease it, the opportunities are out there if you’re willing to grab them.

Here are 11 suggestions on how to make money by driving:

1. Ridesharing

If you’ve ever hopped in an Uber, then you likely understand what ridesharing is all about. A driver uses their car to pick up passengers on demand. This has become a popular way to earn money while driving in recent years. You can drive as suits your schedule, and rideshare companies such as Uber and Lyft strive to make the driver sign-up process as streamlined as possible.

If you have a good driving record, a flexible schedule, and newer four-door vehicle, working for a rideshare app can potentially be a great source of extra income, especially if you’re willing to give up your Friday and Saturday nights to earn prime-hour cash. Your specific earnings will depend on how often you drive, when, and for how long, as well as where you are located. Uber drivers can earn anywhere from $7.70 to $38.65 per hour, with the average coming in at $20.29, according to Indeed.

Recommended: How to Make Money From Home

2. Food Delivery Service

Another way you can be driving to make money: by delivering anything from a smoothie to Pad Thai and back again. When you sign up with food delivery apps such as Uber Eats, Seamless, and Grubhub, you’ll get notifications to pick up food from participating restaurants and drive them to hungry patrons. For every delivery, you’ll get paid.

Drivers for Door Dash can earn anywhere from $7.25 to $40.00 per hour, but the national average hourly pay is $17.14, according to Indeed.

3. Delivering Groceries

If you want to earn money driving without the smell of takeout in your car, consider delivering groceries instead of prepared meals. Apps such as Instacart rely on independent drivers to shop and deliver groceries to people’s homes.

Grocery deliverers can make between $14 and $43 an hour, depending on how busy the local area where you live is. Be sure and check for any requirements. For example, to work for Instacart, you need to be age 18 or older, have a bank account, and be able to lift at least 40 pounds.

4. Delivering Goods to Others

Food isn’t the only thing you can deliver to earn money while driving. There’s a whole world of goods out there that people want delivered. Apps such as Shipt work with drug stores (like CVS) and large retailers (like Target and Lowe’s) to get people what they need.

Looking for another idea? Amazon Flex allows independent drivers to deliver packages on their own schedules for an hourly wage. They do require you to have a mid-size, four-door sedan or larger.

5. Moving Large Items for Others

If you own a van, SUV, or truck and can do some heavy lifting, you could use your vehicle and your strength to make big bucks by helping move items.

Maybe a recent grad can finally afford to move out from their parents’ place, or someone is moving to a new, nearby neighborhood. People like these often need help moving oversized items such as furniture or multiple heavy boxes a short distance.

You can check out websites like Taskrabbit or Craigslist to see if someone needs moving assistance, or register with an online service such as Dolly or GoShare that will connect you with clients.

6. Shuttling Children

With the proper qualifications, you can drive to make money by transporting children. Many working parents need help getting their kids to and from school or to their after-school activities. You can search Care.com or other childcare employment sites for part-time gigs, driving children where they need to be.

Companies such as HopSkipDrive work with school districts and independent drivers to solve child transportation issues. Most of these types of jobs require around five years of experience working with kids, in-person interviews, and background checks.

7. Transporting Elderly People

Some seniors need help getting around town but prefer not to use rideshare services. Check with elder-care services in your community. They may need drivers to help get their clients to a store, an activity, or a doctor’s appointment.

You will likely need similar vetting to that mentioned for chauffeuring children.

8. Driving Tours

If you have the gift of gab and knowledge of your area, being a tour guide could be a fun way to make money while driving. You could register with online companies such as ToursByLocals and create a private driver profile to promote your insider savvy. This could involve showing tourists local highlights so they can take some photos for social media, or sharing hidden treasures that they might not otherwise learn about. It’s a win-win when you use your hometown smarts to boost your financial security.

9. Putting Advertising on Your Car

Here’s a passive income idea that works, though it’s not for everyone: Consider turning your car into a mobile billboard. Companies such as Wrapify and Carvertise will match you with a local advertising campaign and supply you with temporary “wraps” for your car that promote a product. Depending on where you drive and the size of your car, you could make between $264 and $452 a month.

Typically, these businesses want to wrap cars that are on the road and visible for much of the time. If you are doing deliveries by car, this might be a way to bring in more cash.

10. Renting Out Your Car

You can make money off your car without even driving it. Companies such as Turo and Getaround allow you to rent out your vehicle à la Airbnb. They will vet borrowers, cover insurance, and provide you with a device that allows renters to unlock your car without a key.

If you don’t want to do ridesharing, let others do it for you. Companies like HyreCar arrange to lend your car to other vetted drivers who want to earn money for Lyft or Uber. But to really make some dough, you would have to be willing to part with your vehicle often.

11. Being a Safe Driver

Here’s another way that driving can bring in some cash: If you are a safe driver, you may be eligible for a bit of money. For example, Allstate will reward you with a Safe Driving Bonus every six months if you don’t get in a fender-bender.

The State Farm insurance app will track your car to determine if you are driving safely — it monitors things like staying within the speed limit and coming to a complete stop versus a rolling one. You could get up to a 30% discount on your auto insurance.

Recommended: How to Deposit Cash at an ATM

The Takeaway

If you have a vehicle, you can make extra money. Signing up with the right apps and online services can get your car (and your new income stream) up and running. Whether it’s doing deliveries, transporting a sofa, or helping a person get to their destination, you can turn your vehicle (plus your driving skills) into a profit-mobile.

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

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

FAQ

What are the pros of making money while driving?

By using your car to make money, you may be able to set your own hours and be your own boss. It’s also a pursuit that doesn’t require much specialized training. In many cases, you are using a skill you already have.

What are the cons of making money while driving?

Using your car to make money can place a lot of stress and miles on your vehicle. Gas and maintenance prices can really add up. Plus some pursuits, such as helping people move furniture, can be physically challenging.

Is making money with your car better as a side hustle?

Earnings from most car-driving gigs can be sporadic and unpredictable, unless you live in a major city with consistent high demand. For this reason, it may be best to have another form of steady income and drive for cash on the side.

How much can you potentially earn with your car?

How much you can make driving your car depends on the type of job and where you live. On average, Uber drivers earn $20.29 per hour, according to Indeed.

Photo credit: iStock/Hispanolistic

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.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
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.

SOBNK-Q424-085

Dec

2024

Roth IRA vs. Savings Account

By Rebecca Lake | money, Preparing for Retirement, Terminology | Comments Off

Saving is an important part of your financial health and building wealth, but it can be confusing to understand all the different vehicles out there. For instance, if you want to stash cash away for a good long while, should you open a Roth IRA or a savings account?

A Roth Individual Retirement Account (IRA) offers a tax-advantaged way to invest money for retirement. Brokerages and banks can offer Roth IRAs for investors who want to set aside money that they don’t anticipate spending for the near future.

Savings accounts can also be used to hold money you plan to spend at a later date. The main difference between a Roth IRA and savings account, however, lies in what they’re intended to be used for.

If you’re debating whether to keep your money in a Roth IRA or savings account, it’s helpful to understand how they work, their similarities and differences, and the pros and cons of each option.

Key Points

• Roth IRAs are designed for retirement savings, offering tax-free growth and tax-free withdrawals in retirement.

• Savings accounts are ideal for short-term goals and emergency funds, offering more accessibility and flexibility.

• Roth IRAs can potentially yield higher returns through investments, while savings accounts provide safety and liquidity.

• Both account types can be opened with low initial deposits and are insured if held at banks.

• Choosing between them depends on financial goals, with Roth IRAs generally being better for long-term growth.

What Is a Savings Account?

A savings account is a type of deposit account that can be opened at a bank, credit union, or another financial institution. Savings accounts are designed to help you separate money you plan to spend later from money you plan to spend now.

Here’s how a savings account works:

• You open the account and make an initial deposit.

• Money in your account can earn interest over time, at a rate set by the bank.

• When you need to spend the money in your savings account, you can withdraw it.

Previously, savers were limited to making six withdrawals from a savings account per month under Federal Reserve rules. In 2020, the Federal Reserve lifted that restriction, though banks can still impose monthly withdrawal limits on savings accounts. Exceeding the allowed number of withdrawals per month could trigger a fee or could lead to the account being converted to a checking account.

Types of Savings Accounts

Banks can offer more than one kind of savings account. The range of savings accounts available can depend on whether you’re dealing with a traditional bank, an online bank, or a credit union.

Typically, these accounts will be insured up to $250,000 by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

Generally, the types of savings accounts you can open include:

• Traditional savings. Traditional savings accounts, also called regular, basic, or standard savings accounts, allow you to deposit money and earn interest. Rates for traditional savings may be on the low side, and you might pay a monthly fee for these accounts at brick-and-mortar banks.

• High-yield savings. The main benefits of high-yield savings accounts include above-average interest rates and low or no monthly fees. For example, online banks may offer high-yield savings accounts with rates that are many times higher than the national average savings rate, with no monthly fee.

• Money market savings. Money market savings accounts, or money market accounts, combine features of both savings accounts and checking accounts. For example, you can earn interest on deposits but have access to your money via paper checks or a debit card.

• Specialty savings. Some types of savings accounts are created with a specific purpose in mind. For example, Christmas Club accounts are designed to help you save money for the holidays. A Health Savings Account (HSA) is a tax-advantaged specialty savings account that’s meant to be used for health care expenses.

You could also add certificates of deposit (CDs) to this list, though a CD works differently than a savings account. CDs are time deposit accounts, meaning that when you put money in the account, you agree to leave it there for a set term. If you take the funds out before then, you will likely be charged a fee.

Once the CD matures, you can withdraw your initial deposit and the interest earned. For that reason, CDs offer less flexibility than other types of savings accounts.

Recommended: Savings Account Calculator

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

Pros and Cons of Using a Savings Account for Retirement Savings

Savings accounts can be used to save for a variety of financial goals, including retirement. You might be wondering whether it makes a difference if you use, say, a high yield savings account vs. Roth IRA or other retirement account to save, as long as you’re setting money aside consistently.

While savings accounts can offer convenience and earn interest, they’re not necessarily ideal when saving for retirement if your primary goal. Here are some of the advantages and disadvantages of using a savings account to plan for retirement.

Pros	Cons
Savings accounts are easy to open and typically don’t require a large initial deposit.	A savings account does not offer any tax benefits or incentives for use as a retirement account.
Banks and credit unions can pay interest on savings account deposits, allowing you to grow your money over time.	Interest rates for savings accounts can be low and may not outpace inflation.
You can withdraw money as needed and don’t have to reach a specific age in order to use your savings.	Banks can impose fees or even convert your savings account to checking if you’re making frequent withdrawals.
Savings accounts are safe and secure; deposits are protected up to $250,000 when held at an FDIC member bank.	If you’re putting all of your retirement funds into the same savings account, it’s possible that your balance might exceed the insured limit.

What Is a Roth IRA?

A Roth IRA is a type of individual retirement account that works somewhat differently than a traditional IRA. Traditional IRAs are funded with pre-tax dollars and allow for tax-deductible contributions when doing taxes. Once you turn 72, you’re required to begin taking money from this kind of account.

The way a Roth IRA works is that you set aside money using after-tax dollars, up to the annual contribution limit. That means you can’t deduct contributions to a Roth IRA. However, you won’t pay taxes on account earnings and will be able to withdraw funds tax-free in retirement.

You can leave money in your Roth IRA until you need it, which may allow it even more time to grow. Unlike traditional IRAs, there are no required minimum distributions for Roth IRAs. If you don’t use all of the money in your Roth IRA in retirement, you can pass it on to anyone you’d like to name as your beneficiary.

The IRS allows you to make a full contribution to a Roth IRA if you’re within certain income thresholds, based on your tax filing status. The full contribution limit for 2024 and 2025 is $7,000, or $8,000 for those 50 and up. You can make a full contribution if your tax status is:

• Married filing jointly or a qualified widow(er) with a modified adjusted gross income of up to $230,000 in 2024 (up to $236,000 in 2025)

• Single, head of household, or married filing separately and did not live with your spouse during the year with a modified adjusted gross income of up to $146,000 in 2024 (up to $150,000 in 2025)

Contributions are reduced once you exceed these income thresholds. They eventually phase out completely for higher earners.

Pros and Cons of Using a Roth IRA for Retirement Savings

Roth IRAs are specifically designed to be used for retirement saving. Again, that’s the chief difference between a Roth IRA and savings account. That doesn’t mean, however, that a Roth IRA is necessarily right for everyone. For example, you may need to weigh whether a Roth IRA or traditional IRA is better, based on your income and tax situation.

Here are some of the advantages and disadvantages associated with choosing a Roth IRA for retirement savings.

Pros	Cons
Money in a Roth IRA can be invested in stocks, mutual funds, and other securities, potentially allowing your money to grow faster.	Investing money in the market is riskier than stashing it in a savings account; there’s no guarantee that you won’t lose money in a Roth IRA.
You may be able to open a Roth IRA with as little as $500 or $1,000, depending on the brokerage or bank you choose.	Brokerages can charge various fees for Roth IRAs. Individual investments may also carry fees of their own.
Earnings grow tax-free and you can withdraw original contributions at any time, without a penalty.	You can’t withdraw earnings tax-free until age 59 ½ and the account is at least 5 years old.
You can save money in a Roth IRA in addition to contributing money to a 401(k) plan at work.	Not everyone is eligible to open a Roth IRA, and there are annual contribution limits.

Similarities Between a Roth IRA and a Savings Account

Roth IRAs and savings accounts do have some things in common. For example:

• Both can be used to save money for the long-term and both can earn interest. So you could use either one or both as part of a retirement savings strategy.

• You can open a Roth IRA or savings account at a bank and initial deposits for either one may be relatively low. Some banks also offer Roth IRA CDs, which are CD accounts that follow Roth IRA tax rules.

• Savings accounts and Roth IRAs held at banks are also FDIC-insured. The FDIC insures certain types of retirement accounts, including Roth IRAs, when those accounts are self-directed and the investment decisions are made by the account owner, not a plan administrator.

• It’s possible to open a savings account for yourself or for a child. Somewhat similarly, you can also open a Roth IRA for a child if they have income of their own but haven’t turned 18 yet.

When comparing the benefits of Roth IRAs vs. savings accounts, however, Roth accounts have an edge for retirement planning. Whether it makes sense to choose something like a high-yield savings account vs. a Roth IRA can depend on what you want to set money aside for.

Roth IRA vs Savings Account: Key Differences

To understand how savings accounts and Roth IRAs compare, it helps to look at some of the key differences between them.

	Roth IRA	Savings Account
Purpose	A Roth IRA is designed to save for retirement.	Savings accounts can fund virtually any short- or long-term goal.
Who Can Open	Taxpayers who are within certain income thresholds can open a Roth IRA.	Adults with valid proof of ID can open a savings account, regardless of income or tax status.
Interest	Money in a Roth IRA earns compounding interest based on the value of underlying investments.	Savings accounts earn interest at a rate set by the bank.
Tax Benefits	Roth IRAs grow tax-free and allow for tax-free qualified distributions, with no required minimum distributions.	Savings accounts don’t offer any tax benefits; interest earned is considered taxable income.
Contribution Limits	Roth IRAs have an annual contribution limit. For 2024 and 2025, the limit is $7,000 ($8,000 if you’re 50 or older.)	There are no contribution limits, though FDIC protection only applies to the first $250,000 per depositor, per account ownership type, per financial institution.
Withdrawals	Generally, you can’t withdraw earnings without paying a penalty before age 59 ½ (though there are some exceptions). Original contributions can be withdrawn at any time without a penalty.	Banks can limit the number of withdrawals you’re allowed to make from a savings account each month and impose a fee for exceeding that limit.
Risk	Investing money in a Roth IRA can be risky; you may lose money.	Your deposits are protected (up to the insured limit).

How to Decide If a Roth IRA or Savings Account Is Right for You

If you’re unsure whether to open a Roth IRA vs. a high-yield savings account, it’s helpful to consider your goals and what you want to do with your money.

You might decide to open a Roth IRA if you:

• Specifically want to save for retirement and potentially earn a higher rate of return

• Would like to be able to withdraw money tax-free to buy a home or pay higher education expenses (the IRS allows you to avoid a tax penalty for these distributions)

• Want to supplement the money you’re contributing to a 401(k) at work

• Expect to be in a higher tax bracket at retirement and want to be able to withdraw savings tax-free

• Don’t want to be required to make minimum distributions at age 72

On the other hand, you might open a savings account if you:

• Have a short- or medium-term goal you’re saving for

• Want a safe place to keep your money

• Are satisfied with earning a lower rate of return on savings

• Need to be able to keep some of your money liquid and accessible

• Aren’t concerned with getting any type of tax break for your savings

The good news is that you don’t have to choose between a high-interest savings account vs. a Roth IRA. You can open one of each type of account to save for both retirement and other financial goals.

The Takeaway

Opening a retirement account can be a smart move if you’d like to save money for your later years while enjoying some tax breaks. A Roth IRA could be a good fit if you’re eligible to open one and you’d like to be able to make tax-free withdrawals once you retire.

Having a savings account is also a good idea if you’re building an emergency fund, saving for a vacation, or have another money goal that is a few months or years away. Your deposits will earn interest and you’ll be able to easily access your funds (penalty-free) when you need them.

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

FAQ

Is it better to put money in savings or a Roth IRA?

A savings account can be better for setting aside cash you know you’ll need in the next few months or years. A Roth IRA, on the other hand, is better suited for saving for retirement, since it has greater growth potential (though returns are not guaranteed), while also providing tax benefits.

Should I use a Roth IRA as a savings account?

While you could use a Roth IRA as a savings account, you generally can’t access earnings on the account until age 59 ½ without paying a penalty. Another downside of using a Roth IRA as a savings account is that funds are typically invested for long-term growth. If you withdraw money in the short-term, you could lose money due to fluctuations in the value of your assets.

What is the downside of a Roth IRA?

One of the main disadvantages to a Roth IRA is that contributions are made with after-tax money, which means you don’t get a tax deduction in the years you contribute. Another drawback is that not everyone can take advantage of a Roth IRA, since there are income limits on contributions.

Also keep in mind that the maximum annual contribution to Roth IRA is relatively low compared with a 401(k). As a result, you will likely need other accounts to adequately save for retirement.

Can I move money from savings to a Roth IRA?

You can link a savings account to a Roth IRA to transfer funds. If you’d like to move money from savings to your Roth account, you’d just log into your brokerage account and schedule the transfer. Keep in mind that Roth IRAs do have annual limits on how much you can contribute.

Are Roth IRAs Insured?

The FDIC insures Roth IRAs held at banks when those accounts are self-directed, meaning the owner, not a plan administrator, directs how the funds are invested. The same FDIC insurance limits that apply to savings accounts apply to these Roth IRAs.

Photo credit: iStock/dima_sidelnikov

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.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
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.

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

SOBNK-Q424-093

Dec

2024

How Long Is a Check Good For? Do Checks Expire?

By Lauren Ward | Budgeting & Goals, money | Comments Off

A check is typically good for six months, but you may still be able to cash one after that time period.

Granted, checks are not as popular a payment method as they were in the past. (In fact, it’s estimated that check writing has decreased 75% since the year 2000, according to CNN.) But they are still a widely used method for transferring funds. So you may sometimes need to cash a check that’s been sitting for a while. If you have, say, a tax refund check or one that your aunt sent you for your birthday, you may still be able to cash it after a half-year has passed. Learn the full story here.

But is a check still good if it’s not cashed right away? Learn the answers here.

Key Points

• Paper checks typically expire six months after the issue date, although some may have shorter void dates set by the issuer.

• Treasury checks have a longer validity period, expiring one year after issuance, making them more flexible than personal or corporate checks.

• Certified and cashier’s checks do not have a strict expiration date but can become unclaimed property if not cashed, depending on state laws.

• Money orders do not expire but may incur fees if not cashed in a timely manner, and they can usually be replaced if lost.

• It is advisable to cash checks promptly to avoid complications; contacting the issuer for a reissue is necessary if a check is stale.

How Long Is a Check Good for?

Both corporate checks and personal checks technically expire six months after the issue date. (There may be alternate void dates written on the check, such as 90 days, but that’s more of the issuer’s preference rather than a rule that’s etched in stone.) After six months, a bank considers it a stale check and isn’t legally required to cash it.

Here’s one reason why checks have expiration dates: If you wait too long to cash a personal check, there’s a fair chance that the issuer won’t have enough money in their checking account to cover the outstanding check. If this happens, the check bounces, and you’ll likely be charged a fee by the bank.

But consider the following:

• Even if the check doesn’t bounce, the bank can refuse to cash it after the six-month mark. When that happens, you’ll generally need to reach out to the issuer and ask for another check. In that case, the issuer may ask you to return the first copy so they can properly void it.

• In a best-case scenario, the bank could still honor the check. They’re not required to do so after six months by federal law, but they may accept it depending on the circumstances and their policies..

Expiration Dates for Different Types of Checks

Here’s a closer look at how long different kinds of checks are usually good for.

When Do Corporate and Personal Checks Expire?

Business and personal checks are typically good for up to six months after the date written on them. After that point, they may be considered a stale or stale-dated check. However, a bank may still cash them; it’s at their discretion.

When Do Local and State Checks Expire?

Checks issued by local and state governments may have varying expiration dates. Typically, these fall between six months and a year. In many cases, the expiration date will be printed on the check.

When Do US Treasury Checks Expire?

Checks from the U.S. Treasury usually don’t expire until one year after the date it’s issued, so you usually have more time to consider when and how to deposit these checks. Common types of Treasury checks include federal tax refunds, Social Security benefits, and Veterans Affairs benefits. If these checks expire, follow these steps:

• In order to get an expired check reissued, you must contact the paying agency directly and go through the check claims process and appropriate paperwork.

• You can avoid expired U.S. Treasury checks completely by signing up for electronic direct deposit or opting for a direct express card (designed for people without bank accounts). For those who receive federal benefits, like Social Security, receiving payments electronically is required by law.

When Do Cashier’s Checks Expire?

When you receive a cashier’s check from someone, the funds have already been withdrawn from their personal bank account and transferred into an escrow account with the issuing bank. The money sits there waiting until you cash the check. The bank may still place a void date on the check and no longer guarantee the funds after that point.

If you miss your window of opportunity, the bank may transfer the money to the state as unclaimed property.

Cashier’s checks are usually reserved for large amounts of money. When someone pays you with this method, it’s generally smart to cash it as quickly as possible. Plus, it can be very difficult to replace a hard copy of a cashier’s check if you lose it.

When Do Money Orders Expire?

A money order is another secure form of payment, but the issuer doesn’t transfer funds from their bank account. Instead, they can use cash, a debit card, or traveler’s check to pay for it. The money order then gets assigned a cash value and can be cashed or deposited.

Money orders never expire, but, depending on the terms of the money order, there may be fees incurred if it is not cashed in a certain amount of time.

When Do Certified Checks Expire?

With a certified check, the issuer’s bank guarantees the funds, but they remain in the individual’s account until you cash the check or deposit it to your checking or savings account. However, the bank puts a hold on the correct amount of cash so there’s no risk of the account being overdrawn before you deposit that check.

Still, there’s no hard and fast expiration date for a certified check. The main concern is that eventually, the bank may hand over the funds to the state in your name as unclaimed property if you fail to cash the check. Each state has its own process for reclaiming those abandoned funds, which you may learn more about from the state’s unclaimed property office.

Alternatively, you can visit MissingMoney.com, a multi-state database which may help you find your unclaimed cash from certified checks and other sources.

When Do Traveler’s Checks Expire?

Traveler’s checks are a sort of check that assumes cash value without ever expiring. You may choose to use them while traveling abroad to avoid carrying around large amounts of cash. When you arrive in your destination country, traveler’s checks can be exchanged for local currency.

If you have unused travelers check, you have options, since they don’t expire. You can save them to be used on a future trip, you can use them domestically, or you might be able to deposit them into your bank account.

What Happens If You Deposit an Expired Check?

If you deposit an expired check, there are a few options regarding what might happen:

• The bank your account is held at might or might not accept it.

• The bank the check is drawn upon might or might not pay it.

• The check might bounce, and you’d have to pay related bank fees.

You might want to check with your bank’s customer service prior to depositing an expired check to avoid any surprises.

What to Do With an Old Check

It’s not uncommon to dig through a pile of unopened mail or a stack of papers and discover a check that you never cashed. What’s next in this situation? Consider these tips:

• If it’s been less than six months for a conventional check, you can likely cash it as usual. Treasury checks are good for up to a year. Mobile deposit can make getting the funds into your bank account quick and easy.

• If it’s past the expiration date, you may check with your traditional or online bank and see if they will honor it. If they believe the funds are available, they just might cash it.

• If the check cannot be cashed, you will likely have to contact the issuer and request a new check. You may need to return the expired check as part of this process.
If you are the issuer of the check and see that six months have gone by and your check hasn’t been cashed, you may try reaching out to the payee to see if the check has been lost or stolen. If that is the case or they just let it sit uncashed, you may stop payment on the original check and reissue it as your next step.

Recommended: How to Sign Over a Check to Someone Else

The Takeaway

It’s wise to deposit checks quickly once you receive them. As a general rule of thumb, the six-month mark represents the strictest timeline. Cashing or depositing any check before then can help avoid problems with a check getting stale. Checks from the U.S. Treasury Department have a little more leeway — a full year from the issue date.

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

FAQ

Why do checks have expiration dates?

Checks typically have an expiration date as a way to nudge the recipient to cash it sooner rather than later. When people hold onto uncashed checks, it makes it challenging for the issuer to know how much money they actually have in their account and keep their personal finances up to date. An expiration date, whether it’s six months or a year, can help them balance their books and not worry about someone cashing a check years later.

Can I cash an expired check?

It depends. Your bank may still cash a cash that’s past the expiration date if they believe the funds are available. But they do have the right to refuse it if six months have passed since the date it was issued or one year in the case of checks from the U.S. Treasury.

How can banks tell if a check is expired?

The date on the check tells you and your bank when the check was issued. A check typically expires six months after that date or, in the case of U.S. Treasury checks, a year later. Some companies print on their checks “void after 90 days,” but most banks will honor a check up to 180 days.

Can an expired check be reissued?

Yes, an expired check can likely be reissued. Contact the payor to request this.

Can you deposit a two-year-old check?

Yes, you can deposit a two-year-old check, but it may not be cashed. The bank could reject it or it could be returned unpaid since funds were not available.

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.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

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.

SOBNK-Q424-099

Dec

2024

12 High Income Skills to Learn

By Rebecca Lake | Building Your Career, Life & Career, money | Comments Off

Want to boost your earning power? High-income skills can translate to a bigger paycheck since employers or clients may be willing to pay a premium to workers who possess them. Generally, high-paying skills are specialized skills that are considered to be in demand. Here, you’ll learn about 12 high-paying job skills, from generative AI (artificial intelligence) to UX (user experience) know-how, that may be worth picking up. They can hold the potential to help earn more money and achieve your financial goals.

Key Points

• High-income skills like generative AI, data analysis, and UX design are in demand and can significantly boost earning potential.

• Learning new skills is essential for adaptability and job security in a rapidly changing job market.

• Specialized training, whether received through degree programs, online courses, or trade schools, is often required to acquire high-paying skills.

• Soft skills, including communication and problem-solving, are valuable and can lead to high-income positions.

• Freelancing and side hustles provide opportunities to apply high-income skills and increase earnings.

Why Learning New Skills Matters

Adaptability and the ability to learn can be invaluable, whether trying to land your first job or gig or one farther along in your career. Learning new skills can help you to better keep up with a changing job landscape. Here, some points to consider:

• Acquiring high-income skills could make it easier to stand out among the crowd when competing for positions or freelance gigs. You may have a more diverse range of job options to choose from. Your skills may also translate to a larger paycheck if they’re sought-after by employers or clients.

• Some of the highest paying jobs are in the computer and information technology fields. If you’re able to learn the skills needed to get those jobs, either as a full-time employee or a freelancer, that could substantially boost your lifetime earnings.

• Relevancy is also a factor. If you’re up to date on the latest high-paying skills that could make you much more valuable in an employer or client’s eyes. Should the company or client need to cut back on staffing, your job could be secure if you hold a skill set that your colleagues can’t match.

Recommended: 25 High-Paying Trade Jobs

15 High-Income Skills to Learn

The best high-income skills to learn are ones that can help you to increase your earnings while also doing work that you enjoy. Certain lucrative job skills may require a college degree to learn, while others can be acquired through online courses and certification programs. There are also skills you might be able to pick up without going to school.

Here are some of the best high-paying job skills to learn now, including remote job skills and tech skills, whether you are looking for a full-time or freelance job.

1. Artificial Intelligence (AI)

As you have likely heard, artificial intelligence, especially generative AI (aka GenAI), is a new technology that is transforming many fields. AI tools can enhance productivity and can be used in a variety of ways, from writing content for websites to providing customer service. One of the keys needs in this realm is to engineer prompts; that is, to fine-tune AI requests to get optimal feedback.

How Much Can Someone With AI Skills Make?

If you build AI skills, you might find a role as an AI developer (average base pay at the end of 2024 is $109,000) or an AI engineer (with a base pay of almost $133,000 on average). That could help you keep a competitive income flowing into your checking account.

What Education Do You Need?

Working with AI likely requires specialized training. This might be offered by a continuing education, professional skills, or trade school program, whether from a renowned university or a smaller organization. You may also find online courses from businesses like Coursera, which specialize in online learning.

2. Data Analysis

Another key skill to consider if you want to earn more is data analysis. Data plays a critical role in decision-making across an array of industries, and being able to gather, parse, and share data is a rising skill. There are many tools that can be part of succeeding at data analysis. Some may focus on working with programs such as Python, SQL, Tableau, or others.

How Much Can Someone With Data Analysis Skills Make?

With skills under your belt, you might expect to earn an average of about $85,000 base pay as a data analyst (who interprets data) to an average of almost $117,000 as a data scientist (who typically uses data to create predictive models). That could help you stash more money in your savings account or pay down debt.

What Education Do You Need?

You will likely need to build your skills. There are online courses, often ranging from four to 16 weeks, to start your education. These could be hosted by small, focused companies, local colleges, or high-profile universities, such as Harvard or Cornell’s online continuing education divisions. A data scientist will typically require a graduate degree.

3. SEO Skills

SEO, or search engine optimization, involves knowing how to structure website content in order to push it to the top of search engine rankings. This skill is in high demand, and businesses are willing to pay well for it. The reason: Higher search rankings can translate to more clicks and more purchases.

How Much Can Someone With SEO Skills Make?

It’s possible to find full-time SEO jobs, but you could also offer freelance SEO services if you’d like to be your own boss. The average annual pay for an SEO strategist is currently about $95,000.

What Education Do You Need?

Studying guides and information published by SEO experts can be a good starting point for learning more about this skill, and there are online courses as well, many of which provide certificates.

4. Cybersecurity

As so many aspects of our lives shift to digital realms, cybersecurity has been rising as a key need, for private individuals, enterprises, and the government. There has unfortunately been a significant uptick in online security breaches. These hacks can lead to sensitive data falling into the wrong hands as well as financial loss, bank fraud, and identity theft.

How Much Can Someone With Cybersecurity Skills Make?

Learning how to protect platforms and systems from these issues can be a valuable skill as well as one that can pay a competitive salary. According to the Bureau of Labor Statistics, the median pay for an information security analyst is approximately $120,000 per year.

What Education Do You Need?

Cybersecurity can involve training at such options as a trade school, continuing-ed program, or online academy to build skills. Certifications can be a valuable achievement as you gain deeper expertise. While you don’t necessarily need a college or postgrad degree, it can be helpful in opening doors to some paths in cybersecurity.

5. Copywriting

Copywriting involves creating written content that’s intended to inform, entertain, and/or persuade. Similar to email marketing, copywriters help businesses and brands to sell their products and services.

Some of the ways you could leverage high-income skills as a copywriter include writing website content, sales pages, marketing emails, sales brochures, or newsletters. Copywriting allows for further specialization if you’re focusing on a single niche. For example, you might write for petcare companies or companies in the beauty or wellness niche. If you cultivate a niche, copywriting can allow you to channel your personal interests (such as travel or fitness) into your work.

How Much Can Someone With Copywriting Skills Make?

The average salary for a copywriter is about $62,000, but the top 10% earn more than $121,000. Additionally, copywriting can be a pursuit that lends itself to gig work and freelancing, so it can be a way to bring in additional income.

What Education Do You Need?

Some people have an innate “way with words” and don’t need any specialized education to hold a job as a copywriter. Others may want to build their copywriting skills, which may be offered by a professional or continuing education school.

6. Software Development

Software developers create operating programs for computers and other devices. Keeping user needs in mind, they typically design, build, test, and then maintain software. They use a variety of skills and tools to do so, and may also create applications for mobile devices and computers.

How Much Can Someone With Software Development Skills Make?

According to the Bureau of Labor Statistics, software developers earn a median pay of about $120,000 per year, so this could be a good high-income skill to learn if you’re hoping to earn a six-figure salary.

What Education Do You Need?

Becoming a software developer starts with learning the basics of coding, which is something you might be able to do through a trade school or online coding bootcamp. Some of the skills you may need include knowledge of program languages Python, Java, JavaScript, and C++, among others.

7. Web Development

Web development is similar to software development, but the focus is on creating websites and web applications. Web developers need to be knowledgeable about programming languages like HTML, CSS, and JavaScript. They also have to be familiar with different website-building platforms, such as WordPress. A web developer may work with a web designer to create new sites for clients or redesign existing ones.

How Much Can Someone With Web Development Skills Make?

According to Ziprecruiter, typical pay for a web developer is around $93,000 in the U.S.

What Education Do You Need?

To learn web development, you’ll likely need to take an in-person or online course to start learning programming languages. There are likely many options, from those offered by coding academies to community colleges to universities professional studies divisions.

8. Project Management

Project managers oversee the completion of large-scale projects from start to finish, often in information technology (IT) or computer-related fields. The project manager’s primary duty is to help the company or client they’re working with achieve their end goals for the project.

How Much Can Someone With Project Management Skills Make?

According to the Bureau of Labor Statistics, the average salary of a project management specialist is just under $100,00 per year.

What Education Do You Need?

Project managers may require certain hard skills, such as coding knowledge, which can be learned via specialized training at, say, a trade school or via an online course. However, they can also utilize soft skills (more on those below), such as effective communication and the ability to direct a team.

9. UX Design

UX refers to user experience, or how a person interacts with a product or service. It’s an important element of websites and apps, as well as physical products and services. When consumers visit a website or log in to their favorite apps, they want them to be fast and easy to navigate. Likewise, when someone purchases something or signs up for an online service, they want it to function the way they’re expecting it to. UX design experts help to iron out the kinds to deliver the best user experience possible.

How Much Can Someone With UX Design Skills Make?

A UX designer can expect to make around $123,000 per year, according to Glassdoor.

What Education Do You Need?

User experience jobs can require specialized training, depending on whether UX design is delivered for a digital property or something more rooted in the offline world. You may need skills in the realm of information architecture, prototyping, and usability testing. These are typically learned via online courses, bootcamps, and certification programs, though there are also masters degree programs available.

10. Affiliate Marketing

Affiliate marketing means marketing another entity’s products or services and earning commissions each time someone makes a purchase. For example, a blogger who includes affiliate links to Amazon products in their web content might earn money if a reader clicks their links and buys something.

How Much Can Someone With Affiliate Marketing Skills Make?

If pursued as a full-time job, affiliate marketing typically earns a person about $82,000 per year. But affiliate marketing could be an ideal high-income skill to learn if you’re interested in generating passive income online or picking up some freelance work.

What Education Do You Need?

Affiliate marketing can typically be learned (at least the beginning stages) via online guides and courses.

11. Mobile App Development

Mobile apps are part of many people’s daily lives. They can offer convenience if you’re using them to log in to your online bank account or manage your investments. Other apps can provide entertainment if you’re using them to watch videos, play games, or listen to music.

Companies can hire mobile app developers to create apps and test them before releasing them to the market. It’s possible that you could even try moonlighting work, and create your own mobile app and sell it, in some cases building a six-figure business in the process. Or it could be your main gig.

How Much Can Someone With Mobile App Development Skills Make?

The current average salary for a mobile app developer is around $110,000, according to Ziprecruiter.

What Education Do You Need?

Mobile app development can be learned in a variety of ways, but one popular avenue is to take online courses at such platforms as Coursera, Udemy, and the like.

Recommended: 15 Low-Cost Side Hustles

12. Soft Skills

Soft skills are a diverse professional toolkit. They’re based on a different sort of knowledge that doesn’t involve learning how to code or develop software. Examples of high-paying soft skills include good communication skills, problem-solving skills, creative thinking, and time management skills. Employers and clients can value those skills just as much as some of the other high-income skills on this list. These skills can be used in high level administrative, coordinator, and management positions.

How Much Can Someone With Soft Skills Make?

While there’s no single skill to cultivate or average salary to cite, these capabilities can help propel a person to a high-income position.

What Education Do You Need?

Building soft skills doesn’t typically require formal coursework. You may find books and podcasts by respected experts that can help you cultivate some of these skills.

Recommended: Life Skills That Can Help You Save Money

What Will Be the Highest-Paying Skills in 2025?

There isn’t one single skill that is destined to pull in major money in 2025. For instance, one person might make loads of money via affiliate marketing due to excellent instincts or having a product go viral, while another person might earn a minimal amount at the same pursuit.

However, a review of an array of sources finds that most say that AI, coding, and data analysis will be very valuable skills to have in the year ahead.

Tips for Developing High-Paying Skills

There are several options for learning the high-paying job skills you might need to succeed. Which one you choose can depend on the skills you want to learn and how much you know about them already. Some of the possibilities for developing high-income skills include:

Completing a two- or four-year degree program at a college or university

• Attending a trade school

• Utilizing online resources, like YouTube or blogs

• Taking paid online courses and earning certifications that are independent of a degree program

• Applying for internships or freelance jobs that could allow you to learn the skills you need

• Asking someone who already possesses your desired skill set to act as your mentor

• Working with a professional coach to help you develop your skills

Some of these options cost money; others don’t. If you’re on a tight budget, then you might want to start with free resources like well-rated YouTube tutorials. After that, you could consider what kind of investment you might want to make in a paid course or degree program.

Trade school can be more affordable than a four-year college or university for learning certain skills. Web development and coding are just two of the high-paying skills you could brush up on. Community colleges and continuing ed programs at universities may also offer affordable classes that will allow you to develop your talents.

If you’re considering applying high-income skills to start a freelance business, it’s also a good idea to give some thought to the financial side. Financial planning for freelancers includes things like budgeting for irregular income, learning how to set your rates, filing taxes, and saving for retirement.

The Takeaway

If your goal is to earn more money, learning some new high-income skills can definitely be worthwhile. From generative AI to UX design to copywriting, there are many avenues to pursue as you build expertise that can help you earn more money.

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

FAQ

What high-income skills can you learn in college?

Depending on what classes a college offers, a student might learn about AI, data analysis, coding, web development, UX, and other high-income skills. Also, many colleges offer online courses or continuing education programs in these topics.

What high-paying skills can you learn for free?

Many of the skills that are high-paying can be learned for free, but it can be wise to make sure that free sources you may use (such as downloadable guides, YouTube videos, and the like) are from respected and reliable sources and have good reviews.

What is the easiest high-income skill to learn?

Determining the easiest high-income skill to learn is typically a matter of “it depends.” So much varies from person to person. One person might be a “natural-born” writer and thrive as a copywriter; another might find that they really spark to data analysis and can whip through a course on the topic.

Photo credit: iStock/nensuria

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.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

SOBNK-Q424-068

Dec

2024

What Is the Better Business Bureau (BBB)?

By Rebecca Lake | money | Comments Off

The Better Business Bureau (BBB) is a private, nonprofit organization that’s focused on advancing marketplace trust. The BBB offers accreditation to businesses along with a ratings system, which consumers can use to determine how likely a business is to respond to complaints.

Many people use the BBB to check on a business’s trustworthiness or to file complaints about a company. Though you might not give much thought to how the Better Business Bureau works behind the scenes, it can play a role in influencing which companies consumers choose to do business with.

Read on to learn more about what the Better Business Bureau is and what it means it means if a company has a poor score with the BBB.

Key Points

• The Better Business Bureau (BBB) is a private, nonprofit organization that works to advance marketplace trust.

• The BBB offers business accreditation and a ratings system to help consumers assess a company’s reliability.

• They maintain profiles for over 5.3 million businesses and roughly 12,000 charities.

• Ratings range from A+ to F, based on business and complaint history.

• Accreditation requires meeting standards of trust, including transparency and integrity.

What Is the Better Business Bureau?

The Better Business Bureau is a private, nonprofit organization that was founded in 1912 and is not affiliated with any government agency. The primary mission of the BBB is to help consumers identify trustworthy, reliable businesses. The group currently offers free, verified, and unbiased information on more than 5.3 million businesses in the U.S. and Canada at BBB.org. They also maintain profiles on roughly 12,000 charities on their site.

The BBB brand is represented by multiple entities, including the International Association of Better Business Bureaus and the BBB Wise Giving Alliance. The former represents local BBBs that operate in the United States, Mexico, and Canada. The latter focuses on helping donors make informed decisions when giving to charity.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

How Does the Better Business Bureau Work?

The Better Business Bureau works to help educate consumers about businesses and charitable organizations. The BBB accomplishes that goal by:

• Maintaining profiles for accredited and non-accredited businesses

• Publishing ratings for individual businesses and charities

• Offering accreditation for businesses

If you want to learn more about a company, you can search for it on the BBB website. You can then read the business’s profile to learn how the BBB rates it and what other consumers are saying about it.

The BBB ratings range from A+ to F, which represent the highest and lowest ratings respectively. Ratings are determined using information the Better Business Bureau is able to collect about the business through direct and indirect sources, including complaints issued by the public.

BBB ratings are based on these factors:

• Type of business

• Time in business

• Business’s complaint history with the BBB

• How transparent the business’s practices are

• Failure to honor BBB commitments

• Licensing and government actions known to the BBB

• Advertising issues known to the BBB

If there’s insufficient information available about a business, then the BBB won’t rate it. The BBB also states that ratings aren’t a guarantee of how reliable a business is. In other words, even if a company has an A+ rating, that doesn’t mean you won’t have any issues.

Recommended: 8 Common Bank Scams and How to Avoid Them

What Does It Mean If a Company Is Accredited?

BBB accreditation means that a business meets Better Business Bureau standards for trust and reliability. In order for a business to become BBB-accredited, they must agree to:

• Build trust by having a positive track record in the marketplace

• Advertise honestly and tell the truth in interactions with consumers

• Be transparent in sharing information with the BBB

• Honor promises or commitments made to the BBB

• Be responsive in addressing consumer complaints or disputes submitted through the BBB

• Safeguard consumer privacy

• Act with integrity at all times

Businesses do not have to become BBB-accredited, but choosing to do so may help to build trust with consumers. There is a fee for BBB accreditation, which varies based on the size of the business.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

What Happens If a Company Has a Poor BBB Grade?

A poor Better Business Rating can indicate that a company or business has a history of negative consumer complaints and that those complaints may not have been resolved favorably. When you search for a company’s profile, you’re able to read any complaints filed and see what consumers are saying. You can also see if the business has responded to those complaints and how they were resolved.

The BBB also collects information on any regulatory violations the business has been involved in. If someone in a business has been convicted of a criminal offense in connection with business operations, that may be listed with the BBB as well. Generally, however, the BBB does not publish information about any private lawsuits a company may be involved in.

Does the BBB Collect Information About Banks?

Yes, the Better Business Bureau does collects information about banks, which can be helpful if you’re interested in opening a new bank account. For example, you might use BBB ratings to compare small banks vs. large banks or traditional banks against online banks.

In terms of how financial institutions are governed, the BBB does not play a role. Instead, that’s left to the Office of the Comptroller of the Currency (OCC), a federal government entity that’s an independent bureau of the Department of the Treasury.

The OCC oversees and regulates chartered banks across the country. The BBB cannot step in and mediate any issues.

If you’re interested in taking a closer look at complaints involving banks, you can also check the Consumer Financial Protection Bureau (CFPB) consumer complaint database .

The Takeaway

The Better Business Bureau can be a great place to look for information when you want to learn more about how a business operates. While the BBB never recommends or endorses any business or charity, you might use their ratings and reviews as a starting point for deciding which companies you want to do business with, as well as when you’re looking for a new banking partner.

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

FAQ

Can I use the BBB to find a bank?

The BBB publishes profiles for retail, commercial, and investment banks, so you could use it to find a new place to keep your money. While the BBB doesn’t guarantee how a bank will operate, it does provide a record of its trustworthiness and transparency.

Do I need a business or checking account?

The difference between a business vs. checking account is fairly simple. Business accounts are designed to hold funds for business purposes, while personal checking accounts are for personal use. The type of account you need can depend on whether you run a business or not. If you do, it may be helpful to have one of each in order to keep your finances separate.

Can I use the BBB to find a financial advisor?

Yes, the BBB can help you find an accredited financial services company in your area. Just keep in mind that the BBB does not guarantee the quality of services you’ll receive from any business. Also, when thinking about hiring a financial professional, it’s important to consider what you need and how much you’re willing to pay for those services.

Photo credit: iStock/MicroStockHub

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.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
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.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SOBNK-Q424-080

11 Ways to Make Money While You Drive

What to Consider Before Using Your Car to Make Money

11 Ways to Earn Money by Driving

1. Ridesharing

2. Food Delivery Service

3. Delivering Groceries

4. Delivering Goods to Others

5. Moving Large Items for Others

6. Shuttling Children

7. Transporting Elderly People

8. Driving Tours

9. Putting Advertising on Your Car

10. Renting Out Your Car

11. Being a Safe Driver

The Takeaway

FAQ

What are the pros of making money while driving?

What are the cons of making money while driving?

Is making money with your car better as a side hustle?

How much can you potentially earn with your car?

Roth IRA vs. Savings Account

What Is a Savings Account?

Types of Savings Accounts

Pros and Cons of Using a Savings Account for Retirement Savings

Get up to $300 when you bank with SoFi.

What Is a Roth IRA?

Pros and Cons of Using a Roth IRA for Retirement Savings

Similarities Between a Roth IRA and a Savings Account

Roth IRA vs Savings Account: Key Differences

How to Decide If a Roth IRA or Savings Account Is Right for You

The Takeaway

FAQ

Is it better to put money in savings or a Roth IRA?

Should I use a Roth IRA as a savings account?

What is the downside of a Roth IRA?

Can I move money from savings to a Roth IRA?

Are Roth IRAs Insured?

How Long Is a Check Good For? Do Checks Expire?

How Long Is a Check Good for?

Expiration Dates for Different Types of Checks

When Do Corporate and Personal Checks Expire?

When Do Local and State Checks Expire?

When Do US Treasury Checks Expire?

When Do Cashier’s Checks Expire?

When Do Money Orders Expire?

When Do Certified Checks Expire?

When Do Traveler’s Checks Expire?

What Happens If You Deposit an Expired Check?

What to Do With an Old Check

The Takeaway

FAQ

Why do checks have expiration dates?

Can I cash an expired check?

How can banks tell if a check is expired?

Can an expired check be reissued?

Can you deposit a two-year-old check?

12 High Income Skills to Learn

Why Learning New Skills Matters

15 High-Income Skills to Learn

1. Artificial Intelligence (AI)

How Much Can Someone With AI Skills Make?

What Education Do You Need?

2. Data Analysis

How Much Can Someone With Data Analysis Skills Make?

What Education Do You Need?

3. SEO Skills

How Much Can Someone With SEO Skills Make?

What Education Do You Need?

4. Cybersecurity

How Much Can Someone With Cybersecurity Skills Make?

What Education Do You Need?

5. Copywriting

How Much Can Someone With Copywriting Skills Make?

What Education Do You Need?

6. Software Development

How Much Can Someone With Software Development Skills Make?

What Education Do You Need?

7. Web Development

How Much Can Someone With Web Development Skills Make?

What Education Do You Need?

Student Loan
Refinancing

Personal
Loans

Online
Investments