Bank Account Fraud: What Can a Scammer Do With Your Bank Account and Routing Number?

What Can Someone Do With Your Bank Account and Routing Number?

If someone has access to both your bank account and routing number, they could make fraudulent ACH transfers and payments out of your account. In other words, you could wind up being scammed.

That’s why it’s so important to understand this aspect of your personal finances and protect your money. Read on to learn what happens if someone has your bank account number and routing number, what the risks are, and how to protect yourself.

Key Points

•   If someone has your bank account and routing number, they can make fraudulent ACH transfers and payments from your account.

•   Your bank account number alone is not enough for someone to withdraw money from your account.

•   Scammers can use your bank account and routing number to commit ACH fraud, make online purchases, deposit money for illegal activities, and create fraudulent checks.

•   If someone has your bank numbers and is using them fraudulently, you should contact your bank, report the fraud to credit reporting bureaus and the police, and monitor your account closely.

•   To protect yourself, be cautious with sharing your banking information, use strong passwords for online banking, and limit the use of paper checks.

What Happens If Someone Has Your Bank Account and Routing Number?

The short answer: Real damage. The combination of a bank account and routing number is a dangerous combo that scammers want. And those two numbers are fairly accessible. Think about how often these numbers get circulated: every time a check is written, cashed, signed over to someone else.

Here’s what can happen if they fall into the wrong hands.

ACH Fraud

With both those precious numbers, crooks could commit fraudulent automated clearing house (or ACH) transfers and payments. You’re probably used to seeing those ACH letters on your banking details when you set up automatic monthly payments and the like. When a scammer has your bank account and routing numbers, they could set up bill payments for services you’re not using or transfer money out of your bank account.

It’s tough to protect these details because your account number and routing number are printed right at the bottom of your checks. But do your best. Some pointers:

•   Don’t leave your checkbook lying around.

•   If you are mailing a check, wrap it in a sheet of blank paper so the numbers don’t show as it’s in transit.

•   Pay attention to bank statements. Review them often to see if there are any fishy transactions happening.

•   Protect yourself when online banking by using strong passwords. That password is a primary defense. If a thief has your bank and routing numbers and somehow manages to get access to your login name and password, big trouble may be on the horizon.

•   Don’t make your password something obvious like your name, pass1234, or numbers that may be circulating in cyberspace, like your birthday which can be seen on Facebook.

Online Shopping

Know that all online retailers aren’t equal in terms of security measures. Some will allow people to make a purchase with bank account information alone, while others will also ask for a driver’s license or other state identification to add an additional layer of protection.

So what can a scammer do with your bank account number and routing number? They can find sites that let them shop with only that information. and could run up a tab.

Depositing Money

While it might seem like a dream come true if a mysterious sum of money appeared in your bank account, you should be more alarmed than overjoyed. Somebody who has your account and routing number may be using your digits to facilitate their illegal shenanigans (such as the kind of bank fraud known as money laundering). Report unusual deposits immediately.

Create Fraudulent Checks

Unfortunately, scammers can create fake checks using your checking numbers, and then those fake checks to pay for purchases (not every payee will verify a check) — or simply cashing them. Know, too, that with technology scammers could digitally scan the check and deposit the amount into their bank account.

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What Can Someone Do With Your Bank Account Number Alone?

Many of us wonder, “What can someone do with my bank account number?” The good news is, if someone has only your bank account number, that won’t give them enough intel to do any damage. It’s not the same as a scammer obtaining your credit card digits. No one will be able to withdraw money from your personal bank account if all they have is your account number.

For those who may not know the difference between a bank account vs. a routing number, here’s the scoop:

•   Your bank account number is the unique string of digits that identifies your particular account at a financial institution. Even if you have, say, multiple accounts at a bank, each will have its own distinct account number.

•   Your routing number is the series of numerals that identifies your financial institution, or where the account is held.

Just because your bank account number alone doesn’t make you vulnerable doesn’t mean that you shouldn’t protect it. You should. If a scammer had your account number and other info — perhaps your driver’s license number and/or your home address — they might be able to make illegal purchases online. So it pays to be vigilant.

Routinely monitoring your account activity — say, once a week — is a smart move that allows you to quickly detect if anything is awry.

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What to Do When Someone Has Your Bank Numbers

As careful as you try to be, stuff happens. What if someone has your bank account number and routing number? What if you see signs that they are using it for fraudulent transactions? Knowing how to report identity theft can help mitigate a bad situation. Have a strategy in place, just in case. Here’s some advice.

Contact Relevant Agencies

If you have the misfortune of being victimized, here’s what to do:

•   Contact your bank the minute you realize it. You need to notify your bank within 60 days of your statement to avoid paying for unauthorized ACH transactions. The bank’s fraud department will work to help you get unauthorized charges reversed.

•   Report the fraud to the fraud department of all three credit reporting bureaus, Equifax®, Experian®, and TransUnion®.

•   File a report with your local police department.

•   Also file a report with the Federal Trade Commission’s department that deals with identity theft.

Your to-do list doesn’t end there. You’ll want to be a stickler about monitoring your bank account to look for any signs that someone else is abusing your account. Be proactive and ask your bank about setting up text messages or push notifications every time a transaction is posted. This will help you keep track of what’s going on with your money.

Much as you may not be a paper person, when you’re a victim of bank fraud, documentation matters. You want copies of bank statements, a copy of the police report, your credit report, and any other relevant materials.

Cancel Your Account

As much as it’s a hassle, you need to get a new account number to replace the compromised one. Call your bank’s customer service number, contact a rep by chat, or, if you use a traditional vs. online bank, go to your local branch. Explain your situation, and take steps to get your assets transferred to a new bank account, get new checks printed, and get a new debit card if needed to safeguard your cash.

Tips on Avoiding Bank Fraud

There are no absolutes in life, but there are steps you can take to protect yourself as much as possible.

•   You can get an identity theft protection service to monitor your bank accounts and alert you to any funny business, be it suspicious withdrawals or information changes.

•   When shopping online, use a credit card (it offers more protection than say a debit card), prepaid card, or a money transfer app instead of typing in your account and routing numbers.

•   Be stingy with your banking information to avoid bank scams. Know that less is best when it comes to sharing info.

•   Go for multi-factor authentication when banking online. If you have linked bank accounts and credit or debit cards to online platforms, absolutely sign up for additional verification in order for purchases to go through. It’s like a forcefield around your account.

•   It can be wise to limit your use of paper checks to only those things where an alternate form of payment is a hassle. Remember your checks are a gold mine of personal information, with your address, account and routing numbers.

The Takeaway

In today’s world, it pays to keep close tabs on your bank accounts and related numbers. Having your bank account and routing number can allow scammers to do damage in a variety of ways, from unauthorized ACH payments to fake checks. By protecting these digits and setting up other safeguards, you’ll minimize the odds of your falling victim to these wily thieves.

While on the topic of banking, it’s wise to make sure your financial institution is a good fit and offers the services and perks that suit you best.

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 3.80% APY on SoFi Checking and Savings.

FAQ

Which bank details should I keep secret?

Protect your bank account and routing numbers to avoid having scammers siphon money away from you. Setting up two-factor authentication for online transactions can help protect you, too. It goes without saying that no one except you should know your username, password, and security questions. Also shred financial documents that you don’t need.

Is it safe to give out your account details?

Share your banking information sparingly, especially online. At most, share a few key points with a trusted friend or family member, and only punch your details into secure websites (look for the “https” at the beginning of the url and the padlock symbol) — though even those aren’t 100% scam-proof.

Can I give out my routing number?

A bank routing number in and of itself reveals very little. After all, it’s a nine-digit code used by financial institutions to identify other financial institutions. It’s very much public information and only becomes a risk factor when paired with other personal details.

Can someone steal your money with your bank account number?

Typically, a scammer would need more than just a bank account number to steal your money, but routing numbers are easily found. With those two pieces of information, a crook could use those numbers for online purchases or to otherwise defraud you.


Photo credit: iStock/AJ_Watt

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 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 Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% 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 Eligible 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 an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% 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 Eligible 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 Eligible 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 Eligible 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 Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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What Are the Different Types of Income?

What Are the Different Types of Income?

You may think of your income as being your paycheck or your freelance earnings, but there are actually many different types of income. If you have stocks that are generating dividends, that’s income, as is interest you earn on any savings accounts. Do you own a rental property that has rent payments flowing your way? That’s income, too.

Here, you’ll learn about seven common types of income and how they may affect your financial life.

Key Points

•   Income refers to money earned from labor, investments, or other sources, and can be categorized as earned, business, interest, dividend, rental, capital gains, or royalty income.

•   Earned income includes wages, salaries, tips, and bonuses, while business income is generated from products or services provided by a business.

•   Interest income is earned from interest-bearing financial vehicles like CDs or savings accounts, and dividend income comes from stock dividends.

•   Rental income is earned from property rentals, and capital gains are realized when selling assets for more than their purchase price.

•   Royalty income is earned from allowing others to use your property, such as patents or copyrighted work.

What Is Income?

Simply put, income is money that a person or business earns in return for labor, providing a product or service, or returns on investments. Individuals also often receive income from a pension, a government benefit, or a gift. Most income is taxable, but some is tax-exempt from federal or state taxes.

Another way to think about income types is whether it is active (or earned) or passive (or unearned).

•   Active or earned income is just what it sounds like: money that you work for, whether you are providing goods or a service.

•   Passive or unearned income is money you receive even though you are not actively doing anything to get it. For instance, if you have a certificate of deposit (CD) that earns you interest, that is passive income. Government benefits, capital gains, rental income, royalties, and more are also considered passive income. (We’ll go through these variations in more detail in a minute.)

People who are paid a salary may tend to think that their annual paycheck earnings are their income, but in truth, it’s common for many people to have multiple income streams. Granted, your salary may be by far the largest stream of income, but when considering your overall financial picture, don’t forget to think about the other ways that money comes to you.

💡 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.

Different Types of Income

Now that you know the answer to “What is income?” question, here’s a look at the various kinds of Income. These are usually categorized as seven different types of income (though these may also be called income streams).

1. Earned Income

Earned income is the money you earn for work you do, either in a job or self-employed. Earned income includes wages, salaries, tips, and bonuses.

Earnings are taxed at varying rates by the federal and state governments. Taxes may be withheld by your employer. Self-employed workers often pay quarterly and annual taxes directly to the government. Low-income workers may be eligible for the earned income tax credit.

2. Business Income

Next up: What is business income? This is a term often used in tax reporting; you may sometimes also hear it referred to as profit income. It basically means income received for any products or services your business provides. It is usually considered ordinary income for tax purposes.

Expenses and losses associated with the business can be used to offset business income. Business income can be taxed under different rules, depending on what type of business structure is used, such as sole proprietorship, partnership, corporation, etc.

3. Interest Income

When you invest in various types of interest-bearing financial vehicles, the return is considered interest income. Retirees often rely on interest income to fund their retirement. You can earn interest from a variety of sources including:

•   Certificates of deposit (CDs)

•   Government bonds

•   Treasury bonds and notes

•   Treasury bills (T-bills)

•   Corporate bonds

•   Interest-bearing checking accounts

•   Savings accounts.

In most cases, interest income is taxed as ordinary income. Some types of interest are fully taxable, while other forms (such as interest from Treasury bonds) are sometimes partially taxable.

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4. Dividend Income

Some companies pay stockholders dividends as a way of sharing profits. These are usually regular cash payments that investors can take as income or reinvest in the stock. Dividend income is one of the most common ways investors can make money from stocks. (Worth noting: Money-market funds distributions may seem like interest, but they are usually considered dividends.)

Dividends from stocks held in a taxable brokerage account are considered taxable income. These funds will be taxed at your regular income-tax rate or as a long-term capital gain. By contrast, dividends that are paid from a stock held inside a tax-advantaged savings account such as an IRA or 401(k) are not taxed.

5. Rental Income

Just as it sounds, rental income is income earned from rental payments on property you own. This could be as straightforward as renting a room in your house or as complicated as owning a multi-unit building with several tenants.

Rental income can provide a steady stream of passive vs. active income. It may enhance your livelihood or even be your main income. When your rental property increases in value, you may also gain from that appreciation and increase in equity. In addition, rental income qualifies for several tax advantages, including taking depreciation and some expense write-offs.

But there are downsides. Owning a rental property isn’t for the faint of heart. Unreliable tenants, decreasing property values, the cost of maintaining and repairing properties, as well as fees for rental property managers can all take a bite out of your rental income stream.

6. Capital Gains

Another important income stream can come from capital gains. You incur a capital gain when you sell an asset for more than what you originally paid for it. For the purposes of capital gains, an asset usually means an investment security such as a stock or bond. But it can also encompass possessions such as real estate, vehicles, or boats. You calculate a capital gain by subtracting the price you paid from the sale price.

There is another key point to know on this topic: Two types of capital gains are possible — short-term and long-term.

•   Short-term capital gains are realized on assets you’ve held for one year or less.

•   Long-term capital gains are earned on assets held for more than a year.

The tax consequences are different for each type of capital gain. Short-term gains are taxed as ordinary income, while long-term capital gains are taxed at a lower rate depending on income. Taxpayers could typically pay 0%, 15%, or 20% on long-term capital gains, depending on their income.

Keep in mind, however, that capital losses can happen too. That’s when a capital asset is sold for less than the purchase price. While it’s never pleasant to experience losses, there can be a small silver lining in this case. Many times capital losses can be taken as a tax deduction against current and/or future capital gains.

7. Royalty Income

Royalty income comes from an agreement allowing someone to use your property. These payments can come from the use of patents, copyrighted work, franchises, and more. An example or two:

Inventors who sell their creations to a third party may receive royalties on the revenue their inventions generate. Celebrities often allow their name to be used to promote a product for royalty payments. Oil and gas companies pay landowners royalties to extract natural resources from their property. The market for music royalties has been particularly lucrative in recent years with the proliferation of music streaming services.
Royalty payments are often a percentage of the revenues earned from the other party using the property. Many things impact how much royalty is paid, including exclusivity, the competition, and market demand. How royalty payments are taxed can also vary, depending on the type of agreement.

Now that you’ve reviewed the seven different types of income, you may be wondering, “What about residual income?” That’s a term that doesn’t actually describe money that’s heading your way. Instead, think of that as the amount of your income left over after you’ve paid your financial obligations. It’s similar to discretionary income. Unfortunately, it’s not another way to enrich your bank account.

Recommended: 10 Personal Finance Basics

The Takeaway

Understanding the seven general income streams (such as earned, dividend, and rental income) can help you make the most of your financial planning. Earning income from any of these sources can add stability and help achieve long-term goals, such as saving for retirement. Because some types of income have unique tax implications, it can be important to check with your tax advisor about any tax consequences that may exist.

Aside from earned income, it’s likely that interest is the kind of income most people receive. And seeking out the best possible interest rate can be a solid way to enhance your money; looking for a high-yield bank account may be a good place to start.

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 3.80% APY on SoFi Checking and Savings.


Photo credit: iStock/Selcuk1

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 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 Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% 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 Eligible 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 an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% 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 Eligible 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 Eligible 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 Eligible 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 Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Changing Student Loan Repayment Plans: Understanding Your Options

Like many Americans, you likely are carrying some student loan debt. While in an ideal world, you’d pay that debt off quickly, we all know that the real world often brings unpleasant financial surprises, unemployment, and drops in disposable income.

If you’ve suffered financial setbacks and are struggling to pay your student loans, you might be exploring options to change your repayment plan, especially now that the suspension of payments that was offered during the pandemic is over.

Will interest rates go up on student loans in 2024? It’s anyone’s guess. But if they do, that could impact how much you pay for your student loan if you refinance or change the repayment plan.

Before you take action, let’s dive deeper into your student loan repayment plan options.

Student Loan Repayment Plan Options

The U.S. Department of Education has several repayment plans for student loan debt that are based on income and family size. If your financial situation has changed since you started paying your loan years ago, you might benefit from changing the repayment plan if you qualify for another type.This could help you have a smaller monthly bill for your student loan debt or pay less in interest over the life of the loan.

Types of student loan repayment plans include:

Standard Repayment Plan

The Standard Repayment Plan is the default plan you were given when you completed your studies and started paying on your loan. The student loan interest rates you’re paying may be fixed or variable, but the plan is set up so that you’ll pay your loans off within 10 years.

The amount you pay each month isn’t based on income or any other factors. If your income hasn’t dipped since you first started paying your loan, this might be your best repayment plan option.

Income-Based (IBR) Repayment Plan

If you have seen a drop in your income, you might be eligible for an income-based repayment plan. To qualify, you’ll need to meet income requirements based on your income and the number of people in your household.

If you qualify, your monthly payment will be 10% of your discretionary income if you’re a new borrower on or after July 1, 2014, and you’ll pay the loan over 20 years.

Income-Contingent (ICR) Repayment Plan

Though the income-contingent plan is similar to the IBR plan, there are differences. With the ICR plan, you will pay the lesser of either 20% of your discretionary income each month, or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted to your income. The ICR plan lasts 25 years, and you must also meet criteria in your income and family size to qualify.

Pay As You Earn (PAYE)

With the Pay As You Earn plan, you will typically pay 10% of your discretionary income and never more than the 10-year Standard Repayment plan amount. This plan lasts 20 years.

Again, there are requirements about how much you can make to qualify.

Saving on a Valuable Education (SAVE) Repayment Plan

The Revised Pay As You Earn (REPAYE) repayment plan has been replaced by the Saving on a Valuable Education (SAVE) Plan. You’ll need to prove eligibility of your income and family size.

With this plan, you’d pay 10% of your discretionary income toward your student loan debt each month over 20 years if all the loans were for undergraduate study and 25 years if any of them were for graduate or professional study.

Recommended: What Student Loan Repayment Plan Should You Choose? Take the Quiz

Can You Change Your Student Loan Repayment Plan?

With rising student loan interest rates and a higher cost of living, you may find it difficult to continue paying your monthly student loan. If your income has dropped, you may be able to change your student loan repayment plan to one of the plans discussed above.


💡 Quick Tip: When rates are low, refinancing student loans could make a lot of sense. How much could you save? Find out using our student loan refi calculator.

How Often Can You Change Your Student Loan Repayment Plan?

There’s no cap on how many times you can change your student loan repayment plan. Be aware, though, that every time you do, the interest rate and amount you pay may change. This could be to your advantage if interest rates are low, but if they aren’t, you could end up paying more for your student loan if you change your repayment plan again and again.

Also, reducing your monthly payment may extend the number of years you pay on your loan, which means you’ll pay more in interest the longer you take to repay it. With a 10-year repayment plan, for example, you’d pay less in interest overall than you would with a 25-year plan.

How to Change Your Student Loan Repayment Plan

To change your student loan repayment plan, start by reviewing the income requirements for the repayment plans discussed above. You can also use the Department of Education’s Loan Simulator Tool to find the best repayment strategy.

Once you’ve determined which repayment plan you think is best, log into your student loan provider’s website. There should be information there to help you apply for the student loan repayment plan of your choice.
You may be required to provide proof of income, and you may need to recertify each year to continue with the plan once you’ve been approved.

Your application to change your repayment plan may take some time, so be prepared to continue to pay the previous monthly amount until it is approved. And remember: even if you have an income-based student loan repayment plan, you can always pay extra to pay off your debt faster.

Other Options for Lowering Your Student Loan Payment

There are a few drawbacks to trying to change your student loan repayment plan. The first is if you have private student loans, they won’t qualify for repayment plans offered by the U.S. Department of Education. Repayment plans are reserved for federal student loans only.

The second is if you make too much money, you may not be able to qualify for an income-based repayment plan based on your income and family size. You may still struggle to make those payments, and that could put your credit at risk if you miss a payment or two.

And finally, if you have more than one student loan, juggling multiple payments and paying several different interest rates can be stressful, and you may feel like you’ll never pay them all off.

If you identify with one of these scenarios, one option is to refinance your student loans. Whether you have private or public loans, refinancing them with one new loan helps you drop down to just one monthly payment and one interest rate. Ideally, you’ll pay less in interest overall and be able to pay off your student debt faster.

Keep in mind, though, that if you refinance federal student loans, you lose access to federal benefits, including income-based repayment plans and student loan forgiveness. Make sure you aren’t currently using or planning on using federal benefits before refinancing.


💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

More Student Loan Refinancing Tips

Take control of your finances by choosing the best strategy to pay off your student loans faster. SoFi’s got refinancing options that can help you fast-track to paying off that debt in a flash.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can I change my repayment plan for student loans?

Yes, you can change your repayment plan for student loans by consolidating your loans, refinancing them, or choosing an income-based repayment plan if you qualify. Keep in mind that income-based repayment plans are reserved for federal student loans only.

Can you change your loan repayment plan at any time?

Yes, there’s no limit to how many times or when you can change your student loan repayment plan.

Can I switch IDR plans?

As long as you qualify for a different income-based student loan repayment plan, you are able to switch plans at any time.


Photo credit: iStock/AlexSecret

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

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers.
Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).


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.

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Paying Off Student Loans as a Single Parent

March 26, 2025: The SAVE Plan is no longer available after a federal court blocked its implementation in February 2025. However, applications for other income-driven repayment plans and for loan consolidation are available again. We will update this page as more information becomes available.

Almost one quarter of American children are being raised in a single-parent household, according to the US Census Bureau, Almost 80% are headed by single mothers.

As you might guess, single-parent households may have less financial resources than those with two parents. And if you’re trying to make ends meet for yourself and your child (or kids), it can be hard to stick to your student loan payment plan.

So how can you pay off your student loans as a single parent? This guide can help. You’ll learn about many of the options available. The information you’re about to read can help you make the best choice for handling student loans.

What Are Student Loans?

A student loan is money you borrow for educational expenses, which you must pay back with interest. Loans are unlike scholarships, which are “free money” that you don’t have to pay back.

There are two main types of student loans: federal and private loans.

•   Federal loans: Federal student loans are loans that you borrow from the federal government, or the Department of Education, to pay for college.

◦   Subsidized student loans are awarded on the basis of student need. The government absorbs some of the interest payments on the loan, making it a better deal for students. Typically, the borrower begins to pay these loans back after a six-month grace period post-graduation.

◦   Unsubsidized loans, on the other hand, don’t involve the government shouldering some of the interest payments, and interest can begin to accrue while the student is in school.

•   Private loans: Private loans come from private organizations, such as banks or credit unions. Interest rates are often determined by creditworthiness, which can make them more or less affordable than federal loans depending on your situation.


💡 Quick Tip: Often, the main goal of student loan refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing makes sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections.

Student Loan Solutions for Single Parents

The most important thing to remember is that you have several options as a single parent when deciding how to handle student loans. Below, you’ll get details on parent loan forgiveness, deferral and forbearance, increasing your income, public assistance, scholarships, and refinancing your student loans.

This advice can also be helpful if you’re thinking about paying student loans and starting a family at the same time.

1. Single Parent Loan Forgiveness

While there’s no program that exists explicitly called “single parent student loan forgiveness,” there are some income-driven repayment (IDR) plan options. You won’t have to pay your remaining balance under all four plans if your loans aren’t fully repaid at the end of the indicated repayment period.

There are four different IDR plans (only for federal loans) you can apply for give you a monthly payment based on your income and family size:

•   Saving on a Valuable Education (SAVE) Plan: The new SAVE Plan considers your income and family size to determine your monthly payment. Your payments may be based on a smaller portion of your adjusted gross income (AGI) and are typically designed so that no one with an undergraduate loan has to pay more than 5% of their discretionary income towards their student debt. The government may cover the interest accrued monthly and can keep your balance from growing. The plan typically lasts 20 years for loans received for undergraduate study and 25 years for loans received for graduate or professional study.

•   Pay As You Earn (PAYE) Repayment Plan: The PAYE Plan is a repayment plan with monthly payments about equal to 10% of your discretionary income, divided by 12. Typically, those who can use this plan will never pay more than the 10-year Standard Repayment amount. The term is usually 20 years with PAYE.

•   Income-Based Repayment (IBR) Plan: The IBR Plan is a repayment plan with monthly payments equal to about 15% or 10% (after July 1, 2014) of your discretionary income, divided by 12. With this plan, a student pays loans 20 years if they’re a new borrower on or after July 1, 2014, or 25 years if they’re not a new borrower on or after July 1, 2014.

•   Income-Contingent Repayment (ICR) Plan: You’ll pay for 25 years with the ICR Plan. The ICR Plan assigns monthly payments based on the lesser of:

◦   Your repayment plan payment with a fixed monthly payment over 12 years, adjusted based on your income, or

◦   Twenty percent of 20% of your discretionary income, divided by 12.

•   You may also take advantage of the Public Service Loan Forgiveness (PSLF) Program, which means that if you work for an eligible nonprofit or government organization, you may qualify the remaining balance on Direct Loans after 10 years — 120 monthly payments — under a repayment plan like the ones above for single mom student loan forgiveness.

On the topic of forgiveness, note that President Biden’s targeted student loan forgiveness plan was struck down by the US Supreme Court in June of 2023 and therefore does not offer an avenue to reduce student loan debt.

2. Student Loan Deferral and Forbearance

Single parents may consider applying for student loan forbearance or deferral, meaning that you temporarily qualify for a suspension of your loans. But what’s the difference between the two?

•   In deferment, interest doesn’t accrue on certain loans.

•   Interest does accrue on all loans during a forbearance.

It’s worth mentioning that forbearance changes went into effect in fall of 2023, after there had been a pause since March 2020, as the pandemic unfolded. Student loan interest accrual restarted on September 1, 2023, and payments were once again due starting on October 1, 2023.

In addition to economic hardship, single parents may be able to get a deferment for reasons related to:

•   Cancer treatment

•   Graduate fellowship programs or half-time school enrollment

•   Military service or post-active duty service

•   Parent PLUS borrower with a student enrolled in school

•   Rehabilitation training program

•   Unemployment.

Note that you can only apply deferral and forbearance toward federal student loans, not private student loans. Log in to the Federal Student Aid website to learn more about and apply for various plans under the Department of Education.

3. Increase Your Income

Single parents may consider adding to their income to help make student loan payments or to have extra income on hand. Beyond picking up extra hours at your current job or asking for a raise, you may want to consider picking up a side hustle, renting out an extra room in your house, going back to school to get a better job, or looking for a new job. There are myriad ways to increase your income, especially since you only have one income stream.

Also consider various ways to budget as a single parent.

4. Public Assistance

Public assistance may be one way to help you reserve a pool of money specifically to pay for necessities, including student loan payments.

Public assistance can come in many forms, including food benefits (SNAP, D-SNAP, and WIC for women, infants, and children), home benefits (rental, home buying, and home repair assistance programs), help with utility bills, Temporary Assistance for Needy Families (TANF), health insurance, and disability benefits.

Every state has specific rules about who can qualify for various benefits. Learn more about benefits from your
state social service agencies.

5. Scholarships

If you’re thinking about returning to school as a single parent to increase your income, consider applying for scholarships. This free source of money for college keeps you from having to borrow money for college.

Where do scholarships come from? They can come from the college or institution where you plan to attend, clubs and organizations, your employer, and other sources. Also consider asking your current employer whether they can help you pay for college through educational benefits, such as an employee tuition reimbursement program.

6. Refinance Your Student Loans

When you refinance your student loans, you “repackage” your private and/or federal student loans with a private lender with the goal of lowering the interest rate or accessing a lower monthly payment via an extended repayment term. (Note that if you do extend the term of the loan, you may pay more interest over the life of the loan.)

Also note that you cannot refinance your student loans under the federal student loan program. If you do refinance with a private loan, you will forfeit benefits and protections of federal loans, like IDR payments. To qualify for the best refinance rates, you’ll typically need to have a solid credit history and stable income.

If you currently have private student loans or are thinking of refinancing, shop around to see what offers best suit your situation and your needs.

Helping Pay Student Loans for Single Parents

Certain websites highlight ways single parents can pay for education, including grants and scholarships. For instance, the website SingleMothersGrants.org mentions such resources as:

•   Soroptimist International

•   The Amber Foundation

•   Kickass Single Mom Grant from Wealthy Single Mommy

•   Idea Cafe

•   Halstead Grant

•   Wal-Mart Foundation’s Community Grant Program

•   The Andy Warhol Foundation for the Visual Arts.

Be cautious that you don’t fall prey to fake scholarships; sadly, they do exist. You should never have to pay money to enter a scholarship competition, for example. Nobody intentionally wades into the financial mistakes parents make, so do be wary when looking into ways to finance educational expenses and avoid scammers.

Refinancing Student Loans With SoFi

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Do single moms qualify for student loan forgiveness?

Yes, single moms can qualify for student loan forgiveness through two main programs: Public Service Loan Forgiveness (PSLF) and income-driven repayment programs. To find out if you qualify for either one of these programs, apply or contact your loan servicer directly for more information.

How do single moms pay off student loans?

If single moms can’t make their student loan payments, they can access various programs through the Federal Student Aid program for federal loans. They can also ask their private lender for more options available to them. Refinancing of both federal and existing student loans is also possible; just know that if you refinance a federal loan with a private loan, you forfeit federal benefits and protections. Also, if you extend the period of loan repayment when refinancing, you may pay more interest over the life of the loan.

Is paying off a student loan considered a gift?

If someone else pays off your student loans, yes, it is considered a gift. This type of gift would churn out a gift tax for any gift above $17,000, the gift exclusion cutoff for 2023. In other words, both parents can contribute $34,000 per calendar year toward a child’s student loans without getting charged a gift tax.


Photo credit: iStock/Drazen Zigic

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers.
Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


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

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.


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.

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Mindful Traveling: How to Keep Your CO2 Footprint Low While Traveling

Whether you’re looking to tour a foreign city, relax on a sandy beach, or hike in the wilderness — there are steps you can take to keep your carbon footprint low and still enjoy your vacation to the fullest.

But first, you’ll want to keep some key facts in mind: Tourism contributes to more than 5% of global greenhouse gas emissions, with transportation accounting for 90% of this. Tourism also puts pressure on local natural resources through over-consumption, often in places where resources are already limited. These effects can gradually destroy the environmental resources that tourism — and local economies —- depend on.

But there is some good news. By prioritizing mindful, sustainable travel, we can minimize the impact of our travels, and potentially even make travel beneficial for the climate and environment, as well as local communities and economies.

Here’s a look at some simple ways to become a more mindful traveler.

What Is Eco-Friendly Travel?

Being an eco-conscious traveler involves making travel choices that minimize negative impacts to the environment, both globally and locally.

It generally involves a little extra prep work, such as researching destinations that promote sustainable tourism, staying in hotels that have environmentally-conscious policies, and choosing more sustainable transportation, dining, and shopping practices.

Fortunately, a growing number of tourists are doing just that. According to a 2023 report from Booking.com, more than three-quarters of travelers want to travel more sustainably, and roughly the same amount want travel companies to offer more sustainable travel choices.

Recommended: Traveling the National Parks on a Budget

How To Reduce Your Carbon Footprint While Traveling

Here are some things you can do to minimize your carbon footprint and CO2 emissions on your next vacation.

Where You Go

Certain cities (like Barcelona and Paris) attract legions of tourists every year, leading to overcrowding — and not always the most authentic travel experience. Consider giving your tourist dollars to an area that is known for its green practices instead.

Ljubljana, Slovenia, for example, was recently voted the greenest city in the EU. You might also consider Palau, which requires visitors to make a sustainability pledge before entering the country, or Costa Rica, which is well regarded for its sustainable tourism.

Going off the beaten path can also mean a more affordable family vacation.

Where You Stay

Hotels and other lodging options generate emissions from energy use. For example, it takes energy to cool and heat rooms, provide warm water for showers and pools, and to keep the lights on. Indeed, hotels in the U.S. alone create 60 million tons of CO2, generate 1.9 billion pounds of waste, and use 219 billion gallons of water every single year.

To reduce your CO2 footprint when traveling, seek out hotels that have environmentally-friendly policies and review their eco credentials and practices before booking your stay. Also consider staying in a locally owned hotel, since they are more likely to source their supplies from the local area.

During your stay you can do your part by reusing towels, turning off lights and air conditioners when you aren’t there, and skipping single-use plastic items.

Recommended: Tips to Cut Costs When Traveling With Pets

Packing Light — and Right

Before you even start your travels, you can minimize your environmental impact. Packing light is not only good for your wallet (no additional checked bag fees) and arms (rolling around two large suitcases through a crowded airport is never fun), heavy suitcases can weigh down airplanes, as well as cars, and cause them to use more fuel.

What you put in the suitcase also matters. Bringing your own reusable water bottles allows you to avoid having to purchase throwaway plastic bottles. You can also choose luggage and other bags that are made from recycled materials to help reduce waste.

Recommended: International Travel Packing List

Getting There

Transportation is the biggests source of greenhouse gas emissions from tourism, so how you get to your vacation has a big impact.

Generally, planes and cars generate the most CO2 per passenger mile, with tour buses, ferries, and trains trialing well behind. Skipping the flight altogether, and opting for a closer destination that can be reached by train or requires a shorter driving distance, can help create a lower carbon footprint vacation.

But if you can’t avoid flying, you can make choices to lessen the environmental impact.

Choosing the most direct flights can not only save you time, but also fuel. Flying economy also lowers your C02 footprint, since flying business emits up to three times more carbon as it takes up more space. This can also lower your airfare.

Other eco-friendly flight moves: Fly during the day versus taking the redeye (there is a heat-trapping effect of contrails and cirrus clouds at night, resulting in a higher greenhouse effect) and book your ticket with an airline that offers a carbon offset program.

Recommended: Where to Keep Your Travel Fund

Getting Around

Once you’re at your vacation spot, you’ll want to walk, use public transportation, or rent bikes as much as possible. Not only are these eco-friendly transportation modes, they allow you to get more exercise and see more of the local area.

Choose Local

Small actions, like eating and shopping at places with locally-sourced food and products, can help lower your C02 footprint when you travel. Eating local cuisine also gives you a chance to experience a new culture through its food. Also consider booking tours with companies with environmental conservation policies that support the local community.

Volunteer to Plant Trees

As they grow, trees absorb carbon from the atmosphere, and can help offset your travel impact. Trees also reduce the amount of stormwater runoff, which limits erosion and pollution in local waterways, and may reduce the effects of flooding. Healthy forests also lead to habitat biodiversity.

To help offset your travel impact, consider volunteering to plant trees while you’re abroad (and also at home). This is a valuable service that benefits the environment, wildlife, and local communities.

Benefits of Reducing Your Carbon Footprint While Traveling

Tourism is responsible for a significant share of global greenhouse gas emissions, and that number is expected to rise. By 2030, CO2 emissions from tourism are expected to be 25% higher than they were in 2016.

But whether you are traveling solo or with your family, you can play a part in keeping that number down. Sustainable travel protects the environment to make sure wonders like coral reefs, rain forests, ancient ruins, and low-lying islands will continue to be around for local residents and future travelers. It also helps support local businesses, economies, and cultures throughout the world.

Examples of Mindful Traveling

There are many ways you can be an environmentally-friendly traveler. Examples of mindful travel include picking a destination that prioritizes sustainable tourism and/or choosing an area that is close to home to avoid air travel or an extensive drive.

You can also practice mindful travel once you arrive at your destination. Consider taking public transportation, walking, and renting bikes to get around and see the sites. If you can’t avoid renting a car, opt for an electric vehicle, if possible.

You can also reduce your CO2 travel footprint by staying in hotels that use renewable energy and have strong sustainability practices. You can do your part by recycling, eliminating food waste, and buying locally-sourced products.

Recommended: 6 Souvenirs You Won’t Regret Buying (and 5 You Might)

Mindful Traveling Tips

•   Do your research. Traveling more sustainably takes effort and planning. You may need to do some searching to find the most direct flights (if you have to fly) and to seek out lodging options that are energy-efficient, as well as affordable.

•   Be a responsible packer. You’ll want to pack light to avoid adding extra weight, and don’t forget refillable water bottles and toiletries.

•   Be a green explorer. Try to use public transportation, walk, or rent bikes to get around, and do your best to shop and eat at local businesses. Also consider staying in one location rather than moving around. This not only allows you to learn more about the culture, but also reduces carbon emissions from hopping from one place to another.

The Takeaway

You can still explore the world and minimize the impact travel has on the environment.

Being a sustainable traveler comes down to a little research. You can lower your carbon footprint by choosing trains and buses over planes and cars, finding lodging that has environmentally-friendly practices, and making eco-friendly decisions during the vacation on what you do and where you eat and shop.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

Wherever you’re going, get there with SoFi Travel.

FAQ

How do I become a mindful traveler?

Becoming a mindful traveler is simply a matter of understanding that all travel has an impact — to the environment as a whole, as well as the local ecosystems and communities.

You can become a more mindful traveler by choosing a destination that promotes sustainable tourism, being selective about your modes of transportation, staying in hotels with eco-friendly practices, and choosing more sustainable practices when it comes to food, shopping, and daily activities.

How do you stay mindful on vacation?

To stay mindful on vacation, you’ll want to be sure you are paying attention and savoring what’s happening in the moment, rather than thinking about work, what you did yesterday, or what you’re going to do tomorrow. Mindful travel also means being aware of, and trying to minimize, the impact your vacation has on the environment, both globally and locally,


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**Terms, and conditions apply: This SoFi member benefit is provided by Expedia, not by SoFi or its affiliates. SoFi may be compensated by the benefit provider. Offers are subject to change and may have restrictions, please review the benefit provider's terms: Travel Services Terms & Conditions.
The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.


Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.


Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
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