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Military members, veterans, and their families have special opportunities when it comes to funding higher education. Given the high cost of attending college, they’re well worth checking into.

Find out about student loans for military dependents: children, spouses, and sometimes other relatives of active duty service members.

What Are Student Loans?

First things first: What are student loans, and how do student loans work?

Student loans are a type of financial product wherein a bank or other lender gives a student up-front money with which to pay for college and other educational expenses. Student loans can be used to cover tuition, textbooks, and even living expenses such as housing. Student loans are available through the government as well as through private lenders, and can be taken out by parents or students themselves.

Student loans, like all forms of debt, come at a cost: Interest accrues from the time the first loan check is disbursed. In the case of Direct Subsidized loans, the U.S. government covers the interest so long as the student is enrolled at least half-time and for the first six months after the student stops attending.

Although student loan interest rates tend to be lower than, say, credit card interest rates, the charges can still rack up over time. This is part of the reason Americans are saddled with a whopping $1.76 trillion in student loan debt.

Recommended: Using Student Loans for Living Expenses and Housing

Who Is a Military Dependent?

Military dependents are relatives of an active-duty service member, or sometimes a veteran, who can qualify for benefits based on their family member’s service.

Some family members, such as military spouses and children under the age of 21, automatically qualify as dependents. Other family members, such as parents and adult children, may also qualify if they meet certain criteria. Military dependents may receive death benefits, low-cost housing, and other discounts due to their status.


💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

Financial Aid Service Organizations for Military Dependents

Here are some of the financial aid options open to military members and their dependents.

Government-Sponsored Financial Aid

For most students, including military dependents, the government is the first place to turn for financial aid: Along with the opportunity to take out Subsidized Direct Loans, you may be eligible for grants and scholarships thanks to your service or your family member’s. To apply for federal aid, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA®) annually.

For instance, if you’re under 24 and your parent or guardian died in service in Iraq or Afghanistan after 9/11, you may qualify for a federal Pell Grant or Iraq and Afghanistan Service Grant, both of which do not need to be repaid.

If you already have federal student loans, you may also be eligible for military student loan forgiveness, depending on the type of loans you have and what you or your family member’s service history looks like.

Additionally, the Army and Navy Reserve Officers’ Training Corps, or ROTC, offers no-cost scholarships at over 1,000 colleges across the United States. See the official Federal Student Aid website (StudentAid.gov) for full details.

Recommended: I Didn’t Get Enough Financial Aid: Now What?

American Legion

The American Legion offers college funding to the children of veterans who died or became disabled as part of post-9/11 service through their Legacy Scholarship program (Legion.org/Scholarships/Legacy). The scholarship awards up to $20,000 and can be renewed up to six times.

AMVETS

AMVETS teams up with corporate sponsors to offer scholarships of up to $5,000 to veterans and military spouses who are interested in pursuing skilled trades, such as carpentry, electrical engineering, and plumbing. The program, called the Generation T Scholarship (AMVETS.org/Generation-T), is offered to the spouses of deceased veterans but not their children.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Paralyzed Veterans of America

Paralyzed Veterans of America offers scholarships of up to $2,500 for full-time students and $1,000 for part-time students to its members, their spouses, and their dependent children under 24 years of age. Awardees may apply a second time, but are only eligible to receive the scholarship twice in a lifetime. (PVA.org/Find-Support/ Scholarship-Program/)

Veterans of Foreign Wars

The organization Veterans of Foreign Wars also offers student veteran support in a variety of ways, including its Sport Clips Help A Hero Scholarship, which awards qualified applicants up to $5,000 per semester (per family), as well as the Student Veteran Support Grant, which is designed to be used for events and outreach efforts that assist veterans who are currently enrolled in college. The grant can be used for up to $500 per event up to twice per fiscal year for a total of $1,000. (VFW.org/ Assistance/Student-Veterans-Support)

Recommended: Types of Federal Student Loans

Private Student Loans for Military Dependents

Finally, military dependents may also choose to look into private student loans to fund their education.

Private student loans are, as their name suggests, not backed by the government and are instead offered by private banks, credit unions, and lenders. They do come with certain advantages — for example, they generally don’t carry the same lifetime maximums as publicly funded student loans, and you may have more flexibility when it comes to your loan term and repayment schedule.

However, private student loans sometimes carry higher interest rates than federal loans do, and your credit report will be pulled in order to qualify you — which isn’t the case for loans from the government. Because private loans lack the borrower protections afforded to federal student loans, they are most often considered as a last resort option.

The Takeaway: Explore Private Student Loan Options With SoFi

As a military dependent, you have a lot of options to consider when it comes to financial aid. Be sure to look into scholarships offered by the American Legion, AMVETS, Paralyzed Veterans of America, and the VFW. Military dependents should also apply for a Pell Grant, which doesn’t need to be repaid. And federal subsidized student loans give borrowers a break on some accrued interest.

For some, private student loans offer an attractive combination of accessibility and flexibility. (Keep in mind, though, that private student loans tend not to be eligible for student loan forgiveness and other programs.)

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

FAQ

Do military dependents get free college?

Not automatically, but there are programs specifically designed to help military members and their dependents pay for college.

Does the military pay spouses’ student loans?

Not directly, but military spouses may be eligible for federal student loan forgiveness if their loans are from the federal government.

Can military dependents get FAFSA?

Yes, military dependents can qualify for federal financial student aid using the FAFSA, or Free Application for Federal Student Aid. The FAFSA is a good first place to turn when looking for financial aid because it can match you with low-cost, need-based options like Direct Subsidized Loans.

Photo credit: iStock/Liudmila Chernetska

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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.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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.

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Tax Day appears dependably every year and, ideally, you don’t end up owing the IRS money. Or if you do, hopefully you can easily pay your taxes. But that’s not always the case. If you do end up owing money to the IRS after filing your taxes, you may have options. Of course, you can dip into your emergency fund, but if you don’t have one yet, there are other options available for borrowing money when you’re in a pinch.

Everyone’s financial situation is different, so there’s not one right answer for covering your tax bill. We’ll go through the pros and cons of using a credit card, an IRS payment plan, or even a personal loan to pay your tax bill.

We should, of course, mention that this article is a broad overview of this matter. It’s always a good idea to consult a licensed tax professional for questions and help with tax-related matters.

Can I Get a Loan to Pay Taxes?

You may be able to get a loan for taxes you owe as long as you can qualify for a loan with the lender you choose. If you can qualify for a loan, you may want to consider whether it’s the right choice for your financial situation or if there may be a different option that works better for you.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.

What Is a Tax Loan?

A loan for taxes is a personal loan that is used to pay taxes owed to the IRS. The borrower receives the funds in a lump sum and spends the personal loan funds to pay their tax debt.

When looking for a lender that does tax loans, you might consider traditional banks, credit unions, or online lenders, among other financial institutions.

Recommended: How to Apply for a Personal Loan

How Does a Tax Loan Work?

If a taxpayer does not have the funds to pay the taxes they owe the IRS, one option to pay the debt is to borrow money to do so. Often, this is in the form of a personal loan, which can be either secured or unsecured. After receiving the loan proceeds, the borrower pays the IRS and begins making regular installment payments to the lender.

How to Qualify for Tax Loan

Qualifying for a tax loan is like qualifying for a personal loan intended to pay for any other expense.

Lenders will look at an applicant’s credit score, employment history, income, other debt, and possibly other lender-specific criteria. Generally, the more creditworthy an applicant is, the more favorable their loan terms and interest rate.

There are a variety of lenders who offer personal loans, so if you don’t qualify at one, you might consider looking at other places to get a personal loan.

Reasons For Tax Refund Loans

If you’re getting a tax refund, you might want the money sooner than the IRS sends it to you. For that reason, you might consider getting a tax refund loan. Also called a refund advance loan (RAL), this type of loan is a short-term loan based on the amount of tax refund you are expecting.

RALs are often offered by your tax preparation service right after you file. Similar to other loans, the interest and fees for a tax refund loan will vary by provider.

Reasons Against Tax Refund Loans

The key word in “tax refund loan” is loan — a debt. There are considerable reasons not to use this option to get an anticipated tax refund amount quickly.

•   While some tax preparers will offer tax refund loans without any interest or fees, these loans often come with costs.

•   Even if your tax refund is smaller than expected, you still have to repay the full loan amount, including any interest and fees charged by the lender.

•   If the IRS denies, delays, or garnishes your tax refund to pay another debt, you still owe the RAL — including any interest and any fees charged by the lender.

•   Interest rates on RALs offered by payday lenders tend to be high, with APRs sometimes 10 times higher than average credit card interest rates.

Filing your taxes electronically and getting your tax refund, if you’re getting one, via direct deposit generally results in you getting your money faster, often in less than 21 days.

What Happens if You Can’t Pay Your Taxes?

If you owe taxes, you may not have enough cash on hand to make that payment to the IRS, particularly if it’s a large amount. Paying a tax debt in full is ideal, but there are options if you cannot do that.

Options to Pay Tax Debt

IRS Payment Plans

The IRS offers payment plans and the potential for an “offer in compromise,” which may allow you to settle your debt for less than you owe if paying in full would create financial hardship. In some instances, you may also be able to temporarily delay collection until your financial situation improves. Depending on your situation, there can also be set-up fees, application fees, interest, and penalties that continue to accrue, increasing the amount you owe until it’s paid in full.

Credit Cards

Another option is to charge your tax expense to a credit card. The IRS charges a processing fee , which varies depending on the payment system you choose, if you pay with a credit card.

If you fail to pay off your credit card balance when it’s due, interest will accrue until the balance is paid in full. If you qualify for a credit card with a zero-percent introductory period and pay the full amount before the promotional period ends, you could pay your taxes with a credit card without incurring any interest charges.

Loved Ones

Asking a friend or family member for a loan for taxes is an option some people consider. Borrowing from someone you know generally means you won’t have to undergo a credit check. So if you don’t have great credit but are able to repay a loan, this may be an acceptable option. A close friend or family member who is confident you’ll repay the loan may not charge you interest, or charge a lower percentage rate than you might qualify for with a bank or other lender.

If you do choose to borrow money from friends or family, be clear about expectations from the beginning. For example, setting up a repayment plan could lessen the chance for miscommunication and hurt feelings.

Payday Loans

Payday loans are high-cost, short-term loans for small amounts that are often made to people who have bad or nonexistent credit. Unfortunately, this borrowing option often works in the best interest of the lender, not the borrower.

Interest rates on payday loans are much higher than other types of loans, sometimes up to 400% APR. Even using a credit card, with their relatively high-interest rates, is generally a better option than a payday loan.

The repayment term for a payday loan is small — typically, the loan needs to be repaid with the borrower’s next payday. If your tax bill is too large to pay by the time the payday loan is due, the loan may need to be renewed, adding additional fees and accruing more interest on the initial loan balance. This strategy could lead to a cycle of debt that is difficult to break.

Lines of Equity or Credit

Whereas a loan lets you borrow a set amount of money in one lump sum, a line of credit (LOC) gives you a maximum amount of credit from which you can borrow, repay, and borrow again, up to the credit limit. You make at least a minimum payment each month toward your balance due. LOCs can be secured or unsecured — a home equity line of credit (HELOC) is an example of a secured LOC, using your home as collateral.

One advantage to a LOC is the typically lower interest rates they offer compared to credit cards. However, interest rates on a LOC are often variable and can rise over the life of the loan. A drawback to a HELOC is that if you can’t repay the loan, you could lose your home.

Personal Loans

You can apply for either a secured or unsecured personal loan, the former requiring collateral to back the loan. A secured loan may have a lower interest rate because the lender can seize the collateralized asset if you default on the loan. Essentially, this lowers the lender’s perceived risk.

It’s a good idea to compare the interest rates on personal loans. They tend to start out lower than credit cards, but they can vary widely depending on your creditworthiness. The average personal loan interest rate was 11.91% as of Feb. 14, 2024. However, the rate can range anywhere from 6.40% to 35.99% depending on the lender and your unique financial circumstances.


💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

Pros and Cons of Using a Personal Loan To Pay Taxes

Using a personal loan to pay taxes comes with both advantages and disadvantages. Here’s a look at how they stack up.

Recommended: Paying Tax on Personal Loans

The Takeaway

When Tax Day rolls around and you discover that you owe taxes to the IRS, it’s a good idea to consider multiple options to settle the bill. If you don’t have enough money in your bank account to pay your tax bill, you might turn to an IRS repayment plan, your credit cards, a loan from a loved one, or a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Can I get a loan to pay taxes?

Yes, a personal loan can be used to pay taxes in most cases. Applicants must meet qualification requirements like any other personal loan, which typically include a credit check, employment and income verification, and other criteria.

What is a tax loan?

A tax loan is a personal loan used to pay taxes owed.

How does a tax loan work?

Tax loans are personal loans, either secured or unsecured. The borrower uses the loan proceeds to pay the IRS and then makes loan payments to the lender.

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.

You know that feeling when you are excited to buy something, be it a cross-continent vacation or a slamming pair of boots, and very soon after are overwhelmed with regret? Welcome to the world of buyer’s remorse.

Maybe you are disappointed with your purchase, feel you have blown your budget, or both. Buyer’s remorse can rear its head for small and large purchases alike. You can feel it when you’ve swiped your card on a whim or even after researching your purchase for hours.

Fortunately, with a little bit of time, practice, and patience, you can learn to ditch the spending habits that most commonly lead to buyer’s remorse — so you can look forward to only those happy post-purchase feelings going forward. Keep reading to learn the full story.

What Is Buyer’s Remorse?

Buyer’s remorse is, quite simply, the feeling of regretting a purchase. It may be that you spent too much (i.e., the feeling you get in January when you review your holiday expenses) or because what you bought wasn’t quite as awesome as you thought (i.e., the feeling you get when your new boots give you blisters).

Buyer’s remorse is usually the effect of a certain level of cognitive dissonance, which is what happens when you have two competing and incompatible thoughts at the same time. For example, if you really want a new pair of headphones, and the ones you like are on sale, but you know you’ve already gone over budget for this month and simply can’t afford them, no matter how good the price is. That can be an example of cognitive dissonance. If you go ahead and purchase the item, there’s a good chance that you’ll experience buyer’s remorse.

💡 Quick Tip: Make money easy. Open a bank account online so you can manage bills, deposits, transfers — all from one convenient app.

Examples of Buyer’s Remorse

Buyer’s remorse can show up in a variety of different ways, and the feelings themselves can be slightly different, too. Here are some examples of buyer’s remorse:

•   Booking a trip to Europe on your credit card and then realizing you’ll have to dip into your emergency savings to fund your vacation

•   Buying a cashmere V-neck sweater on sale — only to remember, when you get home, that you have one in excellent condition tucked in your drawer

•   Purchasing a new suitcase and realizing, when you first try to pack it up, that it’s too small to hold everything you need and wishing you’d bought a larger one.

Buyer’s remorse can occur for tiny purchases (a coffee you didn’t need, and now you’ve got the caffeine jitters) or huge ones (some homeowners, unfortunately, experience buyer’s remorse after they move in). The basic common denominator, though, is simple: You wish you hadn’t bought what you did.

Types of Buyer’s Remorse

While buyer’s remorse can happen for a wide range of purchases, it can generally be broken down into two different categories: outcome regret and process regret.

Outcome Regret

As its name suggests, outcome regret refers to buyer’s remorse you experience when the outcome of your purchase doesn’t meet your original expectations. This might happen because you realize something else would have been a better purchase to suit your needs or because the thing you bought doesn’t meet your expectations — or both (as in the suitcase example above).

Process Regret

Process regret, on the other hand, indicates that you regret the purchase process more than the outcome itself. For example, if you think you should have spent a longer time researching before making a purchase decision (or, in some cases, less time) you’re likely feeling process regret.

Perhaps you spent a whole weekend choosing a hotel for a trip and then weren’t satisfied with the place you stayed. Or maybe you made an impulse purchase while at a furniture store and realize you should have spent more time and measured more carefully because your new coffee table is too big.

Signs of Buyer’s Remorse

Buyer’s regret shows up as an emotional reaction. You may feel anxious, angry, annoyed, scared, or sad about your purchase. You may notice that this feeling starts to show itself shortly after the purchase is made.

If you’ve ordered something online, for example, maybe before it even shows up at your doorstep. Or you may buy yourself a new watch and, the second you walk out of the store, start panicking about what the purchase will do to your credit card debt or checking account balance.

What Do You Do if You Have Buyer’s Remorse?

If you have buyer’s remorse, take heart: there are usually steps you can take to rectify it.

•   Return the item. If you’re feeling buyer’s remorse over a purchase, like a new sweater, you may be able to simply return the item for a refund. (Similarly, if you’ve booked travel you’re now regretting, you might see what the cancellation policy states.)

•   See if you can find ways to increase your satisfaction with your purchase. If you’re experiencing buyer’s remorse over a larger purchase, like a home or car, it might not be as simple as a quick return. However, you may be able to find ways to increase your satisfaction with the purchase. For example, you might decorate your home in a way that feels good to you, or outfit your car with a bike rack to increase its storage capacity.

•   Use the opportunity to change your spending. If you’re stuck with the purchase you made, now might be a good time to review your spending habits and come up with some new ones. While it won’t cure your current buyer’s remorse, it may keep you from feeling it again in the future.

For instance, you might realize that you shop when bored and find other ways to spend your free time versus strolling through your favorite stores.

How Long Does Buyer’s Remorse Last?

Depending on the size of the purchase, buyer’s remorse might be brief or long-standing. For instance, it could linger for just a few moments — for example, if you order way more sushi than you can actually eat — or for several months or longer (say, if you discover you really are unhappy with the neighborhood in which you purchased a home).

In any event, going through and combatting buyer’s remorse is an emotional experience, so it’s important to be gentle with yourself. Do what you can to minimize its impact, and learn from the experience.

Tips for Avoiding Buyer’s Remorse

The best way to deal with buyer’s remorse? To avoid feeling it in the first place. Here are some ideas to help dodge that post-purchase sinking in your stomach again.

Budget

A budget can give your spending some guardrails. Making a budget can help you work out to cover all your necessary expenses and to prioritize which discretionary expenses are most important. Sticking to a budget can be a great way to avoid buyer’s remorse from the start because you know what you have to spend. Follow the guidelines, and you likely won’t regret blowing too much on a purchase.

Practice Patience

Sometimes, the main culprit behind buyer’s remorse is impulse buying: If you’d just given yourself a day or two to really think through that purchase, you might have decided you didn’t need it in the first place. By practicing patience and forcing yourself to take time to think through your purchases, you may be less likely to experience buyer’s remorse.

Some people find that waiting a couple of weeks or even a month before making a big, unplanned purchase can help escape buyer’s regret as well. It gives you time to decide whether or not that new item or experience is actually worth it.

Try the 30-Day No-Spend Challenge

After experiencing buyer’s remorse, you may decide you want to take a temporary break from non-essential spending, sometimes known as a no-spend challenge. You could start with as little as a week, but extending your no-spend challenge to 30 days will give you a chance to understand how often you make impulse purchases. (Be sure to write out a clear list of exceptions to the rule, including regular bills, groceries, and pre-planned one-time expenses such as regular car maintenance.)

This exercise can help give you a new perspective on spending and be more mindful with your money going forward.

Ask the Right Questions

Say there’s a jacket you like that is on sale, reduced from $300 to $189. You’re about to snap it up, but wait a moment. Ask yourself: How long did you have to work to earn enough (after taxes) to afford the price tag? How many jackets do you have at home, and are they in good condition? Do you really need another? How will you feel if you buy the new jacket and see it hanging unworn in your closet six months from now?

Hold yourself accountable for the impact a purchase will have on your financial situation and whether you really need it or it’s just another nice thing you might own. Instead of shopping, could your money do more for your finances if deposited in a savings account?

Do Research Before You Buy

While it’s possible to feel buyer’s remorse after a well-researched purchase vs. an impulse buy, it’s less likely. Usually, the more information you have before you pull the trigger, the more likely you are to get what you want. So consider amping up the amount of time you spend researching your purchases before you make them.

Write a List of What You Need and Stick to It

If you tend to make impulse buys while you’re meandering the grocery store, for example, it might be time to employ a shopping list. That way, as tempted as you might be to grab that package of pistachios, Pop-Tarts, and some fancy flavored seltzer, you’ll have that list to hopefully keep you in line and on track with your spending.

Set Shopping Boundaries

Like any other part of life, establishing boundaries around shopping is critical to ensuring your wellbeing and success. Some examples of boundaries: Decide you won’t shop alone, online after 10 pm, or while you’re feeling sad or angry.

Bring Cash Over Your Credit Card to Avoid Overspending

Money is money, but tapping your card at the terminal can feel a lot easier than parting with cold, hard cash — too easy, in fact. Plus, credit makes it easy to spend more than you can actually afford to, and buyer’s remorse can just be compounded when it also leads to having to pay down debt.

The Takeaway: Saving Money with SoFi

What is buyer’s remorse? It’s the feeling that occurs when you regret making a purchase, whether it’s that cappuccino en route to brunch or booking a beach trip that’s way out of your budget. You can avoid this uncomfortable and potentially budget-busting sensation with some careful consideration and new shopping habits. Your bank account may thank you!

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.

FAQ

What are some questions to ask yourself before you make a purchase?

To avoid buyer’s remorse, consider asking yourself questions like: Do I really need this item, or just want it? Will I still want it in two days? Two weeks? How much time and effort did it take me to earn the money I am about to spend? What else could I purchase with that money if I made a different decision?

What should I do if an item is limited in stock and won’t restock after?

Sometimes, buyers make impulsive purchase decisions because an item is in limited supply or on sale for a limited time. While these external factors can make a purchase seem more urgent, it’s still worth taking the time to decide whether or not you truly need the item — or if you’re likely to feel buyer’s remorse over it. A new pair of boots you didn’t need can still feel like a waste of money, whether you spent $200 or $139 on sale for them.

What are common items that people have buyer’s remorse about?

This is a very personal situation. People commonly feel buyer’s remorse over large expenses like huge weddings, vacations, boats, or expensive cars. However, you can also feel buyer’s remorse over smaller purchases like unnecessary clothing, restaurant meals, makeup, or anything that you simply don’t need.

Photo credit: iStock/Anawat_s

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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.
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