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In a competitive market, buyers have been known to waive contingencies, increase earnest money, insert escalation clauses, and pen love letters. Yes, that’s right: personal letters to sellers in an attempt to stand out from the crowd.

The National Association of Realtors® (NAR) isn’t feeling the love for “love letters” because they often contain personal information about the buyer, like their race and culture, that could make sellers and their agents vulnerable to accusations of discrimination.

Oregon was poised to ban homebuyer offer letters until a federal judge permanently blocked the law in March 2022. That month a Rhode Island representative introduced a bill to outlaw the practice in her state, calling it “kind of a very quiet way of redlining, potentially,” before the bill was held for further study.

So the practice goes on, legally, as of now, despite the letters’ tepid sway. A Zillow survey of partner agents showed that love letters were the least successful strategy for winning the deal (all-cash offers made sellers’ hearts beat fastest).

If you’re inclined to write a homebuyer love letter, here are tips.

1. Make a Strong Opening

Remember handwriting? Do your best and write your letter on a nice piece of stationery. You’re trying to humanize yourself in the eyes of the seller, and a handwritten note can go a long way toward doing so.

Address the seller by name if possible, searching for it online, or asking your real estate agent. As you write the letter, convey a friendly tone and a sincere message.

2. Tell the Owner About Yourself

You might choose to tell the sellers something memorable about your family, that you plan to raise kids in the house, or that the yard is perfect for your dogs.

You could also talk about where you’re moving from and why. Maybe you’ve taken a new job, you’re looking for a sense of community, and you fell in love with this neighborhood.

If you mention your family, just realize that familial status is protected against discrimination under federal housing rules. (In this case, sellers or their agents are not to act with bias against, or in favor of, families with children. The point of the Fair Housing Act is to create a level playing field for all people renting or buying a home, getting a mortgage, or seeking housing assistance.)

3. Think Twice About Sending Photos

Photos are part of what makes NAR uneasy, because race, gender, gender identity, sexual orientation, disability, religion, and familial status are protected against housing discrimination under the Fair Housing Act.

Yet many real estate agents allow buyer clients to include photos with their offer letters.

The NAR director of legal affairs advises Realtors to “avoid helping buyer clients to draft or deliver love letters. … Counsel them to focus on the characteristics of the home or other objective information.”

Still, buyer love letters are actually encouraged by some agencies — along with photos and even videos.

4. Share What You Like Best About the Home

Why you want to buy the home is the central theme of your letter. So you may want to tell the sellers somewhere near the top what you like best about their house.

Mention details. For example, maybe you like the large front porch and can picture gathering there with friends and family on summer nights. Or maybe you’ve become enamored of the kitchen, where you’ll perfect your bread-making skills. If, by chance, the property has an ADU, you could describe your plans for it.

You could throw in a bit of flattery, letting the sellers know how much you appreciate how they’ve maintained the home.

5. Find a Connection

One way to develop a relationship with someone is to find common traits or interests. If you notice that you and the sellers share an interest, it can’t hurt to let them know.

Perhaps you’re a gardener, and it’s clear they’ve got the plant bug. Maybe you have a passion for pottery, and the seller has a small ceramics studio. Or maybe you noticed a jersey from your favorite basketball team.

As you hunt for a connection, be careful not to cross any personal boundaries that might make the seller uncomfortable.

6. Explain Your Offer

Once you’ve given a sense of yourself and why you want to live in this house, you can get down to explaining your offer. Be honest and respectful as you give context.

If you’re living in a time of bidding wars and your offer isn’t the highest, there’s no need to dance around it. You could explain that the house is your dream home, but it’s at the top of your price range and that you respectfully ask the seller to consider your offer.

If the sellers are selling and buying at the same time, you could mention your willingness to do a rent-back agreement that would allow them to lease their former house from you for a set period of time.

7. Let Them Know You Are Serious

Selling a home is a lot of work. The last thing sellers want on their hands is a buyer who slows down the process and might not even make it through closing.

Make sure your letter reiterates that you are pre-approved for a mortgage and are flexible about closing dates.

8. Mind the Length

If there’s a lot of interest in a property, sellers might receive many love letters. They may not have the time, or interest, to read long-winded missives, so keep yours short and sweet, perhaps one page.

9. Thank the Owners

The close of your letter should be as strong as the opening. This is your last chance to make an impression, weave in some personal notes, and make any final flattering remarks.

Thank the sellers for considering your offer, and let them know you are looking forward to hearing from them soon.

10. Avoid Negativity

Some things are better left unsaid, like changes you’d like to make. The sellers may have spent a long while making their home perfect in their eyes. So even if you want to open up the floor plan and pull up the carpet, it’s a good idea to keep those thoughts to yourself for now.

You don’t want to make market prices, or this particular one, sound unfair. And it’s smart to avoid pressuring the sellers in any way, as with talk about time constraints.

Finally, don’t contradict anything that might go into a purchase agreement.

The Takeaway

In a seller’s market, a so-called love letter gives buyers a chance to distinguish themselves. Though not all real estate agents are keen on clients sending personal letters, the practice continues.

Home shoppers in an active market will want to get pre-qualified and then pre-approved. Learn the SoFi Mortgage advantages: loans with competitive fixed rates and low down payment options.

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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.

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

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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When a federal Direct PLUS Loan is made to a graduate or professional student, it’s commonly called a grad PLUS loan. A grad PLUS loan can help you pay for graduate school costs that aren’t covered by other types of financial aid.

Grad PLUS loans allow you to borrow up to the full cost of attendance from the U.S. Department of Education as long as you’re enrolled at least half-time at a school that participates in the Direct Loan Program, you don’t have an adverse credit history, and you meet the eligibility requirements for federal financial aid.

Here’s what to know about grad PLUS loans as well as other options that can help you pay for graduate or professional school.

What Is a Graduate PLUS Loan?

A graduate PLUS loan is a federal Direct PLUS Loan that’s made to a graduate or professional student. When a Direct PLUS Loan is made to a parent of an undergraduate student, it’s called a parent PLUS loan.

Unlike other types of federal student loans, Direct PLUS Loans take your credit history into account. You may still be able to qualify for a grad PLUS loan if you have an adverse credit history, but you’ll have to meet additional eligibility requirements, such as having an endorser on your loan.

Another way PLUS Loans differ from other federal loans: You can borrow up to the full cost of school attendance and use the money to pay for tuition, room, board, and fees. Grad PLUS loans are not based on financial need (the way Direct Subsidized Loans for undergraduate student loans are), which means students can apply for one regardless of income level.

Keep in mind that PLUS Loans have some of the highest interest rates of all federal loans. For this reason, it’s a good idea to start by considering a Direct Unsubsidized Loan, another federal student loan.

You can borrow up to $20,500 per year with a Direct Unsubsidized Loan and the interest rate for graduate students is 5.28% for loans disbursed on or after July 1, 2021, and before July 1, 2022. You’ll pay more in interest for a Direct PLUS Loan — a fixed 6.28% interest rate for loans disbursed on or after July 1, 2021, and before July 1, 2022).

How Do Grad PLUS Loans Work?

If you’re approved for a grad PLUS loan, the maximum amount of your student loan will be the cost of attendance minus any other financial aid you receive, such as scholarships, grants, or fellowships. Your school will apply the funds to cover fees such as tuition, room and board, and any other school charges. If there are funds left over, you can use them for other educational expenses, such as books for classes.

You’ll also pay an origination fee with graduate PLUS loan, which covers the U.S. Department of Education’s cost of issuing your loan. The loan fee for the 2021 to 2022 academic year is 4.228% (higher than the 1.057% origination fee on a federal Direct Unsubsidized Loan); this amount will be deducted from the funds you receive.

With a federal grad PLUS loan, you won’t have to make any loan payments if you are enrolled at least half-time in school and for six months after graduation, but interest will begin to accrue as soon as the loan is issued.

You can opt to pay the interest while you’re in school or allow the interest to be capitalized and added to the principal balance of your loan. You’ll likely have between 10 and 25 years to repay your loan, depending on the loan repayment plan that you choose.

Requirements for a Direct Grad PLUS Loan

In order to get a grad PLUS loan you must be enrolled at least half-time at an eligible university or program that participates in the federal student loan program (known as the William D. Ford Direct Loan Program), have a good credit history, and meet the general eligibility requirements for federal student aid.

Again, to be eligible for a Direct PLUS Loan, you must not have an adverse credit history. If you do, you may still be able to receive a grad PLUS loan if you have an endorser on your loan (someone who agrees to be responsible for your loan and pay it if you’re not able to) who doesn’t have an adverse credit history. Another option is to explain the extenuating circumstances for your adverse credit history to the U.S. Department of Education. Both of these options require PLUS credit counseling.

Applying for a Federal Grad PLUS Loan

Before applying for a grad PLUS loan, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA) form on the Federal Student Aid website. And while most schools require you to fill out the grad PLUS loan application on the Student Aid site, some schools have different application processes, so check with your school’s financial aid office before you begin.

You’ll undergo a credit check to verify that you don’t have an adverse credit history. You may also need to undergo credit counseling if this is your first PLUS loan. If approved, you’ll sign a Master Promissory Note (MPN) agreeing to repay the loan according to its terms, along with interest and fees.

What Does a Graduate PLUS Loan Cover?

While a graduate PLUS loan can only be used to cover education expenses, those expenses can include:

•   Tuition

•   Room and board (including off-campus housing)

•   Fees

•   Other expenses required by the school

As mentioned earlier, the maximum amount of a graduate PLUS loan amount is based on the costs of your school for that academic year.

Pros and Cons of Graduate PLUS Loans

Grad PLUS loans are not for everyone. Here are some of the pros and cons to consider as you decide whether this type of loan is right for you.

Alternative Financing Options

Before taking out a grad PLUS loan, it’s helpful to consider other ways to finance the cost of graduate or professional school. Alternative options include the Federal Work-Study program, getting a job or teaching fellowship, applying for grants and scholarships, and looking into other types of federal or private loans.

Work-Study

The Federal Work-Study Program provides part-time employment to help undergraduate and graduate students with financial need pay for the cost of school. To qualify for Work-Study, you must file the FAFSA (which opens on October 1 each year), and it’s a good idea to apply early because each school has limited funds.

The amount you can earn depends on the type of work you get, how much your school can offer, as well as your application date, level of financial need, and FAFSA application date. And you cannot earn over the amount of money awarded to you in your financial aid award.

Assistantship Positions

Many universities offer teaching- or research-based assistantships. In return for doing work or research for the school, the school may offer you free or reduced tuition, a monthly stipend, and/or health insurance.

Through an assistantship, you are often considered an employee of the school and you may do a range of work from teaching undergraduate classes or proctoring exams to helping with research projects or collaborating on publishing scholarly articles.

Fellowships

While the terms of a graduate fellowship can vary depending on your school or field, they are often merit-based awards of financial aid to support students pursuing advanced study.

Your school may offer them internally or they may come from an external source.

Fellowships may include a stipend or cost-of-education allowance in addition to support for other educational expenses. Types of fellowships include predoctoral fellowships, dissertation fellowships, and traineeships. Check with your school for more details about these opportunities and to learn more about how to apply.

Job Opportunities

Even if you don’t qualify for any of the above employment options, getting a job can help offset the amount you have to borrow for graduate school. Some companies may even offer tuition reimbursement.

While you’ll have to balance a job with your class schedule and workload, getting a job while you attend graduate school can offer benefits beyond just a paycheck including: gaining real-world skills, employee benefits, and the ability to add some professional experience to your resume.

Scholarships and Grants

There are a range of graduate school scholarships and grants you can apply for to help finance the cost of advanced studies. Scholarships are typically merit-based and grants are often need-based.

This type of funding is ideal because you don’t need to pay it back. You can find both federal and state grants as well as scholarships from schools or independent organizations, such as nonprofits or companies. The key is to do your research (one place to start: the U.S. Department of Labor’s scholarship search tool ) to track down opportunities and apply to a range of options.

Direct Unsubsidized Loans

As mentioned earlier, PLUS Loans have some of the highest interest rates of all federal loans. So it’s worth applying for a federal Direct Unsubsidized Loan before opting for a PLUS loan since it has a lower interest rate.

You can borrow up to $20,500 per year with a Direct Unsubsidized Loan, up to the aggregate federal loan limit of $138,500. Keep in mind that any outstanding undergraduate federal loans that you have will count toward this total amount.

Private Loans

A private student loan — from a bank, online lender, college, credit union, or other private institution — can help make up the difference between what a student can borrow in federal loans for the cost of graduate school and the remaining education expenses after other sources of income from grants, scholarships, work-study, or jobs are taken into account.

Keep in mind that private loans differ from federal loans and they don’t offer the same benefits and protections, such as income-driven repayment, deferment and forbearance and forgiveness programs like Public Service Loan Forgiveness (PSLF).

It’s important to do your research, shop around, and find the best loan options for your personal financial situation. You’ll also need to have strong credit (or have a cosigner who does) and meet eligibility criteria to qualify with a private lender.

If you’re considering a private loan, SoFi offers graduate school loans for with flexible terms, no fees, and no prepayment penalties.

The Takeaway

A grad PLUS loan is a federal Direct PLUS Loan made to a graduate or professional student to help cover the cost of graduate school. Unlike other federal student loans, grad PLUS loans take your credit history into account so if you have an adverse credit history, you’ll need to meet additional eligibility requirements to qualify.

Grad PLUS loans allow you to borrow up to the full cost of attendance for graduate school minus the amount of financial aid you receive from other sources. These loans have some of the highest interest rates of all federal loans and a higher origination fee, so you will likely want to pursue a federal Direct Unsubsidized Loan first.

It’s also a good idea to explore alternative financing options to help cover the cost of graduate school, such as federal Work-Study opportunities, assistantships and fellowships, scholarships and grants, getting a job, as well as federal and private loans.

If you have a high interest rate on existing loans or need to lower your monthly payment before grad school or after you graduate, student loan refinancing is one option to consider. SoFi offers flexible terms, no fees, no prepayment penalties — and you can view your rate in two minutes.

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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.

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Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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A jumbo certificate of deposit (CD) is a type of savings account that has a higher minimum required initial deposit amount than a regular CD. Jumbo CDs generally require a deposit of $100,000, and they pay a higher interest rate to account owners in return for this higher initial deposit.

Certificates of deposit are savings accounts where the account owner gives up access to their funds for a specified period of time, and earns interest in return for locking up their money. The interest rate may be fixed or variable depending on the particular CD. At the end of the term, known as the maturity date, the account owner receives their initial deposit plus the earned interest.

Is a jumbo CD right for you? Here’s what you need to know about how jumbo certificates of deposit work, and the pros and cons of this type of account.

What Is a Jumbo Certificate of Deposit?

You’re probably familiar with the traditional certificate of deposit, or CD. These accounts are similar to savings accounts, but they pay higher interest rates in exchange for certain restrictions. Generally, most CDs have a maturity date between three months and five years. Since CDs require that funds are unavailable to the account owner during the term, they pay higher rates than other types of savings and interest-bearing checking accounts.

Unlike a regular CD, jumbo CDs generally require investors to deposit at least $100,000 when they first open their account. There are some jumbo CDs that have lower entry requirements of, say, $50,000; these are typically offered by credit unions and smaller banks.

Investors looking to open a smaller CD account are generally better off opening a regular CD. The rates can be just as good as a jumbo CD, but without the steep initial deposit requirements.

Regular vs Jumbo CD

Here’s what you need to know about the similarities and differences between investing in ordinary CDs and jumbo CDs.

Similarities

•   What is a certificate of deposit vs. a savings account? Regular and jumbo CDs are savings-like accounts that require investors to lock up their funds for a specified period of time in exchange for a higher rate of interest than a traditional savings account.

•   Both types of accounts can be set up for shorter and longer terms, typically from three months to five years.

•   If an investor needs their money before the CD’s term is complete, they will likely pay a penalty on the early withdrawal.

Differences

•   Jumbo CDs have higher entry requirements than regular CDs. Regular CDs typically have an initial minimum deposit requirement of less than $5,000, and some have no requirement at all. Jumbo CDs typically require a $100,000 deposit.

•   Jumbo CDs typically have somewhat higher interest rates than regular CDs. However, some regular CDs have equal or better rates than jumbo CDs. Usually large banks have some of the best CD interest rates.

•   Ordinary CDs are insured by the FDIC up to $250,000, as are jumbo CDs — but any amount in a jumbo CD above $250,000 is not FDIC-insured and subject to risk of loss.

•   Regular CDs tend to be more attractive to retail investors; jumbo CDs are geared toward large institutional investors.

Ordinary CDs vs Jumbo CDs

Advantages of Jumbo CDs

Jumbo CDs offer several advantages for investors looking to buy into a safe savings account with a fixed rate of return.

Steady Rate of Interest

Because jumbo CDs earn a steady interest rate over a fixed period of time and are fairly safe investments (i.e. your money is FDIC-insured up to $250,000), they can be a good way to save up for a longer-term financial goal, such as buying a home or saving for a wedding.

Higher Interest Rate Than Traditional CDs

Jumbo CDs tend to pay higher interest rates than regular CDs and savings accounts. National averages show that annual percentage yields for jumbo CDs tend to be about one-hundredth of a percentage point larger than regular CD yields, which isn’t much — but can add up over time.

Steady Interest Can Partly Offset Market Risk

By holding some funds in a jumbo CD that earns a steady rate, it’s possible to offset the potential volatility in other parts of your investment portfolio. Also, although interest rates may not be super high, the compound interest on the large amounts invested in a jumbo CD can add significantly to investors’ earnings (see example below).

Insured up to $250,000 per Account

The FDIC or the NCUA insure CD accounts for up to $250,000, making jumbo CDs one of the safest types of investments.

Those who want to deposit more than $250,000 might consider opening a joint CD account that allows $250,000 per account owner, or they can open different CD accounts with multiple banks. Jumbo CDs are popular with retirees who don’t want to put all their money into the stock market. On the downside, jumbo CDs tend to earn lower returns over time than stocks.

Disadvantages of Jumbo CDs

Although there are several reasons jumbo CDs can be good investments, they also come with some downsides. The biggest buyers of jumbo CDs are institutional investors looking for safe investments with fixed returns. Sometimes these institutional investors put money into a CD that they plan to invest somewhere else but they want to earn interest on it while they wait for that next investment. Retail investors typically look for CDs with lower entry requirements.

Lower Return Than Many Other Fixed-Rate Investments

Jumbo CDs are safe fixed-rate investments, but they have high minimum balance requirements and pay out lower interest rates than other types of fixed-rate investments like bonds.

Interest Rate Risk

Investors face the potential risk of interest rates going up after they buy a CD. If this happens they may miss out on the opportunity to earn those higher rates.

May Not Keep Up With Inflation

Jumbo CDs pay higher interest rates than traditional savings accounts, but the rate of these CDs may not be that high and therefore they may not keep up with the pace of inflation. The cost of living may rise more quickly than the return provided by the CD.

It may help investors to buy into jumbo CDs with longer terms, since those pay out higher interest rates — but the tradeoff there is that your money is locked up for an even longer period.

Recommended: How to Protect Money Against Inflation

Early Withdrawals Will Trigger a Penalty

When an investor puts money into a jumbo CD, they cannot access those funds until the maturity date. If they do want to access the funds they will have to pay an early withdrawal penalty. Each bank has different penalties for early withdrawal, but there are also no-penalty CDs available, so it’s important for investors to consider their individual situation and look into their options to avoid paying fees.

Reinvestment Rate Risk

If interest rates go down during the term of the jumbo CD, then the investor might struggle to find a new investment that provides a similar rate when their jumbo CD reaches its maturity date.

Jumbo CD Example

Interest rates for jumbo CDs are always changing and they can be different in different regions, but below are two examples of how a jumbo CD might be structured:

•   An investor buys a $100,000 jumbo CD from Bank A. It has a nine-month term and pays 1.5% interest. When the investor withdraws the funds at the maturity date, they’ll receive $101,122.90.

•   Another investor buys a $200,000 jumbo CD from Bank B, with an 18-month term and 2.00% interest. At the maturity date, the investor will get $206,029.90.

The Takeaway

Jumbo CDs are savings accounts with high minimum deposit requirements — typically $100,000 — that pay higher interest rates than regular CDs. These are popular with large institutional investors such as banks and corporations. While they are similar to regular CDs in some ways — your money is unavailable until the maturity date; early withdrawals can trigger a penalty — jumbo CDs may come with more risks. For example, only the first $250,000 of your money is insured. And by locking up your money at one fixed rate, you may lose out if interest rates rise.

If you’re ready to open a savings account, one easy way is through SoFi’s mobile banking app. You can sign up for an account right from your phone and pay zero account fees — and if you qualify and use direct deposit, you can earn a competitive APY. Open your Checking and Savings today.

FAQ

What is the range of jumbo CD rates?

Jumbo CD rates are between 0.40% and 2.1% as of April 25, 2022. The highest rates often depend on the length of the term.

How much money is in a jumbo CD?

Jumbo CDs typically require a minimum deposit of $100,000.

Are jumbo CDs negotiable?

Jumbo CDs are usually negotiable, meaning they can be sold on a secondary market.

Photo credit: iStock/Andrii Yalanskyi

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

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

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

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

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

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

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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