SoFi

There are many reasons why you might want to sock away some cash and perhaps earn interest while you’re at it. Perhaps you’re saving up for a down payment on a house or gathering funds for an epic cross-country road trip. Or maybe you’re just looking for a safe place with good rewards to store your paycheck and manage everyday spending.

Whatever the scenario, a deposit account can be the answer.

There are several different types of deposit products, including savings accounts, checking accounts, certificates of deposit (CDs), and money market accounts. While they all accept and protect deposits, they differ in terms of how often you can access your funds and the amount of interest you’ll earn on your balance. Here’s a closer look at the different types of deposit accounts, their pros and cons, and how they compare.

Basic Checking and Savings Accounts

There are several different kinds of basic checking and savings accounts. You may find standard accounts, premium accounts, and other variations offered by financial institutions. Here are the pros and cons of these deposit accounts.

Basic Checking and Savings Accounts

Basic checking and savings accounts are deposit accounts offered by banks and credit unions. Checking accounts are transactional accounts designed for everyday money management, while savings accounts are ideal for holding money for future use. Here’s a look at the pros and cons at each type of account.

Checking Account Pros and Cons

First, the pros:

•   A checking account typically allows access in multiple ways. You can write checks and get an ATM card or debit card. You typically also have access to online and mobile banking so that you can mobile deposit checks and easily pay your bills.

•   These accounts provide a hub for your financial life: You have a home for your paycheck to be direct-deposited, records of your transactions, and ways to track your money.

•   You’ll usually enjoy FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration) insurance of $250,000 per account holder, per account ownership category, per insured institution. Some institutions offer enhanced coverage, too.

•   You may find an interest-bearing checking account, though the rate is usually not as much as a savings account.

Next, the cons:

•   Many checking accounts pay no interest or very low interest, so you’re not helping your money grow.

•   There can be minimum balance requirements on checking accounts, especially ones with enhanced levels of service.

•   You may be charged accounts fees as well, which can cut into your cash.

Savings Account Pros and Cons

First, the upsides:

•   Savings accounts are interest-bearing, meaning your money can grow, especially through compound interest. However, not all savings accounts are created equal: Some standard accounts pay a very low interest rate. Look to online banks for higher rates (more on this below).

•   Savings accounts allow quick access to your funds. You can also link your savings account to your checking account, which makes it easy to automate savings deposits and move money into checking when you’re ready to spend your savings.

•   These accounts are also typically insured by FDIC or NCUA.

As for the downsides:

•   Interest rates for basic savings accounts tend to be low and may not keep pace with the rate of inflation.

•   You probably can’t access your account via checks or a debit card. You may also be limited to a certain number of transfers and debit card transactions per month. While the Federal Reserve has lifted the six-transaction limitation on savings accounts that originated during the pandemic, many banks still impose some transfer and withdrawal limitations on savings accounts.

•   You may encounter minimum balance requirements and fees if you go below that amount.

5 Other Deposit Account Options

Here’s a look at some other deposit account types you might consider beyond basic checking and savings.

1. High-Interest Savings Accounts

Some banks offer special, high-yield savings accounts that can offer signficantly higher rates than traditional savings accounts. Some institutions don’t charge monthly fees for these accounts while others do but will waive them if you meet a balance minimum.

As with all savings accounts, you may be limited in terms of the number of withdrawals or transfers you can make each month.

One good place to look for this type of account is at an online bank. Because these institutions typically have lower operating expenses than brick-and-mortar banks, they can often offer rates that can be considerably higher than traditional banks, and may also be less likely to charge monthly fees.

2. Money Market Accounts

A money market account is a type of savings account that earns interest and offers some of the conveniences of a checking account, such as check-writing and debit card access. MMAs typically offer a higher interest rate than a basic savings account, but generally require higher initial deposits. These accounts may also require a relatively high average monthly balance to earn the advertised rate and avoid account fees.

You may want to keep in mind the difference between a money market account vs. a money market fund. A money market account is a federally insured banking instrument, whereas a money market fund is an investment account. Typically, money market funds invest in cash and cash-equivalent securities. It is considered low risk but doesn’t have a guaranteed return.

3. Certificates of Deposits (CDs)

A certificate of deposit (CD) is a type of deposit account offered by banks and credit unions that provides a premium interest rate in exchange for leaving a lump-sum deposit untouched for a certain period of time.

The bank determines the terms of a CD, including the duration (or term) of the CD, how much higher the rate will be compared to the bank’s savings and money market products, and what penalties will be applied for early withdrawal.

CDs offer different term lengths that usually range from a few months to several years. Interest rates tend to be higher for longer terms, though that isn’t always the case. CDs often require a minimum deposit of $500 to $1,000 to open the account.

A CD can be a good option if you know you won’t be touching that money for the entire term length. If you suddenly need the money, then you will likely have to pay a penalty to withdraw money early from your CD. While you can get no-penalty CDs, they typically come with lower rates than regular CDs, and may require you to withdraw the entire amount all at once and close the CD.

If ease of access is a concern, it might make sense to invest in CDs that feature fewer restrictions around withdrawals. Or, you could set up a CD ladder strategy where you buy CDs that have different maturity dates, ensuring access to funds as your CDs mature at staggered intervals.

4. High-Yield Checking Accounts

Though interest is normally associated with savings, and not checking, accounts, many financial institutions offer high-yield checking accounts. These interest-bearing accounts, sometimes called “rewards checking,” work like regular checking accounts and come with checks and an ATM or debit card.

In return for getting a higher interest rate, high-yield checking accounts often come with rules and restrictions. You may, for example, only earn the higher rate on money up to a certain limit. Any money over that amount would then earn a significantly lower rate. You may also be required to make a certain number of debit card purchases per month and sign up for direct deposit in order to earn the higher (or rewards) rate and to avoid a monthly fee.

The benefit of an interest-bearing checking account is that you’ll always have access to your money and you may have fewer limitations on how you can use your account than you might with a savings account, all while still earning a bit of interest.

5. Cash Management Accounts

A cash management account is a cash account offered by a financial institution other than a bank or credit union, such as a brokerage firm. These accounts are designed for managing cash, making payments, and earning interest all in one place.

Cash management accounts often allow you to get checks, an ATM card, and online or mobile banking access in order to pay your bills. They also typically pay interest that is higher than standard savings accounts. In addition, cash management accounts generally don’t have as many fees or restrictions as traditional savings accounts, but it’s important to read the fine print.

Before opening a cash management account, you may want to ask about monthly account fees and minimum balance requirements. Some brokerage firms require a sizable opening deposit and/or charge monthly fees if your account falls below a certain minimum. Others will have no monthly fees and no minimums.

Time vs Demand Deposit Accounts

When you consider different kinds of deposit accounts, you may hear the terms time vs. demand accounts.
A time deposit, such as a CD, requires you to keep your money with a financial institution for a particular period of time. If you withdraw funds before the end of the term, you may face penalties.

With a demand deposit account, such as a checking account, you may access your cash whenever you like. While you won’t pay a penalty for withdrawing money, you may earn a lower interest rate than with a time deposit account.

Here’s a look at how these two types of deposit accounts compare:

The Takeaway

There are several types of deposit accounts, each designed for different financial purposes.
Checking accounts are ideal for everyday spending, paying bills, and accessing funds easily and, in some cases, you may be able to earn some interest on your balance.

Savings accounts are designed for setting money aside for a future goal and earning interest. While basic savings accounts generally pay a low rate, you can earn more by opening a high-yield account at an online bank.

Money market accounts are a hybrid option, offering some of the perks of both savings and checking accounts, and generally pay higher rates than basic savings accounts. CDs also pay higher rates, but require you to lock up your funds for a set period of time.

The best deposit account for you will depend on your needs and goals. You can likely benefit from opening more than one.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 the different types of deposit accounts?

There are four main types of deposit accounts: savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). A savings account is ideal for storing money and earning modest interest. A checking account is used for daily transactions like paying bills or making purchases. Money market accounts combine features of savings and checking but usually require a higher balance. CDs offer higher interest rates in exchange for locking in funds for a set period.

What is the most common type of deposit account?

One of the most common types of deposit accounts is the checking account. It’s widely used for everyday financial activities like receiving paychecks, paying bills, making purchases, and transferring funds. Unlike many savings accounts, checking accounts allow unlimited transactions, including debit card use and writing checks. While they typically offer little to no interest, their flexibility makes them essential for managing daily finances. Many people open a checking account as their primary banking tool.

Is a CD considered a deposit account?

Yes, a certificate of deposit (CD) is considered a deposit account. It’s a savings vehicle offered by banks and credit unions where you deposit money for a set period (or term) and agree to leave it untouched until the maturity date. In exchange for this, the bank pays you a fixed interest rate. A CD is considered a time deposit account (vs. a demand deposit account) because the money is locked in for a set period of time, and early withdrawals usually incur a penalty.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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 every 31 calendar days.

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 the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, 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 the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit 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, Wise, 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 Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q225-087

Almost everyone has financial goals — whether it’s eliminating student loan debt, saving for a home, building a million-dollar retirement fund, or all of the above.

No matter what your objectives are, achieving them generally takes more than just wishful thinking. With the right strategies, you can take control of your finances, boost your savings, pay down debt, and make steady progress toward your goals.

Here, we’ll explore some of the smartest personal finance tactics to help you move closer to the financial future you envision.

Strategies to Build Financial Wealth

No matter what your current income, these seven smart money moves can put you on the path to financial stability and long-term security.

Build and Maintain an Emergency Fund

If you get hit with a large unexpected expense (like a car repair or medical bill) or temporarily lose your income and don’t have any emergency savings, you might end up relying on credit cards to get by. This can lead to a cycle of debt that can take months, even years, to break out of, turning a small bump in the road into a major financial setback.

To build financial security, it’s important to have an emergency fund that can cover your basic living expenses for anywhere from three to six months, or more. So, if you normally spend $3,000 per month on bills and essentials, you would aim to set aside $9,000 to $18,000 in your emergency fund.

If that dollar amount sounds a little daunting, it’s fine to start small — you might gradually build your fund by setting aside $50 or $100 dollars per paycheck in a high-yield savings account earmarked for emergencies.

Consider setting up a recurring transfer from your checking account into this account each month. Over the course of a year, that bit-by-bit approach to saving money can add up to a much larger sum.

Tackling Debt Strategically

Debt can be one of the biggest obstacles to reaching your financial goals. High interest rates and fees often mean you end up paying far more than the original balance — especially with credit card debt and student loans.

Take credit cards, for example. The average interest rate for credit cards as of May 2025 is 28.63%. If you’re only making the minimum payment, most of that payment is going toward those toward interest charges rather than reducing your balance. This means your debt continues to go up and you’ll end up paying significantly more (possibly hundreds or thousands more) than your original purchases were worth.

If you’re looking to build a solid financial foundation, one of the smartest moves you can make is to prioritize paying off high-interest debts quickly.

Two proven strategies to help with debt repayment are the snowball method and the avalanche method:

•   The Snowball Method: Focus on paying off your smallest debts first, regardless of the interest rate. Once the smallest balance is paid off, roll that payment into the next-smallest debt. This strategy builds momentum and motivation as you see debts disappear one by one.

•   The Avalanche Method: Prioritize paying off the debt with the highest interest rate first while making minimum payments on the others. Once the highest-interest debt is gone, apply that payment to the next-highest interest debt. This method typically results in paying less interest overall.

While the avalanche method is more cost-efficient in the long run, some people find the snowball method more encouraging because of the quicker psychological wins.

Make the Most of Credit Cards

Credit cards can either be a financial trap or a useful tool — it all depends on how you use them. When managed responsibly, they offer several advantages:

•   Cash back and rewards: Many cards offer 1% to 5% back on everyday purchases or points you can redeem for travel, dining, or other perks. These benefits allow you to save money without making any sacrifices.

•   Fraud protection: Credit cards often include strong fraud safeguards, meaning you’re not liable for unauthorized charges if your card is lost or stolen.

•   Purchase protection: Some credit cards offer automatic purchase protection. This benefit provides coverage for items purchased with the card if they are damaged, stolen, or lost within a specific timeframe.

•   Credit building: Using credit cards responsibly — by making on-time payments and keeping your balances low — can strengthen your credit profile. Keeping old accounts open also helps extend your credit history, which lenders like to see.

•   Balance transfers: If you’re carrying a balance on a high-interest card, a 0% APR balance transfer offer could help. These promotions give you a period — often 12 to 18 months — where you can pay off debt interest-free. Just be sure to pay off the balance before the promotional period ends to avoid steep interest charges.

To use credit cards to your best advantage, aim to pay off your balance in full and on time each month, and keep your credit utilization (how much of your available credit you’re using) below 30% to maintain healthy credit.

Build and Stick to a Budget

Budgeting is a cornerstone of smart money management. It helps you see what’s coming in, what’s going out, and where you can make adjustments.

There are many different types of budgets but one simple framework that can help you get started is the 50/30/20 rule. This divides your monthly after-tax income into three categories:

•   50% goes toward needs like housing, groceries, transportation, and minimum payments on debt.

•   30% is for wants — entertainment, dining out, and nonessential purchases.

•   20% is allocated to savings, investments, and paying more than the minimum on debt.

This approach helps you prioritize spending, manage debt, and build a financial safety net.

You can set up a budget using pen and paper, a simple spreadsheet ,or a dedicated app. Many banks also offer budgeting tools that track spending and categorize purchases automatically.

Cut Monthly Costs Without Sacrificing Comfort

Once you’ve assessed your spending, the next step is identifying areas to trim back. Here are some common expenses you may want to reassess:

Housing: If rent is taking a big chunk out of your income, you might look into getting a roommate, moving to a less expensive area, or downsizing.

Transportation: Consider carpooling with friends and coworkers, taking public transit, and swapping a costly car lease for a more affordable vehicle. You might also save by comparing car insurance providers.

Cable and subscriptions: Consider replacing a pricey cable package with more affordable streaming services. If you already subscribe to multiple streaming services, you might get rid of the ones you rarely watch. Another way to save on streaming is to rotate your subscriptions (i.e., canceling one service and then subscribing to another when you want to watch something specific).

Dining out: Cooking at home can significantly reduce weekly food costs. Consider doing some meal prepping or batch cooking on the weekends and using a slow cooker on work days to make it easier to resist going out or ordering in.

Online shopping: Consider deleting saved payment methods on your favorite shopping sites to add more friction to impulse purchases. It’s also a good idea to unsubscribe from promotional emails that tempt you to spend.

Also keep in mind that you may be able to cut some of your so-called “fixed” monthly costs, like your cell, internet, and insurance bills. Call around to see if you can get a better deal from a competitor, or simply reach out to your current providers and ask for a better price. Many companies will offer promotions to retain existing customers.

If you’re carrying a balance on your credit card, you might contact the card issuer and ask for a lower interest rate — especially if you have a good payment history or competing offers from other cards.

Start Saving for Retirement Now

The earlier you begin saving for retirement, the easier it will be to reach your goal. Thanks to compound returns (when the returns you earn get reinvested and earn returns of their own), small contributions now can grow significantly over time.

Popular retirement accounts include:

•   401(k): This is a retirement savings plan offered by many employers, often with contribution matching (which is essentially free money). You don’t pay taxes on contributions or earnings until you withdraw the money in retirement.

•   Traditional IRA: A traditional individual retirement account (IRA) is an account you open on your own, not through an employer. Contributions may be tax-deductible, and withdrawals are taxed in retirement.

•   Roth IRA: A Roth IRA is also an individual account, but you fund it with after-tax dollars. This means you pay taxes on the money now but the account grows tax-free and qualified withdrawals in retirement are tax-free.

Financial advisors often recommend putting at least 15% of your pre-tax income each year for retirement (this includes any employer match).

Keep in mind that all retirement accounts come with annual contribution limits set by the Internal Revenue Service (IRS). These limits are influenced by factors such as age, income, and whether or not you (or your spouse) have access to a workplace retirement plan.

Be Smart About Loans

Large expenses, such as purchasing a house, car, or starting a business, typically require more cash than most individuals have sitting in their bank accounts. Loans provide a way to finance these expenses by borrowing money, which is then repaid over time with interest. When considering a loan, keep these smart borrowing tips in mind:

•   Shop around: Compare different lenders and loan types to find the best interest rate, terms, and fees. You can often rate shop online without any impact to your credit.

•   Understand the loan: Familiarize yourself with the loan terms, repayment schedule, and any associated fees or penalties.

•   Only borrow what you need: It’s important that you only borrow the amount necessary for your specific needs, as borrowing more can lead to higher overall debt and interest payments.

•   Assess your ability to repay: Determine if you can comfortably afford the monthly payments based on your income and monthly expenses.

•   Set up automated payments: Automate your loan payments to ensure you never miss a payment — this helps you avoid late fees and potential dinks to your credit.

•   Make extra payments when possible: Pay more than the minimum amount whenever possible to reduce the principal balance and save on interest.

•   Consider refinancing: If at some point you can lock in a better interest rate, consider refinancing your loan. Just keep in mind that extending the loan term can lead to increased overall costs.

The Takeaway

Smart financial strategies aren’t just about cutting back — they’re about making intentional choices with your money. Whether you’re paying down debt, investing for the future, or fine-tuning your budget, every step you take brings you closer to your financial goals. With the right tools and mindset, long-term financial success is within reach.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 the top 3 financial habits?

Top financial habits include: 1) Budgeting: Tracking income and expenses to manage money effectively. 2) Saving: Setting aside a portion of income for emergencies and future goals. 3) Investing: Growing wealth over time by putting money into stocks, bonds, or other assets. These habits help ensure financial stability and long-term security.

What is the SMART concept in finance?

The SMART concept in finance stands for Specific, Measurable, Achievable, Relevant, and Time-bound. It helps in setting clear and actionable financial goals. For example, instead of a vague goal like “save more,” a SMART goal would be “save $5,000 for a vacation you want to take in one year by setting aside $417 each month.” This framework ensures goals are well-defined and easier to achieve.

What is the 70/20/10 rule in personal finance?

The 70/20/10 rule in personal finance suggests dividing your income into three parts: 70% for monthly bills and everyday spending, 20% for savings and investments, and 10% for additional debt payments or charitable giving. This rule helps maintain a balanced budget, ensuring you cover essentials, build wealth, and manage debts or contribute to causes you care about. It’s a simple and effective way to manage your finances.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

Moving can be stressful. Making sure your fragiles are packed so they don’t break, deciding on a DIY move or hiring professional movers, managing security deposits or down payments on both ends of the move — moving cross country could overwhelm even the most relaxed person.

But there are steps you can take ahead of time to help make the process go more smoothly.

Reduce, Reuse, Recycle

The three Rs aren’t just good environmental stewardship — they’re also essential for planning a cross-country move.

After all, moving is a great time to embrace your inner minimalist and get rid of absolutely everything that’s no longer needed. Not only does decluttering help cut down on moving costs, it also helps you avoid filling up the new place with meaningless stuff.

Instead of just throwing away unwanted goods, trying to find them a new home might give them a second life. Furniture items can be sold online or in consignment stores to raise a bit of extra money for the moving fund, or they can be donated to a thrift store.

Professional clothes that are no longer worn could help someone if donated to a job readiness program. Animal shelters often take donations of old sheets and blankets to make cuddly beds for their charges.

Local freecycle or buy-nothing groups can also be great places to unload unwanted home goods. You never know who has a use for those five dish strainers you’ve somehow accumulated.


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

Pack Like a Pro

Once you’ve decluttered, it’s time to get packing. Resist the urge to throw everything into a medium-sized box and call it a day. Taking the time to pack up your home like a professional will make moving — and the subsequent unpacking — a whole lot easier.

First, gather your packing supplies. You’ll want to make sure you have plenty of boxes of varying sizes, several rolls of packing tape, large black markers, scissors, a utility knife, and several types of packing materials, like old newspaper, bubble wrap, and even old rags or sheets.

Start by packing up non-essentials, like seasonal home goods, out-of-season clothes, and rarely used kitchen goods.

Make sure to wrap all fragile items in paper or bubble wrap before putting them in boxes. Plates can be packed next to each other vertically, which helps prevent breaking. Likewise, adding a layer of crumbled newsprint or packing paper on the bottom of your box can also help prevent breakage.

Aim to keep each box light enough to lift alone, with heavy items on the bottom and lighter items on top. Don’t forget to pack similar items together. No one wants to arrive at their new home and find their dishes somehow got packed next to the cat’s litter box.

Recommended: 21 Items That You Can Recycle for Money

Choose Your Mode of Transportation

One of the most challenging parts of planning a move across the country — or even to another state — can be planning the actual transportation. Will you fly, and then ship your cargo to your new home? Hire a moving company to pack everything up and unpack it at your new place? Rent a cargo trailer and drive across the country?

Each option has its benefits and its drawbacks, but choosing the mode of transportation that best fits your needs and budget can help keep your move as stress-free as possible. And, depending on the mode you choose, it could help you keep your budget intact, too.

Hire a Moving Company

The easiest, and usually the most expensive, option is to hire a moving company and let them take care of the details. Using a moving company for a cross-country move can mean moving costs between $2,000 and $10,000. That figure can rise when you add in fuel costs, fees, and insurance.

Some moving companies will send someone out to take a look at how much stuff you plan to move to give a more accurate cost estimate or do a FaceTime call for the same purpose. They may also estimate the weight of the load and calculate how far you plan on moving when giving you the final estimate.

If you’re hiring movers, one way to cut down on expenses is to pack and unpack your stuff yourself. Asking for personal recommendations, reading online reviews, and getting a few different quotes before deciding on a moving company can help you get the best company for your needs.

Ship Your Belongings

If you don’t have any big furniture to move, you may be able to get away with shipping your goods and hopping on a plane with just your essentials.

Shipping your goods as freight can be a more affordable option, whether you send them via mail, train, or even take a few boxes as checked baggage on the flight.

The downside is that unless the boxes are traveling on your flight with you, you may end up waiting a while for them at your destination. And, like all mail, there is always a chance things could be lost or damaged during the journey.

Rent a Truck or Trailer

Many movers choose to take the DIY route and rent a cargo truck or trailer to haul their worldly possessions. This can be a budget-friendly option, but remember that for all the cost savings, you’ll be putting in a lot more hard work.

You’ll need to pack and load all your boxes and furniture into the trailer yourself. On top of packing, you’ll also have to be comfortable driving the cargo truck or trailer the hundreds or thousands of miles that lie between you and your destination.

Budgeting for Your Move

Still wondering how to move across the country without going broke? There’s no doubt about it: Moving is expensive.

As you make your moving budget, don’t forget to include the additional costs of moving, like a down payment on your new place, or first and last month’s rent, and the cost of setting up your new home with all the essentials.

On top of that, moving often coincides with changing jobs, which may mean that you have a few weeks where you could be without a paycheck. All of this makes moving across the country financially draining for many people.

If you know you’ll be moving in the future, saving up now and using any money you make selling unwanted goods can be a good way to build up your moving fund.

Some people, however, realize they need a little more help in covering the upfront costs of moving across the country. When you need quick cash for your move, a relocation loan (which is an unsecured personal loan) can be an option worth exploring, as some lenders disburse loan funds within a few days. The money can cover a wide range of moving costs, from deposits to storage to professional movers, transportation, and even hotel stays.

A personal loan may offer lower interest rates than many credit cards do and, unlike a credit card, a personal loan is not revolving credit. That means the loan is for a set amount of money and paid back over a fixed period of time.

Recommended: Get Your Personal Loan Approved

The Takeaway

Moving across the country can be overwhelming, but there are ways to help make the process feel less stressful. Getting rid of things you no longer want or need is a good place to start. Just as important is how you plan on transporting your belongings to your new home. As you’re creating your moving budget, be sure to factor in the cost of setting up your new home. This may include the down payment or security deposit on your new place and paying for groceries, new furniture, and other essentials. A personal loan may be a good option to cover these costs.

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

What’s the least expensive way to move cross country?

The least expensive way to move cross country can involve selling what you don’t need before moving; finding used, free shipping supplies; shipping items or driving them yourself; and enlisting friends and family to help.

How much money should I save before moving cross country?

Moving cross country can require anywhere from $2,000 to $8,000 in moving expenses alone. There may also be funds needed for a security deposit on a place to live and expenses to be paid while you job-hunt. For these reasons, many experts advise having at least three to six months’ worth of living expenses saved before moving cross country.

When is the cheapest time to move?

The cheapest time to move is typically in January or February, when you could save 30% vs. moving during the most popular season, which is summer.

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.

SOPL-Q225-052