SoFi

The main reason for refinancing student loans with a private lender is to combine your loans into one new loan with a lower interest rate. If you extend the loan term and get a lower student loan interest rate, your monthly payment will go down. Another option is to shorten your loan term, which will allow you to pay potentially thousands of dollars less in interest over the life of the loan.

Reduce Your Interest on Student Loans

Consolidating multiple student loan balances into one new loan with a low interest rate can be ideal for those looking to reduce the amount they owe in interest. It’s important to note, though, that if you refinance federal student loans, you lose access to federal benefits such as student loan forgiveness.

Getting approved for student loan refinancing isn’t just a matter of submitting an application. You need a game plan — one that will help you become a strong loan candidate, who’ll land a quick “yes” and a lower student loan interest rate. Here are five ways to get a lower interest rate on student loans.

5 Point Plan for Getting a Low Interest Rate

1. Check your credit.

If you want to reduce your student loan interest rate through refinancing, the first thing you should do is check your credit score. The better your credit profile, the less risky you appear to lenders. If your credit profile is solid — meaning you have a decent credit score and a low debt-to-income ratio — lenders should offer you their best rates.

If, however, your credit profile isn’t quite where you want it to be, that’s OK. Take a few months to build up your credit and reapply for student loan refinancing down the line to see if you qualify for a better rate.

Recommended: Why Your Debt to Income Ratio Matters

2. Take a hard look at your cost of living.

Some cities are more expensive to live in than others. Someone renting an apartment in a small Midwestern town, for example, has lower living expenses than someone who owns a row home in San Francisco. Cost of living ties directly into your debt-to-income ratio, and therefore matters when you want to get a lower interest rate on student loans.

To some extent, this is out of your hands; your zip code helps lenders determine your cost of living. But anything you can do to pay down debt and make choices that free up more cash—such as renting a smaller apartment, taking on a roommate, or leasing a cheaper car—can help your case.

3. Give lenders a complete history.

Some student loan refinancing lenders consider things like where you went to school and how you’re doing professionally when they weigh your application. Provide as much information as you can when it comes to your undergraduate and graduate degrees.

Be sure to also include all relevant work experience. Again, if you can show lenders that you have a solid work history and your income has steadily increased, you will appear less risky. The less riskier you are to lenders, the better your student loan interest rate will be.

If there’s a job offer on the horizon, be sure to submit your offer letter with your application. And if you get a promotion while your application is under review, notify the lender immediately. If you’re in line for a promotion that will positively affect your paycheck, wait until that’s materialized before you apply.

4. Show all your income.

When lenders ask for income information, they mean all of your income, not just job earnings. List dividends, interest earned, bonuses, and the extra money you make from your side hustle or Airbnb rental property. As long as you can prove these income sources, it will all count towards your debt-to-income ratio and help to lower it. And again, the lower this ratio, the better chances you have at qualifying for a low student loan refinance rate.

The higher your income, the more cash you have to throw at the refinancing equation.

Also, make sure your driver’s license is current and that your student loan statements are all correct. If you’re self-employed, wait until you’ve filed your taxes to apply for refinancing—it’s the easiest way to prove the previous year’s income.

5. Be flexible.

If you have a number of student loans and you’re not offered the best rate when you apply for refinancing, consider refinancing only a couple of them. You may snag a lower interest rate with a smaller refinance balance. You can always apply for the full balance down the road after you’ve received a raise or moved to a less expensive location.

Being flexible also means you might want to think about asking a friend or relative for help if your application isn’t as strong as you’d like. When you refinance your student loans with a cosigner who has a good credit profile and low debt-to-income ratio, you may be able to get a lower rate than if you refinanced on your own.

Refinance Student Loans With SoFi

The stronger you are as a student loan refinancing candidate, the better your chances are of getting the best student loan refinance rate possible. To get the lowest rate when refinancing, check your credit, take a close look at your living expenses and debt-to-income ratio, give lenders a complete history of your education and employment, make sure to include all of your income sources in the application, and finally, be flexible, even if that means applying with a cosigner.

Keep in mind, though, that if you choose to refinance your federal student loans with a private lender, you lose access to federal benefits, such as student loan forgiveness and income-driven repayment plans. Make sure you don’t plan on using these benefits now or at any point in the future before deciding to refinance.

If you do think a student loan refinance may be in your best interest, consider SoFi. SoFi offers competitive rates and does not charge any origination fees. It takes just a few minutes to see your rates, and your credit score will not be affected when you prequalify.

FAQ

Can you negotiate your student loan interest rate?

Not necessarily. Rates are determined by both the market and your credit profile, leaving little room for negotiation. You can, however, present your lowest offer to another lender to see if they will match that.

How can I get a lower interest rate when refinancing my student loans?

You can get a lower interest rate when refinancing student loans by building your credit profile, having a reliable source of income, and making sure your debt-to-income ratio is low.

Is it possible to get lower rates when refinancing student loans?

Yes, it is possible to get a lower interest rate when refinancing student loans. Your student loan interest rate will depend on current market rates, your credit profile, and your debt-to-income ratio.

SoFi Student Loan Refinance
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.

SOSL0323001

When it comes to getting a secure, well-paying job, it’s not always necessary to get a college degree first.

Some students may choose a career training program to learn the necessary skills for a specific job, often more quickly and for less money than a four-year college degree. These programs may also be referred to as career certificate programs, usually certifying the students to work in a particular role once the course is completed.

Recent high school graduates or those who have attained their GED can often attend career training programs and get started on their careers after receiving their certificate.

Why Do People Choose Career Training Programs?

Two big factors in choosing to go through a career training program before or instead of going to college are time and money.

Career training programs typically can be completed in less time than it generally takes to complete an undergraduate degree. Some programs can be finished in as little as four months.

In addition, they’re also less expensive, which may mean that students have less student loan debt. On average, a career certificate program may cost around $100 per credit. By comparison, the average annual cost of in-state tuition at a public two-year institution is $3,862, and at a public four-year college, the in-state tuition averages $9,377 a year.

For instance, at Minnesota State University, certificate programs consist of nine to 30 credits, which can be completed in one year or less of full-time study. If these programs cost the average $100 per credit, they would cost between $900 and $3,000. This is fairly affordable compared to the cost of tuition at either a two-year or a four-year institution.

Another reason some people choose a career training program is that they need to, or would like to, start earning money relatively soon after graduating high school. And that way, if they borrowed money to help pay for their certificate program, they can put more money toward student loans to pay them off.

A career training program could be a more direct route to employment than getting an associate or bachelor’s degree for people who are sure about their career path. This could also be a beneficial route for students who want to save money to attend college later in life.

Choosing a Program

The most important thing to look for when choosing a career training program, whether it’s in-person or an online career training program, is accreditation. Accreditation verifies that an institution is meeting a certain level of quality. Usually, a certificate will need to come from an accredited institution for it to be considered legitimate.

Accreditation is done by private agencies, and most programs or institutions will list accreditations on their website.

The most up-to-date accreditation information can be found in the database of postsecondary institutions and programs compiled by the US Department of Education or with the specific accrediting agency’s website.

Once it’s clear that the potential programs are accredited, students can begin to narrow down which one will be best for them. This will be a highly personal choice, but there are a few factors worthy of attention, including cost, course length, and type of instruction (online vs. in-person).

Job search assistance—which might include resume writing workshops, job fairs, or interview prep—is another element that may help set students up for success.

Top Paying Jobs For Certificate Holders

In addition to career training programs having the potential to save students time and money, people want to know that they’ll be able to make a good living with those jobs. They also want jobs that can help pay off any money borrowed for school.

These are some of the highest paying jobs for those opting to go through a career training program:

1. Web Designer

According to the US Bureau of Labor Statistics, the average annual income for a web designer is $78,300, with the educational requirements ranging from a high school diploma to a bachelor’s degree. This job is growing faster than average, so it has a promising future.

2. Paralegals and Legal Assistants

Paralegals and legal assistants make, on average, $56,230 per year. The required education for an entry-level job as a paralegal is a certificate or an associate degree. This job is also growing at a rate much faster than average, showing great potential for a long-term career.

3. Solar Photovoltaic Installer

Solar panel installation is a growing field with decent pay and a lot of projected growth for the future. The median annual pay is $47,670, with only a high school degree or a certificate required to begin working.

4. Licensed practical and licensed vocational nurses

Training to become a licensed practical or licensed vocational nurse typically takes only one year of full-time study, and the median annual salary is $48,070. This job is growing as fast as average and is in a field that will certainly always exist. This could be a good choice for someone who wants to be in the medical field without the time and financial commitment it takes to become a doctor.

5. Medical Records Technician

Working as a medical records technician usually only requires a certificate, and sometimes an associate degree. This job has a median annual pay of $46,660 and the potential to work from home.

6. Pharmacy Technician

The median pay for a pharmacy technician is $36,740 per year. This job is growing at an average rate and typically requires on-the-job training or a formal training program, most of which last one year. Some longer pharmacy tech training programs culminate in an associate degree.

7. Computer Support Specialist

The role of a computer support specialist can vary widely, which means the educational requirements may also vary. Some jobs in this field may require a bachelor’s degree, but others may only require an associate degree or a certificate. The median annual pay for a computer support specialist is $57,910, and the field is growing as fast as average.

8. Phlebotomists

Phlebotomists draw blood and may work in hospitals, labs, or doctors’ offices. Professional certification, which can be gained after completing a phlebotomy training program, is the credential generally preferred by employers. This job has a median annual pay of $37,380 and it’s growing much faster than average.

9. Medical Assistants

Medical assistants have a median annual pay of $37,190 and the job only requires a certificate or on-the-job training. This job is growing much faster than average.

10. Wind Turbine Technician

The median pay for this job is $56,260 per year and the only education required is a training certificate through a technical program. This job is growing at a rate much faster than average, which could make it a great choice for students who are ready to start their career shortly after graduating high school.

Paying for a Career Training Program

Just because career training programs are typically less expensive than college doesn’t mean they’ll be easy to pay for. Some programs last longer than others and could end up costing a fair chunk of money. Here are some ways to help cover the costs.

Pay for it. One way to pay for a career training program is to save up the amount of money needed before starting it, especially if the program is short or has a lower cost. Paying in full with cash means no debt to worry about.

Financial aid. Another potential way to pay for a career training program is to apply for federal student financial aid, which may be available to students enrolled in eligible degree or certificate programs and who meet other eligibility requirements. Completing the Free Application for Free Application for Federal Student Aid (FAFSA) is the first step. After submitting the FAFSA, students will find out if they’re eligible for federal student aid, which could include federal student loans and/or work-study.

Scholarships. Students who aren’t eligible for financial aid or those who can’t cover tuition costs may want to look for scholarships. There may be fewer scholarships available for certificate programs than there are for degree programs, but they’re out there.

The best place to start looking for scholarships is with the school the student is attending. Some schools set up their own scholarships. Alternatively, students can search for scholarships offered by professional organizations in their related fields.

Private student loans. A private student loan may be another option to cover the cost of a career training program.

One of the basics of student loans is that loan terms will vary from lender to lender, and applicants are encouraged to shop around. It also makes sense for students to exhaust all federal student aid options before considering private student loans.

Learn more about how private student loans work with this private student loans guide.

Student loan refinancing. If you took out student loans and the payments are difficult to manage, or you’d like to get a lower interest rate, you can look into refinancing student loans.

One of the advantages of refinancing student loans is that you may be able to qualify for more favorable terms or a lower rate, which could help you save money.

Just be aware that when you refinance federal student loans, you lose access to federal protections and programs like income-driven repayment plans. Be sure you don’t need those benefits if you choose to refinance.

The Takeaway

Students can be under a lot of pressure to go right into a four-year college or university after graduating high school, but career training programs provide an alternative that can also set them up for success, typically in less time and for less money.

There are a number of options to help pay for a certificate training program, including saving up for it, applying for federal student financial aid, looking for scholarships, and taking out a private student loan.

If you have student loans and you’d like to get a more favorable rate or better terms, consider student loan refinancing. SoFi offers loans with low fixed or variable rates, flexible terms, and no fees. And you can find out if you prequalify in two minutes.

SoFi Student Loan Refinance
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.

SOSL0623012

If you’ve lost your job, you may be able to defer your student loan payments. The unemployment deferment and repayment options available can depend on the type of loans you have.

For instance, if you have federal student loans, one option is the Unemployment Deferment program offered by the government. Unemployment Deferment is a program run by the Department of Education that allows eligible federal loan borrowers who are out of work or cannot find full-time employment to postpone payments on existing educational debts.

Read on to learn how the Unemployment Deferment program works, plus other alternatives, including deferment opportunities for private student loans.

What is Unemployment Deferment?

For anyone who has federal student loans, student loan deferment allows eligible borrowers to put student loan payments on hold for a predetermined period.

Unemployment Deferment is awarded to eligible federal student loan borrowers who are seeking unemployment benefits or who are unable to find full-time work.

Those who qualify can temporarily pause putting money toward student loans for up to three years for federal loans, assuming that they continue to meet all the requirements.

It’s important to note that if you have unsubsidized loans or Direct PLUS loans, interest will continue accruing during any deferment period. This means the balance owed on outstanding loans would keep growing. So, over the life of the loan, a short-term savings from deferring repayment could mean owing more in the end.

In general, interest won’t accrue on federal subsidized loans.

If you qualify for deferment and your loan continues to accrue interest, you can choose between two ways to pay back the interest. First, you could make interest-only payments. Or, you could let the interest accumulate during the deferment, adding whatever accrues to the total balance owed.

Currently, if a borrower decides to forgo interest-only payments and allow interest charges to rack up on an unsubsidized loan, that interest is added onto the total balance of the student loans, which is a process called “capitalization.”

In addition to having a larger loan amount due down the line, future interest is calculated on top of the new balance. Therefore, borrowers pay interest on top of interest, potentially resulting in higher monthly payments than before the deferment.

However, thanks to new regulations that begin in July 2023, this kind of interest capitalization on federal student loans will be eliminated.

What Types of Student Loans Are Eligible for Unemployment Deferment?

If you’re unemployed with student loans, federal student loan unemployment deferment is available for Direct Loans, FFEL Program loans, and Perkins Loans. Here are a few specific examples of loans that may qualify.

•   Direct Loans

•   Family Education Loans (FEEL Loans)

•   Stafford Loans

•   Perkins Loans

•   PLUS Loans

•   Direct Consolidation Loans

In addition, if a borrower received federal student loans before July 1, 1993, they may qualify for other deferments.

Private loans from private lenders are not eligible for the federal Unemployment Deferment program. However, some lenders may provide economic hardship programs for borrowers.

Borrowers can contact their loan servicer for details on any hardship repayment or deferment programs they may offer.

Who is Eligible for Unemployment Deferment?

Deferring payments on federal student loans isn’t automatic.

Borrowers first need to apply with supporting documentation to determine if they’ll be eligible for a student loan unemployment deferral.

Generally, an applicant can qualify either by providing proof of eligibility to receive employment benefits or by demonstrating that a diligent search for full-time employment is underway.

In the second case, certifying that you’re registered with an employment agency (whether privately owned or state run) can help show that an active search for work is being carried out.

Applicants seeking unemployment deferment under the searching full-time employment category may receive a deferment period for only six months.

If you need to extend the deferment past that time, you’ll have to submit a new application certifying that you’ve made at least six attempts to find full-time employment. The deferment period cannot exceed three years.

To pursue unemployment deferral, you must first fill out the unemployment deferment form at StudentAid.gov — answering questions about your job search, current unemployment benefits, and understanding of what loan deferment entails.

What About Private Student Loan Deferment?

Although private lenders aren’t legally required to offer unemployment deferment options, some do.

But, it’s worth keeping in mind that, similar to federal student loan Unemployment Deferment, private loans typically still accrue interest during the approved deferment period (even refinanced student loans with lenders who honor grace periods).

In other words, the total student loan balance would continue to grow even while payments are suspended. This is one of the basics of student loans.

Over the life of the loan, this could add to what the borrower owes overall. Some private lenders allow borrowers to make interest-only payments during a forbearance to help avoid interest capitalization.

Even with the accrual of interest and limited options, deferment is preferable to defaulting on student loans.

Borrowers with private student loans can contact their lender to learn if special deferment is available for those who are unemployed. This private student loans guide may also be helpful.

Advantages and Disadvantages of Unemployment Deferment

So, what are the potential pros and cons of pursuing an unemployment deferment on student loans?

These are some of the advantages and disadvantages you may want to think over:

Advantages

Whether a borrower has been laid off due to an economic downturn or they have recently graduated and are struggling to find employment, unemployed deferment is one way to help ease the financial pressure of repaying student debt in the short term.

For borrowers in need of financial relief, student loan unemployment deferment can help temporarily lower monthly expenses. This can be especially helpful if an unemployed borrower would otherwise run the risk of student loan default.

Defaulting on loans can have a negative impact on your credit history, complicating your ability to pursue mortgage or other loans in the future.

And, with student loans, simply not paying them does not erase the amount owed or the interest that can keep accruing.

If a borrower has only subsidized student loans, the unemployment deferment program comes at no additional cost because interest does not accrue.

And, while it’s completely fine to apply for a deferral, borrowers are typically expected to use the approved deferment period to find a new job; some unemployment protection programs from private lenders even have stipulations to that effect.

Disadvantages

In the case of unsubsidized federal student loans, taking a deferment will increase the total amount owed on the loan. And even if a borrower decides to make interest-only payments, they’re not not chipping away at the principal amount.

Unemployed student loan borrowers may want to weigh whether the short-term savings tied to reduced or suspended loan payments are worth owing more money on those loans later on.

When a borrower does eventually find employment and the deferment ends, the future payments on their student loan payments may be higher each month—to cover the additional accrued interest.

For someone who is just adjusting to a new job, higher loan payments may come as a shock and could be hard to budget for.

Understanding the long-term implications of applying for student loan unemployment deferment can help borrowers to decide whether this sort of program is the right for the current and future financial situations.

Alternatives to Unemployment Deferment

For federal student loan borrowers who don’t qualify for the Unemployment Deferment program, there may be other ways to handle student loans during a job loss.

Forbearance and income-driven repayment plans are two potential options:

Forbearance

Similar to deferment, federal or private loan forbearance temporarily suspends or reduces loan payments.

However, while principal payments are postponed, interest will continue to accrue, no matter what type of loans you have. To see if you qualify, contact your loan servicer.

Because forbearance does not suspend the accrual of interest on a student loan, it can make sense to consider other options, such as income-driven repayment.

Income-Driven Repayment

Income-driven repayment plans calculate loan payments based on a borrower’s current income and family size. They also, typically, stretch the loan repayments over 20 or more years.

There are four different types of income-driven repayment plans run by the US government:

•   Revised Pay As You Earn Repayment Plan (REPAYE Plan)

•   Income-Based Repayment Plan (IBR Plan)

•   Pay As You Earn Repayment Plan (PAYE Plan)

•   Income-Contingent Repayment Plan (ICR Plan)

Although this type of plan may trim monthly loan payments, it could cost borrowers more in interest over the life of the loan.

So, once your financial or employment situation improves, you may want to switch to an alternative repayment plan.

Public Service Loan Forgiveness (PSLF) Program

Having been previously employed in certain public sector jobs may also qualify some borrowers for student loan forgiveness if unemployed.

By definition, loan forgiveness means that the remaining amount owed is, well, forgiven—the borrower is no longer bound to pay it back.

Eligible federal student loan borrowers who’ve completed 10 years of employment with a qualifying job—such as, a public school teacher, some non-profit employees, Americorps recipient, or government worker—might be eligible for the PSLF program.

If you think you may qualify for the federal forgiveness program, and your goal is to lower your monthly payments, you may still want to switch to an income-driven repayment plan while the PSLF application is being reviewed in order to lower your monthly payments.

Student Loan Refinancing

After exhausting federal program options, or if none are quite the right fit, borrowers with federal or private student loans may want to look into refinancing student loans.

When you refinance student loans, you replace your loans with one new private loan. One of the advantages of refinancing student loans is that qualified borrowers may either get a lower monthly payment or help reduce the total interest paid over the life of the loan. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

But it’s important to be aware that by refinancing federal student loans with a private lender, borrowers give up benefits and protections such as federal Unemployment Deferment, PSLF, and income-driven repayment.

Lenders that offer refinancing options usually look at applicants’ qualifying financial attributes—including employment status, credit history, and income. So, refinancing student loans is not necessarily available to all who apply.

The Takeaway

There are numerous possible student loan repayment options for unemployed borrowers who qualify, including deferment, income-driven repayment, federal student loan forgiveness programs, and student loan refinancing. One good place to start is by calling your loan provider to review all options you may qualify for.

If you decide that refinancing your student loans makes sense for your situation, SoFi offers loans with a low fixed or variable rate and no fees. By filling out a simple application, you can find out if you qualify in just two minutes.

Check your student loan refinancing rate today with SoFi.

SoFi Student Loan Refinance
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.

There are times in life when you might wonder if you should merge bank accounts. One obvious trigger is marriage: You and your spouse may decide to combine all or some of your accounts into joint reserves. Or perhaps you simply have a number of bank accounts, and they are becoming unwieldy. Perhaps you opened one in college, then another when you moved to start your first job, and then yet another to get a special promotional bonus.

Whatever your goals, if you’re craving financial simplicity or otherwise need a fresh approach to your accounts, here’s what you need to know about:

•   How to combine bank accounts

•   The pros and cons of combining bank accounts

•   When to combine bank accounts.

How to Combine Bank Accounts in 4 Steps

If you decide that merging bank accounts is the right step for you, here’s how to make it happen:

1. Decide Where to Keep Your New Account

The first step — whether you are downsizing for yourself or joining two individuals’ finances together — might be to decide where you want to open your new account.

If you or your spouse have multiple accounts across different financial institutions, you could evaluate which institution offers the best benefits and lowest fees. You might stick with the one existing account you like best or start a joint account somewhere new.

If you are doing the latter, you could compare traditional vs. online banks or which institutions are offering a perk that appeals to you.

2. Start Shifting Accounts

Here’s the next step in how to combine bank accounts: If you’ve decided you want to combine accounts, you could start moving your direct deposits, automatic credit card payments, and other similar transactions over from your old accounts to the new one. You might also want to make sure any subscriptions or other deductions are switched over as well.

3. Check That Your Account Is Up and Running

After about a month, you might want to double-check and make sure that everything has transferred properly. You don’t want to end up paying a late fee or have a check bounce because you weren’t monitoring your accounts.

You also want to be sure that your direct deposits are on time.

4. Close the Unnecessary Accounts

Once you see the correct payments and deposits coming in and out of the new combined account, then you could take the last step in how to merge bank accounts, which is to start closing your old accounts.

This might involve a trip to a branch in person, and if there is anything left in your old account, the bank will issue you a check or cash payment for the remainder.

Recommended: Guide to Reopening a Closed Bank Account

Benefits of Combining Bank Accounts

If you’re wondering whether to merge bank accounts, it can be helpful to consider the pros and cons of combining accounts. Here, the upsides:

•   A shared account gives each person in the relationship access to money when they need it. Joint accounts usually offer each person a debit card, a checkbook, and the ability to make deposits and withdraw money.

This also includes online access to account information, which might help when it comes to paying bills together or other when making shared financial decisions.

•   Even those who are not looking to combine finances with someone else could benefit from merging their own money into fewer accounts. How many bank accounts should you have? For most single adults, just one checking and one savings account at the same bank should cover your financial needs.

This could help cut down on confusion and simplify your spending, so that you’re not trying to balance your budget across multiple accounts. Minimizing the number of accounts you hold could mean fewer fees, since many banks charge monthly fees or require a minimum balance.

•   Another advantage to a joint bank account is that you are less likely to run into financial surprises with your partner. With money going into (and out of) one account that you both have access to, it might be easier to keep tabs on your monthly budget and spending.

Drawbacks of Merging Your Accounts

Now, consider the downsides of merging accounts:

•   Some couples may prefer to keep their financial independence. In fact, rather than combining all your finances, you might decide to create a new joint account but also keep some accounts separate. Or you might decide to keep your finances totally independent of each other, and instead come up with a budget to figure out which expenses each person will pay.

•   Combined accounts may not suit your big-picture financial needs and money goals. Before you decide that a combined bank account is your goal, you might want to have a big-picture conversation about what each partner brings to the table.

For instance, what if one partner is entering the marriage with student loan debt, past loans, or other financial burdens? Will the new shared account be used for those payments? Or is it up to the individual to pay off their own debts?

•   A joint account could also become a problem in some states if the relationship ends, because without any other agreement in place, that shared money might get split up evenly in a divorce. Or, even worse, one spouse might clear out the account, leaving the other without money.

If you’re concerned about only having a joint account, you could open a joint account specifically for shared bill management with each person depositing a specific amount every month.

You could even have three separate checking accounts — yours, mine, and ours — maybe if one person is a spender and one is a saver. That way, both people manage their checking accounts on their own.

Opening a Bank Account With SoFi

Whether you decide to combine bank accounts, keep them separate, or something in between, it’s important to choose an account that meets your needs. SoFi offers a checking and savings account with a competitive annual percentage yield (APY) and no account fees, which can help your money grow faster.

Plus, with a SoFi Checking and Savings Account, you can save, spend, and earn all in one place. Plus, joint accounts are available with SoFi.

Bank smarter and simpler with SoFi.

FAQ

Can you merge two bank accounts together?

Yes, you can combine bank accounts. You might be able to transfer an account into another existing one or open a new account to accomplish this.

When should you combine bank accounts?

You can combine bank accounts when you marry, if that suits your and your spouse’s financial needs and style. You might also merge accounts if you find you have multiple accounts and want a simplified financial life.

How do you link two bank accounts from different banks?

You can link accounts between two different banks without merging them. Typically, you can do this on your financial institution’s website or app. You’ll look for the option that says “link external accounts,” and you’ll need the bank routing and account numbers handy.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

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

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

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

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

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

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.

SOBK0523025