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After you purchase a new home, there are many things to budget for, including moving costs, new furniture, and ongoing expenses such as your mortgage. Although it may seem like many of the significant expenditures are out of the way once you close on a property, there are additional costs that can add up.

To avoid financial surprises, it’s wise to jot down and budget for all of the extra expenses you will encounter when you move into your new place. To help you organize your finances, here are the things to budget for after buying a house.

Moving-Out Expenses to Budget for

Before you take up residence in your new home, you must move all of your things. Even if you pack and move all your belongings yourself, you’ll still have to spend on things like boxes, packing materials, and a truck. And if you use movers, it will cost you even more.

Recommended: The Ultimate Moving Checklist

Moving Your Belongings

There are three main options for moving your belongings:

•   Renting a truck and doing it yourself. It’s more cost efficient than using professional movers, but DIY moving yourself still adds up. You’ll have to pay for the truck rental fee, gas, and damage protection. If you’re moving across the country, you may also have to factor in the costs of shipping some of your items. Even though you can enlist your friends and family to help you do the heavy lifting, the cost of moving yourself can still be significant, and it’s a lot of work.

•   Hiring movers. If you decide to use professional movers, it’s wise to shop around to find the best price. Here’s why: For moves under 100 miles away, the national average cost of moving is $1,400, and it ranges from $800 to $2,500. If you’re moving long distance, the average cost can be as high as $2,200 to $5,700. To cut costs, you can do your own packing, which may save you money.

•   Moving your things in a storage container. Another option is to use a hauling container — you load your things in it, and the container company moves it to your new location. This usually costs between $500 and $5,000, depending on the distance and how much stuff you’re moving. Long-distance moves will usually cost more than local ones.

Moving Supplies

If you decide to go the DIY moving route, you will need to buy boxes, bubble wrap, labels, and tape. And you likely have more items to wrap and box up than you think, which requires even more supplies.

Cleaning Supplies

You’ll probably want to clean your current property before you move out, and you’ll definitely want to clean the new place when you move in. That means buying mops, sponges, cleaning solutions, and paper towels. You may also want to get the carpets cleaned or hire a professional house cleaner if the place needs a deep cleaning.

10 Common Expenses After Buying a Home

Once the move is done, there are other expenses you’ll need to account for as you settle into your new abode. Here are a few things to budget for after buying a home.

Furniture and Appliances

You’ll likely bring some furniture and decor from your old place, but you’ll probably want to purchase some new things as well. For example, if the appliances are outdated, you might want to upgrade to new ones. And you may have more rooms to furnish, which requires additional furniture.

Consider opening a savings account for the new items you want to purchase. It can also help pay for any unexpected costs, such as having to replace a hot water heater that breaks.

Mortgage Payments

As a homeowner, every month you will making a mortgage payment that typically includes:

•   The principal portion of the payment. This is the percentage of your mortgage that reduces your payment over the life of the loan. The more you pay toward principal, the less you will have to pay in interest.

•   The interest. This is the amount you pay to borrow funds from the bank or lender to purchase your home.

If you are using an escrow account to pay your mortgage, other things may be included in your payment, such as your property taxes, insurance, and private mortgage insurance. This guide to reading your mortgage statement can help you understand all the costs involved in your mortgage payment.

Property Taxes

Property taxes are the taxes you pay on your home. In many cases, these taxes are the second most significant expense after your mortgage. Property taxes are based on the value of your home, which is typically governed by your state. The county you live in collects and calculates the sum due. Usually, property tax calculations are done every year, so the amount you owe may fluctuate annually.

Homeowners Insurance

Homeowners insurance helps protect your home from damage or destruction caused by events like a fire, wind storm, or vandalism. It can also protect you from lawsuits or property damages you are liable for. If someone slips and falls on your sidewalk, for instance, homeowners insurance will pay for the injured person’s medical bills and the legal costs if they decide to sue you.

The cost you pay for this coverage will vary by the type and amount of coverage you select.

Private Mortgage Insurance (PMI)

For borrowers who can’t afford a down payment that’s 20% of the mortgage value, lenders usually require private mortgage insurance (PMI). This type of coverage is designed to protect the lender if you default on your mortgage payments.

PMI can cost as much as a few hundred dollars per month, depending on the sum you borrow.

HOA Dues

This is a Homeowner’s Association fee, which goes toward the upkeep of property in a planned community, co-op, or condo. The amount can range from a couple of hundred dollars a year to more than $2,000, depending on the amenities you’re paying for (like a pool and landscaping). You typically pay HOA fees monthly, quarterly, or annually.

Utilities

Your utility payments include water, gas, electric, trash, and sewer fees. Some bills like water and electricity are based on the amount you use every month, so monitoring your electric and water usage, like taking short showers and turning lights off, can help lower your cost. Other payments, such as your trash or recycling, might be a fixed amount.

Lawn Care

Maintaining the curb appeal of your home requires landscape services and lawn care. If you choose to mow your own lawn, you may need to factor in the purchase of a mower, which can cost about $1,068 on average. If you hire a lawn service to cut your grass, you may pay $25 to $50 a week.

Pest Control

Pests, such as ants, ticks, rodents, or mice, can wreak havoc on your home and your family’s health. For these reasons, many homeowners hire a pest control company to prevent the infestation of pests around their homes. The company’s initial visit may cost between $150 to $300, then $45 to $75 for every follow-up.

Home Improvement Costs

As a homeowner, there are likely things you want to change about your house. From painting the walls to a complete kitchen renovation, transforming your property can add to the cost of owning a home. According to the HomeAdvisor 2023 State of Home Spending Report, homeowners spend an average of $9,542 on home improvement each year.

Additionally, as the features of your home age, you will need to replace and repair them accordingly.

Common Mistakes After Buying a Home

One of the most common mistakes people make when buying a home is spending more than they can afford. For instance, you may forget to factor in utilities, lawn care, HOA fees, costs of upkeep, and other hidden expenses that come with owning a home. It’s crucial to do your research to determine extra costs and add them up before you move forward with purchasing a property.

Another mistake new homeowners make is taking on too many DIY projects. TV shows can make home renovations look easy. However, many of these projects require professionals who know what they are doing. Attempting a home improvement project could cost you more to fix than hiring a pro in the first place. In fact, about 80% of homeowners that attempt their own renovation projects make mistakes — some of them serious.

Unless you can afford an expert, you may want to rethink purchasing a home that requires a lot of renovation.

The 50/30/20 Rule

For help planning your budget as a homeowner, you can use the 50/30/20 rule, which breaks your budget into three categories:

•   50% goes to to needs

•   30% goes to wants

•   20% goes to to savings

That means you’ll be budgeting 50% of your income to go toward necessities such as housing costs, grocery bills, and car payments. Then 30% will go toward things you want, such as entertainment (movies, concerts), vacations, new clothes, and dining out. The remaining 20% goes towards saving for the future or financial goals such as home improvement projects.

Using a 50/30/20 budget rule is simple and easy. It allows you to see where your money is going and helps you save.

Recommended: How to Track Home Improvement Costs

Lifestyle Tradeoffs in Order to Budget

With so many things to budget for after buying a home, you may need to cut back on spending. Start by looking at your discretionary spending and think about where you can trim back. For example, instead of eating out regularly, you can cook more meals at home. Or perhaps you can put your gym membership on hold and do at-home workouts for a while to stay in shape physically and financially.

Recommended: How to Budget in 5 Steps

The Takeaway

After you buy a house, there are many expenses you may not have accounted for, such as the cost of hiring movers; buying furniture; and getting your new place painted, cleaned, and ready to move into. Making a budget is vital to keep you on track financially, so you can enjoy your new home.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How much money should you have leftover after buying a house?

After buying a home, the amount you have left will vary depending on your financial situation. However, it’s a good idea to have at least three to six months of living expenses in reserve. That way, in case of an emergency, you can stay afloat financially.

Is it worth putting more than 20% down?

Putting more than 20% down on your home can help lower your monthly mortgage payment and interest because you’ll be borrowing less money. It also gives you more equity in your home from the beginning. But make sure you can afford to pay more than 20% in order not to stretch beyond your budget.

What’s the 50-30-20 budget rule?

The 50/30/20 rule means that you budget 50% of your expenses for needs (housing, groceries, loan payments), 30% for wants (entertainment, eating out, shopping), and 20% toward savings goals (retirement, renovations, new furniture).

Photo credit: iStock/ArtMarie

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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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Many homebuyers swimming in the pool of new mortgage terminology may wonder how mortgage principal differs from their mortgage payment. Simply put, your mortgage principal is the amount of money you borrowed from your mortgage lender.

Knowing how mortgage principal works and how you can pay it off more quickly than the average homeowner could save you a lot of money over the life of the loan. Here’s what you need to know about paying off the principal on a mortgage.

Mortgage Principal Definition

Mortgage principal is the original amount that you borrowed to pay for your home. It is not the amount you paid for your home; nor is it the amount of your monthly mortgage payment.

Each month when you make a payment on your mortgage loan, a portion goes toward the original amount you borrowed, a portion goes toward the interest payment, and some goes into your escrow account, if you have one, to pay for taxes and insurance.

Your mortgage principal balance will change over the life of your loan as you pay it down with your monthly mortgage payment, as well as any extra payments. Your equity will increase while you’re paying down the principal on your mortgage.

Mortgage Principal vs Mortgage Interest

Your mortgage payment consists of both mortgage principal and interest. Mortgage principal is the amount borrowed. Mortgage interest is the lending charge for borrowing the mortgage principal. Both are included in your monthly mortgage payment, though you likely won’t see a breakdown of how much of your monthly mortgage payment goes to principal vs. interest.

When you start paying down principal, the mortgage amortization schedule will show that most of your payment will go toward interest rather than principal.

Hover your cursor over the amortization chart of this mortgage calculator to get an idea of how a given loan might be amortized over time if no extra payments were made.

Mortgage Principal vs Total Monthly Payment

Your monthly payment is divided into parts by your mortgage servicer and sent to the correct entities. It includes principal plus interest.

Fees and Expenses Included in the Monthly Payment

Your monthly payment isn’t just made up of principal and interest. Most borrowers are also paying bits of property taxes and homeowners insurance each month, and some pay mortgage insurance. In the industry, this is often referred to as PITI, for principal, interest, taxes, and insurance.

A mortgage statement will break all of this down and show any late fees.

Among the many mortgage questions you might have for a lender, one is whether you’ll need an escrow account for taxes and insurance or whether you can pay those expenses in lump sums on your own when they’re due.

In the world of government home loans, FHA and USDA loans require an escrow account, and lenders usually require one for VA-backed loans.

Conventional mortgages typically require an escrow account if you borrow more than 80% of the property’s value. If you live in a flood zone and are required to have flood insurance, an escrow account may be mandatory.

Does the Monthly Principal Payment Change?

With a fixed-rate mortgage, payments stay the same for the loan term, but the amount that goes to your mortgage principal will change every month. An amortization schedule designates a greater portion of your monthly mortgage payment toward interest in the beginning. Over time, the amount that goes toward your principal will increase and the amount you’re paying toward interest will decrease.

Adjustable-rate mortgages (ARMs) are more complicated. Most are hybrids: They have an initial fixed period that’s followed by an adjustable period. They are also usually based on a 30-year amortization, but most ARM borrowers are interested in the short-term benefit — the initial interest rate discount — not principal reduction.

If you take out an ARM and keep it, you could end up owing more money than you borrowed, even if you make all payments on time.

Understanding mortgages and amortization schedules can be a lot, even for those who aren’t novices. A home loan help center offers a wealth of information on this and other topics.

What Happens When Extra Payments Are Made Toward Mortgage Principal?

Making extra payments toward principal will allow you to pay off your mortgage early and will decrease your interest costs, sometimes by an astounding amount.

If you make extra payments, you may want to contact your mortgage servicer or notate the money to make sure it is applied to principal instead of the next month’s payment.

Could you face a prepayment penalty? Conforming mortgages signed on or after January 10, 2014, cannot carry one. Nor can FHA, USDA, or VA loans. If you’re not sure whether your mortgage has a prepayment penalty, check your loan documents or call your lender or mortgage servicer.

Keeping Track of Your Mortgage Principal and Interest

The easiest way to keep track of your mortgage principal and interest is to look at your mortgage statements every month. The mortgage servicer will send you a statement with the amount you paid and how much of your principal was reduced each month. If you have an online account, you can see the numbers there.

How to Pay Off Mortgage Principal

Paying off the mortgage principal is done by making extra payments. Because the amortization schedule is set by the lender, a high percentage of your monthly payment goes toward interest in the early years of your loan.

When you make extra payments or increase the amount you pay each month (even by just a little bit), you’ll start to pay down the principal instead of paying the lender interest.

It pays to thoroughly understand the different types of mortgages that are out there.

And if you’re mortgage hunting, you’ll want to shop for rates and get mortgage preapproval.

The Takeaway

Knowing exactly how mortgage principal, interest, and amortization schedules work can be a powerful tool that can help you pay off your mortgage principal faster and save you a lot of money on interest in the process.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What is the mortgage principal amount?

The mortgage principal is the amount you borrow from a mortgage lender that you must pay back. It is not the same as your mortgage payment. Your mortgage payment will include both principal and interest as well as any escrow payments you need to make.

How do you pay off your mortgage principal?

You can pay off your mortgage principal early by paying more than your mortgage payment. Since your mortgage payment is made up of principal and interest, any extra that you pay can be taken directly off the principal. If you never make extra payments, you’ll take the full loan term to pay off your mortgage.

Is it advisable to pay extra principal on a mortgage?

Paying extra on the principal will allow you to build equity, pay off the mortgage faster, and lower your costs on interest. Whether or not you can fit it in your budget or if you believe there is a better use for your money is a personal decision.

What is the difference between mortgage principal and interest?

Mortgage principal is the amount you borrow from a lender; interest is the amount the lender charges you for the principal.

Can the mortgage principal be reduced?

When you make extra payments or pay a lump sum, you can designate the extra amount to be applied to your mortgage principal. This will reduce your mortgage principal and your interest payments over time.

Photo credit: iStock/PeopleImages

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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A bank affidavit is a legal document that proves a person’s relationship with a financial institution. An affidavit can also help in matters of financial fraud and with the immigration process. It does this through the use of official signatories and witnesses to assure proper document completion.

Typically, banks and embassies are places to find a bank affidavit document. Learn more about these important documents and how they work.

What Is a Bank Affidavit?

A bank affidavit is a legal document that attests to someone’s relationship with a financial institution. A bank or credit union can verify certain aspects of a person’s financial activities with this document. A bank affidavit is commonly used for investigative cases of potentially fraudulent activity or in matters involving an immigration application.

Incidentally, you may also sometimes hear the phrase self-proving affidavit. This is somewhat different; it’s a document that can be created when making a will. It helps prove the validity of a will. While an important legal document, it’s not the same thing as a bank affidavit.

Banking customers might wonder what is a bank affidavit and how it is created.

•   When requesting this legal document, you must appear at a bank and have the affidavit completed and signed by an authorized individual of the bank or credit union.

•   A bank affidavit often requires at least one witness to assure the accuracy and completeness of all required information.

A bank affidavit is often used to protect customers from nefarious individuals seeking to swindle people out of their savings. This document can be used to assert that fraudulent transactions were conducted and are not the responsibility of the bank customer (aka the victims of the crime). Beyond fraud cases, immigration applications sometimes request proof of financial support, and a bank affidavit helps provide that documentation.

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

How Does a Bank Affidavit Work?

A bank affidavit works by providing official verification of a person’s or business’ financial account holdings and their relationship with a bank or credit union. This is similar to the process used with an affidavit of title in the home-buying process.

An affidavit is a written statement of facts confirmed by the oath of the party making it. Affidavits must be notarized or administered by an officer of the court with such authority.

A bank affidavit in particular works by attesting to certain financial details of a person or legal entity. Banking representatives are the signatories, while witnesses assure that the details are correct and that the document is completed properly. This process goes a long way in proving the financial standing of the account holder or immigration applicant. These documents can help move matters along through the proper channels, especially in cases of suspected fraud or in the immigration process.

Once completed, the bank affidavit should be securely stored, perhaps in a safe or bank account deposit box. You likely want to be sure that only individuals you trust and who are authorized to view your personal information have access to the document. Also bear in mind that when this sort of legal filing is handled by the court system and other government agencies, they are obligated to keep it confidential. Authorized officials must act in a manner to assure your personal information stays private.

Recommended: Guide to Bank Account Closure Letters

Reasons Why Someone Needs a Bank Affidavit

A bank affidavit is necessary when instances of financial crime are suspected, as well as for immigration purposes. Here’s a closer look.

•   Financial crime: Fraudulent activity is a serious white-collar crime in today’s banking world, and financial institutions must take steps to ensure the safety of customer accounts. It’s worthwhile to bank with a financial institution that uses strict fraud protection and security control measures so that you have the best possible security for your accounts.

When needing a bank affidavit, a customer requests a legal document from the financial institution that cites the fraudulent transactions. The affidavit often indicates that financial damages as a result of the malicious activity are not the responsibility of the banking customer in a statement of unauthorized debt. The bank affidavit can then be used in a court of law if any further legal action be taken. Moreover, the affidavit is helpful in a situation involving a business that’s being targeted for illegal financial activity.

•   Immigration issues: Immigration applicants seeking to legally prove financial support commonly request a bank affidavit, too. In these instances, a bank affidavit demonstrates that a person can financially support the immigrant. The affidavit is also used to outline the individual’s bank account information and holdings. (People with a poor credit history can also open a second chance checking account to begin improving their financial footing.)

In the immigration process, a bank affidavit is used to prove that the applicant can financially support themself with monetary savings and with financial help from family and friends. Those who cannot demonstrate a solid financial footing might get turned down due to the possibility that they will wind up needing welfare programs.

How to Write an Affidavit

If you need to write an affidavit, here are the five steps to follow:

1.    Visit a bank or a credit union if you need the affidavit for financial matters. In cases of immigration, you may also travel to a country’s embassy to find blank forms to fill out.

2.    Complete the form to the best of your ability and request assistance from bank representatives or embassy officials for any information you are unsure about. It can be helpful to have the institution fill out the form to avoid mistakes.

3.    After the bank affidavit form is properly filled out and the details are verified for their accuracy, ensure that all necessary signatures are on it and that witnesses attest to the affidavit’s completion.

4.    Create a copy of the legal document and store it in a secure location. This provides a backup should the original get lost, stolen, or damaged.

5.    Immigration applicants can keep a bank affidavit as a receipt to help expedite their process.

Recommended: Important Estate Planning Documents to Know

Where Can I Get a Bank Affidavit?

You can visit a bank or credit union branch to request a bank affidavit. However, not all locations may have the necessary individuals available to provide the required signatures. It can be worthwhile to check in about this in advance. This legal document is usually available at a nation’s embassy, too.

You must complete the form and sign where indicated. It is sometimes preferable to have the banking or embassy officials fill out the form as much as possible to avoid incorrect details on the document.

The Takeaway

Bank affidavits can be important tools if you are trying to clear up fraudulent activity on your account or if you are working your way through immigration procedures. These forms will need to be carefully filled out, signed, and witnessed, but they play a vital role in certain circumstances. Your financial institution or embassy can partner with you to get this document completed.

If you’re looking for a partner in your everyday financial life, see what SoFi offers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do I write a bank affidavit?

Visit a bank or an embassy to request a form. You will need signatures from certain officials and likely will need witnesses to the document being completed. It might be easier to have the institution write the bank affidavit for you to prevent any inaccuracies or other errors.

Why do banks ask for an affidavit?

Banks might ask for an affidavit to prove certain details associated with their customers. A common reason a bank affidavit is necessary involves situations where a checking or savings account was used fraudulently. Also, a bank might want the assurance that an immigration applicant has a good financial standing.

Where can I get a bank affidavit?

You can usually get a bank affidavit at a bank or credit union branch. In addition, an embassy may have the forms. Keep in mind that you likely need the forms notarized, so it’s a good idea to make sure one is available when you want to complete the documents.

Photo credit: iStock/fizkes

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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.

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