SoFi

Big life changes can mean both excitement and nervousness. It’s normal to feel both happy and anxious about starting college. New experiences can introduce a lot of pressure. And it may be the first time that many students leave home and are surrounded by new people.

Not only is feeling nervous about college normal, it’s also manageable. For high school students still getting ready for college, here are five tips that may help ease the nerves.

1. Make a List and Pack Early

To lessen anxiety, preparation for college is key. For students who are planning to live on campus, packing can feel like a monumental task. It’s already stressful to imagine living away from home, and on top of that students don’t want to forget anything important.

One of the best ways to help ensure a smooth transition is to make a list early and start packing ahead of time. When dealing with a large task, it helps to break it down into smaller pieces that are easier to tackle.

For example, students who are nervous for college could break up their packing list into sections like clothing, school supplies, and living essentials. Even just taking the small step of making the lists could ease some of the worries.

Some schools will provide guidelines for packing and lists of items that are prohibited on campus, so it can be worth checking the website or contacting a rep from Residential Life, a program that helps students with on- and off-campus housing. Once students know what they’ll need to purchase, they can go through the items they already have and make a list of which of these are coming with them, and which items are staying behind with Mom and Dad.

Depending on the weather where students are moving to, they can start by packing the clothing they know they won’t need to wear for the next few weeks. If it’s currently warm, start packing up those winter clothes!

This is one task that high school students not ready for college can tackle early on to build some confidence and feelings of preparedness.

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

2. Learn About Independent Living

Students who are planning to go away for college should spend time before they go learning what they can about living independently. This can cover a wide range of tasks, such as learning how to cook, how to make a doctor’s appointment, and how to use public transportation. It can help students to work with their parents to make a list of tasks that the students need to get familiar with.

Some ways to get ready for college and living on their own can include:

•   Gathering a list of important phone numbers and addresses and entering them into their phones (doctor’s office, school counselor, roommate, etc.).

•   Making a few simple meals so they feel confident in the kitchen.

•   Practicing household chores like doing laundry and dishes if they don’t already.

If students are nervous about finding their way around campus, it may be helpful to explore the campus before classes start and find their classes.

For students who will be attending online classes, they will need to develop extra self-discipline and get familiar with online programs like Zoom. Doing this ahead of time can help minimize the stress of trying to log on the first time.

Recommended: 11 Strategies for Paying for College and Other Expenses

3. Develop Coping Skills

Students who are feeling nervous or anxious about beginning college can take the time before classes start to develop coping skills that will help them manage those feelings. Setting up a self-care routine that includes taking care of physical and mental health can help students manage the stress of college more easily.

Parents can also get involved in this process by sharing the coping skills that work for them and providing emotional support. Teens who know their parents are supportive are more likely to open up and actually use that support.

Recommended: College Planning Guide for Parents of High School Students

4. Ask Questions

Sometimes, not knowing what to expect can contribute to feelings of anxiety, but this can be minimized by asking questions. Students who have family members that went to college or are currently in college may want to set aside time to chat with them about their experiences.

High school guidance counselors can also be helpful in preparing students for college and easing their nerves.

There may also be an opportunity to go on a campus tour and ask questions there. High school students nervous about college may also benefit from attending their college’s orientation, so they show up on their first week prepared. Asking questions from others who’ve been to college will take away some of the scary mystery of the experience and may increase feelings of preparedness for high schoolers.

5. Focus on the Positives

Is college going to be tough? Of course! The classes will be more intense than high school level classes, and there will certainly be an adjustment period. In addition to these things, though, there are also numerous positives. College will give students opportunities to meet new people, learn about themselves, and have fun!

Some students may be overwhelmed at first at the prospect of making friends on a large campus, but there are many clubs and organizations that students can join. Getting involved in extracurricular activities can help students to form friendships and build a support system that may make their college experience more positive.

It may be a challenging four years, with adjusting to adult life and tackling finals every semester, but college can also be fun. High schoolers can help ease their nerves by embracing this aspect of college as well. Having a more realistic and balanced view of the experience may help them enter into it with less apprehension.

💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

Paying For College

Another source of anxiety when it comes to preparing for college is the finances. College can be expensive, and figuring out how to pay for tuition, books, and living expenses is a confusing process. Luckily, there are multiple options that students can utilize to help cover the cost of their education.

The Free Application for Federal Student Aid (FAFSA) allows students to apply for federal student aid. This aid can come in the form of scholarships, grants, work-study, or federal student loans. Grants from the government usually do not need to be repaid, whereas loans do need to be repaid.

Students who are eligible to take out federal loans may benefit from doing so before looking into private student loans. Federal loans come with certain benefits, such as deferment and income-based repayment plans, that private loans may not.

If students are not eligible for federal aid or the aid isn’t enough to cover their costs, applying for additional scholarships is one option. Scholarships are widely available and the eligibility criteria varies for each scholarship. Some scholarships are need-based, whereas some are merit-based. Scholarships are offered by schools, private corporations, community organizations, religious groups, and more.

Taking out private student loans is another option for helping to fund a college education. The eligibility for private loans will usually depend on a student’s (or cosigner’s) credit history and income. When considering private student loans, students should remember that each institution will have its own terms for the loans.

The Takeaway

It’s normal to be nervous about attending college. To help settle your nerves, you can make a list of all the essentials you’ll need, learn about living independently, develop coping skills, ask questions, and focus on the positive aspects of attending college.

If finances are stressing you out, you have options, too. You can work a part-time job to help cover expenses, apply for grants and scholarships, and rely on federal and private student loans. It’s recommended to take out federal loans first, as they come with borrower protections that private student loans do not.

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

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

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

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.

Gross income is the amount of money earned before any payroll deductions for taxes, insurance, retirement contributions, and such. To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

The calculation for gross monthly income can differ depending on paycheck frequency. Below we’ll show you how to calculate your gross pay for different payroll schedules.

How to Calculate Monthly Pay From Biweekly Pay

There are two different monthly pay figures to understand, gross and net. Each is useful in different situations. When you’re applying for a loan, most lenders use gross monthly income to determine your debt-to-income ratio (DTI). However, many people find it easier to budget based on net or take-home pay. A budget planner app can help you decide the best approach for your situation.

As we spelled out above, if you’re paid biweekly (every two weeks), the formula for gross monthly income is:

(Gross pay amount × 26) ÷ 12

Hourly workers can also use this next formula if they work a consistent number of hours per week:

(Hourly salary × weekly hours worked × 52) ÷ 12

To find net monthly pay, substitute the actual amount of your paycheck for the gross amount in the first formula.

Recommended: Does Net Worth Include Home Equity

How Many Bi-Weeks in a Year

There are 26 biweekly pay periods in a year. Employees who get paid biweekly will receive 26 paychecks from January to December.

It’s important to note that receiving pay biweekly differs from receiving pay twice a month on the same dates. Workers who receive biweekly checks can’t just multiply one paycheck by two to find their monthly salary.

Employees who get paid twice a month — for instance, on the 15th and 30th — can find their monthly gross income simply by adding together the gross figures on their two monthly paychecks.

Recommended: 52 Week Savings Challenge (2024 Edition)

The Different Types of Payment Periods

The most common pay periods for employees are:

•   Biweekly: Paid every other week, or 26 paychecks per year.

•   Semimonthly: Paid twice a month on the same dates, or 24 checks per year.

•   Weekly: Paid once a week, or 52 checks per year.

•   Monthly: Paid once a month, or 12 checks per year.

Employees who receive biweekly pay get two checks or direct deposits each month, except for two months of the year when they receive three paychecks. Employees who are paid biweekly might get a paycheck every other Wednesday or Friday, or whatever day their employer chooses.

With semimonthly pay, an employee might get paid on the 15th and 30th of every month. There are always two paydays, for a total of 24 per year instead of 26.

An employee who gets paid twice a week is on a semiweekly schedule. This would entail eight paychecks each month.

Pros and Cons of Biweekly vs Semimonthly Pay

For employees, there are pros and cons to biweekly pay. Depending on their expenses and savings strategy, someone might prefer a biweekly or semimonthly schedule.

For most workers, the main pro to biweekly pay is the third “bonus” check they receive two months out of the year. By budgeting for two paychecks every month, workers can designate the occasional third check for special line items like vacations, holiday gifts, paying off debt, or boosting savings.

For others, biweekly checks just make budgeting and managing expenses more challenging. Semimonthly pay is preferable because it offers an accurate reflection of real monthly income.

Also, each semimonthly check can be dedicated to particular expenses. For example, the second check of the month can go to rent, utilities, and other housing costs, which are often due the first of the month.

Compared to weekly paychecks, both biweekly and semiweekly checks require better cash management on a weekly basis. For someone who lives paycheck to paycheck, biweekly pay periods might mean they run out of money before the next check arrives.

The Takeaway

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub, multiply by 26, then divide by 12. (Do not use this formula if you’re paid twice a month on the same dates, rather than the same days of the week.) For your monthly net pay, substitute your net or take-home pay for the gross amount in the same calculation.

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 do you convert biweekly pay to monthly income?

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

How do I calculate my gross monthly income?

Gross monthly income is the total of all paychecks and income received in a month, including any side hustles, rental income, etc., but before taxes and other deductions.

How do you calculate gross income from a W-2 form?

Gross wages cannot always be found on a W-2 form due to various pre-tax deductions. Instead, look at the gross amount listed on the employee’s final paycheck for the year.

Photo credit: iStock/Eva-Katalin

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.


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.

SORL-Q224-1921206-V1

Both health savings accounts (HSAs) and health reimbursement accounts (HRAs) offer tax-advantaged ways to save for future medical expenses. But they work in very different ways.

An HSA allows you to set aside money for healthcare costs that are not covered by your health insurance plan on a pre-tax basis. You must have a high-deductible health plan (HDHP) to open an HSA. With this option, you own the account and can take it with you if you leave your job.

An HRA, on the other hand, is a type of account that is owned by your employer. The company puts money into the account on your behalf, and you can use your HRA funds, tax-free, to cover qualified medical costs throughout the year. However, you can’t take the account with you if you leave your job.

If you’re looking for a way to reduce your healthcare costs, it’s a good idea to understand HSAs vs. HRAs. Then, provided you are eligible, you can decide which is the best option for you and your family. There is also a chance you can opt into both types of accounts.

Differences Between an HSA and HRA

HSAs and HRAs work differently than other types of ​​savings accounts. Here’s how these two types of accounts compare at a glance.

What Is an HSA?

A health savings account (HSA) allows employees and freelancers to put away funds pretax to be used for future medical expenses. There is one major requirement for an HSA: You must be enrolled in a high-deductible health plan (HDHP). For 2024, a HDHP is defined as having deductible of at least $1,600 for an individual and $3,200 for a family. In addition, the plan’s cap on yearly out-of-pocket expenses can’t exceed $8,050 for an individual or $16,100 for a family.

Your employer may offer an HDHP with an HSA as a workplace benefit. Or, if you enroll in health insurance through the private marketplace and choose an HDHP, you can typically open an HSA with a brokerage firm or other financial institution.

There are limits on how much you can contribute to an HSA. In 2024, those limits are:

•   Up to $4,150 to an HSA for self-only coverage

•   Up to $8,300 for family coverage

•   People age 55 and over can contribute an additional $1,000 annually

Unlike a flexible spending account (FSA), which also allows you to set aside a certain amount of money pretax for medical costs, the money in the HSA isn’t a “use it or lose it” proposition. The funds roll over every year, so there’s no rush to spend the money. In addition, you can take HSA with you should you leave your job.

You can use your HSA to directly pay for qualified medical expenses (typically using a debit card or via online payment), or you can collect receipts and reimburse yourself later. Any expense that is considered a deductible medical expense by the IRS qualifies. This includes doctor visits, prescription medications, dental and orthodontic treatments, lab tests, surgeries, hospital stays, hearing aids, and eyeglasses.

While an HSA is designed to cover immediate healthcare costs, many HSA providers allow you to invest a portion of your HSA funds in various investment vehicles, such as mutual funds, stocks, bonds, and exchange-traded funds (ETFs). These investments grow tax-free. You can access unused HSA funds during retirement for nonmedical expenses, but you will pay taxes on the funds.

Pros of an HSA

Here’s a look at some of the benefits of using an HSA.

•   Lowers your taxable income: Contributions are made with pretax dollars, often through payroll deductions by your employer. That means the money is not included in your gross income and is not subject to federal (and in most cases, state) income taxes.

•   Tax-free withdrawals: Withdrawals from your HSA are not subject to federal (and in most cases, state) taxes if you use them for qualified medical expenses.

•   Lower premiums: To qualify for an HSA, you must be enrolled in a HDHP, which means your monthly payments are likely lower than other types of health insurance plans.

•   Annual rollover: HSAs aren’t “use it or lose it.” You keep your money even if you don’t spend it in the year you contributed it.

•   Money can be invested and grow tax-free: Once you reach a required minimum balance (which can range from $500 and $3,000), you can choose to invest your HSA dollars.

•   Can boost retirement savings: After the age of 65, you can withdraw the funds for any purpose, not just qualified medical expenses. Using the funds this way makes them taxable, but does not carry a penalty.

•   You own the account: The money in an HSA is yours; you don’t forfeit it if you change jobs or are let go.

Cons of an HSA

There are also some potential disadvantages to HSAs. Here are some to consider.

•   Only allowed with a high-deductible health plan: If you don’t enroll in an HDHP, you can’t open an HSA.

•   Contribution limits: You can only contribute up to $4,150 for individual coverage and up to $8,300 for family coverage in one year.

•   May come with fees: Some HSAs charge maintenance fees, investment fees, paper statement fees, and per-transaction charges. It’s a good idea to ask for a complete schedule of fees before you choose an HSA.

•   Penalties for nonqualified expenses: If you withdraw money from your HSA to pay for anything other than qualified medical expenses before you turn 65, the withdrawal will be subject to taxes and a 20% penalty.

•   Limited investment options: You may have a limited choice of investment options within your HSA, which limits the potential returns you can earn.

•   Investments can lose money: Any investments you make with HSA funds could cause your balance to fall if the market drops.

•   Requires careful record keeping: It’s crucial to maintain accurate records of your expenses and HSA transactions for tax purposes. Keeping track of the transactions can be a chore.

Recommended: How Many Savings Accounts Should I Have?

What Is an HRA?

A health reimbursement account (HRA), sometimes referred to as a health reimbursement arrangement, is a job perk that some companies offer to workers to help make healthcare more affordable. The employer owns and funds the account. You do not need (nor are you allowed) to make any contributions to the account.

You can use the money in an HRA to pay for medical care you’d otherwise need to pay for out of pocket. The details, including how much is in the HRA and what type of medical expenses the funds can be used for, are determined by the employer.

In some cases, the HRA will reimburse the healthcare provider directly. In others, you might use a debit card associated with the HRA or pay for expenses out of pocket and then submit expenses and request reimbursement.

You are not taxed on the money your employer puts in your HRA, and you can withdraw the money for qualified medical expenses tax-free. However, you don’t own the account, can’t invest the money, and will lose the HRA if you leave your job (unless you choose COBRA continuing coverage).

In some cases, an employer might allow unused funds in an HRA to carry over from one year to the next, but they are not required to do so.

Pros of an HRA

Here’s a look at some of the key benefits of having an HRA.

•   Reduces your healthcare costs: You can withdraw money from the HRA to cover qualified medical expenses you’d otherwise have to pay for yourself. This may include deductibles, coinsurance, copayments, prescriptions, and more.

•   No high-deductible health plan requirement: You don’t need to enroll in a HDHP to have an HRA.

•   No contribution limits: There is no cap on how much money an employer can contribute to an HRA.

•   Some HRAs may cover insurance premiums: If you work for a small business that does not offer a group health plan, you may be able to use your HRA to purchase an individual health plan, as well as cover out-of-pocket expenses.

•   The HRA doesn’t count as income: Your employer’s contributions to an HRA do not count toward your gross income. And when you file a claim for a qualified medical expense, the reimbursement is tax-free.

•   Some HRA plans allow you to roll over unused funds to the next year. Your employer determines whether or not this option will be available.

Cons of an HRA

HRAs also have some downsides. Here are some to keep in mind.

•   You can’t contribute to an HRA: With this type of savings account, you are limited to whatever your employer contributes to the account.

•   Money in an HRA cannot be invested: This means that the funds will not grow over time.

•   You may lose the money if you don’t use it: In many cases, the money in the HRA must be spent the year it is contributed or you lose it. Employers can, but do not have to, allow some funds in your HRA to carry over to the next year.

•   You can’t take it with you. Your employer owns the account, and you lose your HRA money if you leave your job unless you elect COBRA coverage.

•   Inconsistent guidelines. HRAs are not standardized. As a result, an HRA offered by one company may have very different rules from an HRA offered at another company, which can lead to confusion.

•   Lack of availability. Not all companies offer HRAs. Also, self-employed people cannot participate in an HRA.

Which One Is Right for You?

When deciding if an HRA vs. HSA is better, the choice may be made for you. Many companies only offer one or the other. And if you’re self-employed, you won’t have access to an HRA.

If your employer offers both an HDHP and an HSA, as well as an HRA, you might be able to have both an HSA and an HRA. Generally, this is only possible if the employer’s HRA is limited in scope, such as one that only covers vision and dental expenses or just insurance premiums.

In this scenario, you may be able to contribute money into an HSA, where it can grow tax-free and potentially boost your retirement savings, while using the HRA to cover the cost of certain medical expenses. You can’t double dip, however, meaning you’re not allowed to get reimbursed by both accounts for the same expense.

In the end, whether to choose an HRA vs. an HSA will depend on which health saving plan (or plans) you are eligible to access and what type of health insurance you have.

The Takeaway

Health reimbursement accounts (HRAs) and health savings accounts (HSAs) can both reduce the cost of medical care that your health plan doesn’t cover, but they do so in different ways. The main difference between HRAs and HSAs is that you own and fund your HSA, while your employer owns and funds your HRA and can impose more limitations on it.
Whether your employer offers an HRA or an HSA, it’s a valuable workplace benefit. Both types of accounts help ensure you have funds you can tap to cover copays, high deductibles, and other out-of-pocket medical expenses.

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

Is it better to have an HRA or HSA?

It depends. Not everyone has access to a health reimbursement account (HRA); these accounts are created and funded by an employer as a workplace benefit. HRAs can cover a wide range of medical expenses, but funds are typically forfeited if you leave the company.

A health savings account (HSA), available with high-deductible health plans, allows you to contribute pretax dollars, grow the balance tax-free, and use the funds for qualified medical expenses. HSAs are portable and roll over annually.

The best option depends on your employment status, health insurance plan, and preference for control over the funds.

Can I use both an HRA and HSA?

Generally, having a health reimbursement account (HRA) disqualifies you from contributing to a health savings account (HSA). However, certain types of HRAs, such as limited-purpose HRAs, can be paired with an HSA. It’s essential to check with your employer and plan documents to understand the specific terms and ensure compliance with IRS guidelines.

Can I have an HSA if my husband has an HRA?

Not typically, but there are some exceptions. If you have a high-deductible health plan and your husband’s health reimbursement account (HRA) covers premiums-only or just certain types of medical expenses (such as only vision and dental), you may be eligible to contribute to a health saving account (HSA). You’ll want to verify the specific terms of the HRA to ensure compliance with HSA eligibility rules.

Photo credit: iStock/Nudphon Phuengsuwan

SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 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.

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.

​​
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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.