Bank accounts can be frozen for such reasons as your financial institution suspecting fraud or illegal activity. Your funds can also be made inaccessible if your bank is adhering to a court order about unpaid debts you owe. In addition, the government can freeze your account if you have unpaid student loans or taxes.
Regardless of the reason, having a bank account locked can be an upsetting situation that makes your basic financial life difficult. You might be left scrambling to pay bills and cover daily expenses.
Read on to take a closer look at this situation, including why bank accounts are frozen and what you can do if you find yourself facing this scenario and want your money unlocked.
Key Points
• Bank accounts may be frozen due to suspected fraud, such as unusual large transactions or activities in unfamiliar locations.
• Unpaid debts like taxes, student loans, or child support can lead to account freezes without a court judgment.
• Illegal activities, including money laundering or funding terrorism, might result in a bank freezing an account.
• The duration of an account freeze varies, depending on the resolution of the issue that caused the freeze.
• To unfreeze an account, contacting the bank promptly and providing necessary documentation or resolving debt issues is essential.
What Is a Frozen Bank Account?
When a bank account is frozen it means the bank will no longer let you perform certain transactions. You can still access your account information and monitor your account. You will still be able to make deposits, including manual or direct deposit of your paycheck.
However, you won’t be able to make any withdrawals from the account or transfer money from the account to a different account.
Typically, any previously authorized payments or transfers will not go through either. That means that any bills you have set up on autopay likely won’t get paid.
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Why A Bank Would Freeze Your Account
Banks have the authority to freeze, or even close, a bank account for a range of reasons. These reasons generally fall into the following three categories.
1. Suspected Fraud
A bank’s reputation relies heavily on its ability to keep money safe, so account security is typically taken very seriously.
Banks are familiar with how you tend to spend your money, so an unusually large purchase or cash withdrawal can indicate fraud and trigger an account freeze.
Banks are also familiar with where you typically spend your money. A transaction that occurs in a different city or especially a different country can be a red flag that could trigger an account freeze.
It can be a good idea to inform your bank about travel plans both nationally and internationally to help prevent any account freezes during a trip.
If your bank flags suspicious behavior you’re certain you weren’t responsible for, it could be due to identity theft.
2. Unpaid Debts
Missing a single bill payment isn’t generally something that would disrupt access to your bank account, but a longstanding overdue bill might.
Collection agencies that purchase unpaid debts can secure court judgments for those debts, giving them the power to freeze (or “attach”) the bank accounts of debtors until they paid the money they are owed.
Most creditors can not have your account frozen unless they have a judgment against you. However, not all. Government agencies that collect federal and state taxes, child support, and student loans do not need to have a court judgment to attach your account.
Any of the following types of outstanding debt could be the cause of a frozen account.
• Unpaid Taxes
• Student Loans
• Mortgages
• Car Loans
• Personal Loans
• Civil Lawsuits
• Divorce Settlements
• Child Support.
3. Illegal Activity
A bank account that is used to conduct criminal activity, or shared with someone who might be, can lead to the account being frozen.
Banks also work directly with law enforcement agencies and will freeze accounts of individuals that have been convicted of a crime or are under investigation.
Some specific activities that could lead to an account freeze include:
Writing Bad Checks. A single bounced check isn’t cause for alarm, but knowingly writing multiple checks from a bank account that doesn’t hold the funds to support them is illegal. If a bank observes too many bad check transactions, they may be inclined to freeze the account and alert the police.
Money Laundering. This is the process of generating money through illegal activity, and attempting to make it appear legal via multiple financial transactions. All banks and financial institutions are required to comply with federal anti-money laundering regulations and report any suspected activity directly to the authorities.
Terrorist Financing. Funding or organizing funds for terrorist groups and organizations is an illegal activity that can also result in an account freeze. Banks comply with federal laws that help prevent terrorism by freezing and reporting any accounts that exhibit suspicious activity related to terrorists.
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How Long Can A Bank Account Be Frozen?
Banks don’t typically follow any set rules regarding how long an account can be frozen. The length of time generally depends on how long it takes for the account holder to notice the freeze, contact the bank, and can resolve the issue that caused the freeze.
How Does a Frozen Bank Account Affect You?
Having a frozen bank account essentially means not having access to your money, and it can be especially difficult if it is your primary bank account.
Frozen funds means not being able to make purchases with a debit card, or withdrawals from an ATM. It can also mean that any auto-payments linked to that account will likely not be fulfilled, and any scheduled transfers won’t be completed.
Because these payments can bounce, you could also incur a non-sufficient funds charge, which may be deducted from your account.
If you don’t have enough in the account to cover it, you could end up with a negative balance, putting you into an overdraft. In this case, you could end up having to pay additional bank fees and interest to cover the shortfall.
Those with frozen accounts often must resort to using credit cards and can end up accumulating debt in order to cover their expenses while they sort out the issue with their bank.
If the bank suspects you’ve been using the account illegally for any reason, it could close your account completely. It can also report your account activity to authorities.
It can be a good idea to contact your bank as soon as you notice a freeze on your account. When discussing the issue, it can help to have a clear account of your most recent locations and transactions, and be prepared to share any information and supplemental documentation that can help clear up the issue.
If you can show that there’s no reason for the freeze, the bank will likely release the suspension and grant you full access to the account again.
If your account is frozen over unpaid debts, it can be a good idea to get the creditor’s contact information from your bank and then reach out to them directly. Once you have a better idea of what’s going on with your account, you may be able to work out a payment arrangement.
The Takeaway
When a bank freezes your account, it can mean there is something wrong with your account or that someone has a judgment against you to collect on an unpaid debt.
The government can also request an account freeze for any unpaid taxes or student loans.
Once the bank account is frozen, you cannot make withdrawals but can only put money in your account until the freeze is lifted.
If your account is suddenly inaccessible, it can be a good idea to contact your bank immediately to find a resolution.
Consider Opening a SoFi Checking and Savings®
If you’re on the hunt for a new type of bank account, 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.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
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.
This article is not intended to be legal advice. Please consult an attorney for advice.
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.
There are plenty of budgets out there that promise to help you manage your money more efficiently, and some of them can get quite complicated. That’s why many people opt for the 70-20-10 budget rule. It’s a simple, percentage-based formula that can help you get and keep your personal finances in good order.
This system can help you get better acquainted with what you earn and where it goes, while tracking your daily spending (that’s the 70% of your after-tax earnings) plus debt repayment and saving (the 20% and the 10%). These aspects of the 70-20-10 budget are part of its appeal, and it can guide you to better money habits. Read on to learn how it works and can be adapted for your particular needs.
Key Points
• The 70-20-10 budget rule simplifies money management by allocating income into three categories: living expenses, savings/debt repayment, and investments/donations.
• Living expenses should consume 70% of after-tax income, covering necessities and discretionary spending.
• Savings and debt repayment are prioritized at 20%, focusing on high-interest debts and building emergency funds.
• The remaining 10% is designated for investments or charitable donations, supporting long-term financial growth and personal values.
• This budgeting framework can be adjusted based on individual financial situations and goals, ensuring flexibility.
What Is the 70-20-10 Rule?
The 70-20-10 rule is a way to allocate your monthly income into three categories:
• Living expenses
• Debt repayment and short-term savings
• Investing and donations.
Using these categories can help organize the way you think about your income — how it comes in, and importantly, how it goes out. It’s a simple and often very successful way to get a personal budget in place.
Note: If it sounds very familiar, it’s worth noting that there is also the 50/30/20 budget rule, a slightly different spin on budgeting that also works with easy-to-calculate percentages. To see a breakdown using this method, check out the 50/30/20 rule calculator.
Now, take a closer look at each of the three components of this budget tool.
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70% for Living Expenses
Living expenses are exactly what they sound like — expenditures you need or want to make each month. To see how much of your post-tax dollars go toward these costs every month, you’ll do a little math. You’ll add up the monthly payments that cover essentials such as housing, utilities, food, childcare, and medical expenses.
It also includes expenditures made only once or twice a year, such as auto or home insurance premiums or yearly car tune-ups. In those cases, you simply figure the total paid for the year, divide by 12, and add that number to the monthly figure.
For the purposes of the 70-20-10 rule budget, living expenses also include discretionary spending on things like shopping, entertainment, travel, gym memberships, and other non-essential items.
To get started, scan through a couple of months of your bank statements, credit card, utility, medical, housing, insurance, and cable and internet bills to see how you’re tracking. Use the common living expenses listed below as a guide.
Housing
• Rent or mortgage and property tax
• Utilities
• Maintenance
• Insurance
Transportation
• Car payments
• Maintenance
• Gas and tolls
• Parking
• Public transportation costs
• Taxis and ride shares
• Auto insurance
Childcare
• Day care
• After-school programs
• Tuition
• Babysitting
• Clothes, personal care, and related expenses
Insurance
• Health insurance premiums (if not deducted from your paycheck)
• Auto and home insurance premiums
• Life insurance premiums
• Disability income insurance premiums
Food
• Groceries
• Takeout and restaurants
Health
• Deductibles, copays, and coinsurance
• Medical and dental appointment costs not covered by insurance
• Prescriptions and over-the-counter drugs
• Eyeglasses and contacts
Entertainment
• Concert, theater, and movie tickets
• Paid streaming and podcast services
• Books
• Travel
Pets
• Food, equipment and accessories, and toys
• Flea and tick prevention/other medications
• Vet bills
• Pet insurance
Personal
• Clothing/shoes/accessories
• Hair care and other grooming
• Toiletries/cosmetics
• Gym membership
If your monthly number hits the 70% mark or less, congratulations. You’re living within your means. For most people, however, this first calculation will likely exceed 70%. More on what to do when that happens below. For now, keep looking at the big picture of tallying your 70-20-10 numbers.
20% for Saving and Debt Repayment
Next, you want to calculate how much it will take to hit the 20% goal of saving and debt repayment. (If you don’t have debt, hooray; you can zoom straight to saving. But many people need to use this bucket to pay off debt and save.)
If you have credit card debt, you’ll likely want to focus all or part of this 20% on paying that down so you can avoid the high interest payments. If you have college debt, the monthly repayment amount should be included here in the 20% category.
Once that’s done, you’ve cleared the decks for other savings, whether for an emergency fund (aim for three to six months’ worth of expenses) or a near-term goal such as a vacation or down payment for a home.
Depending on what and why you are saving, different kinds of savings accounts may make sense. Consider these smart options to get extra benefits:
• High-yield savings accounts make sense if you need your money liquid (accessible) but want to earn more interest than the current rate on traditional savings accounts. Online banks vs. traditional banks often offer the best rates.
• A certificate of deposit (CD) is another option. These accounts lock up your money at a specific interest rate for a period of time, usually from six months to a few years. What’s nice is you know how much money your money will earn, but keep in mind, if you pull your money out early, you’ll typically face penalty fees.
• Money market accounts (MMAs) combine some aspects of a savings account with features of a checking account. You’ll earn interest on your savings (possibly in the ballpark of high-yield accounts), and you may be able to access funds via debit card or checks.
Once you’ve taken a look at your savings/debt picture, you’ll determine how best to handle the 20% rule. Depending on the size of your debts and your living expenses, you may need to temporarily allocate more or less funds to this category. More on that below.
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10% for Donation or Additional Savings
The remaining 10% can be allocated to investing in your future, usually for retirement. Contributions to an IRA, 401(k) 403(b), self-employed retirement savings vehicles, or other long-term, tax advantaged savings plan can be best for this category. This is money that you won’t need in the short term, so it can be invested more aggressively than the savings in your 20% category.
In addition, part of this allocation can go to charitable donations. Perhaps there’s a cause you want to support, from animal rescue to medical research, or you like to donate to your college; it’s your call.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
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Example of the 70-20-10 Budget Rule
In terms of calculations, say your monthly income after taxes is $6,000. Here’s how that money would look on the 70-20-10 budget plan.
• For living expenses, you would multiply 6,000 x 0.70, and see that you have $4,200 of after-tax dollars for housing, utilities, food, entertainment, and all the other items listed above.
• For savings, you would multiply 6,000 x 0.20, or $1,200 to put toward savings and debt.
• Lastly, you would multiply 6,000 x 0.10, and see that you have another $600 to put toward additional savings and/or donations.
Here’s the math: $4,200 + $1,200 + $600 = $6,000.
How to Customize the 70-20-10 Rule to Fit Your Needs
The beauty of the 70-20-10 plan is its simplicity — and flexibility. Once you create a budget this way, you can customize the allocations within reason to meet your own needs and financial goals over time. Creating a budget can give you peace of mind, because you’ll know you are taking care of your financial health. Here, a few tips for increasing your likelihood of success in following this plan:
Include Side Hustle Earnings and Windfalls
Bonuses, tax refunds, money from side hustles and other income should be factored in later, as they are earned; don’t consider them as part of your base income. The bulk of the extra income can be designated toward the area most in need of attention, such as paying off credit card debt or boosting emergency savings. But do feel free to set aside a small percentage of those earnings as a reward for your hard work and have some fun with it.
An important note: If not already evident, this budget technique works best for those with a steady income, who are on a payroll. If you are freelance, a gig worker, or seasonal employee and your income is variable, this may not be the best technique for you.
Adjust the Percentages When Needed
After tracking your spending and making possible cuts, you may find you still can’t fit living expenses into the 70% category. Maybe you are just starting your post-grad life, earn a lower income, or live in an area with a high cost of living.
Don’t stress out over this! If you have limited funds and lots of bills, you may have to allocate a bit more to that category and put less in short-term savings until that next raise or other income spurt comes through.
Protect the 10%
A quick note for people with lots of credit card debt: Those hefty bills are a sign that you may be spending more than your income level allows. You’ll probably do better with the 70-20-10 budget if you increase the paying debt/savings percentage to higher than 20% till your debt is lower. Take steps to reduce discretionary spending, perhaps even more than you have already.
In addition, you may find you need to make more drastic cost-cutting moves too, such as finding an apartment with less expensive rent or ditching the expensive car payments and switching to mass transit. The goal is to get costly debt under control so you can start saving for your priorities and peace of mind.
Prioritize High-Interest Debt
Whenever you find the need to adjust percentages, it may be best to avoid tampering with the 10% investing for the future allocation. The sooner you start saving for retirement, the more that money will add up over time. By the same token, older people who may need to catch up on retirement savings may want to increase this 10% allocation. One of the reasons the 70-20-10 plan can be successful is that it helps you balance both short-term needs with long-term financial planning.
If you do make percentage adjustments, be sure to continue to track expenses so you can see when you can readjust allocations back to the original 70-20-10 plan.
The Takeaway
The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis. You can also take steps toward achieving your financial goals in the short- and long-term.
As you establish a budget that works for you, don’t forget to find the right banking partner.
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.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
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.
If you’re looking for a career that makes a lot of money, you might want to start your search in the health and medical field. Healthcare jobs are the highest-paid jobs in the U.S., and overall employment in this sector is expected to grow faster than the average for all occupations over the next eight years, according to the U.S. Bureau of Labor Statistics (BLS).
Outside of healthcare, professional athletes and corporate chief executive officers (CEOs) are among the highest-paid professions. Three other fields that also made the top 25: Airline pilots, computer/information systems managers, and financial managers.
Read on for a snapshot of the highest-paying jobs across the U.S., followed by a listing of the best-paying occupations by state.
Key Points
• Healthcare professions dominate the highest-paying jobs in the U.S., with cardiologists and orthopedic surgeons leading the list.
• Professional athletes and CEOs also rank among the top earners nationwide.
• The list of top-paying jobs includes various medical specialists such as pediatric surgeons and anesthesiologists.
• Each state has different top-paying jobs, with healthcare roles typically offering the highest salaries.
• The data for this ranking was sourced from the Bureau of Labor Statistics and includes projections for job growth and educational requirements.
25 Highest Paying Careers in the U.S.
To compile this list of highest-paying jobs, we reviewed data from BLS’s most recent National Occupational Employment and Wage Estimates report (May 2022). We also used government data to cite the minimum education requirements, projected growth, and which industries provide employment for each occupation. For more job description details, we tapped the Occupational Information Network (O*NET).
Here’s a look of the highest-paid jobs in the U.S., ranked from highest average salary to lowest.
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1. Cardiologist
Cardiologists diagnose, treat, manage, and prevent diseases or conditions of the cardiovascular system. They may further subspecialize in interventional procedures (e.g., balloon angioplasty and stent placement), echocardiography, or electrophysiology.
Average Salary
$421,330
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Administer emergency cardiac care for life-threatening heart problems.
• Advise patients about diet, activity, and disease prevention.
• Calculate valve areas from blood flow velocity measurements.
• Compare measurements of heart wall thickness and chamber sizes to standards to identify abnormalities using echocardiogram results.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Management of companies and enterprises
2. Orthopedic Surgeon
Orthopedic surgeons diagnose and perform surgery to treat and prevent rheumatic and other diseases in the musculoskeletal system.
Average Salary
$371,400
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.
• Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes related to musculoskeletal injuries and diseases.
• Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care Centers
• Colleges, universities, and professional Schools
3. Pediatric Surgeon
Pediatrics surgeons diagnose and perform surgery to treat fetal abnormalities and birth defects, diseases, and injuries in fetuses, premature and newborn infants, children, and adolescents.
Average Salary
$362,970
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.
• Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes.
• Consult with patient’s other medical care specialists to determine if surgery is necessary.
• Describe preoperative and postoperative treatments and procedures to parents or guardians of the patient.
• Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.
Projected growth (2022-2032)
Little or no change
Top Industries
• Hospitals
• Offices of physicians
4. Athletes and Sports Competitors
Athletes and sports competitors compete in athletic events.
Average Salary
$358,080
Typical Entry-Level Education
No formal educational credential
Primary Duties
• Participate in athletic events or competitive sports, according to established rules and regulations.
• Assess performance following athletic competition, identifying strengths and weaknesses and making adjustments to improve future performance.
• Attend scheduled practice or training sessions.
• Maintain optimum physical fitness levels by training regularly, following nutrition plans, or consulting with health professionals.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Spectator sports
• Other amusement and recreation industries
• Promoters of performing arts, sports, and similar events
• Colleges, universities, and professional schools
5. Surgeons
Surgeons operate on patients to treat injuries, such as broken bones; diseases, such as cancerous tumors; and deformities.
Average Salary
$347,870
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
Varies with specialty
Projected growth (2022-2032)
3% (as fast as average)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
6. Radiologists
Radiologists diagnose and treat diseases and injuries using medical imaging techniques, such as x rays, magnetic resonance imaging (MRI), nuclear medicine, and ultrasounds. They may also perform minimally invasive medical procedures and tests.
Average Salary
$329,080
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Perform or interpret the outcomes of diagnostic imaging procedures including magnetic resonance imaging (MRI), computer tomography (CT), positron emission tomography (PET), nuclear cardiology treadmill studies, mammography, or ultrasound.
• Prepare comprehensive interpretive reports of findings.
• Communicate examination results or diagnostic information to referring physicians, patients, or families.
• Obtain patients’ histories from electronic records, patient interviews, dictated reports, or by communicating with referring clinicians.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Medical and diagnostic laboratories
• Outpatient care centers
• Colleges, universities, and professional schools
7. Dermatologists
Dermatologists diagnose and treat diseases relating to the skin, hair, and nails. They may perform both medical and dermatological surgery functions.
Average Salary
$327,650
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Conduct complete skin examinations.
• Diagnose and treat pigmented lesions, such as common acquired nevi, congenital nevi, dysplastic nevi, Spitz nevi, blue nevi, or melanoma.
• Perform incisional biopsies to diagnose melanoma.
• Perform skin surgery to improve appearance, make early diagnoses, or control diseases such as skin cancer.
• Counsel patients on topics such as the need for annual dermatologic screenings, sun protection, skin cancer awareness, or skin and lymph node self-examinations.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Outpatient care centers
• Offices of other health practitioners
• Medical and diagnostic laboratories
• Personal care services
8. Emergency Medicine Physicians
Emergency medicine physicians make immediate medical decisions and act to prevent death or further disability. They provide immediate recognition, evaluation, care, stabilization, and disposition of patients. They may also direct emergency medical staff in an emergency department.
Average Salary
$316,600
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Analyze records, examination information, or test results to diagnose medical conditions.
• Assess patients’ pain levels or sedation requirements.
• Collect and record patient information, such as medical history or examination results, in electronic or handwritten medical records.
• Communicate likely outcomes of medical diseases or traumatic conditions to patients or their representatives.
• Conduct primary patient assessments that include information from prior medical care.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• General medical and surgical hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
• Management of companies and enterprises
9. Oral and Maxillofacial Surgeons
Oral and maxillofacial surgeons perform surgery and related procedures on the hard and soft tissues of the oral and maxillofacial regions to treat diseases, injuries, or defects. They also diagnose problems of the oral and maxillofacial regions, and may perform surgery to improve function or appearance.
Average Salary
$309,410
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Administer general and local anesthetics.
• Collaborate with other professionals, such as restorative dentists and orthodontists, to plan treatment.
• Evaluate the position of the wisdom teeth to determine whether problems exist currently or might occur in the future.
• Perform surgery to prepare the mouth for dental implants and to aid in the regeneration of deficient bone and gum tissues.
• Remove impacted, damaged, and non-restorable teeth.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of dentists
• Hospitals
• Outpatient care centers
10. Anesthesiologist
Anesthesiologists administer anesthetics and analgesics for pain management prior to, during, or after surgery.
Average Salary
$302,970
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine patient, obtain medical history, and use diagnostic tests to determine risk during surgical, obstetrical, and other medical procedures.
• Administer anesthetic or sedation during medical procedures, using local, intravenous, spinal, or caudal methods.
• Monitor patient before, during, and after anesthesia and counteract adverse reactions or complications.
• Record type and amount of anesthesia and patient condition throughout procedure.
• Provide and maintain life support and airway management and help prepare patients for emergency surgery.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
[bls]
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
• Offices of other health practitioners
11. Obstetricians and Gynecologists
Obstetricians and gynecologists provide medical care related to pregnancy or childbirth. They diagnose, treat, and help prevent diseases of women, particularly those affecting the reproductive system. They may also provide general care to women, and perform both medical and gynecological surgery functions.
Average Salary
$277,320
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Treat diseases of female organs.
• Care for and treat women during prenatal, natal, and postnatal periods.
• Analyze records, reports, test results, or examination information to diagnose medical condition of patient.
• Perform cesarean sections or other surgical procedures as needed to preserve patients’ health and deliver babies safely.
• Collect, record, and maintain patient information, such as medical histories, reports, or examination results.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
12. Ophthalmologists
Ophthalmologists diagnose and perform surgery to treat and help prevent disorders and diseases of the eye. They may also provide vision services for treatment including glasses and contacts.
Average Salary
$265,450
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Perform comprehensive examinations of the visual system to determine the nature or extent of ocular disorders.
• Diagnose or treat injuries, disorders, or diseases of the eye and eye structures including the cornea, sclera, conjunctiva, or eyelids.
• Provide or direct the provision of postoperative care.
• Develop or implement plans and procedures for ophthalmologic services.
• Prescribe or administer topical or systemic medications to treat ophthalmic conditions and to manage pain.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Offices of other health practitioners
• Outpatient care centers
• Colleges, universities, and professional schools
13. Neurologists
Neurologists diagnose, manage, and treat disorders and diseases of the brain, spinal cord, and peripheral nerves, with a primarily nonsurgical focus.
Average Salary
$255,510
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Interview patients to obtain information, such as complaints, symptoms, medical histories, and family histories.
• Examine patients to obtain information about functional status of areas, such as vision, physical strength, coordination, reflexes, sensations, language skills, cognitive abilities, and mental status.
• Perform or interpret the outcomes of procedures or diagnostic tests, such as lumbar punctures, electroencephalography, electromyography, and nerve conduction velocity tests.
• Order or interpret results of laboratory analyses of patients’ blood or cerebrospinal fluid.
• Diagnose neurological conditions based on interpretation of examination findings, histories, or test results.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
14. Pathologists
Pathologists diagnose diseases and conduct lab tests using organs, body tissues, and fluids. Includes medical examiners.
Average Salary
$252,850
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine microscopic samples to identify diseases or other abnormalities.
• Diagnose diseases or study medical conditions, using techniques such as gross pathology, histology, cytology, cytopathology, clinical chemistry, immunology, flow cytometry, or molecular biology.
• Write pathology reports summarizing analyses, results, and conclusions.
• Communicate pathologic findings to surgeons or other physicians.
• Identify the etiology, pathogenesis, morphological change, and clinical significance of diseases.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of physicians
• Medical and diagnostic laboratories
• Colleges, universities, and professional schools
• Local government, excluding schools and hospitals
• Scientific research and development services
15. Psychiatrists
Psychiatrists diagnose, treat, and help prevent mental disorders.
Average Salary
$247,350
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Prescribe, direct, or administer psychotherapeutic treatments or medications to treat mental, emotional, or behavioral disorders.
• Gather and maintain patient information and records, including social or medical history obtained from patients, relatives, or other professionals.
• Design individualized care plans, using a variety of treatments.
• Collaborate with physicians, psychologists, social workers, psychiatric nurses, or other professionals to discuss treatment plans and progress.
• Analyze and evaluate patient data or test findings to diagnose nature or extent of mental disorder.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• State government
16. Chief Executives
Chief executives determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body. They plan, direct, or coordinate operational activities at the highest level of management with the help of subordinate executives and staff managers.
Average Salary
$246,440
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Direct or coordinate an organization’s financial or budget activities to fund operations, maximize investments, or increase efficiency.
• Confer with board members, organization officials, or staff members to discuss issues, coordinate activities, or resolve problems.
• Direct, plan, or implement policies, objectives, or activities of organizations or businesses to ensure continuing operations, to maximize returns on investments, or to increase productivity.
• Prepare or present reports concerning activities, expenses, budgets, government statutes or rulings, or other items affecting businesses or program services.
Projected growth (2022-2032)
Decline (-2% or lower)
Top Industries
• Local and state government
• Management of companies and enterprises
• Elementary and secondary schools
• Computer systems design and related services
17. Dentists
Dentists examine, diagnose, and treat diseases, injuries, and malformations of teeth and gums. They treat diseases of nerve, pulp, and other dental tissues affecting oral hygiene and retention of teeth. They may also fit dental appliances or provide preventive care.
Average Salary
$233,430
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine teeth, gums, and related tissues, using dental instruments, x-rays, or other diagnostic equipment, to evaluate dental health, diagnose diseases or abnormalities, and plan appropriate treatments.
• Administer anesthetics to limit the amount of pain experienced by patients during procedures.
• Use dental air turbines, hand instruments, dental appliances, or surgical implements.
• Formulate plan of treatment for patient’s teeth and mouth tissue.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of dentists
• Federal executive branch
• Hospitals
• Outpatient care centers
18. Airline Pilots, Copilots, and Flight Engineers
Airline pilots, copilots, and flight engineers pilot and navigate the flight of fixed-wing aircraft, usually on scheduled air carrier routes, for the transport of passengers and cargo. This job requires a Federal Air Transport certificate and rating for the specific aircraft type used.
Average Salary
$225,740
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Start engines, operate controls, and pilot airplanes to transport passengers, mail, or freight, adhering to flight plans, regulations, and procedures.
• Work as part of a flight team with other crew members, especially during takeoffs and landings.
• Respond to and report in-flight emergencies and malfunctions.
• Inspect aircraft for defects and malfunctions, according to pre-flight checklists.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Scheduled air transportation
• Couriers and express delivery services
• Federal executive branch
• Support activities for air transportation
• Management of companies and enterprises
19. General Internal Medicine Physicians
General internal medicine physicians diagnose and provide nonsurgical treatment for a wide range of diseases and injuries of internal organ systems. They provide care mainly for adults and adolescents, and are based primarily in an outpatient care setting.
Average Salary
$225,270
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Treat internal disorders, such as hypertension, heart disease, diabetes, or problems of the lung, brain, kidney, or gastrointestinal tract.
• Analyze records, reports, test results, or examination information to diagnose medical condition of patient.
• Prescribe or administer medication, therapy, and other specialized medical care to treat or prevent illness, disease, or injury.
• Manage and treat common health problems, such as infections, influenza or pneumonia, as well as serious, chronic, and complex illnesses, in adolescents, adults, and the elderly.
• Provide and manage long-term, comprehensive medical care, including diagnosis and nonsurgical treatment of diseases, for adult patients in an office or hospital.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Colleges, universities, and professional schools
• Outpatient care centers
20. Family Medicine Physicians
Family medicine physicians diagnose, treat, and provide preventive care to individuals and families across the lifespan. They may refer patients to specialists when needed for further diagnosis or treatment.
Average Salary
$224,460
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury.
• Order, perform, and interpret tests and analyze records, reports, and examination information to diagnose patients’ condition.
• Collect, record, and maintain patient information, such as medical history, reports, or examination results.
• Monitor patients’ conditions and progress and reevaluate treatments as necessary.
• Explain procedures and discuss test results or prescribed treatments with patients.
Projected growth (2022-2032)
Average (2% to 4%)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional schools
• State government
21. Orthodontists
Orthodontists examine, diagnose, and treat dental malocclusions and oral cavity anomalies. They design and fabricate appliances to realign teeth and jaws to produce and maintain normal function and to improve appearance.
Average Salary
$216,320
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Examine patients to assess abnormalities of jaw development, tooth position, and other dental-facial structures.
• Study diagnostic records, such as medical or dental histories, plaster models of the teeth, photos of a patient’s face and teeth, and X-rays, to develop patient treatment plans.
• Fit dental appliances in patients’ mouths to alter the position and relationship of teeth and jaws or to realign teeth.
• Adjust dental appliances to produce and maintain normal function.
Projected growth (2022-2032)
Faster than average (5% to 8%)
Top Industries
• Offices of dentists
• Hospitals
22. Nurse Anesthetists
Nurse anesthetists administer anesthesia, monitor patient’s vital signs, and oversee patient recovery from anesthesia. They assist anesthesiologists, surgeons, other physicians, or dentists. They must be registered nurses who have specialized graduate education.
Average Salary
$205,770
Typical Entry-Level Education
Master’s degree
Primary Duties
• Manage patients’ airway or pulmonary status, using techniques such as endotracheal intubation, mechanical ventilation, pharmacological support, respiratory therapy, and extubation.
• Respond to emergency situations by providing airway management, administering emergency fluids or drugs, or using basic or advanced cardiac life support techniques.
• Monitor patients’ responses, including skin color, pupil dilation, pulse, heart rate, blood pressure, respiration, ventilation, or urine output, using invasive and noninvasive techniques.
• Select, order, or administer anesthetics, adjuvant drugs, accessory drugs, fluids or blood products as necessary.
• Select, prepare, or use equipment, monitors, supplies, or drugs for the administration of anesthetics.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Offices of other health practitioners
• Colleges, universities, and professional schools
23. Pediatricians
Pediatricians diagnose, treat, and help prevent diseases and injuries in children. They also refer patients to specialists for further diagnosis or treatment, as needed.
Average Salary
$203,240
Typical Entry-Level Education
Doctoral or professional degree
Primary Duties
• Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury in infants and children.
• Examine children regularly to assess their growth and development.
• Treat children who have minor illnesses, acute and chronic health problems, and growth and development concerns.
• Examine patients or order, perform, and interpret diagnostic tests to obtain information on medical condition and determine diagnosis.
Projected growth (2022-2032)
Little or no change
Top Industries
• Offices of physicians
• Hospitals
• Outpatient care centers
• Colleges, universities, and professional Schools
24. Computer and Information Systems Managers
Computer and information systems managers plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming
Average Salary
$173,670
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Direct daily operations of department, analyzing workflow, establishing priorities, developing standards and setting deadlines.
• Meet with department heads, managers, supervisors, vendors, and others, to solicit cooperation and resolve problems.
• Review project plans to plan and coordinate project activity.
• Assign and review the work of systems analysts, programmers, and other computer-related workers.
• Provide users with technical support for computer problems.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Computer systems design and related services
• Management of companies and enterprises
• Software publishers
• Management, scientific, and technical consulting services
• Computing infrastructure providers, data processing, web hosting, and related services
25. Financial Managers
Financial managers plan, direct, or coordinate accounting, investing, banking, insurance, securities, and other financial activities of a branch, office, or department of an establishment.
Average Salary
$166,050
Typical Entry-Level Education
Bachelor’s degree
Primary Duties
• Establish and maintain relationships with individual or business customers or provide assistance with problems these customers may encounter.
• Oversee the flow of cash or financial instruments.
• Plan, direct, or coordinate the activities of workers in branches, offices, or departments of establishments, such as branch banks, brokerage firms, risk and insurance departments, or credit departments.
• Recruit staff members.
• Evaluate data pertaining to costs to plan budgets.
Projected growth (2022-2032)
Much faster than average (9% or higher)
Top Industries
• Credit intermediation and related activities
• Management of companies and enterprises
• Securities, commodity contracts, and other financial investments and related activities
• Accounting, tax preparation, bookkeeping, and payroll services
• Insurance carriers
Highest Paying Jobs by State
The top-paying occupations in the U.S. vary by location, so here’s a look at the best-paid jobs by state based on the BLS’s State Occupational Employment and Wage Estimates. This listing goes in alphabetical order and includes all 50 states plus the District of Columbia.
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Alabama
Career: Cardiologist Average Salary: $466,030
Alaska
Career: Surgeon Average Salary: $311,440
Arizona
Career: Plastic Surgeon Average Salary: $430,870
Arkansas
Career: Orthopedic Surgeon Average Salary: $365,580
California
Career: Dermatologists Average Salary: $371,450
Colorado
Career: Anesthesiologists Average Salary: $384,860
Connecticut
Career: Dermatologists Average Salary:$308,230
Delaware
Career: Orthopedic Surgeons Average Salary: $509,820
District of Columbia
Career: Orthopedic Surgeons Average Salary: $509,820
Florida
Career: Cardiologist Average Salary: 428,810
Georgia
Career: Neurologists Average Salary: $332,760
Hawaii
Career: Orthopedic Surgeon Average Salary:$554,520
Idaho
Career: Cardiologists Average Salary: $521,690
Illinois
Career: Dermatologists Average Salary: $360,560
Indiana
Career: Athletes and Sports Competitors Average Salary: $702,270
Iowa
Career: Dermatologists Average Salary: $398,590
Kansas
Career: Surgeons Average Salary: $374,300
Kentucky
Career: Orthopedic Surgeons Average Salary: $410,760
Louisiana
Career: Surgeons Average Salary: $534,920
Maine
Career: Surgeons Average Salary: $450,330
Maryland
Career: Cardiologists Average Salary: $456,280
Massachusetts
Career: Dermatologists Average Salary: $414,270
Michigan
Career: Orthopedic Surgeons Average Salary: $412,260
Minnesota
Career: Dermatologists Average Salary: $514,330
Mississippi
Career: Surgeons Average Salary: $362,430
Missouri
Career: Cardiologists Average Salary: $370,910
Montana
Career: Surgeons Average Salary: $435,940
Nebraska
Career: Anesthesiologists Average Salary: $422,040
Nevada
Career: Dermatologists Average Salary: $344,980
New Hampshire
Career: Orthopedic Surgeon Average Salary: $425,620
New Jersey
Career: Chief Executives Average Salary: $414,350
New Mexico
Career: Emergency Medicine Physicians Average Salary: $332,590
New York
Career: Pediatric Surgeons Average Salary: $415,810
North Carolina
Career: Surgeons Average Salary: $429,010
North Dakota
Career: Psychiatrists Average Salary: $390,140
Ohio
Career: Athletes and Sports Competitors Average Salary: $648,120
Oklahoma
Career: Emergency Medicine Physicians Average Salary: $312,940
Oregon
Career: Anesthesiologists Average Salary: $395,060
Pennsylvania
Career: Cardiologists Average Salary: $478,340
Rhode Island
Career: Radiologists Average Salary: $343,450
South Carolina
Career: Ophthalmologists Average Salary: $386,460
South Dakota
Career: Oral and Maxillofacial Surgeons Average Salary: $347,390
Tennessee
Career: Surgeons Average Salary: $324,550
Texas
Career: Cardiologists Average Salary: $413,510
Utah
Career: Dermatologists Average Salary: $402,230
Vermont
Career: Orthopedic Surgeon Average Salary: $413,870
Virginia
Career: Neurologists Average Salary: $368,650
Washington State
Career: Anesthesiologists Average Salary: $419,950
Washington, D.C.
Career: Surgeons, Except Ophthalmologists Average Salary: $286,160
West Virginia
Career: Surgeons Average Salary: $365,560
Wisconsin
Career: Dermatologists Average Salary: $455,200
Wyoming
Career: Family Medicine Physicians Average Salary: $295,570
The Takeaway
Whether you look at the top-paying fields nationally or by state, healthcare professions dominate the list. However, a few other careers also consistently show up in the highest-paid job rankings, including professional athletes, chief executives, airline pilots, and computer/information systems managers.
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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.
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.
You may enter into marriage with shared goals and plans for the future, but what about debt? Whether your partner’s debt becomes your responsibility when wed depends on the state you reside in, the kind of debt, and other specifics.
You’ll learn more about that ahead. This guide covers the difference between common law and community law states and the different sorts of debt that may be managed in a marriage. Read on to learn the details.
Key Points
• Responsibility for a spouse’s debt depends on the state’s laws, specifically if it’s a common law or community property state.
• In community property states, debts incurred during marriage are usually shared.
• Separate debts before marriage generally remain the individual’s responsibility.
• Joint account holders are liable for any debts accrued through those accounts.
• Specific state laws and the type of debt influence whether one is responsible for their spouse’s debts.
How Does Debt in Marriage Work?
Here’s a quick course in marital property and marriage guidelines:
• Marital property refers to assets acquired as a couple, such as real estate, bank accounts, and investments. Debt can also be a facet of marital property.
• The state in which you live (meaning where your permanent address is) determines whether you are in a community or common law state and governed by its rules.
• Most states are common law states. If property is acquired during a marriage by one partner and in only that partner’s name, it’s their sole property. So if you were married and bought a Tesla in your name, the car is yours.
• In a community property state, however, assets and debts acquired by one spouse in a marriage are considered to be the property of both partners.
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In Which States Are You Responsible for Your Spouse’s Debt?
You are probably curious about which states have community property law. Here’s the list or the nine that do:
• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin
What’s more, Alaska, the Commonwealth of Puerto Rico, South Dakota, and Tennessee have enacted elective community property laws. These are “opt-in” if a couple chooses to do so.
There are exceptions to these rules, such as if one partner receives an inheritance or if one owned property prior to marriage.
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Am I Responsible for My Spouse’s Credit Card Debt?
Whether or not you are responsible for your spouse’s credit card debt can depend on which state you reside in.
In a common law state:
• In a common law state, your partner’s credit card belongs only to them. The law provides that one spouse owns a particular asset unless you both put your names on it. That includes property like houses, automobiles, and even credit cards. If your spouse has a credit card with their name on it, it’s theirs alone. Therefore, the credit card debt liability also falls entirely on their shoulders.
• You would need to become a joint account holder in order to own any part of that debt. However, you could also be on the hook for that debt if you co-signed on the account.
• If your spouse made you an authorized user, though, that still leaves the credit card entirely in their name and not yours, meaning you hold no responsibility for paying any associated debts.
In a community property state:
• In a community property state, if they get a credit card while you’re married, that debt now belongs to both of you. Both partners are liable, regardless of who might have opened the account or accrued the debt.
• There is an exception: If you and your spouse are separated before they begin racking up the debt in question, you may not be held responsible. Each situation is different, however, and the state could hold you responsible for the debt in question should it be proved the debt was incurred for the benefit of the marriage.
• It’s good to keep in mind that if you have debts from before the marriage, such as a car loan, those will belong only to you. However, if you get another car loan after getting married, that is now a communal debt that you and your partner share.
Am I Responsible for My Spouse’s Medical Debt?
As you might guess, in community property states, a spouse is likely to be held responsible for a spouse’s debts, though the specifics may vary state by state. This includes medical debt.
In a common law state, you typically would not be responsible for debts your spouse alone incurred, but again, there are exceptions to this rule. (For instance, if you cosign when a partner is admitted for medical treatment.) You’ll learn more about these scenarios below.
Situations Where You May Be Responsible for Your Spouse’s Debt
When it comes to debt and marriage, there are some scenarios worth considering. If you are the kind of person to wonder, “How can I protect myself from my husband’s debt?” or “wife’s debt,” then read on.
When You Are a Joint Account Holder
Even if you live in a community property state, if your spouse racks up debt on a credit card you jointly hold, you may indeed be liable.
When You Live in a Community Property State
As you read above, if you live in a community property state, your spouse’s debts acquired during marriage will become yours as well.
When You “Opt in” into Community Property
As noted above, Alaska, the Commonwealth of Puerto Rico, South Dakota, and Tennessee have laws that can allow you to opt into community property arrangements although the states may default to common law guidelines. If you do so, you will become liable for debt that your partner incurs.
When You Cosign for Medical Payments
In a situation where you live in a common law state, if your spouse were to enter medical care or a medical facility, and you agree to cosign, you will become liable for the expenses related to this treatment.
Possibly When Your Spouse Dies
Much as no one wants to think about death, there are situations in which you could be liable for a deceased partner’s debts. These include if you live in a community property state, if you cosigned on a loan or for medical care, or if you had a joint account, among other scenarios.
Will My Partner’s Debt Affect My Credit Score?
Regardless of whether you live in a community property or common law state, your credit score is yours alone. Being married doesn’t mean that you and your spouse now have the same score or that your scores get merged.
However, if you and your spouse both sign up for a joint credit card or take out a loan together, that information will show up on each of your credit reports.
What Happens to Debt If We Separate Or Divorce?
When couples decide to separate, one of the first questions may be “How much will a divorce cost me?” That is typically very quickly followed by, “What happens to our debt?” The answer to the latter will likely be: It depends.
• Debt responsibility in a divorce isn’t as simple as dividing things in half. For example, if you have a credit card that is only in your name, that debt remains entirely with you in a common law state. However, if you have a joint credit card, most states will see that as joint debt if you separate or divorce, meaning you’ll both be responsible for that debt. It doesn’t matter who was making payments or running up bills; the law will see it as a shared burden.
• If, however, you live in a community property state and your spouse rings up a considerable amount of credit card debt, that could be seen as a shared burden. A creditor might be able to seek repayment from both of you. There are various factors to consider, so working with a legal professional with expertise in this realm can be a smart move.
• If you have a house, you may want to consider selling it off and splitting the money. Trying to untangle a mortgage (a form of consumer debt) if one of you will be moving out can get dicey. The partner who’s staying in the home may need to buy out the partner who’s leaving, for instance.
• If you did any investing as a couple during your marriage, that property will need sorting out. Investments come with legal and tax obligations, on top of the financial complexity. If you invested together, you may want to split the shares or account. Or you might think about selling off those investments and dividing the proceeds during a divorce. However, a lot of investments like that come with tax burdens, so keep that in mind if you have to go this route.
Of course, the courts might answer this and other questions for you. Divorces play out in different ways, including whether they are contested or uncontested. Working with a divorce attorney can help you understand the options and possible outcomes as your marriage ends.
Even if you decide to merge your financial lives completely, finances can become complicated in a marriage. In terms of debt and whose is whose, there is the question of whether you live in a community property or common law state. There will also be the matter if debt was held before marriage or after the wedding. And then there are such concerns as whether you and your spouse cosign or become joint holders on loans and/or accounts or keep things separated. All of these factors (and more) can impact whether or not you are liable for your spouse’s debt.
When you marry, your personal banking will be impacted as well as your lines of credit and debt. You could completely merge your banking, keep things separate, or have both a joint and separate account. SoFi can offer you options to suit your particular needs.
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.
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FAQ
Will my partner’s debt affect my credit score?
Credit scores are specific to each individual. However, if you cosign a loan or open a joint credit card, the specifics of that account will turn up on each partner’s credit reports and could impact each spouse’s score.
Am I responsible for my spouse’s debt after death?
Whether or not you are liable for your deceased spouse’s debt will depend on various factors, such as whether you live in a community property or common law state, whether the debt was incurred before or during the marriage, and whether the debt is in a joint or cosigned form.
Are married couple’s responsible for each other’s debt?
Married couples can be responsible for each other’s debt in certain circumstances, such as if the debt was incurred during the marriage in a community property state or if the debt was cosigned for or accrued with a joint credit card, among others.
Can I be forced to pay my spouse’s debt?
There are a couple of situations in which you could be forced to pay your spouse’s debts, such as if you live in a community property state or if you are a joint account holder.
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.
This article is not intended to be legal advice. Please consult an attorney for advice.
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.
There are times when you may need to get money to someone quickly and meeting in person isn’t possible. Or you may want to surprise someone with a monetary gift and have it show up as a deposit in their bank account.
Fortunately, there are a myriad of ways you can directly deposit money into another person’s account. The method you choose can depend on how fast you need to send the money; whether you want to deposit cash, a check, or a money order, or transfer funds electronically; and how much you’re willing to shell out for fees.
Read on to learn about how to deposit money into someone else’s account and more.
Key Points
• Direct deposits into another’s account can be done using various methods, each with specific requirements and potential fees.
• Mobile money transfer apps provide a quick way to send funds without needing bank details, just the recipient’s email or phone number.
• Bank-to-bank transfers require the recipient’s account and routing numbers, with some banks offering services like Zelle for easier transactions.
• Cash deposits at banks may face restrictions, especially if the depositor is not a customer of the bank.
• Money orders and cashier’s checks are secure alternatives for transferring funds, ensuring the money is available almost immediately upon deposit.
How to Deposit Money into Someone Else’s Bank Account
1. Money Transfer App
A mobile money transfer app falls under the category of P2P transfers, aka peer-to-peer payments. There are many money transfer apps out there including Venmo, Apple Cash, Google Pay, PayPal, and Facebook’s Meta Pay. Here’s how they work:
• These apps allow you to electronically send money instantly (or close to it) to someone else via your mobile device. Using one can be an easy and speedy way to transfer money into someone else’s account. It’s also extremely popular. A 2022 survey by Consumer Reports found nearly two-thirds of Americans use a P2P app to send people money.
• To use a money transfer app, you first need to download it to your mobile device and then create an account. Once you do this, you’ll enter the payment source you want to use to fund the deposit. The choices include linking to your bank account, debit card, or credit card. After you do this step, you’re ready to send someone funds through the mobile money transfer app.
• Typically, recipients also need to have an account with the same money transfer app in order for the funds to go directly to them. If you’re sending someone money through a money transfer app, you don’t need to know the payee’s personal or bank account information in order to make the transaction but rather their phone number or email address. This is how the person you’re sending money to will instantly know they’ve received the funds, based on their preference.
• The recipient can have the money sent directly to their bank account, if they’ve chosen that option, or they may decide to have the money received on a prepaid debit card.
2. Bank-to-Bank Transfers
A bank-to-bank transfer, also referred to as an external transfer, is exactly what it sounds like. By visiting your bank, calling their customer service number, or through your bank’s website or mobile app, you can efficiently transfer money from one bank to another. Here are details on how they typically work:
• Many banks offer customers an external transfer feature on their websites to click on in order to send money to an account at another financial institution. Your bank may have you verify your identity before completing the transaction. To do an external transfer to another person’s account at a different bank, you’ll need the recipient’s bank account number and their bank’s routing number.
• One option for a bank-to-bank transfer is using a widespread online service called Zelle, which is used by more than 1,700 financial institutions in the U.S. With Zelle, you can send money to someone, regardless of where they bank. If your bank offers Zelle, all you have to do is log on to your account, enter the recipient’s email address or mobile phone number, and send the desired amount of money.
A payee already enrolled in Zelle will get the money directly deposited into their bank account, typically in minutes. When it arrives, they can then manage the checking account and move the funds if they like. If they’re not signed up, Zelle sends a notification alert anyway, explaining how they can register to receive their money easily and quickly.
• Keep in mind that some banks charge a fee to do a bank-to-bank transfer and may impose limits on how much money you send at a time and how often you can do an external transfer.
Money transfer websites allow you to electronically move money into someone else’s bank account. PayPal, MoneyGram, and Western Union permit you to transfer money from your account to another person’s through their websites. (Worth noting: Walmart stores may offer the opportunity to send an electronic payment onsite, by MoneyGram, Western Union, or Ria.)
A perk of using these sites is it enables you to send funds without having to sign in to your bank’s app or website. The funds draw from your checking account, debit card, or credit card.
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4. Making a Cash Deposit at a Bank
One of the most straightforward ways to deposit funds into someone else’s bank account is with cash. All you have to do is walk into the bank where the payee has an account and let the teller know you want to deposit cash into their account. You’ll need to provide the recipient’s name and bank account number.
However, whether or not you’re able to deposit cash into another person’s account will depend on the bank. Some large banks — including JPMorgan Chase, Bank of America, and Wells Fargo — have banned cash deposits from non-customers. Why? Handling cash, especially in large amounts, can signal fraud or other types of criminal activity, including money laundering. Before visiting the bank in person with cash in hand, check that the bank will allow you to do so.
5. Using a Money Order
A money order is another form of currency that can be used to deposit funds into someone else’s bank account. Money orders are a guaranteed payment because you prepay so it works a lot like cash.There’s no chance a money order will bounce and it will clear in someone’s account almost immediately. Here’s how it works:
• You can purchase a money order with cash or a debit card at a bank, credit union, U.S. Post Office, check cashing outlets, some supermarkets, or national retailers, such as Walmart , 7-Eleven, and CVS.
• On the money order, you’ll fill in the recipient’s legal or business name plus the dollar amount of the money order. Then, you’ll fill in your name, address, and sign the front of the money order on the line where it indicates Purchaser/Signer for Drawer.
• Every money order comes with a receipt and a tracking number so you have proof you sent the money, in case there’s any dispute with the payee.
• Generally, you can get a money order for up to $1,000, but the maximum can be lower depending on where you purchase it.
• Be aware that you’ll likely pay a fee for obtaining a money order. Fees can range from under $1 to $10, depending where you go. Post offices and retailers charge less than if you go to a bank, though if you get the money order at the bank where you have an account, the bank may waive the fee. Cash and debit cards are the norm when buying a money order. While paying with a credit card may be possible, it may cost more.
6. Writing a Personal Check
You can likely deposit a check into someone else’s account. Unlike a cash deposit, which is harder to trace, a check comes from another account, so the bank knows from whom and where it came from.
As you would with a cash deposit, you’ll need to know the person’s account number in order to fulfill the transaction. Since a check can take a few days to clear, if you want the person to receive your money faster, it’s better to stick with some faster options, such as sending the money electronically or depositing cash.
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7. Sending a Wire Transfer
Wire transfers are another way you can move money from one bank account to another. Here’s the scoop:
• This method of sending payment can be done at banks, credit unions, or through such companies such as Western Union, MoneyGram, or Wise.
• People tend to send money through a wire transfer when they want a fast deposit, the sum is large, or the funds need to go to a different bank than the sender’s.
• Wire transfers are also often used for sending money internationally. To send a wire transfer, you’ll need the name of the recipient, their bank account number, and their bank’s routing number.
• Wire transfer fees can range from $10 to $50, depending on whether you’re shifting money into a U.S. bank account or one in another country. Before you transmit money this way, make sure both your bank account and the payee’s account are both set up for wire transfers.
8. Getting a Cashier’s Check
Another option for directly depositing money into someone else’s account is with a cashier’s check. This type of check is an official bank check you obtain from the bank itself. It’s usually used for larger sums of money and is a guaranteed payment, since it’s paid from the bank’s own funds.
• The process for obtaining a cashier’s check is easy. If you want to use a cashier’s check to make a deposit in another person’s account, you pay the bank the amount you want to send to the recipient and a teller or cashier will issue an official bank check for that amount. The payee’s name will be on the check in the ‘payable to’ section, so it can be deposited into their account.
• Using a cashier’s check speeds up the time the receiver gets their deposit. Where a personal check can take a few days to clear, funds from a cashier’s check deposit are typically available in the third party’s account the next business day.
• One caveat: You’ll most likely have to pay a fee for a cashier’s check, usually around $10 to $15. Some banks, though, may forgo charging the fee for account holders who meet certain balance requirements.
In general, you can make a direct deposit into someone’s savings account, just as you would their checking account. Someone may prefer you put money into their savings vs. their checking account so they’re less apt to spend it right away.
Before you go ahead and transfer funds into their savings, check that it’s okay with them. They may be restricted to a certain number of savings account withdrawals and transfers their bank allows per month. This could put them at risk of incurring extra fees if they exceed the permitted amount when using the money you put there.
Alternatives to Direct Deposit
There are other ways to give someone money without making a direct deposit into their account. Here’s some substitutes to consider:
• Gift cards. Who doesn’t love a gift card? After all, gift cards are currency, and if it’s a Visa, Mastercard, or American Express gift card, they can be used virtually anywhere these cards are accepted. You can also purchase a specific gift card for a certain store if you know the recipient is a frequent customer. You might give gift cards usable at popular retailers such as Target, Whole Foods, Starbucks, Dunkin’, and Amazon.com.
• Prepaid debit cards. These types of cards are purchased with a specific amount of money already loaded on it. Many of these cards come with a Mastercard or Visa logo printed on the front and look like credit cards. Similar to a gift card with these logos, you can use these cards at a myriad of places and even towards paying bills. Be aware that many prepaid cards can come with very high fees when activating the card, adding money, or using it at an ATM.
• Hand them cash or a check in person. There’s nothing like giving cash or a personal check to someone in the flesh. Not only do you ensure they receive it, but if it’s an unexpected gesture, the look of joy and gratitude on their face can be extremely rewarding.
• Pay it forward. Gift the gift of generosity by paying a loved one’s utility or credit card bill, or if you’re flush, a larger expense. You can make the payment to the bill payer directly as long as you know the person’s account number. You can pay by mailing a check, paying by phone, or through online billpay. If sending a paper check or paying with an electronic check, be sure to put the person’s name and account number for whom you’re paying in the memo section.
The Takeaway
If you want to make a direct deposit into someone else’s bank account, there’s no shortage of ways to go about it. Some of these various choices include sending a wire transfer, making a cash deposit at the bank, or using a mobile money transfer app. You can also go with some creative alternatives such as a prepaid debit card or surprising them by taking care of a bill they may have trouble paying.
If you’d like a bank account that makes transferring funds easy, consider opening and online account with SoFi. With our high yield bank account, you can manage your finances all in one convenient place, including sending money and making mobile deposits. Plus, you’ll earn a competitive annual percentage yield (APY) and pay no account fees, which can help your money grow faster.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
FAQ
Does my name have to match the person I’m sending a direct deposit to?
No. When you deposit funds into someone else’s account, it’s their name and account number you’ll need.
Can you make an anonymous deposit into someone else’s account?
Yes, you can, though it depends on the method you choose. Making a cash deposit is especially easy to do without revealing your identity. Other methods though, such as a personal check or external bank transfer, can make it more difficult to stay anonymous since the source of where and from whom the funds come from will show up in the person’s transaction history. You may be able to pull off a secret deposit with a prepaid gift or debit card or using some mobile money transfer systems such as CashApp, PayPal, and Western Union, all of which may also allow the payer to remain a mystery donor.
Can you deposit money into someone else’s account at an ATM?
Typically, yes, an ATM or debit card permits you to move funds into someone else’s account as long as their bank account is linked to yours. It’s important to know even if the two bank accounts are linked, you’ll need to perform the transaction at one of your bank’s ATMs, not one that is out of the network. There may be some ATMs where you can’t do a money transfer, so check with your bank or on their website to find out which ATMs offer this function.
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.
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.
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