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Full coverage car insurance protects you against the most common causes of car damage and bodily injury: not just accidents but also theft, vandalism, fire, and more. Depending on the state you live in, it may also include Uninsured Motorist coverage, and Personal Injury Protection for yourself and your passengers. Liability, on the other hand, only offers financial protection against other drivers’ claims of injury and damage if you’re found at fault.

It can be hard to know how much insurance you need, and how to keep costs down. We’ll review the different types of policies available, pros and cons of each, and the average cost of full coverage vs. liability.

What Is Full Coverage Car Insurance?

Full coverage car insurance refers to a policy with the broadest protections available. Although specifics vary by policy, full coverage usually includes the following:

•   Liability: If you’re involved in an accident and found to be at fault, this type of insurance provides financial protection against other drivers’ claims of bodily injury and property damage.

•   Collision: Helps pay for damages to your own vehicle after an accident with another vehicle or an object like a guardrail.

•   Comprehensive: Protects you against theft or damage unrelated to an accident, such as fire or vandalism.

In some states, full coverage may also include the following:

•   Uninsured/underinsured motorist coverage (UM/UIM): Covers your losses if the other driver either doesn’t have insurance or not enough.

•   Personal injury protection (PIP): Covers medical expenses for yourself and passengers in your car if injuries occur. It may cover other costs, as well: lost wages, the cost of services that you can’t perform while injured, such as housekeeping, as well as funeral costs.

•   Medical payments (MedPay): This can cover medical expenses but doesn’t offer the fullness of coverage that’s available through PIP.

Check your state laws for specifics. This guide to car insurance terms can also be helpful.

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Average Cost of Full Coverage Car Insurance

The average full coverage car insurance cost in 2022 is $1,771 annually. Of course, many factors go into full coverage car insurance quotes, so your price will undoubtedly vary. The cost for a male teenage driver, for example, is $807 more each year on average.

A poor driving record will almost double your premiums. For more details, check out this look at how much insurance goes up after an accident.

Your deductible will also make a big difference in your premiums. In general, the lower the deductible, the higher the premium, and vice versa. So if you’re wondering how to lower your car insurance cost, consider choosing a higher deductible.

The cheapest full coverage car insurance is about $1,000 per year for an individual policy.

Recommended: What Credit Score is Needed to Buy a Car

Why Consider Getting Full Coverage Insurance?

You’ll have the broadest protections with a full coverage policy. Also, if you have a car loan, your lender may require you to have full coverage to protect their investment. The best way to determine how much coverage you need is to sit down for a personal insurance planning session.

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Pros and Cons of Full Coverage Car Insurance

There are advantages and disadvantages to paying for full coverage car insurance.

Pros of full coverage

•   Provides a broader range of protection:

◦   May cover medical expenses if you’re hurt in a collision

◦   May cover vandalism and theft

◦   Can protect you after an accident if the at-fault driver doesn’t have enough coverage

•   Typically meets all state insurance requirements.

•   Usually satisfies the requirements of your lender or lessor.

Cons of full coverage

•   Cost is higher than baseline liability insurance.

•   Doesn’t provide coverage for commercial driving purposes.

•   Won’t cover the cost of normal wear and tear.

What Full Coverage Insurance Doesn’t Cover

Although full coverage provides a significant amount of protection, it doesn’t cover every situation imaginable. It may or may not, for example, provide UM/UIM, PIP, or MedPay coverage. As noted above, full coverage also doesn’t account for standard wear and tear or maintenance needs on the vehicle — that’s up to you. Learn more about saving on car maintenance costs.

Because full coverage varies from company to company, it’s important to read your agreement carefully and understand what it does and doesn’t include.

What Is Liability Car Insurance?

There are two components to what liability auto insurance covers: bodily injury and property damage. If someone is at fault in an accident, their bodily injury coverage will pay for the medical expenses of injured parties. It may also cover lost income, legal fees, and/or funeral costs.

Property damage coverage helps pay for damage to the other person’s vehicle and to any other property that sustained damage during the accident, such as a fence, home, or bicycle.

Personal liability coverage is something different. It typically covers medical costs for someone injured on your property or because of your negligence. It may cover property damage costs, legal fees, and so forth.

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Average Cost of Liability Insurance

On average, a liability insurance policy costs $716 in 2022. But again, many factors — including your age, gender, driving record, and type of deductible — can influence the price.

Why Consider Getting Liability Coverage Insurance?

Most states require liability car insurance, although the specifics vary from state to state. do not require it. In New Hampshire and Virginia, you can skip liability insurance if you can prove you can pay for costs out-of-pocket after an accident where you’re at fault.

Pros and Cons of Liability Coverage Car Insurance

While it may be tempting to pay for only liability coverage, you need to keep certain drawbacks in mind.

Pros of liability insurance

•   Costs less than full coverage car insurance.

•   Provides basic coverage in case of an accident.

•   Required by most states.

Cons of liability insurance

•   If an accident occurs, you could still be on the hook for many costs (more on this below).

•   Won’t cover theft or vandalism of your vehicle.

•   If you have a loan or lease, the lender/lessor may require full coverage.

What Liability Insurance Doesn’t Cover

If an accident occurs, liability insurance won’t cover damage to your vehicle. For that, you need collision coverage. Liability may or may not cover your personal injuries. And if you’re not at fault in the accident, it doesn’t cover the other driver’s medical bills or property damage costs.

Differences Between Liability and Full Coverage Insurance

When weighing liability vs. full coverage car insurance, here are a few things to consider:

•   Full coverage car insurance costs more, but it also offers significantly more protection.

•   Liability auto insurance is required in most states, but full coverage is not.

•   If you have a car loan or lease, the lender/lessor will likely require full coverage.

•   With liability insurance, there’s no deductible. With full coverage, deductibles range from $500 to $1,500.

When To Add Optional Coverage

Optional coverage to consider include:

•   Rental car reimbursement: If your car is in the shop or otherwise out of service for more than a day, this pays for a rental vehicle.

•   Gap insurance: This is intended for cars that have a loan or lease. If the vehicle is totalled and you owe more than the value of the car, gap insurance pays the difference.

•   New car replacement: As the name suggests, if a car is totaled, you get a new car that’s similar to your previous one.

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What Are the State Minimum Requirements for Full Coverage?

How to read this table: Alabama’s requirements for car insurance are 25/50/25. This means that the state requires $25,000 of bodily injury liability insurance per person, with $50,000 for all bodily injuries that take place within a single accident, and $25,000 in property damage per accident. Just keep in mind that this is the minimum amount of car insurance you need.

State	Car Insurance Requirements	Additional Requirements
Alabama	25/50/25
Alaska	50/100/25
Arizona	25/50/15
Arkansas	25/50/25
California	15/30/5
Colorado	25/50/15
Connecticut	25/50/25	The state also requires uninsured/underinsured motorist coverage of $25,000 per person and $50,000 per accident
Delaware	25/50/10	The state also requires personal injury protection (PIP)
Florida	Property damage liability of $10,000 per accident and $10,000 PIP coverage
Georgia	25/50/25
Hawaii	20/40/10 and $10,000 PIP
Idaho	25/50/15
Illinois	25/50/20	Under state law, policies automatically include what’s required for uninsured motorist coverages
Indiana	25/50/25	This state also requires $50,000 in underinsured motorist coverage for bodily injuries
Iowa	20/40/15
Kansas	25/50/25	Along with uninsured/underinsured coverage ($25,000 per person/$50,000 per accident) and personal injury protection (PIP or no-fault)
Kentucky	25/50/25
Louisiana	15/30/25
Maine	50/100/25	Along with $50,000 uninsured coverage per person and $100,000 per accident, and $2,000 in medical payment coverage
Maryland	30/60/15
Massachusetts	20/40/5 and $8,000 PIP
Michigan	20/40/10
Minnesota	30/60/10	Along with $25,000 uninsured/underinsured coverage per person, $50,000 per accident, and $40,000 PIP
Mississippi	25/50/15
Missouri	25/50/25	Plus $25,000 uninsured coverage per person and $50,000 per accident
Montana	25/50/20
Nebraska	25/50/25	Plus $25,000 uninsured/underinsured coverage per person and $50,000 per accident
Nevada	25/50/20
New Jersey	15/30/5	Along with $15,000 PIP
New Mexico	25/50/10
New York	25/50/50 and $50,000 PIP
North Carolina	30/60/25	The state also has detailed specifics about required insurance coverage for uninsured/underinsured motorists
North Dakota	25/50/25
Ohio	25/50/25
Oklahoma	25/50/25
Oregon	25/50/20	Plus $25,000 uninsured coverage per person and $50,000 per accident, and $15,000 PIP
Pennsylvania	15/30/5	Plus $5,000 for medical payments
Rhode Island	25/50/25
South Carolina	25/50/25	Plus $25,000 uninsured coverage per person, $50,000 per accident, and $25,000 in property damage
South Dakota	25/50/25	Plus $25,000 uninsured coverage per person and $50,000 per accident
Tennessee	25/50/15
Texas	30/60/25
Utah	25/65/15
Vermont	25/50/10
Washington	25/50/10
Washington D.C.	25/50/10	$25,000 uninsured coverage per person, $50,000 per accident, and $5,000 property damage
West Virginia	25/50/25	Plus $25,000 uninsured coverage per person and $50,000 per accident, and $25,000 property damage
Wisconsin	25/50/10	Plus $25,000 uninsured coverage per person and $50,000 per accident

The Takeaway

Full coverage car insurance includes several different types of protection, which makes it popular with drivers who can afford it. Full coverage gives you liability protection (used when you’re at fault in an accident), collision (which pays for damage to your vehicle), and comprehensive (which protects against theft and non-accident-related damage). In some states, you’ll also get Uninsured Motorist coverage, Personal Injury Protection, and/or Medical Payment coverage. Liability coverage, on the other hand, only covers property damage and bodily injury in case you’re at fault in an accident. Auto insurance coverage requirements vary by state.

If you’re looking for affordable full coverage car insurance, we invite you to compare auto insurance quotes from top insurers. SoFi makes finding the right deal on car insurance easy.

Get a car insurance quote in just minutes.

FAQ

Is it worth having full coverage on a car?

If you have a loan or lease, you may be required to have full coverage. And you may want to get full coverage on a newer car to protect your investment even if you don’t have to. This can also be true of an older car that’s maintained its value.

What does full coverage come with?

It comes with liability insurance, collision coverage, and comprehensive insurance. It may come with additional coverages such as uninsured motorist coverage, personal injury protection, and/or medical payment coverage.

What are the benefits of full coverage?

This kind of policy provides you with a broad range of protections against not just accidents but fire, theft, vandalism, and other common threats. If you have a car loan or lease, full coverage may be required.

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

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

Insurance not available in all states.
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SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

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.

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Your credit card statement can feel like information overload with all of its numbers and terminology. Understanding the definition of terms like outstanding balance, statement balance, and billing cycle can help you to navigate this monthly statement a little more easily.

So what is an outstanding balance, how is it different from a statement balance, and can it affect your credit score? Put simply, the outstanding balance on a credit card is what the amount of money you still owe to the credit card company is called. Knowing this figure is important to avoiding interest and potential effects on your credit.

What Is an Outstanding Balance on a Credit Card?

Outstanding balance is another way to express current balance. In fact, depending on your credit card issuer, your monthly statement and mobile app may use the term “current balance” instead of “outstanding balance.”

But what is an outstanding balance in credit card terminology? A credit card outstanding balance is simply the amount of money you have not paid to the credit card issuer — i.e., it’s what you still owe.

Your outstanding balance includes any purchases you have made on your credit card but have not yet paid off (from the current and previous billing cycles), but it also includes:

•   Interest earned on previous balances

•   Balance transfers (and any balance transfer fees)

•   Cash advances

•   Any other fees you may owe, like late fees or foreign transaction fees

Recommended: Closing a Credit Card with a Balance

Where to Find Your Outstanding Balance on a Credit Card

You can check your outstanding balance by calling your credit card issuer or accessing your account online or through the mobile app. Depending on the terminology the company uses, you may see the outstanding balance listed as your current balance or simply your credit card balance.

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Current Balance vs Outstanding Balance

Current balance is simply another term for outstanding balance. Depending on your credit card issuer, you might see one term or the other used. In some cases, it may simply be labeled “account balance” or “credit card balance.”

Recommended: How to Avoid Interest On a Credit Card

Statement Balance vs Outstanding Balance

So what’s the difference between a credit card statement balance and outstanding balance? Your credit card statement balance is the total amount owed after a billing cycle. It can include any purchases made during the billing cycle, plus any balance, interest, and fees carried over from the previous billing cycle.

Once issued, the statement balance amount does not change, even if you continue to swipe your card for more purchases during the grace period (this is the period between statement closing date and due date, during which you won’t earn interest on your unpaid statement balance). As long as you pay off the statement balance in full by the due date, you should not accrue any interest.

Your outstanding balance encompasses everything you owe at a specific moment in time. Sometimes your outstanding balance can be higher than your statement balance; sometimes it may be lower. Consider this example:

Your billing cycle ends, and you now have a statement balance of $1,000. In the next week, you spend $500 more with your credit card. Your statement balance remains $1,000, while your outstanding balance grows to $1,500. But as long as you pay that $1,000 statement balance by the due date, you will not incur any interest — and your statement balance will drop to $0 until the end of the next billing cycle.

Recommended: Tips for Using a Credit Card Responsibly

Remaining Balance vs Outstanding Balance

Remaining balance refers to whatever amount is still due after you’ve made your monthly credit card payment. For example, if your statement balance is $500 but you only pay $300, your remaining balance is $200. This, along with the interest it accrues, becomes a part of your outstanding balance.

You can avoid accruing interest on a remaining balance by paying off your statement balance in full each month rather than only the credit card minimum payment.

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What Is an Average Outstanding Balance?

The typical amount of an outstanding balance can vary widely from person to person — it all depends on how much you use your credit card, what your credit limit is, and whether you carry a balance. That being said, your average outstanding balance is simply the amount you owe on a credit card, averaged over a certain period of time.

The average outstanding balance formula for a statement period would be the total of your balance for each day of the statement period, divided by the number of days in the cycle. This can be helpful to know given most credit card issuers calculate interest on a daily basis, based on your average daily account balance.

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Paying Your Credit Card Outstanding Balance: What to Know

The nuances of credit card balances can be tough to nail down, but understanding how they work — particularly outstanding balances — may help you avoid interest and impacts to your credit score.

Here’s the short version:

•   Paying the minimum balance due each month will help you avoid late fees and negative marks for late payments on your credit report.

•   Paying the statement balance in full by the due date will keep you from accruing interest.

•   Paying down the outstanding balance, or current balance, even outside of your normal payment cycle, can reduce your overall credit utilization, which influences your credit score.

How Interest Contributes to Outstanding Balances

When you make purchases with your credit card throughout a billing cycle, the card issuer has lent you money to cover the expenses. And if you don’t pay the lender the statement balance in full by the specified due date, any remaining balance will become part of your outstanding balance — and it will start accruing interest.

The best way to avoid paying credit card interest is to pay your statement balance in full by each due date.

Recommended: Tips for Using a Credit Card Responsibly

How an Outstanding Balance Affects Your Credit Score

When you carry over unpaid balances, you’ll do more than earn interest that you have to pay. You’ll also increase your overall credit utilization, which is the amount of your total available credit you’re using. That’s because your outstanding balance counts toward your credit limit.

For example, if your credit limit is $5,000 and your outstanding balance is $2,500, you’ve utilized 50% of your credit limit. In general, creditors prefer to see a credit utilization of 30% or lower. This signals to them that you can responsibly pay back your debts.

In fact, credit utilization is the second most important factor affecting your FICO credit score. It accounts for 30% of your overall credit score. Thus, carrying a high outstanding balance regularly can adversely affect your credit score.

For this reason, experts typically recommend paying off your full statement balance every month if you’re able. And if you make a large payment on your credit card during a billing cycle that increases your outstanding balance tremendously, you may want to pay it off early to reduce your credit utilization — or else you chance a drop in your credit score.

Recommended: What Happens If You Overpay Your Credit Card?

The Takeaway

Credit cards can be confusing, especially when you’re new to the terminology. But once you understand how your statement and outstanding balances work and can responsibly make payments in full and on time, credit cards can be a great tool for boosting your credit score.

FAQ

Does outstanding balance mean past due?

Having an outstanding balance does not necessarily mean it’s past due. Your credit card requires a minimum monthly payment; if you have satisfied that payment, you do not need to immediately pay your outstanding balance. But keep in mind that you generally need to pay the full statement balance each month to avoid accruing interest.

How do I clear the outstanding balance on my credit card?

To clear the outstanding balance on a credit card, you can make a payment equal to the amount. This should bring the balance down to zero. However, you do not always have to pay your outstanding, or current, balance to avoid interest. Paying your monthly statement balance in full should keep you from accruing interest, even if your outstanding balance is higher.

Why is my outstanding balance negative?

Your credit card outstanding balance can go negative if you pay off the card and then receive a credit for a returned item or claim cash-back rewards from your purchases. If you want, you can request a check from the credit card issuer in the amount of the negative balance. Or, you can apply the negative balance on a credit card toward future purchases on the credit card.

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¹See Rewards Details at SoFi.com/card/rewards.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .


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If you’re a fresh arrival to the United States, you’ll be glad to know that even if you’re undocumented, opening a bank account is possible. Which is very good news; after all, taking care of bills and everyday purchases is a lot easier — not to mention safer — when your cash is safely stashed in a checking account.

However, you will have to follow certain steps and perhaps a workaround or two. Probably the most important is that you’ll just need to provide an alternative for the Social Security number you don’t have. You may well find that a Tax Identification Number, or ITIN, along with the other required identification, can get the job done.

Read on for more about how an undocumented immigrant can open a bank account and the benefits of doing so.

What Do Immigrants Need to Open a Bank Account?

Like anyone else who opens a bank account, immigrants will need to provide and verify basic identifying information, such as their name and date of birth, using government-issued identification. This requirement may be met by a driver’s license, passport, birth certificate, or consular ID — and you’ll likely need to provide two different types of identification.

In addition, you’ll need to prove your residence. This can probably be done by presenting a utility bill, lease contract, or other official statement that includes your current address.

Finally, you’ll need either a Social Security number (SSN) or Tax Identification Number (ITIN). As an immigrant, the latter may be easier to obtain.

So, to recap, to open a bank account, you’ll want to check the eligibility requirements of the financial institution to which you’re applying, but you’ll probably need:

•  Official identification documentation

•  Proof of address

•  An SSN or ITIN

•  Anything else the bank might require (such as a minimum opening deposit)

💡 Additional help: What Are All the Requirements to Open a Bank Account?

What Is an ITIN?

As just mentioned, an ITIN may be an option to an SSN at many financial institutions. You may wonder what exactly that is. Here’s the scoop: ITIN is short for Individual Taxpayer Identification Number. It’s an official form of identification that the IRS (Internal Revenue Service) issues to immigrants in order to make it possible to file taxes.

But your ITIN has other perks, too — such as allowing you to open a bank account with financial institutions that accept this form of identification instead of an SSN. These days, there are plenty of banks that fit that category, but you should always contact the bank you’re considering to verify that they’ll process an account application without an SSN.

Keep in mind, too, that you aren’t automatically issued an ITIN once you arrive in the U.S. In order to obtain one, you’ll need to apply for one with the IRS directly. You can do this by mail or in person.

How to Open a Bank Account With an ITIN Instead of a SSN

Here’s the good news: Once you have an ITIN, using it in place of an SSN to open an account should be a fairly straightforward process. At many banks, you’ll simply supply that number instead of your SSN on that part of the application. If you apply online for a bank account, the application process may take only a few minutes.

The rest of the application will involve the bank gathering documentation, accepting your opening deposit, and issuing your bank account number and debit card. The process of establishing the account may take a couple of days. In addition, you may need to wait a week or more to receive your debit card in the mail.

And then, voila: You’re the proud owner of a U.S. bank account!

Benefits of Opening a Bank Account for Undocumented Immigrants

If you’ve been doing most of your financial transactions in cash for a while, you may wonder if going through the steps it takes to open a bank account is even worth it.

For many immigrants, it definitely is. A bank account makes it safer and easier to store and use your money. What’s more, it can also help you establish history and move toward legitimizing yourself as an American resident.

Personal Safety

Carrying cash is always risky. If you accidentally drop some (which can easily happen while you’re lugging bags in one hand and a coffee in the other), it’s gone forever. That’s not to mention the risk of others eyeing your cash. Paper money is liable to theft, and carrying large amounts of cash could even put you at risk of physical violence.

Having a checking account makes it possible to store larger amounts of money with a lower risk level. You’ll still be able to access cash when you need it using an ATM or your debit card. For these reasons, opening a bank account could increase your level of physical safety as an immigrant.

Establishing History

Opening a bank account shows people that you’re here on at least a semi-permanent basis, and may even help you establish state residency. While the process of naturalization is, of course, long and complex, having a bank account can be one small step toward legitimizing your status as a U.S. resident.

Ability to Save Money

Most banks offer both checking and savings accounts—the latter of which is an excellent vehicle for building up a rainy day fund. Having a separate savings account makes it a lot easier to put some money “out of sight, out of mind” so you’re prepared for an emergency. And, of course, it’s a lot more secure than stuffing cash into a coffee can or under the mattress.

Earning Interest

In addition to being physically safer, bank accounts also give you an edge against inflation. Here’s why: Many of them make it possible to earn interest on your balances—even on a checking account. The interest you earn might be pretty low, but it’s still better than no growth at all. Plus, it’s a low-risk investment given that money in a legitimate bank account is FDIC-insured up to $250,000.

The Takeaway

While it may take a few extra steps, it’s totally possible for an undocumented immigrant to open a bank account. You may just have to apply for an ITIN to use in place of your SSN, and find a bank that accepts ITINs. But once you get that taken care of, you’ll have access to a safe, potentially interest-earning place to stash your cash.

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

How do undocumented immigrants open a bank account?

An undocumented immigrant will need an alternative to the Social Security number, or SSN, in order to open a bank account. This number is called an Individual Taxpayer Identification Number, or ITIN, and you can apply for one through the RIS. Many financial institutions will accept an ITIN in place of a SSN.

Can I open a bank account without an SSN or ITIN?

Unfortunately, you’ll likely need one or the other of these official, identifying numbers in order to open a bank account.

Can a U.S. citizen open a bank account abroad?

Yes, but it can be tricky. Many U.S. citizens have offshore bank accounts, though the process of applying for one may vary depending on which country you’re hoping to open an account in. It can involve a lot of paperwork, and starting this kind of account may have tax ramifications in both the U.S. and the foreign country in question.

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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.

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