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It’s certainly a frustrating experience to be denied a checking account, but you can find out why you were rejected and take steps to get approved. The truth is, your bank account application could be denied for many reasons. Maybe you had some issues in the past (say, closing an account with a negative balance) or perhaps there’s just a plain old mistake in your record.

Whatever the case, you probably want to repair the situation ASAP. Having a checking account is a hub for many people’s financial life. It’s where your pay is likely deposited and how you pay your bills.

So let’s take a look at:

•  Why your bank application was denied

•  What your ChexSystems record might have on file

•  How a second-chance checking account could help

•  Steps to take before reapplying for a checking account

Reasons Why You May Be Denied a Checking Account

Are you wondering, “Why was I denied a checking account?” There are a few reasons that could be the determining factor in this situation. Many people wonder if they can be denied a checking account because of their credit score. Typically, banks don’t pull your credit report when you apply for an account. Your credit score is a measure of your creditworthiness; how well you do in terms of borrowing and repaying money, from whether you pay your utility bills on time to whether you have credit charge offs on your cards.

What they do look at is a similar record but for how well you have handled your banking life. Consumer agencies provide banks with information about your prior checking account activity. ChexSystems is one of the most well-known of these banking reporting agencies. It collects information from banks on your checking account activity and assigns you a score depending on how well you manage your bank accounts. The banks use this score to decide whether to qualify you for a checking account. If you have a poor score (we’ll share more details on that in a minute), you may be denied.

But your ChexSystems report is not the only reason a bank may deny you a checking account. There might be a simple error in your personal information. For example, your name might be spelled wrong or your Social Security number could be incorrect. The bank will try to electronically verify these data with a third party, and any errors will cause the application to be rejected.

You will also have to provide proof of identity, such as a copy of your driver’s license or passport, and if there are discrepancies between the documents and the information typed into an application, the application may be rejected.

Let’s now take a closer look at what might be responsible for your being rejected for a checking account.

Recommended: How Often Should You Monitor Your Checking Account?

Negative Information on ChexSystems

Negative items on your ChexSystems report may get you denied for a checking account. They can cause banks to consider you a high risk for financial services. Negative information that could cause your application to be rejected include one or more of the following:

•  Forced account closures

•  Bounced checks or overdrafts

•  Suspected fraud or identity theft

•  Unpaid fees or negative bank balances from a current or closed accounts

•  Too many account applications submitted over a short period

These negative marks on your record can last up to five years.

Errors on Your ChexSystems Report

Just as you may have credit report errors, so too can your ChexSystems report have mistakes. This could trigger your bank account application to be rejected, even if your past checking account management was good. You can obtain a copy of your ChexSystems report once a year or whenever your application for a bank account is denied. (Keep in mind, though, that applying for a bank account too many times will be a black mark against you. If you get rejected, it’s probably a good idea to investigate your banking report vs just putting in more applications.)

If you are denied a bank account, check whether simple errors on your ChexSystems report could be the reason.

Bad Credit

Your credit score can affect a bank’s decision regarding a checking account. ChexSystems collects data related to both debit and credit accounts, and a low credit score may play a role. If unpaid debts and fees are reported to a collection agency, and that information finds its way to the credit reporting bureaus, your credit score will be negatively affected.

Recommended: What Is Considered a Bad Credit Score? 

Bankruptcy

If you have filed for bankruptcy, the bank will find out when it checks your background. Depending on the bank’s stipulations, they may decide that you are too much of credit risk to offer you a bank account. Your borrowing capacity will be significantly limited by bankruptcy, as will the number of financial institutions willing to provide you with financial services, such as a checking account.

Identity Can’t Be Verified

An application for a bank account may be rejected simply because there are mistakes and/or the information entered does not match the documents you submitted. For example, if you have recently moved, the verification source may not recognize your new address, or you might have answered security questions incorrectly when prompted by the verification system.

Here are other reasons your identity might not be verified:

•  Your submission had an error or typo.

•  Your credit profile may contain erroneous information.

•  Your credit report could be frozen if there is suspicion of fraud or identity theft.

•  Your documents may have expired.

•  Your documents may be unreadable.

•  You may have submitted a phone number that is not associated with your address.

Recommended: How To Read A Credit Report

Alternative: Second-Chance Checking Account

So let’s say your bank account application was denied. How do you get that checking account that you need? Here’s one route: Some banking institutions offer a second-chance account for those denied a traditional checking account. A second-chance account provides limited services, but it can help improve your financial life if managed responsibly.

These accounts often come with high fees, but you can upgrade a second-chance account to a regular checking account within a year or two if you pay the fees and maintain a positive balance. These accounts can help you on your path to building a solid banking history.

Steps to Take Before Reapplying for a Checking Account

If you’ve been denied a checking account, you may well want to apply elsewhere immediately. But a word of warning: Doing so could cause your application to be rejected if you request a new account too often. To maximize your chances of success, take the following steps before you reapply.

1. Find Out Why Your Application Was Denied and Ask the Bank to Reconsider

By law, the bank should tell you why your application was denied. Regardless of the bank’s information from a reporting agency, the bank makes its own decisions when approving account applications. You may be able to overturn the bank’s decision depending on the circumstances. It’s probably worthwhile to make that request.

2. Check Your Banking Report

You can obtain a copy of your ChexSystems report once a year and whenever you are denied a bank account if the report is the cause of your rejection. Visit the ChexSystems’ website or call 800-428-9623.

3. Look for Errors and Fraudulent Activity

Once you have your ChexSystems report, look for fraudulent activity or mistakes in information such as your name, address, phone number, or Social Security number. For any errors contact the agency, and be ready to provide supporting information to ensure the issue gets corrected.

4. Clean Up Your Report

Look at the negative actions on your report and fix them; you can file a dispute for anything erroneous by going to the ChexSystems website. Pay off any debts and unsettled fees. Ask to have the negative activity removed. Otherwise, they can stay on your report for up to five years.

The Takeaway

Having your application for a bank account denied is an upsetting experience that can definitely limit your financial life. The root of the problem could be that ChexSystems or another consumer reporting agency has given the bank information indicating that you are a high-risk customer. But your application could also have been rejected because mistakes were made or your identity couldn’t be verified. By taking steps to remove errors and repair damage, you’ll be on the road to get the accounts you need to keep your money safe and keep your financial life humming along.

When you’re ready to apply for bank accounts again, check out what SoFi has to offer. When you open our linked Checking and Savings account with direct deposit, you’ll get an array of benefits that make banking a breeze and help your money grow. You’ll earn a competitive APY and pay zero account fees. Plus, you’ll have access to your paycheck two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Can you get a bank account if you’ve committed fraud?

If you have committed fraud, you will likely have a history with ChexSystems, and you are likely to find your bank account application declined. However, you can get a second chance checking account. If you maintain a positive balance and pay the monthly fees, you can probably upgrade to a regular checking account within a year or two.

How do I get my bank account after being blacklisted?

ChexSystems will blacklist you if you show a pattern of questionable behavior like failing to pay fees or committing fraud. You can try to remedy the record by paying off debts, but otherwise, your record could be with you for up to five years. You can seek out a second chance loan and hope that you can upgrade to a regular checking account within two years if you manage your account responsibly.

How long do fraud investigations last?

There’s no formal limit on the length of an investigation. Typically, they take about 45 days. But remember, if you are found guilty, that negative information can stay on your ChexSystems report for up to five years.

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government 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, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% 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 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 4.60% 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 10/24/2023. 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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you’re finding it hard to be optimistic about increasing your riches, you may want to start adding financial affirmations to your everyday routine. Affirmations specifically targeting money have the power to change self-defeating or negative self-talk when it comes to your finances. And when you start replacing a pessimistic mindset about earning, spending and getting out of debt with a positive one, you’re more likely to take the needed steps to attract the wealth you want — or so the thinking behind daily affirmations goes.

Reciting affirmations may seem awkward at first and the truth is, some people won’t find daily money mantras a game-changer. The good news is, daily money affirmations don’t cost anything and you control the story. Here’s the lowdown on financial affirmations so you can decide if they’re right for you:

What Are Money Affirmations?

Money affirmations are positive words, phrases, and sentences designed to turn discouraging thoughts about money into positive ones. The hope is by regularly speaking these uplifting statements to yourself, either in your head or out loud, you’ll reprogram your brain. When you swap out the old notions for the new thoughts and they become your new truth, you can get busy putting them into action.

The types of financial affirmations vary depending on what your money goals are. For example, you can create statements about increasing your income, getting out of debt, saving money, as well as expressing gratitude for the financial abundance you already have.

Creating your own personal affirmations are all about dealing with your specific money issues or blocks and how you can move forward.

While there’s no set rule on how many times a day you should verbalize your money affirmations, it helps to be consistent so it becomes a habit. A good start might be picking one powerful affirmation and repeat it throughout the day. Or you could choose three to five affirmations that you recite for five minutes or several times in a day.

Be forewarned that taking on too many at once may feel overwhelming and scatter your focus. Once you get the hang of it and it feels more doable, you can try adding more.

Optimizing Your Money Affirmations

Positive affirmations may work better if you put them in present tense, such as “I can,” “I am,” or “I have” instead of using language such as “I will,” “I should” or “I could.” Why? Statements promising future outcomes suggest you could be a certain way instead of dealing with the reality of where you are now.

It can take a while to retool your thinking, so try not to get discouraged if in the beginning, progress seems slow or non-existent. Remember, it took years to shape your current beliefs so it can take some time to adjust to new ones.

Pros and Cons of Money Affirmations

As mentioned earlier, affirmations don’t always appeal to or work for everyone. Depending on your current state of mind and life circumstances, financial affirmations may seem trivial, frivolous, or simply not a priority. If you’re experiencing some stressful times or financial hardships, you may not have the emotional or mental bandwidth to take them on.

On the flip side, many people find the daily practice empowers them, provides clarity, and motivates them to take more financial control and responsibility.

Before you take the plunge, here’s some pros and cons to consider:

Pros of Using Money Affirmations

•   Give you a wider perspective on your core values surrounding your finances

•   Assist in setting personal boundaries

•   Help in creating a realistic budget

•   Cultivate a positive relationship with money

•   Keep you focused on your vision and financial goals

•   Home in on your strengths

•   Boost your self-image and confidence

•   Celebrate past financial successes and current achievements

•   Encourage problem-solving

•   Allow you to explore other possibilities to expand your wealth

Recommended: Does Net Worth Include Home Equity

Cons of Using Money Affirmations

•   Can feel inauthentic if they fail to align with your personal core beliefs or you don’t believe what you’re saying

•   Put too much self-applied pressure to transform your financial picture quickly

•   Can be time-consuming and easy to let slide if you’re busy

•   Require daily financial discipline, commitment, and persistence

•   May not cause any positive shifts in your thinking and so lead you to feel you’ve wasted valuable time

•   May make you feel foolish, self-conscious, or uncomfortable reciting them

•   May bring up painful emotions about money you may not be ready to address even with with financial therapy

•   Create self-doubt or self-defeating feelings if you’ve chosen affirmations that aren’t realistic or attainable

•   May overwhelm you and zap your emotional energy, especially if you’re going through difficult times

•   Probably won’t provide instant gratification if you want or need a quicker mental money fix

39 Ways to Think Your Way to Being a Millionaire

Want to give daily affirmations a try? Reciting any of these to yourself daily may help transform negative thoughts into positive ones:

1.    I choose to only have positive thoughts about money.

2.    I release my fears around money.

3.    I have the power to create and build the wealth that I desire.

4.    I am open to receiving financial abundance.

5.    I’m worthy and deserving of a wealthy life.

6.    If others can be wealthy, so can I.

7.    Prosperity is drawn to me.

8.    I trust I’m on a path to becoming more financially solvent.

9.    I believe I can achieve my financial goals.

10.    I am capable of handling money.

11.    I’m working to build a strong money foundation and achieve financial wellness.

12.    I find the positives in my current financial situation.

13.    My debt doesn’t control me, I can manage it, and I can become debt free.

14.    I overcome all obstacles that lie in my way of financial success.

15.    I want more money and that’s OK.

16.    Saving money is a positive challenge.

17.    I can make my dreams a reality by sticking to a budget.

18.    Starting an emergency fund to protect myself is something I can do.

19.    Every dollar saved puts me closer to financial freedom.

20.    Each day is an opportunity for me to change my money story.

21.    Money well-spent is a source of good and positive things.

22.    The more I give, the wealthier I become.

23.    I use money to improve my life.

24.    Wealth flows into my life consistently.

25.    There are countless ways I can bring more money into my life.

26.    Everything I need to build wealth is available to me right now.

27.    I choose to focus on money coming to me with ease.

28.    My income can exceed my expenses.

29.    I deserve to increase my income.

30.    There are no limits to the amount of money I can make.

31.    I can profit off of my skills.

32.    I’m happy to pay my bills for all they provide me.

33.    I’m grateful for the money I have now and the money that’s on its way to me.

34.    Money can expand my life opportunities and open me up to new experiences.

35.    The money I earn and spend makes me happy.

36.    My net worth is not my self-worth.

37.    I move from poverty thinking to financial abundance thinking.

38.    My life is full of riches beyond money and my happiness is surging.

39.    I have a millionaire mindset. I think like a millionaire. I act like a millionaire, I feel like a millionaire, I am a millionaire.

The Takeaway

Changing long-held, entrenched beliefs about money can be challenging. Incorporating a regular routine of financial affirmations offers the possibility of changing your mindset to a positive and hopefully productive one. While these affirmations may not appeal to everybody, if you feel stuck and want to take some baby steps toward improving your money picture, affirmations may be worth a try.

On the road to improving your money situation, you may want to keep better track of it with a money tracker app. SoFi helps you do this, all in one place. It makes it easy to know where you stand, what you spend, and how to hit your financial goals.

Get credit score monitoring, spending breakdowns, financial insights, and more – all in one app and at no cost.

FAQ

How do you write affirmations for manifestation money?

A review of affirmations on the internet found that they generally have two things in common: they often start with “I” and they are in the present tense. Some people feel money mantras should be short (mo’ money!); others think they just need to resonate with the people who recite them.

How do you attract the abundance of money?

Of course, the idea of attracting something like the abundance of money is based more on belief than anything else. If you believe you can attract it, that belief may lead you to take action – perhaps, to start a business or at least to make a plan. So to attract the abundance of money, you may want to start by believing that you are capable of becoming rich.

How do I get a millionaire mindset?

The first step is probably ridding your mind of self-defeating thoughts. But just being positive isn’t enough. You likely want to develop attitudes associated with successful people: being open to learning, not fearing failure, and being proactive.

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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 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.

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Nowadays there are plenty of options for moving money around, and two of the most common, ACH and checks, have some key differences. Both of these popular payment methods are convenient and secure, so it can be hard to know which one to choose. But in your financial life, there will probably be times when one is a lot better suited to your needs than the other. Don’t worry, we’re going to walk through everything that’s important to know about ACH payments and checks to help you use the right method.

Keep reading for a breakdown of ACH vs. check, the pros and cons of each, and how they stack up. Then you’ll totally understand the differences between the two.

Recommended: What is Liquid Net Worth

What Is ACH and How Does It Work?

An ACH transfer (named after the Automated Clearing House network) is an electronic banking transaction that is processed through the ACH network. The network is a major financial hub, made up of around 10,000 institutions. Through the ACH network it is possible to process the following transactions:

•   Direct debits

•   Direct deposits

•   Direct payments

•   Electronic checks (eChecks)

•   Electronic funds transfers (EFTs)

Businesses and consumers have the option of using ACH transfers to make direct payments (known as ACH debit transactions) or direct deposits (ACH credit transactions). Some financial institutions even make it possible to schedule and pay bills electronically via ACH transfers. You are probably familiar with ACH transactions when you set up autopay on an account, whether its a utility bill or your gym membership.

You may wonder how long ACH transfers take. Because they are electronic, ACH transfers can clear banks in a matter of a few business days as long as there are enough funds in the account. However, there are times where ACH transactions will take longer. This is especially common if a transaction is suspected to be fraud.

However, for something like a direct deposit of a paycheck, ACH can be quite quick. When the payment hits your checking account, it’s immediately available. You don’t have to run around with a paper check that needs to be deposited. That can make a big difference between getting paid by ACH vs. a check, for sure.

Pros and Cons of ACH

Like any financial tool, ACH transfers have some advantages and disadvantages worth considering. Here’s a closer look at some important pros and cons.

Pros	Cons
•   Free. Most ACH transfers are free •   Errors can be reversed. You can sometimes request a transaction reversal for ACH transfers if an error occurs •   Simple and straightforward. Convenient form of payment allowing you to pay without cash	•   Fees can apply. May need to pay a fee to expedite bill-pay services or to make a transfer to an outside bank •   Slow timeline. Can take up to three days for a transfer to go through •   Potential roadblocks. Daily transfer limits apply

What is a Check?

A check is a payment method that involves making a payment using a paper check that has the payment amount and the payee’s bank account information on it. Once someone writes a check, the recipient can cash it and receive the funds.

Pros and Cons of Using a Paper Check

Checks are one of the most basic and time-honored financial tools at your disposal. They allow you to move money around without paying a fee, and they are a secure way to do this. What’s more, checks create a paper trail with proof that funds have been received.

But they can wind up costing you, they can take longer than you might expect, and sadly, there are scams that prey upon those who use checks. Let’s see what some of the pros and cons of using a check to make payments or to receive payments are in chart form.

Pros

Cons

•   No fees. Electronic payments can come with fees but there are no fees associated with checks. •   Safe way to send money. Cash can be lost or stolen. If a check is lost or stolen, the person who finds it will have a hard time cashing it thanks to handy security features. •   Proof of payment. Checks have a paper trail confirming proof of payment.

•   Check scams exist. Check scams can be dangerous and easy to fall for. •   Checks cost money. Typically, you don’t pay a fee when you use a check, but it costs money to buy checks, and depending on your situation, you might have to pay a fee to cash a check at some locations. •   Processing delays occur. Paying by cash, credit, or electronic transfer can occur more quickly than paying by check.

ACH vs Check: The Differences

Now that we’ve examined both separately, let’s look at what the difference is between ACH and checks side by side. It’s important to note that both have their own unique set of advantages and disadvantages, but overall stack up against each other fairly evenly. Much of the choice about which to use will depend on your particular circumstances and preferences. Here’s the difference between ACH and checks.

ACH	Check
•   For the most part, ACH transfers are free unless a rush fee or a fee for transferring to an outside bank applies. •   It is sometimes possible to request a transaction reversal for ACH transfers if an error occurred. •   ACH payments are fairly simple and easy to conduct. •   ACH transfers can take a few days to clear.	•   There are no fees associated with checks, but consumers do have to buy the checks to be able to use them. •   Checks offer a safe way to make payments. Even if they are lost or stolen it’s hard for anyone other than the recipient to cash them. •   Checks provide a conienvent paper trail that cash payments lack. •   Checks can take several days to clear.

Recommended: Average Savings by Age

Which Should You Consider Using?

There’s no right or wrong answer when it comes to choosing a check over an ACH transfer. Both have unique advantages and disadvantages. Consider these scenarios:

•   Because it’s possible to set up recurring ACH transfers, that can be a much more convenient option if someone wants to schedule ongoing payments such as rent or bills.

•   Checks, which are very secure and convenient, may be a better fit for one-off payments such as paying the babysitter or a hairdresser.

As you see, the decision depends on what best suits your needs for a particular transaction.

The Takeaway

It’s worth understanding the difference between check and ACH payment options. Both ACH transfers and checks offer benefits. They are very secure, can transfer money within a few days, and provide easy ways to make payments. Neither is better than the other; they’re just different. Which one is the “best” will often depend on the unique preferences of both parties involved in the transaction. You may well find yourself toggling between the two during your everyday financial life.

While you’re thinking about which kinds of payments work best for you, consider this great way to bank better with SoFi. Our linked checking and savings accounts, when opened with direct deposit, offer an easy way to help your money grow. You’ll earn a super-competitive APY, pay no account fees, and get access to your ACH paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Is an ACH payment a check?

No, ACH payments are an electronic transfer processed through the Automated Clearing House network, which is a network made up of around 10,000 financial institutions. A check is a different kind of payment, using a paper document and being processed in a different way.

Is ACH better than checks?

Not necessarily. Whether or not an ACH is a better payment method than a check depends on the unique preferences of the two parties involved in the payment. That being said, generally ACH payments are free whereas it costs money to buy checks for use.

Is ACH cheaper than checks?

When it comes to check vs. ACH costs, ACH payments can be cheaper than checks in some cases, but not always. ACH payments are free, whereas consumers generally need to buy checks to use for payments. However, you may run into fees when doing an ACH payment.

Is ACH safer than a check?

Both checks and ACH transfers are very secure, but ACH payments are known to be more secure, thanks to the extra layers of protection in place due to encryption that occur during the transfer. Both checks and ACH transfers do require that the identity of the recipient be verified before the transaction can complete. Fraud and mistakes can occur for both payment types.

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government 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, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% 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 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 4.60% 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 10/24/2023. 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.

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.

Photo credit: iStock/bernardbodo
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Most of us crave convenience when it comes to banking today, so it’s good news that mobile deposits typically only take a day to clear. After all, we live in a very fast-paced world with movies on demand and groceries ordered and dropped off within minutes. We expect a lot these days, and most of the time, mobile deposits deliver. But that also may explain why people can get frustrated when it takes a bit of time for their mobile deposits to clear.

The answer to the question, “How long does it take a mobile deposit to clear?” is usually around one business day. If you are experiencing delays, there could be an easy explanation for why that’s happening. Read on to learn more about how mobile deposits work, why delays happen, and how to avoid them.

Can You Deposit a Check Online?

Nowadays there’s no need to drive to the bank or hunt down an in-network ATM to deposit a check, as many banks and credit unions make it possible to deposit a check online using a smartphone. Typically, the process is pretty fast and straightforward. All someone has to do is endorse the back of their check, open the mobile app, log in, and take a picture of the front and back of the check.

Each banking app will have a slightly different process in place for uploading checks, but most are easy and fast.

When are funds available after mobile deposit? Let’s discuss.

How Long Does a Mobile Check Take to Deposit?

So, exactly how long does a mobile deposit take? Once the account holder uploads their check to the mobile app, it may only take a matter of minutes. That’s just about as fast as depositing cash. Or it can take a few days for the bank to verify the check. The amount of the check can impact this timeline, as can the rules and processes each bank has surrounding mobile deposits. All of that being said, generally consumers can expect mobile deposits to take a business day to complete.

What Factors Might Cause Mobile Deposit Delays?

As briefly noted, certain delays can slow down the mobile deposit process. Knowing how to avoid these delays with future deposits can help speed up the timeline.

Here’s a few factors that can slow down deposits (or stop them all together if not fixed):

•   Not endorsing a check before depositing it. Before cashing a check by using a mobile app, it’s vital to always endorse the check before taking the photo of it or the bank won’t be able to accept it. Alongside a signature, it’s also common to need to include a bank account number on the back of the check or to write “for mobile deposit only” under the signature.

•   Forgetting to get both payee signatures. If a check has two people listed on it, both of them will need to endorse the check with their signatures for it to be eligible for a deposit.

•   Uploading blurry images. A steady hand comes in handy as banks need a clear image to complete a mobile deposit. It helps to take a photo of the check on a plain, dark background and in good lighting so the picture is very crisp and clear.

•   Adding mismatched amounts. In addition to uploading a photo of the check, the mobile app will require the user to manually enter the check amount. That amount needs to match the amount on the check exactly, or your deposit may be delayed.

•   Not indicating a payee. The check uploader needs to make sure their name is on the Paid to the Order of line. If this section is blank or doesn’t say the correct name, the check won’t be deposited. Take some time to review that the entire check is filled out correctly.

•   Making a duplicate deposit. Trying to deposit the same check twice to your bank account can cause confusion. If someone uploads a check for the first time and receives a duplicate error message, they can contact their bank to work through the issue.

Benefits of Mobile Banking

The option to enjoy mobile check deposits is just one of the many benefits associated with mobile banking. Here are a few other advantages worth keeping in mind.

1. Convenience

Mobile banking is super convenient. It’s possible to conduct a lot, if not all, of the banking business we used to do in-person at a branch or ATM from the comfort of our own homes or while on the go. It’s possible to review account balances, transfer funds between bank accounts, and deposit checks using mobile banking.

2. Timesaving

Not having to find time to drive or walk to a bank (which can be so hard to pull off on busy days) during their operating hours can be a major boost to productivity. A 30- to 60-minute round trip to the bank can now be replaced by simply logging onto a mobile bank account on a computer or smartphone. Most mobile banking activities can be completed in just a few minutes.

3. Accessibility

All anyone needs to participate in mobile banking is a smartphone and a WiFi or data connection. That means they can take care of their banking from almost anywhere. Of course, you do want a secure, not public, connection when managing financial matters to avoid banking scams.

4. Easy to Manage Finances

Mobile banking features can make it simple and speedy to stay on top of transactions, fraud alerts, and budgeting goals.

Alternatives to Checks

If someone doesn’t like to make payments or receive money via check, they have a few other options at their disposal that work well with mobile banking.

•   Automated Clearing House (ACH) and Electronic Funds Transfer (EFT). Both an ACH and EFT are easy electronic ways to transfer funds from one financial institution to another via computer-based systems with intervention from bank staff members.

•   Credit and debit cards. When it comes to making payments, credit cards and debit cards are a simple option when someone doesn’t have cash on hand or wants to shop online.

•   Digital wallets. Also known as e-wallets or mobile wallets, digital wallets make digital payments easy and secure. All someone needs is access to a smartphone or computer to make a payment.

The Takeaway

Across the board, mobile banking is a modern and convenient financial tool for consumers. Being able to deposit checks from home or while traveling instead of having to find a branch location or ATM is one huge perk of mobile banking.

So how long does a mobile deposit take? Mobile deposits can clear in just a few minutes, but it’s best to expect about one business day. And by following a couple of quick checkpoints, you can avoid any hitches that could cause a delay. Because in today’s impatient world, there’s no need to wait much to get access to your money.

In fact, banking with SoFi includes all the usual conveniences, plus access to your paycheck up to two days early. How’s that for fast? When you sign up for our online bank account with direct deposit, that early access is one great benefit, along with a super-competitive APY and none of the usual bank fees.

Bank smarter and faster with SoFi.

FAQ

Are mobile check deposits available immediately?

When are mobile deposits available? In some cases, a mobile check deposit can be available within just a few minutes of uploading the check into the mobile banking app. However, it usually takes around one business day for deposits to go through. Following instructions from the bank carefully regarding uploads can speed up the deposit timeline.

How long does it take for a mobile deposit to go in?

Some consumers may wonder, how long does it take a mobile deposit to clear? It usually takes a business day for a mobile deposit to show up in a bank account, but if all goes well and no delays occur, a mobile deposit may appear within just a few minutes.

Why is my mobile deposit taking so long?

Mobile deposit delays can be caused by a variety of factors such as using a blurry photo of the check, entering information incorrectly, or not endorsing the check properly. Double-check all key details before submitting the deposit to speed up the timeline.

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government 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, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% 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 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 4.60% 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 10/24/2023. 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.

Photo credit: iStock/RyanJLane
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When it comes to managing your financial life, among the most important hubs are your bank accounts, but sometimes opening one can involve a minimum deposit. These accounts allow you to deposit funds, pay bills, transfer money, and save for everything from an emergency fund to the down payment on a house. Many financial entities may require a minimum deposit—an initial amount of money—in order to get started.

Fortunately, there are banks, credit unions, and other financial institutions that don’t require a minimum opening deposit so you can stash and spend your money even if you’re low on cash. Others may require one, sometimes in exchange for additional premium services.

It’s important to understand what a minimum deposit is, how it works, and how to open a bank account to get the most out of your money. We’ll explore those topics here.

What Is a Minimum Deposit?

A minimum deposit is the amount of money you need to open a bank account with a financial institution. It can also refer to the minimum balance you must maintain in order to receive certain perks or avoid fees.

Whether you’re starting a new checking or savings account, you’ll probably notice that some financial institutions may require a minimum opening deposit. But banks are competing for your business, so many financial institutions will waive minimum deposit requirements in order to entice first-time customers. Accounts that ask for a higher opening deposit tend to provide extra services.

Recommended: How Much Money is Required to Open a Checking Account?

How Do Minimum Deposits Work?

If you’re wondering why minimum deposits exist, let’s explain how they work. Some financial institutions need minimum deposits and balances to help pay for overhead expenses, such as administrative fees or direct deposit services. Having minimum deposits and balances helps banks and credit unions ensure that they are taking in enough money to lend to other customers. They also stand to profit from fees if account requirements aren’t met.

You might consider a minimum opening deposit as an entry fee into the world of checking and savings. Maintaining a required minimum amount allows you to stay in game, avoid fees, and keep the benefits outlined in your account agreement.

You may wonder if the opposite scenario applies: Is there a maximum limit to an initial opening deposit? That’s not usually the case. In fact, the bigger your opening deposit, the more benefits you may get. You may qualify for a better annual percentage yield (APY) when you deposit and maintain a higher amount of money in your account.

Still, it’s worth noting that you may be able to get perks even without a minimum opening deposit. Even with zero down or $25, banks and credit unions may offer a network of fee-free ATMs, incentives for using direct deposit, no minimum balance fees, and overdraft coverage.

Recommended: How to Set Up a Direct Deposit

Real World Example of a Minimum Deposit

Let’s say you want to open your first-ever checking or savings account. To do so, a bank may ask you for a minimum deposit. This could cost anywhere from $25 to $100 to open a standard checking account. Let’s say it’s $100 to open the account, and there is a minimum monthly balance of $100 as well in order to avoid fees. You would open the account with $100 in cash or via a transfer or check. Then, you would have to be sure that, as you are paying bills, you don’t dip below that $100 mark if you want to dodge account charges. So you would either need to meticulously balance your checkbook or use online alerts to warn you about when your funds were sliding down close to $100.

While $100 may be a common enough number for standard bank accounts, on the higher end, some premium accounts require significantly higher minimum deposits. There are investment accounts that require five-figure opening deposits. But these accounts typically include benefits such as oversight from a financial advisor who can help with estate and retirement planning.

Types of Minimum Balance Requirements

When researching checking and savings accounts, keep in mind that there are typically two types of minimum balance requirements. Let’s clarify those terms, since they can sometimes be used interchangeably and cause confusion. They are:

Minimum Opening Deposits

When applying for a new checking or savings account, many credit unions and banks will ask you for an opening deposit. To pay this, you can use a check or money order, a debit card, or transfer money from an outside banking institution or an account at the same bank. Some financial entities require no minimum opening deposits at all.

Minimum Monthly Deposits

Some banks and credit unions may waive service fees and award higher interest rates if you make a minimum monthly deposit, say $500 or more, through qualifying direct deposits into your account. The amount required differs among financial institutions and types of accounts.

Be aware that some accounts might charge a fee if you slip below a minimum monthly balance. If you sign up for one of these accounts and want to avoid those charges, you need to take note of when your funds will be available. If you do opt for one of these accounts, you can often set up alerts on your bank’s app to let you know when your funds are slipping below a certain threshold.

Opening a New Account

Starting a new checking or savings account isn’t rocket science. Banks and other financial entities want to make the process as simple as possible in order to attract new customers. Nowadays, you don’t have to physically go into a bank to open a new account. With online banking services available, sometimes all it takes is a few clicks to get your account up and running.

Besides the minimum deposit requirement, there are a few steps to take to prepare for opening a new account.

Choose the Right Account

There are different kinds of checking and savings accounts. Which one you pick depends on your goals, lifestyle, and the perks you want out of the account. Consider these options before making your choice:

•   Checking accounts. This is the place to store your money for everyday spending. You’ll be able to access it via a debit card, mobile banking services, and checks. Typically, these accounts offer no or very low interest, but high-yield checking accounts can give you a better rate. You’re most likely to find more competitive rates at online banks vs bricks and mortar ones.

•   Savings accounts. If you are looking for a place to store your cash and make it grow, a savings account with a competitive interest rate can be a solid choice. With a high-yield savings account, you could potentially earn up to ten times more than the interest on a standard savings or checking account.

Some banks and financial services offer the best of both worlds — linked checking and savings accounts which can give you added convenience and other benefits.

When choosing any kind of account, be mindful about convenient perks and pesky fees. Here are some things to consider as you evaluate how accounts stack up and which one is right for you:

•   The minimum deposit required

•   Monthly service fees

•   Overdraft fees

•   Out-of-network ATM fees (Tip: Choose a bank with ATMs close to your home and places you frequently go)

•   Online banking services, including a mobile app for check deposits, online bill payments, and direct deposit features

•   The annual percentage yield (APY)

•   Cash-back debit card services

Gather Documents

To open a new checking, savings, or even other investment accounts, most financial institutions require at least two forms of government-issued IDs, including:

•   A valid passport, driver’s license, or other government-issued photo IDs

•   Social security card or individual taxpayer identification number

•   Birth certificate

•   Utility bill with your current address

•   Student accounts may require a student ID or school acceptance letter as proof of enrollment

Confirm Eligibility

Make sure you meet the bank or credit union’s age and eligibility requirements. You usually need to be at least 18 years old to open a traditional checking or savings account. If you are a student or under 18, a parent may have to be involved in the process. Check the guidelines before you begin.

Fill Out the Application

Once you’ve found the right account and gathered the required documents, you are ready to fill out the application. This can be done in-person at a bank or credit union, or online from the comfort of your home.
The application form is likely to be straightforward. You’ll provide your basic personal and contact information, indicate what type of account you want, and upload or provide proof of identification. If you open an account online, this can all be done in minutes.

Recommended: How to Open a New Bank Account Online

Deposit the Minimum

After you’ve entered all your information on the new account application, the final step is to make the minimum opening deposit. If no minimum deposit is required, you can fund your new account with as little or as much money as you wish. If you do need to make a deposit, this can be done via cash or a check if applying in person. Otherwise, you can link your new account to an existing one and transfer in some funds. That’s it; you’re done! You’ll be all set with your new account.

The Takeaway

A required minimum deposit is only one factor to consider when choosing a new checking, savings, or other type of account. And not every financial institution requires one; in some cases, you can get started with no money at all. However, besides a minimum deposit, there are other things to consider — the type of account, fees, annual percentage yields (APYs), and types of banking services offered. In the end, choose the one that provides the most functionality for your lifestyle and growth for your money.

While you’re shopping for an account, take a look at what SoFi offers. When you open our linked Checking and Savings with direct deposit, there’s no minimum deposit and no minimum monthly balance or other account fees. You’ll earn a competitive APY that outpaces the national average for checking accounts by a longshot!

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Is there a minimum amount you can deposit in a bank?

Some banks and credit unions may require a minimum deposit of $25 to $100 in order to open a checking or savings account. Beyond that, there’s no minimum amount necessary to deposit per week or month, but some accounts may require a daily minimum requirement to avoid fees or closing the account.

What is the minimum requirement for a savings account?

Some basic savings accounts may require a minimum deposit between $25 to $100. They may also require you to maintain a minimum daily or monthly balance — between $300 to $500 . But some savings accounts have no minimum deposit or minimum balance requirements. It can pay to shop around.

Which banks don’t require a minimum balance?

Financial institutions that don’t require a minimum balance to start a checking account as of press time include: Capital One 360 Free Checking, Ally Interest Checking, Alliant Credit Union High-Rate Checking, and SoFi Checking and Savings.

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Photo credit: iStock/pinstock

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government 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, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% 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 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 4.60% 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 10/24/2023. 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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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