SoFi

The list of fees that banks might charge you is pretty darn long and, on average, they can cost you more than $161 per year. Per year.

Some of the more typical bank fees include monthly maintenance fees, overdraft charges, returned item fees, ATM fees, and foreign transaction fees. Some of these charges, such as the overdraft and returned item fees, can hit people the hardest when they have the least amount of money available to pay them.

So, if you’ve ever been frustrated by having to pay bank fees, or have been surprised when a charge showed up on a bank statement, this post will share tips on how to avoid those fees in the first place.

And, when thinking about bank fees, here’s something else you could consider: Picture what you would do with an extra $161. Save it? Buy something special? Also, think about how long you’ve had a particular account. If it’s been 10 years, for example, imagine how you’d spend an extra $1,610! That’s money you could put back into your pocket.

At the end of this post, you’ll find a possible way to avoid paying bank fees altogether.

Monthly Maintenance Fees

If your bank or financial institution charges maintenance fees, you may be so used to watching that money disappear out of your account each month that you’ve simply stopped trying to figure out how to make it stop.

It isn’t unusual for banks to charge about $12 a month in maintenance fees, nearly $150 a year for this fee alone.

If you keep a large enough balance in this account, you can typically avoid paying a monthly maintenance fee at many banks. That’s great for those who have that kind of money, but this is the type of fee that often hits those who don’t have a lot of money in their accounts.

If keeping a larger balance in your account isn’t practical right now, then it can make sense to explore online-only financial institutions that are more likely to not charge this fee.

Online-only banking doesn’t mean banks that they offer mobile services, though—it’s banks that don’t have a physical location and are online only, who have less overhead and, therefore, the opportunity to pass on more savings to you, the customer.

Overdraft Fees

Banks often have an overdraft program, so if you withdraw more than what’s currently available in your account, the bank won’t “bounce” the check. Instead, it will be covered, but often with a fee attached.

So, let’s say that you deposited $200 in your checking account but $100 of it has a short-term hold on it. This means that even though you have $200, only $100 is currently available. This is a common practice among financial institutions. So, if you withdraw $150 during this time, you could be charged an overdraft fee, depending upon your bank’s policies.

These types of fees can average around $35 per instance. To avoid being charged, you could decline to sign up for overdraft service (which may lead to bounced checks or declined debit card transactions).

Or you could ask if your bank has a service where, if you overdraft on your checking account, then the amount would be covered from your savings account. Note, though, that this kind of transfer may also come with a fee.

What may be most important here is, you may want to be clear about what your bank or financial institution will do in a certain circumstance. Let’s say that you’ve signed up for automatic bill pay at your bank. What will your financial institution do if there aren’t enough funds?

Pay it anyway and charge you an overdraft fee? A little research with your own financial institution could reveal the answer, and if it’s not what you want to hear, you could see if another institution handles the situation in a way that works better for you.

Returned Item Fees

If you don’t opt in to have overdraft protection on an account, banks typically decline or bounce, the transaction if there aren’t enough funds to cover a transaction.

Besides the problems associated with a bounced check, there is typically a returned item fee, averaging around $35 for each occurrence. And, unfortunately, sometimes a returned item fee can take an account balance to the point where another check may bounce, causing the situation to become increasingly worse.

ATM Fees

ATM fees come with unique pain points that can be especially frustrating. That’s because you sometimes have to pay a bank or a random ATM just to get your own money! And sometimes you’ll pay ATM fees twice on the same transaction: once in a surcharge by the ATM being used and, second, by the bank that issued your card.

To make matters more frustrating, out-of-network surcharges from ATM owners keep increasing, becoming the highest to date in 2018. In fact, it’s 36% higher than it was almost a decade ago, with an average out-of-network ATM charge costing users around costing users around $4.68 , on average!

This situation isn’t especially likely to change, because the very nature of an out-of-network surcharge means that people getting socked with extra fees are non-customers.

If you’re trying to budget carefully, this can be painful. To reduce how much you could pay in ATM fees, pre-planning might help. You could research locations of in-network ATMs and only make withdrawals there.

If you know you’ll be shopping at a business or attending an event that operates as cash only, you could withdraw more than you might need, just in case, so you can avoid using an out-of-network ATM nearby.

When you go into a store, pharmacy, and so forth, you could also check to see if the ATMs located in them are part of your bank’s partnership network. Even if you don’t need cash right away, it might be a good idea to file away that information for when you do need it.

Here’s another idea: Many grocery stores and even some big box stores will let you get cash back when you make purchases there. This could be another way to circumvent ATM fees.

Foreign Transaction Fees

If you’ll be going abroad, then you will likely need to deal with foreign transaction fees. Credit card companies add these onto transactions processed by or passing through foreign banks.

A typical fee is 3% of the transaction amount. There is often a fee charged by the credit card network and another one by the card issuer. Some credit card companies charge fees in addition to network ones, while others don’t.

Credit card issuers typically don’t mention these fees up front (unless they’re advertising that they don’t charge them), so they can come as a surprise when the next statement arrives.

Just one foreign transaction fee might not seem like a big deal, but when you consider how many times you might use a credit card during a trip, it can really add up. And, often, you don’t earn any credit card rewards on these fees.

Returning to the painful subject of ATM fees, banks often charge an additional 1% to 3% for this type of fee on international transactions, meaning beyond what you’d normally pay on ATM withdrawals and debit card purchases.

To help mitigate these fees, you could check with your bank to see if they have affiliate banks in regions where you’re traveling and ask if you can withdraw from those ATMs without paying the additional international fees. You could also ask if your bank reimburses fees that you’ve paid.

As another way to reduce bank fees, you could exchange US dollars to foreign currency before you leave the country, perhaps eliminating the need for ATM withdrawals while traveling. Your bank might do this with no fees.

Online-Only Banking

With online-only banking, there are no physical branches, so overhead costs for the financial institution can be lower, giving them the ability to provide certain perks to customers, such as lower fees.

Sometimes, certain fees aren’t charged at all. Just like with traditional banks, policies differ from one online-only financial institution to another.

If this sounds appealing, you could consider investigating how online-only institutions might help you avoid fees. Many, for example, provide ATM services for free or refund ATM fees up to a certain amount each month.

Money and Millennials

A Kasasa study points out that an overwhelming percentage of millennials they surveyed—93% of them—say that fee-free banking is important to them. They note that no-fee banking matters to them when choosing a bank for everyday banking needs.

SoFi Checking and Savings®

SoFi Checking and Savings® is a checking and savings account where you can spend, save, and earn all in one place. You’ll earn 0.20% APY (annual percentage yield) on all your cash with no account fees (subject to change).

You can sign up for and open an account in just 60 seconds, and the account is FDIC insured for up to $1.5 million with additional fraud insurance.

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
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.

SOMN19111

Is your bank ghosting you? Charging fees out of the blue? Do you feel like you’re settling instead of looking for “the one”?

It can be tough to tell when it’s time to call it quits with your bank, especially after all these years and bank statements you’ve shared. Knowing how to switch banks isn’t always easy, but neither is detecting those red flags.

If you’re generally happy with your bank, it might be best to stay put, especially if it’s a busy time. While it’s typically easy to open a new account, you’ll need to transfer your balance over, change autopay settings and more. If you’re not up for the task, you could end up with late fees, penalty payments, and more.

But, if you and your current bank account are on the rocks, it might be time to move on—for the right reasons, of course. A brokerage checking and savings account, which combines checking and savings accounts under one virtual roof, could be one option. The accounts tend to offer higher interest rates and also often don’t charge fees that a brick-and-mortar location might.

Learn why you might consider trading up and switching accounts.

Reasons to Switch to a New Bank

Fees

What’s worse than the dreaded 2am “U up?” text? Possibly an unexpected fee or charge from your banking institution to your account. Some banks charge up to $30/month in checking fees, then there are fees for using out-of-network ATMs and more.

If minimum balance fees, maintenance fees, paper statement fees, and weighty overdraft fees plague your monthly account balance, it might be time to consider switching accounts.

You could research alternative financial institutions and see if they charge similar rates or if they waive fees in certain circumstances. If you’re noticing unnecessary fees popping up in your account, it could be time to look for a new institution to better manage your money with.

Bad Customer Service

Does it feel like your bank is never there for you when you actually need them? When you detect fraud on your debit card, does it take half a day to straighten the charges out? Maybe the call center hours aren’t great, or you haven’t been happy with the in-person service at your bank’s retail location.

Whatever has given you pause, bad customer service is a common reason for leaving a bank. You might want better branch hours or online chat service instead of a customer service line. Your reasons might vary, but if you don’t feel you’re being treated as a valued customer, then it’s worth considering a move.

Joint Accounts

If you’re getting married or joining a partnership and want to open a joint account, it might be time to switch accounts. Your partner’s financial institution might offer better features, or have better customer service. In that case, it might be time to say farewell to your current account.

Lack of Branches

Maybe you’ve been with the same bank for years but moved to a different city. It could be a struggle to find your bank’s location, leading you to incur hefty ATM charges from using other ATMs when you’re in need of cash.

If your bank isn’t convenient location-wise to you, and you often find yourself in need of a brick-and-mortar location, then you might think about making the switch to a bank more common in your area. If brick and mortar doesn’t matter much to you, it might be time to consider an online-only checking and savings account, which often offer ATM reimbursement across the country.

Safety and Security

If you’re concerned about the safety of your funds at your current bank, then it might be time to switch. Check to see if your current bank is FDIC-insured. This insurance would mean your cash is still covered, even if the bank goes under.

You Want “In” on Incentives

If you’ve been with your bank for a while, you probably haven’t thought about incentives or sign-on bonus offers. While a one-time offer shouldn’t be the primary reason your switch bank accounts, taking advantage of an additional benefit might just be the cherry on top of your sundae.

Pay attention to rewards programs, or a bonus for a first-time deposit of a certain amount—it might end up being the tipping point to open something new.

Multiple Accounts

When it comes to bank accounts, you might be considering playing the field and opening multiple accounts at once. For business owners, freelancers, or foreign travelers, this can be a common practice.

If you’re looking to keep these accounts separate, you could consider opening a new account at a different bank or financial institution.

Lack of Features

You might’ve been floored by the rates and specials you had when first signing up with your current bank, but if you notice peers getting better features with other institutions, then maybe it’s time to move.

This could be ATM-fee reimbursement, a better online portal, and mobile check deposit, or overdraft fee forgiveness. If you feel like you’re missing out on special features with your current bank, then take a look around to see what other institutions offer. You might be surprised by what you’ll find.

Better APY

Wouldn’t we all like to make money just for putting our cash in a financial institution? Most offer some kind of APY (annual percentage yield), for using their services. The thing is, APYs can vary dramatically depending on where you’re banking or managing your money.

It might be only the difference of a few dollars a year, but hey, if you’re considering a new financial institution, take note of their APY as compared to your current institution.

Another Reason to Switch

If the signs are pointing you in a new direction, you might consider trying SoFi Checking and Savings®. With a 4.60% APY, no fees, and ATM fee reimbursement, it could be the perfect match you’re looking for.

SoFi works hard to give you high interest and charge zero account fees. With that in mind, our interest rate and fee structure is subject to change at any time. See our terms and conditions to learn more. Remember, you deserve more, and if something’s not meeting your needs, there are plenty of other fish in the sea.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
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.

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.

SOMN19053

Money touches almost everything we do, from our basic living expenses to vacations and outings with friends to planning for the future—whether that includes a house, kids, or some other long-term goal. And yet, it can sometimes be hard to make space for important financial conversations with a spouse or partner.

Discussions about money can sometimes be awkward and unpleasant. Whether it’s figuring out how to breach the topic of who should pay the bills in a relationship or which partner is responsible for which expenses—whether based on earnings or some other criteria—these conversations aren’t always easy to start. But prioritizing them can be the key to a strong and sustainable partnership.

Take a look at some of the ways that couples might start having these discussions regularly. This article will also explore some possible strategies for divvying up financial responsibilities in a way that feels manageable and fair so the next time the topic of splitting bills in a relationship comes up in your life, you may feel more prepared.

No matter your financial situation, it can be important to find ways to have open money discussions in your relationship so that you can focus on making memories and building a strong foundation with the person you love.

Talking About Money in Your Relationship

When you’re in a long-term relationship, whether you’re married or cohabitating, talking about finances can be a worthwhile investment into your life together.

Living together often means splitting costs for day-to-day things, such as rent, utilities, groceries, and other costs.

So, it can be wise to start these conversations early, although it’s up to you to decide when makes the most sense in your relationship.

For many married couples, combining finances is the logical approach, so the question of who should pay the bills in a marriage isn’t as pressing as it can be for others.

But, there are couples—married or otherwise—that still like to have a sense of financial independence and who prefer to split shared expenses in a way that makes sense for them.

Every couple is different, so there is no one-size-fits-all approach to talking about money and splitting costs. Though, for some, marriage means enmeshing accounts and finances, other couples choose to keep their accounts separate.

Additionally, some partners earn similar salaries and prefer to split things evenly, while others earn drastically different incomes and adjust their financial responsibilities accordingly. What’s more, sometimes one person is carrying a substantial debt while the other is debt-free.

There are many factors that can impact the way that a couple chooses to split bills and other financial responsibilities in a relationship, and it may be helpful to keep in mind that there isn’t a single right way to do it.

A strategy that can potentially help to avoid financial elephants in the room is to find a time to establish a budget as a couple or other financial guidelines with your partner.

You may also want to a set time check in with your partner about finances, whether that’s once a week or once a quarter. It can also be helpful to come together to identify your shared goals and financial weaknesses so that you can support one another.

Some couples may opt to work with a financial advisor or another professional, while others prefer to manage things on their own. Regardless of your approach to splitting finances, consistent communication can be crucial.

Splitting Bills Evenly

For some couples, splitting bills evenly makes the most sense. This could mean keeping track of all of the monthly receipts for groceries and other shared living expenses along with rent, utilities, gas, or other common expenses you and your partner share.

At the end of each month, both partners can calculate the total expenses and settle them evenly. Of course, this strategy isn’t for everyone, and sometimes splitting bills and living expenses equally doesn’t make sense, especially, for instance, if both partners are making drastically different incomes.

If splitting things evenly doesn’t make sense for your relationship, there are other strategies that could be a better fit.

Splitting Bills Individually

In some cases, it may be preferable for each partner to be responsible for specific bills. This could look like one partner taking responsibility for the gas and electric bill, while the other covers water and internet.

Though this type of set-up can be great in terms of distributing responsibility, it’s highly unlikely that each partner will end up paying the same amount each month. For some couples, this may make sense and be an ideal set up. For others, partners may want to decide on a way to reconcile the bills at the end of the month.

Paying Bills Proportionally

Many couples, both married and unmarried, prefer keeping separate bank accounts for their own personal expenditures and having a joint bank account from which to pay for big household expenses.

Opening a joint account may make bill pay a bit easier every month and can make sense for recurring expenses, like utility bills, rent, and other shared costs. Joint accounts can also make it easier for each partner to transfer the money they are responsible for into the account before the bills are due.

Of course, the question of how to split up the money for these expenses will depend on the discussions you have had with your partner. If you both decide to split the costs evenly, then both of you can transfer the same amount into the shared account once a month or before the bills are due, otherwise you can decide to reconcile things in a way that makes sense for you.

Regardless, having one central location from which to pay for all shared bills can take a lot of the guesswork out of your financial big picture and could also make it simpler to look back at what you’ve spent and analyze your shared spending habits over time.

Keep in mind that when you open a joint account each person has equal rights to the account. This means that one of the account owners could make withdrawals or close the account without the consent of the other. Opening a joint account requires a certain level of trust and commitment.

Splitting Bills in a Way That Works for You

Though many married couples have traditionally merged their finances, this is not the automatic course of action for all couples.

As such, it’s important to consider what strategies make the most sense based on your unique situation.

Ultimately, prioritizing open, honest, and regular conversations about money may help you to avoid money arguments, ensure you and your partner are on the same page, and help you both feel more in control of how you’re approaching your financial life together.

Whether you decide to open a shared bank account, split bills up based on your income, or simply combine your bank accounts and pay everything together, know that there is no right or wrong decision.

Consider giving yourself the freedom to try a few different approaches to find the one that best suits you and your partner, and remember that communication is often the key to success.

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC . SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
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.

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About 10% of Americans moved within the country last year, according to the U.S. Census Bureau. Though that number may seem small, its actual value is not—that amounts to an estimated (and whopping) 32 million people.
Within that group, the impetus for moving varied, from people moving in order to establish their own household, opting for a more affordable home or moving for a new job.

While the prospect of a new home can be exciting, the move itself can require a surprising amount of time and money. Unless you have a family or friend group ready and willing to pack your things, haul your boxes, and load your belongings into your new space, chances are you will hire a professional moving company to assist you with the above tasks.

Just as you make a weekly or monthly budget in order to see your finances clearly, it can be helpful to crunch the numbers on the cost of a move before you get started. One question worth considering before you cross hire movers off your to-do list is, how much do professional movers cost?

The short answer is—it depends. There are a variety of factors that will influence the cost of hiring professional movers. Below is some information that might help you prepare mentally and financially for a big move.

Making a Local Move

While moving across town might seem straightforward, it can be a drawn-out process—though a more affordable one—if you’re doing some of the legwork yourself. Keep in mind that unless you’re taking vacation days to pack and move, you may be filling boxes on nights and weekends for a while.

The upside of packing (and later unpacking) your own stuff is that you’re paying zero dollars to a moving company for those hours. That means you need only need a standard moving service. Once your boxes are taped up and ready, a moving company can come to load boxes and furniture into a truck, transfer them to your new neighborhood and unload them into your new space.

Costs for a standard move like this will depend on a few key factors, including the amount of stuff you have, the distance you are moving, and the number of hours it takes movers to move your things. (Because quantity matters here, it can be a good idea to use a move as the impetus for donating things you no longer want or need.)
To get an idea of how much movers cost for a local move in your area, gather estimates from a few companies. Most offer a free quote, and there are websites like QuoteRunner that aggregate moving quotes for local companies based on a few moving details provided by you.

By comparing the prices of local movers, the Unpackt Blog estimated the average moving price for a standard move in various cities. In each location, the blog shows how the size of your current home impacts the cost.

In New York City, for example, a local standard move for someone in a large one bedroom might cost around $350, while a four-bedroom move could cost more than $1,000. Keep in mind this is simply transporting packed boxes from Point A to Point B. The blog gathered moving data and estimated local costs for cities such as Raleigh , Baltimore , and Minneapolis .

A full-service move includes a good deal more assistance from your moving company, but for a greater price. The higher price is because this service covers just about everything.

You can opt to have your movers pack your things, disassemble (and later reassemble) all your furniture, load and unload everything, then unpack it for you, with your guidance as to where things go. Full-service movers also usually take care of packaging supplies and their disposal.
According toMove.org , the cost of a full-service local move will range between $550 and $12,000. Again, the price range varies so greatly because it depends on the number of belongings the movers will be packing and transporting.

It might help to compare and contrast a few different moving companies, Moving.com suggests reviewing at least three. This can help you make the best pick for your move and budget. Some movers will tell you a cost per hour for moving, but it can be hard to estimate just how many hours a full-service move will take since so many processes are included.

An additional note for your budget: Consumer Affairs says that tipping movers is customary, so maybe plan to tack on an additional $20 to $40 per day, per mover. So if you’ve got three movers helping you across two days, gratuity could range from $120 to $240.

Moving Out of State

The American Moving and Storage Association (AMSA) found that about 650,000 Americans use professional movers for an interstate move—that means they leave one state for another.

Some of those folks—about 39% of them, actually—don’t pay for their own moves, thanks to corporate sponsorship, which sometimes foots the bill if you’re moving for a job. About 44% of interstate moves are paid for by individuals. Military and other government-sponsored moves make up the rest.

If you’re an individual moving to a new state, know that your moving costs will likely depend on three primary factors, similar to a local move: the weight of your shipment, the mileage your belongings will be transported, and labor costs outlined by the moving company you’ve chosen.

Free cost calculator City to City can help you estimate your move. Users enter their Point A and Point B, and can also select premium services to see how that impacts price.

For example, using that calculator, a move from Los Angeles to Denver—about 830 miles—with about 3,500 pounds of belongings and including packing services might cost around $2,500.

A move from Los Angeles to Chicago—about 1,750 miles—with the same specs might cost around $3,300 miles.
Keep in mind that the weight of your belongings may need to be altered. Some say to estimate that each furnished room in your house contains weighs about 1,500 pounds.

Financing a Move

If you already have a clear picture of your personal budget, it may be simple to tell whether you need to do more of a do-it-yourself move or if you can spring for a full-service move through a professional moving company.

Some people might opt to use a credit card to pay for moving fees. If you go this route, consider keeping your card interest rate in mind. If you can’t pay off your incurred moving costs fairly quickly, remember that interest will rack up, potentially making your move more expensive in the long run.

Another way to pay for a move is with an unsecured personal loan, which may come with a lower interest rate than your credit cards. You can check your interest rate for a personal relocation loan through SoFi online and within minutes.

If you qualify, this loan gives you access to cash (usually in less than a week), which may come in handy if your mover offers a discount for an up-front cash payment. You can also use a personal loan to help pay for other moving-related costs that can come up, such as first and last month’s rent for a rental unit.

Ultimately, a move can be a fresh start and offer a new perspective on life. Paying for that fresh start in a way that best suits your budget can help make this life transition go smoothly.

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.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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You’ve graduated from college, degree in hand, and are headed into the workforce. After countless applications, phone screens, and in-person job interviews, you’ve done it—you’ve secured your first, full-time job as an adult.

As you experience the thrill of getting your first paycheck, it can be tempting to splurge on a celebratory dinner or a new outfit for work. But before you spend your paycheck on something indulgent, it could be worth thinking about how to spend it more wisely. Here are our best tips for spending your first paycheck as you start your new job.

Set Up Your 401(k)

You’ll learn pretty quickly that you’ll end up losing a decent chunk of change to taxes. One way to offset that is to invest money in tax-advantaged accounts, including a 401(k). As a part of your offer package, you will likely receive information on the company’s benefits—including any healthcare and 401(k) options. It can seem easy to brush this information off as you get started in your career, but reviewing it closely is an important part of deciding whether to accept a job in the first place.

A 401(k) is an employer-sponsored retirement plan that allows both you and, depending on your plan, your employer to contribute to the account. Employers may offer a contribution match of a certain percentage or specific amount. Each employer offers contribution matches at their discretion, so if you’re not sure what your company offers, check with HR or consult company policy.

It’s never too early to start saving for retirement. The earlier you begin making contributions, the more time you give yourself to take advantage of compounding. Basically, the interest you earn can then be reinvested, allowing your money to grow over time.

Consider investing at least enough to take advantage of your employer match. If your employer matches 6%, contribute 6%. That way you’re not leaving any money on the table. (Once you set it up, the money you contribute will probably be taken directly out of your paycheck.)

Set Up a Checking and Savings Account

Before you get your first paycheck, set up a checking and savings account. If you already have these types of accounts, now is a good time to assess whether they are still a good fit for your current financial needs. Take the time to review interest rates at various banks and online financial companies.

For example, SoFi Checking and Savings is a checking and savings account that earns you more and costs you nothing. You can easily access your money online or withdraw cash fee-free from 55,000+ ATMs worldwide.

Once you’ve set up your checking and savings accounts, consider setting up direct deposit. That way you don’t have to worry about depositing a check every time you get paid and you can start earning interest on that money as soon as it is payday.

You can also consider keeping your spending money in a checking account and setting up automatic transfers to your savings account. It’s an easy way to force yourself to save some cash at the beginning of your career.
An interest-bearing savings account is a great place to store your emergency fund. Conventional wisdom suggests saving anywhere from three to six months of living expenses to cover emergency expenses, such as unexpected medical bills or car repairs.

We know you just got started at your new job and may not be ready to think about these scenarios, but, in the event that you get laid off or the company goes out of business, having an emergency fund will allow you to stay afloat until you find your next gig. Even contributing $50 per paycheck to your emergency fund can help set you up with a little safety net should something unexpected happen.

Make Payments for Student Loans

Another important expense you should factor into your first paycheck is student loan payments. Even if you start your new job during your student loan grace period, you should probably consider your monthly payments and start setting the money aside. If you have unsubsidized loans, use the money to make interest-only payments on your loans.

If you have subsidized loans, it’s possible to save some, then use the money you have saved to make a lump-sum payment on the loans when your grace period ends. Both of these options can help set you off on the right foot when it comes to student loan repayment. By factoring your student loan payments into your budget upfront, you get used to not using that money for casual spending on things like dinner out or drinks with friends.

It’s also a good time to review your repayment plan on your student loans. If you have federal student loans there are a variety of repayment plans to choose from, including the standard 10-year repayment plan and four income-driven plans. If you have a combination of private student loans and federal student loans, you could consider refinancing them with a private lender, like SoFi, in the hopes of securing a lower interest rate.

With a lower interest rate you could potentially reduce the money you spend on interest over the life of the loan. This could be a great option if you are on a standard repayment plan and are interested in securing a lower interest rate.

If you’re taking advantage of federal programs like deferment, forbearance, income-driven repayment, or Public Service Loan Forgiveness, refinancing your student loans may not be for you, as you will no longer qualify for those programs.

To see how much refinancing could impact your loan, take a look at SoFi’s student loan refinance calculator. When you refinance with SoFi there are no prepayment penalties or origination fees.

Start an IRA

Even if you’re already contributing to a 401(k), setting up an IRA could be beneficial. There are two kinds of IRAs, traditional and Roth. When you contribute to a traditional IRA, the contributions are deducted from your taxes, meaning you’ll pay taxes on distributions when you retire.

When you contribute to a Roth IRA, your contributions are taxed upfront but can be withdrawn in retirement tax-free—and that includes any capital gains you’ve earned.

You can contribute up to $6,000 to either type of IRA annually. If you are over the age of 50, you can contribute an additional $1,000 as catch-up contributions.

An added benefit to opening a Roth IRA: You could use it to fund part of a down payment on the future purchase of a home. As long as the Roth IRA has been open for five years, you’re allowed to withdraw $10,000 from your Roth IRA to buy your first home without any taxes or penalties. This could be a good start for saving for retirement or for your first house.

Still Have Money Left? Treat Yourself

If after paying your monthly expenses and contributing to your various savings goals you still have money leftover, you can use it to splurge on something you’ll really enjoy like trying out a new restaurant, buying tickets to a concert or a sports game, or having a night out on the town.

Or, you could use the additional money to save up toward another short-term goal—maybe an international adventure, a TV, or a new bed frame. Or if you’re feeling frugal, use the extra money to make an additional payment on your student loans.

Paying more than the monthly minimum is one of the fastest ways to accelerate your student loan repayment. At the end of the day, you’re working to earn money to live your best life, so make sure you are enjoying it and saving for your long-term financial goals at the same time.

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.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
SoFi Checking and Savings®
SoFi Checking and Savings is offered through SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates are a bank.

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