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The average cost of an oil change varies depending on where you live. The type of oil used is another factor, with varieties including conventional, synthetic, and semi-synthetic. For basic service with conventional oil and no extra quarts, you can count on paying between $35 and $75, according to Kelley Blue Book.

We’ll discuss the ins and outs of oil changes, including how often you should get it done, the benefits to your vehicle and the environment, and how to save money on your next oil change.

How Much Does an Oil Change Cost on Average?

The cost of an oil change depends on several things:

•   Vehicle’s year, make, and model

•   DIY vs. service station

•   Geographic location

•   Service provider

•   Type of oil: conventional, synthetic, or synthetic blend

•   Add-on services like filter changes and tire rotation

You’ll pay about $35 for basic service with no extra quarts. Top service with extra quarts will run about $75. This is likely to be with conventional oil.

With semi-synthetic oil, the average cost will be higher: $40-$100. And with fully synthetic oil, the price inches up to $65-$125. Some luxury vehicles require special filters, which can cost $260 or more.

The average cost of an oil change at a dealership is generally around $100; this typically includes a filter change. Another popular add-on is tire rotation, which can tack on $20-$50. It’s possible that a dealership or auto repair shop will offer a small discount for more than one service.

In case you were wondering, oil changes are not covered by car insurance because they’re considered a regular part of car maintenance. Learn more in our Insurance Tips for First-time Drivers.


💡 Quick Tip: Saving money on your fixed costs isn’t always easy. One exception is auto insurance. Shopping around for a better deal really can pay off.

Average Cost of Oil Change by Provider

The table below lists the price of the cheapest oil change option at a number of national service providers. Differences in price are often due to the quality of oil used, and the speed and scope of the service.

Service Provider	Lowest-Price Oil Change Service
Firestone	$24.99
Goodyear	$18.95
Jiffy Lube	$29.99
Midas	$33.99
NTB	$24.99
Pennzoil	$25.98
Pep Boys	$24.99
Sears	$19.99
Valvoline	$39.99
Walmart	$19.88
Data courtesy of CarServiceCosts.com

Recommended: How to Lower Your Car Insurance

The Difference Between Synthetic and Conventional Oil

Conventional oil is crude oil that’s been refined, while synthetic is made from chemical compounds. Synthetic oil has fewer impurities and is designed to protect car engines.

Conventional oil needs changing more often and can have problems flowing in extreme temperatures. Synthetic oil can be used for longer periods and flows in a wider range of temperatures. Although there are clear advantages to synthetic oil, there’s one disadvantage: It costs more.

Check your owner’s manual to see what type and grade are recommended for your vehicle’s engine. How much your car is worth may factor into your choice of which oil to use.

How Often Should You Get an Oil Change?

Your owner’s manual should also list how often to change the oil in your specific vehicle. In general, conventional motor oil needs to be changed after about 5,000 miles of driving. Synthetic oil can go as long as 10,000 miles. If you use semi-synthetic motor oil (a blend of the two), you may get 8,000 miles of usage before it needs to be changed.

Did you know you should also be evaluating your insurance on a regular basis? Annual personal insurance planning sessions can help your coverage keep up with important life changes.

Benefits of Getting Your Oil Changed

The benefits of regular oil changes are significant. They include:

•   Cleaner engine. When you change the oil, you’re also getting rid of the dirt, debris, and contaminants in the old oil.

•   More efficient engine. When the engine is clean and the oil is new, the engine has better lubrication and works more efficiently. This helps boost performance and maximizes the life of the engine.

•   Better gas mileage. A more efficient engine will help your car get better gas mileage and save you money on fuel.

•   Environmental benefits. When oil stays in your vehicle for too long, it starts to degrade. At this point, it releases potentially toxic hydrocarbons.

•   Prevents overheating. Engine components generate heat, especially when you’re driving at faster speeds. When the engine is freshly and appropriately lubricated with motor oil, this lowers friction and reduces the risk of overheating.

How to Lower the Cost of Oil Changes

As noted above, timely oil changes can reduce fuel costs. To save money on oil changes, you can shop around for the best prices in auto shops or do it yourself.
Before your first DIY oil change, you may need to invest in a few supplies. These include a wrench to remove the drain plug (your owner’s manual should list what size and type), an oil filter wrench, an oil pan, latex gloves, and perhaps a jack.

You can save $25 to $75 per oil change on average, depending on the oil and filter you use. So, once you’ve saved enough to “pay back” what you invested in the right tools, you can enjoy savings each time you change your own oil. Check out more tips for saving on car maintenance costs.


💡 Quick Tip: If your car is paid off and worth only a few thousand dollars, consider updating your car insurance: You might choose to opt out of collision coverage and double down on liability.

The Takeaway

The average cost of a basic oil change with conventional oil is $35, but you can find low-cost oil changes for as little as $19. Higher prices may indicate a better quality of oil, add-ons like filter replacement, or faster service. Your vehicle’s owner manual will recommend a type and grade of oil. Conventional oil is typically cheapest, followed by semi-synthetic, and then fully synthetic. Synthetic oils allow you to go longer between oil changes — 10,000 miles compared to 5,000 with conventional. To save the most money on your oil change, don’t be afraid to DIY.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

Is $100 a lot for an oil change?

It depends on where you live, the type of oil used, your vehicle, and add-ons such as filter changes and tire rotation. The average cost of a basic oil change is $35, with prices as low as $19. Ask your service provider for a breakdown of what goes into that $100 oil change.

Should I get my tires rotated when I get an oil change?

Consumer Reports recommends rotating your tires every 5,000-8,000 miles. Tires protect you on the road, so this maintenance task shouldn’t be overlooked. Depending on the kind of oil you use and your owner manual’s recommendation, you may want to have your oil changed every 5,000-10,000 miles. If you can combine your oil change schedule with your tire rotation schedule, you might save a bit of money.

How much do oil changes cost in 2024?

The overall average with conventional oil and no other services provided is somewhere about $35. No-frills service with conventional oil starts at $19. You’ll pay for more synthetic oil and add-ons like filter replacement.

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Photo credit: iStock/Phynart Studio

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Experian is a registered service mark of Experian Personal Insurance Agency, Inc.
Social Finance, Inc. ("SoFi") is compensated by Experian for each customer who purchases a policy through Experian from the site.

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.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Borrowing money from family members — or lending it to them — can be a risky business. And although all debt is risky, family loans carry different kinds of dangers.

Although family lenders don’t have to worry about pulling (or affecting) anyone’s credit score, private loans may put a strain on otherwise strong relationships. Depending on the size of the loan, there may also be tax implications to consider.

That said, there are ways to thoughtfully issue and receive family loans. Here are our best tips for stacking the odds in your favor.

What Are Family Loans?

Family loans are those that are given and received within a family group, instead of a typical lending situation like a bank or credit union, or even a payday lender.

Someone who may not be able to qualify for a traditional loan might be inclined to ask a family member for a loan.
Sometimes a family loan might work in the interest of both parties. For instance, the borrower might receive a more favorable interest rate than they might have from a bank, and the lender might receive a higher interest rate than they would find in a savings account.

Reasons someone might ask a family member for a loan are similar to reasons they might consider a personal loan: They might need cash for emergency medical expenses, unexpected home repairs, or expenses for adoption or fertility treatments.


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

How Do Family Loans Work?

At their most basic, family loans work similarly to traditional loans: One person asks for a loan, and another person approves the request. While that is an oversimplification, the concept is the same. There is generally less paperwork involved in a family loan, with no application or credit check necessary, although a formal contract detailing each party’s rights and responsibilities is recommended.

Terms for the Lender to Include in a Family Loan

•   Amount loaned

•   Interest rate, if interest is charged

•   Payment amount (often, monthly)

•   Penalties for non-payment

Terms for the Borrower to Include in a Family Loan

•   Amortization schedule, with principal and interest amounts clearly stated

•   Ability to pay the loan off early without penalty

•   Periods of payment suspension in cases of hardship

Risks and Benefits of Family Loans

No matter which end of the dynamic you might find yourself on, there are both risks and benefits to family loans. But while both the borrower and lender risk putting a strain on the family relationship involved, the lender is likely to carry the greater financial risk — after all, it can be pretty hard to recoup your losses when you have no official financial authority.

Risks of Family Loans

One of the biggest risks of loans between family members is the potential for conflict within the relationship. People tend to have strong emotions tied to money. Some risks lie with the borrower or lender alone, though.

Risks for the Borrower:

•   There is risk to the relationship if the loan repayment plan falls through.

•   Although avoiding a credit check — and possible negative credit consequences — is a plus, family loans also fail to help borrowers build their credit history since they’re not reported to credit bureaus.

Risks for the Lender:

•   There is risk to the relationship if the loan repayment plan falls through — which puts the lender into a particularly tricky situation if they really need the cash back for their own financial situation.

•   It’s easy for family lenders to lose their money outright if the borrower constantly defers to an IOU.

•   Since family lenders don’t have any financial authority or backing, it can be difficult to recoup losses or enforce any substantial consequences for borrowers who go into default.

•   If the loan is interest-free and for an amount in excess of the IRS gift tax exclusion , it may trigger the need to file a gift tax return (and potentially pay taxes on the gift).

Benefits of Family Loans

Despite their risks, family loans do have some attractive qualities.

Benefits for the Borrower:

•   Family loans present a potentially low-cost alternative to traditional credit options. Family lenders usually don’t assess fees and may not charge interest.

•   Family loans can carry much easier approval standards than their official counterparts. At a financial institution, borrowers are subject to a credit check, employment history, income verification, and more. A family member is not likely to run those checks.

•   Family loans often carry more flexible repayment standards than traditional loans do, and family lenders may be more lenient if the borrower faces extenuating circumstances that make it difficult to make payments.

•   Failure to pay private family loans in a timely manner — or at all — won’t impact the borrower’s credit score the way such behavior would with a traditional loan.

Benefits for the Lender:

•   It can feel rewarding to help out a family member in need, particularly if they’re putting the money toward a major life goal like homeownership.

•   If the lender chooses to charge interest on the loan, they can earn interest as the loan is repaid.

Tax Implications of Family Loans

It can be surprising to learn that loaning money to a family member could be a big enough deal to land on the IRS’s radar.

Fortunately, most family loans fall outside of the purview of the IRS. It’s only when they’re above IRS-defined amounts and interest-free that lenders have to report them on their tax return.

If a family lender offers an interest-free loan to a family borrower, the IRS still sees the transaction as a loan — and assumes that the interest that should have been charged counts as a gift to the recipient. (The government publishes minimum interest rates on a monthly basis.)

That’s no big deal if the loan is for, say, $300. But if the unpaid interest — or unpaid loan balance — tops the annual gift-giving exclusion, which is $17,000 ($34,000 for married couples) for 2023 and $18,000 ($36,000 for married couples) for 2024, the lender might be responsible for filing a gift tax return and potentially paying taxes on the gift.

The IRS might also count the should-be interest toward the lender’s gross income, even if no interest is charged or received. Again, this isn’t a big deal on loans of just a few hundred dollars, but with a large enough loan, it could impact the lender’s finances.

Making a Family Loan Legitimate for Tax Purposes

The main thing that makes a family loan legitimate to the IRS is a family loan agreement that specifies repayment terms. If an agreement is not in place, the agency may consider it a gift instead of a loan.

The federal government sets minimum interest rates (as noted above) that lenders can charge on a private loan, which a family loan is. If less than the minimum interest rate is charged, the IRS may assess taxes on any unpaid interest that is deemed payable.

Keeping records of payments made will also show the IRS that the lender was keeping track of the debt and that there is an expectation of repayment.

Recommended: How to Gift a Stock

Tips to Successfully Borrow From or Lend Money to Family

If you’re considering lending money to, or borrowing money from, a family member, adding some structure to your loan can help minimize the risks while still allowing everyone involved to reap the benefits.

Planning Your Family Loan Out

All too often, a family loan takes place in a single, impromptu transaction: The borrower asks for some money, and the lender gives it.

A better bet is to make a concrete plan together that specifies all the loan’s terms, such as repayment installments and timing. Lenders might want to consider charging interest, especially on large loans, due to the tax implications outlined above. Even a low family loan interest rate can motivate a borrower to get serious about repayment.

Recommended: What Happens If You Default on a Personal Loan?

Making a Family Loan Official

Clear communication and boundary-setting skills make pulling off a family loan a positive experience for all involved — and oftentimes, the best way to achieve those goals is to write things down.

Plus, drafting a formal money-lending contract makes your loan official in the eyes of the IRS, which can help keep loans from being classified as gifts for tax purposes.

Terms to include in your family loan agreement include:

•   The amount loaned.

•   The loan’s repayment terms, such as frequency and amount, as well as a due date for when the loan must be repaid in full.

•   The loan’s interest rate and fees, if any (for instance, the lender may decide to charge late fees if the loan repayment terms are not honored).

•   Clauses concerning what happens if the loan is repaid early (is there a prepayment penalty?) and what happens if the borrower goes into default for any reason.

Family Loans vs Gifts

If a family lender has the financial ability and willingness to make a monetary gift instead of a loan, they can do so without tax implications for amounts up to $17,000 for 2023 and $18,000 for 2024.

There are various reasons why someone might choose to give a gift instead of making a loan, or vice versa.

Family Loan	Gift
Interest rates can be advantageous to both parties.	There is no expectation of repayment for a gift.
Written agreement legitimizes the loan for tax purposes.	No paperwork necessary.
Family loans have potential to cause conflict.	Giving a gift is generally construed as a positive thing.
The IRS determines minimum acceptable interest rates and loan amounts subject to those rates.	Gifts under a certain value are excluded from the IRS gift tax in most cases.

Alternatives to Family Loans

If all of these caveats and warnings are making family loans sound like a less-than prudent idea, there are alternatives to consider before asking family members for a loan. (And yes, if a family member asks you to borrow money, you’re allowed to say no and steer them in a different direction.)

Obviously, the most ideal financial strategy for making a big purchase is to save your money so you don’t have to go into debt at all. Although this isn’t always possible or realistic, it might be worth taking a second look at your budget, working on a promotion, or starting up a side hustle to generate cash.

Unsecured personal loans are available from certain banks and financial institutions and make it possible to fund a wide variety of expenses upfront. Of course, these may come with higher interest rates and more stringent qualification requirements than family loans do.

You might also consider asking a family member to cosign on a loan with you instead of loaning you the money. They would be responsible for making the loan payments if you, the primary borrower, don’t, but they wouldn’t be immediately taking money out of their own bank account to help you.

If you need to borrow money for business purposes, a small business loan may be an option to think about. The Small Business Administration is an excellent resource for business loans. The agency works with lenders to help small business owners find funding for a wide range of amounts and terms, with competitive interest rates.


💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

The Takeaway

While borrowing money from, or lending money to, a family member can be tempting, it can have long-lasting impacts on interpersonal relationships as well as the lender’s finances. Drafting a structured family loan agreement can help, but you may also want to explore a traditional personal loan from a bank, credit union, or online lender.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What is a loan from a family member called?

A loan from a family member is often referred to as a family loan, an intra-family loan, or a friends and family loan.

Can family loans help your credit?

Since a family member is not likely to formally check your credit report or provide payment information to the credit bureaus, a family loan probably won’t help (or hurt) your credit.

Are family loans considered debt?

Yes, a loan from a family member is considered debt, but will likely not be reflected on your credit report. For tax purposes, a family loan is considered debt if it meets certain guidelines.

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Photo credit: iStock/Ridofranz

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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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.

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Finding out you need dental work can be scary — and scary expensive. Still, the pain and the price could get even worse if you put off getting care. And sometimes delaying just isn’t an option.

If you don’t have enough money stashed away in your emergency fund, and your insurance won’t cover all your costs, you may want to chew on the pros and cons of taking out a dental loan.

What Are Dental Loans?

Medical financing loans are personal loans that are used to pay for a variety of medical expenses, including dental work and related expenses.

Whether you’re feeling overwhelmed by the upfront cost of a root canal or crown, or you expect to pay a substantial amount over time for braces, aligners, or implants, a dental loan can be a quick and convenient way to get the financing you need.

With a dental loan, you can borrow money to pay for your care, then make monthly payments until the loan balance is paid off.

How Do Dental Loans Work?

Dental loans are usually unsecured personal loans, which means you don’t have to put up collateral to secure the loan. Approval for a loan for dental work will be based on your creditworthiness.

If you qualify, you’ll receive a lump sum of money that’s to be repaid in monthly installments consisting of principal and interest. Since dental loans typically have fixed interest rates, your payments should be the same amount each month throughout the repayment period.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

What Can Dental Loans Be Used For?

You typically can use a personal loan to pay for just about anything as long as it’s legal and within the terms of your loan agreement.

Costs related to your dental care are included in common uses for personal loans. These might include treatment — even for expensive elective or cosmetic procedures that may not be covered completely or at all by dental insurance — as well as over-the-counter or prescription medications you might require and transportation. You can even use the funds for the milkshake and soup you might need after your procedure.

Here are approximate costs for some common procedures that could be paid for with a dental loan:

Porcelain Crown

The cost of a crown can vary based on the materials used to make it, as well as the size, shape, and location of the tooth that’s being replaced. Costs for an all-porcelain crown can range from $800 to $2,000. Dental insurance may cover some of that expense, unless the crown is strictly for cosmetic purposes.

Whitening

A basic teeth cleaning may be covered by dental insurance as part of your annual exam. But an in-office teeth bleaching (which can cost around $300) or a laser whitening (which averages $1,000), likely won’t be covered by insurance.

Root Canal

The cost of a root canal could range from about $500 to $1,500 depending on how severe the infection is and which tooth is affected. Molars can run anywhere from $800–$1,500, while incisors can cost $500–$1,000.

Aligners

Clear teeth aligners can be pretty pricey. For example, the cost for Invisalign can range from $1,800 to $9,500 per treatment course, depending on how complex the orthodontic problem is. The average cost for Invisalign for a teenager is $3,000. Your insurance provider may pay for some of those costs, but you should check your coverage before ordering.

Veneers

Veneers can range from $800 to $2,000 per tooth, depending on the type and how much prep work is involved. Because the purpose of veneers is cosmetic, the cost generally is not covered by dental insurance.

Typical Dental Loan Application Process

Your dentist may offer an in-house financing plan to help with costs — especially if they specialize in cosmetic procedures. Or, the practice may partner with a lender who provides these types of loans. You aren’t obligated to use your dentist’s financing plan, but you may want to check out what the practice is offering. You also can go online to compare dental loan offers from traditional and online lenders.

Compare Offers: Choosing the Right Loan

When you start shopping for loans for dental work, you can go to individual lenders’ websites to see what they have to offer or use a comparison site to conveniently check out multiple lenders.

Getting prequalified with a few different lenders can help you get the clearest idea of what’s available and what’s best for your needs. Lenders typically use a soft credit pull during the prequalification process, so it won’t affect your credit score.

Here are a few things to watch for as you shop for financing:

Annual Percentage Rate

A loan’s annual percentage rate (APR) tells you the amount you can expect to pay on top of the principal amount over the course of one year, including interest and any fees or charges you might incur. Because it gives you a complete picture of the cost of the loan (as opposed to just looking at the interest rate), the APR can be a useful tool for comparing various loan offers.

Recommended: APR vs. Interest Rate

Fees

Fees can add up quickly, and they can add to the cost of your loan. Some common fees to look out for could include an application fee, origination fee, late payment fee, returned payment fee, and a prepayment penalty. Low-fee or fee-free loans may save you money over the life of the loan.

Loan Amounts

Some lenders may have loan minimums that require you to borrow more than you need. Before you go loan shopping, you may want to get dental procedure cost estimates to get an idea of how much you’ll have to borrow. Then you can look for lenders who are willing to lend that amount.


💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

Loan Terms

Another important factor to consider is the loan term, or how long you’ll be given to repay the money you’ve borrowed. Of course, you’ll want to find a loan term that feels comfortable (a longer-term can equal lower payments). But a longer-term also could increase the amount you pay in interest over the life of the loan. You may want to think about how the loan length could affect your future financial goals.

Eligibility Requirements

Before you settle on a particular personal loan for dental work, you may want to check out the lender’s eligibility requirements. In the process of checking your personal loan rate, most sites will review your credit scores, credit history, income, and other personal financial information to determine whether you qualify for a particular interest rate or other loan terms.

Many lenders will accept a fair credit score (a FICO® Score of 580 to 669 is considered fair), but a good FICO Score (670 to 739) could qualify you for a more favorable interest rate and other terms. If you have a poor score (lower than 580), lenders may consider you to be a high lending risk, which could affect your eligibility. You may be able to find a loan, but the interest rate will likely be more expensive.

Approval and Funding Timeline

If you can’t get your treatment until you can pay for it — and you need it soon — a quick approval time and rapid funding also could be an important consideration. One of the major pluses of using an online lender can be the convenience and fast application time. If you have all your information ready, it can be easy to apply using an online form. And if you qualify, the money generally can be available within a few days.

Customer Service

Does the lender have a reputation for good customer service? You may want to check into how various lenders deal with consumer questions and problems. At the same time, you can see if there are any perks to building a relationship with a lender that might benefit you in the future.

Applying for a Dental Loan

If you find a lender and loan terms you like, and you’re ready to apply, your next step will be to complete a formal application. You can expect to be asked to verify your identity, income, and current address, and it can make things easier if you gather up the necessary documents ahead of time. You’ll probably need your driver’s license, Social Security number, recent pay stubs and/or bank statements, and a utility bill or some other proof of address.

Once you apply, most lenders will do a hard credit check, which may cause your credit score to drop by a few points temporarily. The lender will evaluate your ability to repay the loan and, if you qualify, your loan will be funded.

Pros and Cons of Dental Loans

Whether you need money for a one-time emergency procedure or for a series of treatments that could add up to a big expense, a dental loan may be an option worth considering. Here are some pros and cons that could help you decide if a personal loan makes sense for your situation:

Pros

Convenient Online Comparison

Applying for a personal loan online can be convenient and quick. Many online lenders offer personal loans that can be used for dental treatment, so you can shop for the loan amount and terms that best suit your needs.You may be able to get your approval within a few hours (maybe even a few minutes) and you could receive your money within a few days.

Competitive Terms

If you have a solid credit history, a stable income, and fair or better credit scores, you may qualify for a competitive interest rate and a repayment period you feel comfortable with. (The interest rate on a dental loan is typically lower than the interest rate on a credit card.)

Fixed Payments

With a dental loan, borrowers typically receive a lump sum of money that is repaid in fixed monthly payments. This can make it easier to budget and manage your payments.

Cons

Fees and Penalties

Some dental treatment loans come with fees and penalties that can drive up the overall cost of borrowing. You may be able to keep your costs down, though, by finding a low- or no-fee loan.

Alternatives May Cost Less

If you can qualify for a credit card with a low or 0% promotional rate for purchases, it may be a less expensive way to borrow money — at least for a while. Zero-interest credit cards charge no interest during an introductory period, which typically lasts from six to 18 months. Paying the balance in full within the promotional period is essential to making the most of an offer like this.

Fixed Payments

Having a fixed monthly payment can make budgeting easier, but it doesn’t provide flexibility if you can’t make that payment for some reason. A different financing option, such as a credit card, might offer more adaptable minimum monthly payments.

Pros and Cons of Dental Loans

Pros	Cons
Easy to compare lenders online	May come with fees and penalties that can increase the overall cost
Terms are competitive and interest rates are generally lower than on credit cards	Alternatives like credit cards with a 0% interest introductory rate may be less expensive
Fixed monthly payments can make it easy to budget for the expense	Fixed payments don’t allow for budget shortfalls

Alternatives to Personal Loans

If you can’t afford the dental work you need, there are options besides dental loans that you might want to check out. A few to consider include:

Credit Cards

If you already have a low-interest credit card, you may want to compare the interest you’d pay if you used that card vs. the cost of a dental loan. Or you might want to consider the pros and cons of applying for a low or 0% introductory-rate credit card — if you think you can pay off the balance during the designated promotional period. If you end up using a high percentage of your available credit, however, your credit score could be negatively affected.

Dental Office Financing

Your dentist may offer some type of in-house financing to patients who can’t afford to pay upfront for the treatments they want or need. The practice might partner with a lender that offers loans for dental procedures, for example, or the dental office might suggest a medical credit card with a low or 0% introductory rate. These offers may be worth reviewing and comparing to similar options, as long as you’re clear on all the repayment terms.

Grants

There are grant programs aimed at helping seniors, adults and children living in low-income households, and those who have special needs. The Dental Lifeline Network is a nonprofit organization that provides access to dental care for people who can’t afford it. Some dentists also may offer partial grants to attract new patients who need extensive and expensive treatment.

Explore Personal and Dental Loans with SoFi

A dental loan can be a quick and convenient solution if you need cash to pay for an unexpected dental procedure or an elective treatment you’ve been thinking about for a while (like braces, aligners, or implants). Whether you’re considering an expensive cosmetic procedure or you need a crown or root canal ASAP, SoFi may offer a personal loan that works for your unique financial situation.

SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What credit score do you need for dental implant loans?

Many lenders will offer a dental loan to a borrower with a fair credit score. (A FICO Score of 580 to 669 is considered fair). But a good or better score could improve your interest rate and other terms. If you have a poor score (lower than 580), lenders may consider you to be a higher risk, which could affect your eligibility.

Can you get your teeth fixed with no money?

You may be able to find a research clinic or university dental program that provides free services to volunteer patients who need care. And some dental practices may occasionally offer free care to low-income patients. There are also grants that could help cover costs.

Can you put dental work on a credit card?

Yes, you can use a regular credit card or a medical credit card to pay for dental work. But if you come close to using up all the available credit on your card, it could affect your credit utilization ratio, which can have a negative impact on your credit scores. Putting dental work on a credit card can also considerably add to the cost of your treatment if you are not able to pay it off quickly.

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Photo credit: iStock/Sanga Park

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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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What a person does with their money is their business, right? Not always. Lenders are indeed interested in how borrowers plan to use the funds they’re loaned — in fact, the reason for a loan is one of the application questions.

But does loan purpose really matter? Yes. In some cases, your loan purpose can impact whether or not you receive the loan, as well as your loan terms.

Here’s what you need to know when it comes to different uses and types of personal loans, and the best reasons to give for the purpose of your loan.

What Is the Purpose of a Loan?

At its most basic, the purpose of a loan is the reason the applicant wants to borrow money. Even though there are many acceptable uses of personal loan funds, including consolidating debt, paying for a large purchase, or covering the cost of a home renovation, the loan application will likely include a section asking why the applicant is requesting the loan.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

Why Does the Purpose of a Loan Matter?

Banks consider a number of factors when evaluating an applicant for a loan, such as the amount asked for and the applicant’s credit and employment history, to assess the potential risk of lending money to an individual.

But the borrower’s reason for needing a loan can be a significant factor, too. One reason why is that many financial institutions have certain limitations on how the money they lend can be used. For example, a lender may not allow the proceeds of a personal loan to be used to pay for college tuition, repay another student loan, purchase a home, or start a business. As a result, the best reason to give when applying for a personal loan is one that the lender allows.

The purpose of the loan you’re seeking can also impact the size of the loan the lender will grant, as well the interest rate and term of the loan.

Recommended: What Are the Common Uses for Personal Loans?

How Does Loan Purpose Affect Your Loan?

Your reason for getting a personal loan not only helps determine whether or not you’ll be approved, but can have an influence on the type of loan you can get, as well as the loan amount, and even the interest rate.

Some lenders focus on loans for certain purposes, such as credit card consolidation, while others offer an array of personal loan products that are each tailored to specific use, such as home improvement loans, medical and dental loans, wedding loans, or IVF loans. Each loan type will have loan amounts and terms designed to fit that particular need.

Does the Purpose of a Loan Influence Interest Rates?

It can. Some lenders may set interest rates based solely on the loan amount, the loan term, and the creditworthiness of the applicant. Other lenders might use those factors, plus have interest rate ranges for different loan purposes. For example, a lender might offer better rates (and longer terms) for home improvement loans than they do for debt consolidation loans.

To make sure you’re getting the best deal, you’ll want to shop around and compare interest rates, terms, and fees from lenders that are offering personal loans that match your needs. It’s also a good idea to review credit requirements, such as your credit score, history and income qualifications to ensure you meet the lender’s minimums.

Recommended: Typical Personal Loan Requirements Needed for Approval

Common Reasons for Getting a Loan

People typically have something particular in mind when they decide to borrow money. And while every person sees themselves and their individual needs as unique, it turns out the reasons for taking out a personal loan tend to fall into some fairly common buckets. Here a closer look at some of the most common reasons for getting a personal loan.

Debt Consolidation

The goal of debt consolidation is to save money on interest payments by consolidating high-interest credit card debt with a personal loan with a lower interest rate. If you have strong credit, you may be able to get a debt consolidation loan for a significantly lower rate than you are paying on your credit card balances.

Medical Bills

While health insurance can help pay for expected and unexpected medical bills, it usually doesn’t cover everything. And even when a medical expense is covered, insurance can still leave you with a significant portion of the bill to pay on your own. If that’s money you don’t have on hand right now, a medical loan can help ease the strain on your personal finances.

If you already have several medical debts, a low-interest personal loan could be a good way to consolidate those payments.

Recommended: How To Pay for Medical Bills You Can’t Afford

Home Improvements

While you might first consider a home equity loan or line of credit to cover a home repair or improvement, in some cases, a personal loan might be a better choice. This might be the case if you only need a smaller amount, or you need cash quickly (say your air conditioning or heating system goes out), since you can often get the funds from a personal loan within a few days.

Home improvement loans are also unsecured, making them less risky than home equity loans or credit lines, which use your home as collateral.


💡 Quick Tip: With home renovations, surprises are inevitable. Not so with SoFi home improvement loans. There are no fees required, and no surprises.

Something Else

There are many other reasons for taking out a personal loan, such as helping a family member, funding a move, or paying for a wedding or funeral.

Planned vs Unexpected Expenses

Some expenses can be expected and planned for accordingly, while others come up out of nowhere and require a sudden influx of cash. Either way, a personal loan can be a convenient way to finance these expenses without disrupting your savings or relying on high-interest credit cards.

What to Consider

Planned expenses, such as home renovations, weddings, or vacations, can benefit from a personal loan’s predictable repayment schedule. You can budget for the monthly payments and avoid dipping into your savings or using high-interest credit cards. However, you’ll want to factor the cost of the loan into the total cost of your purchase or project to see if it makes sense to finance it now or wait until you have enough savings.

Unexpected expenses, on the other hand, by nature arise suddenly and without warning. Medical emergencies, car repairs, or home repairs are examples of unexpected expenses that may require immediate financial assistance. Personal loans can provide a quick source of funds to cover these expenses, but it’s essential to carefully review the terms and conditions of the loan.

Smaller vs Larger Expenses

How much money you can get with a personal loan will depend on the lender, your credit score, income, debt-to-income ratio, and other factors, but the max amount you can typically get ranges from $500 to $100,000. This wide range can make a personal loan a viable source of financing for both small and large expenses.

What to Consider

When using a personal loan for smaller expenses, it’s important to borrow only what you need and can afford to repay. You generally want to avoid taking out any more than needed, as this can lead to unnecessary debt. It’s also a good idea to compare loan offers to find the most competitive interest rates and terms.

For larger expenses, such as home renovations or debt consolidation, personal loans can provide a lump sum of money with a fixed interest rate and repayment term. This can help you budget for the expense and avoid the pitfalls of high-interest credit card debt. But be sure to compare loan offers and choose the one that best suits your needs.

Recommended: 11 Types of Personal Loans & Their Differences

One-time vs Ongoing Expenses

Personal loans can also be used to cover one-time expenses, such as a major purchase. They can also be used to cover ongoing expenses, like a wedding, medical bills, or a home renovation. However, for ongoing expenses, you might want to consider a personal line of credit as opposed to a personal loan.

What to Consider

Funds from a personal loan are disbursed in one lump sum, and interest is paid on that sum according to a fixed repayment schedule.

If the loan purpose is an expense that is ongoing or variable, a personal line of credit might make sense financially, since interest is only charged on the amount drawn at any one time, and money borrowed can be repaid on a more flexible basis. Lines of credit tend to come with variable instead of fixed interest rates, however, so the overall amount due may be hard to predict.

Loans To Pay Off Other Loans

A common use for personal loans is to consolidate high-interest debt. By taking out a personal loan to pay off other loans or credit card debt, you can potentially lower your overall interest rate and simplify your monthly payments.

What to Consider

When using a personal loan to pay off other loans, consider any origination fees or prepayment penalties associated with the new loan. It’s also important to calculate the total cost of the new loan, including interest rates and fees, to ensure that it offers a better financial solution than your existing debt. Additionally, consider your repayment ability to ensure that you can comfortably afford the new loan payments.

Personal Loan Approval

The length of time from application to personal loan approval can vary by lender. On average, approval can take up to three business days for an online lender and up to seven business days for a bank or credit union. Some online lenders, though, offer same-day approval.

Some things that can make this a quicker process are making sure your credit report is free of errors and having required documents ready when the lender requests them. Loan applications that don’t have unusual circumstances, e.g., self-employment income verification or a high debt-to-income ratio, are more likely to be approved faster than those that do.

Once a personal loan application has been approved by the lender, the funds may be made available to the borrower in just a few days or up to a week, depending on the type of lender. Some online lenders may disburse funds the same day as approval.

The Takeaway

There are, indeed, different types of loans for different purposes. Applicants may have their own reasons for wanting a loan, but lenders will want to know what the funds will be used for. There may be certain loans better suited to certain funding needs than others, and a lender will likely want to make sure the loan suits the purpose.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Why is it important to know the purpose of a loan?

Lenders may want to know the purpose of a loan so they can assess the risk of lending. Also, some lenders have limitations on how the money can be used. Borrowers will also want to consider the purpose of a loan to make sure they apply for the right type of loan for their needs.

What are examples of the purpose of a loan?

There are many reasons why people apply for personal loans. These include: debt consolidation, medical and dental expenses, IVF treatment, home repairs/improvements, weddings, large purchases (like appliances or furniture), car repairs, and more.

What happens if I use my loan for a different purpose?

Some loans are meant to be used for a certain purpose, such as auto loans or mortgages. Personal loans, however, can be used for many purposes, and a lender may not check to see if the funds are being used as intended on the loan application. But it’s a good idea to review the loan application to understand any restrictions on the use of the funds.

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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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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How many savings accounts you should have will depend on your savings goals and money management style. You may prefer the simplicity of having just one savings account. Or, you might find it helpful to have different savings accounts for different savings goals, such as an “emergency fund” and a “travel fund.”

There’s no ideal number of savings accounts to have, nor is there a limit to how many savings accounts you can open. So what’s the right number?

Read on to learn why you may want to have more than one savings account, the pros and cons of having multiple savings accounts, types of savings accounts to consider, and how to manage your savings accounts so you reach your financial goals.

How Many Savings Accounts Should You Have?

There is no one-size-fits-all answer to this question. The number of savings accounts you should have depends on your financial goals and personal preferences. Some people find it helpful to have multiple accounts to separate their savings for different purposes, such as an emergency fund, a vacation fund, or a down payment on a house. Others prefer to keep all their savings in a single account for simplicity.

You might aim to have at least two savings accounts, one for your emergency fund (since you don’t want to accidentally deplete that for another purpose) and one for other savings goals. Or, you might want to further subdivide your savings. For example, you might have savings accounts for:

•   A vacation

•   A home improvement project

•   A down payment for a car or home

•   Holiday shopping

•   A wedding or other event

Reasons to Have Multiple Savings Accounts

Here’s a look at some reasons why you may find it helpful to have more than one savings account.

Separating Your Goals

Having multiple accounts allows you to separate your savings for different goals. This can make it easier to track your progress toward each goal and avoid the temptation to dip into funds earmarked for a specific purpose.

Emergency Fund

Many financial experts recommend having enough money set aside in an emergency fund to cover at least three to six month’s worth of living expenses. This helps ensure you can pay for a sudden expense like a car repair or medical bill without having to run up expensive debt. By keeping your emergency fund in a separate account, you’re less likely to touch it until it’s truly needed.

Tracking Your Progress

If all of your savings are lumped into one account, it can be hard to tell how much you have saved up for different goals, and how much farther you have to go. For example, if your goals include building up your emergency fund, saving for a vacation next year, and making a down payment on a home within three years, it can be unclear how much you’ve put away for each purpose. If you have multiple accounts, on the other hand, you’ll have different balances attached to different goals.

Advantages of Having Multiple Savings Accounts

There are both pros and cons to having more than one savings account. Here’s a look at some of the benefits.

•   Organization: Multiple accounts can help you keep your savings organized and easily accessible for different purposes.

•   Goal tracking: Separating your savings into different accounts makes it easier to track your progress toward each goal.

•   Earning more bonuses: If you set up savings accounts at several financial institutions, you might reap an account-opening bonus (which is usually cash) from each bank or credit union.

•   Get a higher interest rate: Opening savings accounts at different banks could help you take advantage of higher interest rates. For example, your brick-and-mortar bank may pay a lower annual percentage yield (APY) for a regular savings account compared to a high-yield savings account at an online bank.

Disadvantages to Having Multiple Savings Accounts

There are also some downsides to having multiple savings accounts. Here are some to consider.

•   It may trigger fees: Some savings accounts may be fee-free, while others might charge fees if your account dips below a certain balance. If you can’t meet the minimum balance required for each account, you could end up racking up fees by having multiple savings accounts.

•   More difficult to keep track of: Managing multiple accounts can be more time-consuming and require more effort than managing a single account. You may find that monitoring multiple accounts is too much of a juggling act.

•   Potential for errors: With multiple accounts, there is a risk of forgetting about or neglecting some accounts, which could lead to missed savings opportunities.

•   You could lose out on higher interest rates: Some banks have a tiered interest rate structure for savings accounts, meaning you only earn the highest rates once your balance reaches a certain amount. If your money is spread out, you may find it hard to reach the threshold for the best rate.

Types of Savings Accounts to Consider

There are different types of savings accounts you can open, and which one is best will depend on your goals and needs. Here’s a brief look at how they compare.

•   Traditional savings accounts: These accounts are offered by brick-and-mortar banks and credit unions and are designed to be a basic savings option. They typically pay a low interest rate, and may come with a monthly or minimum balance fee.

•   High-yield savings accounts: These accounts offer a higher interest rate than the average for savings accounts. You’re more likely to find high-yield savings accounts at online banks, though some traditional banks and credit unions offer them. In addition to providing higher average APYs, online banks usually charge lower (or no) fees due to their reduced overhead costs.

•   Money market accounts: These accounts are a hybrid of a checking account and a savings account. They pay interest on your deposits and also allow you to write checks or make withdrawals and purchases using a debit card. Money market accounts typically offer higher interest rates than basic savings accounts but may have higher minimum balance requirements.

•   Certificate of Deposit (CD): Certificates of deposit, or CDs, usually pay a higher yield than traditional savings accounts because you agree to let the bank keep your money locked up for a specific term that could range from three months to five years or longer. Should you need to withdraw your money before the CD has matured, you’ll incur an early withdrawal penalty.

Tips on Managing Multiple Savings Accounts

While having more than one savings account may sound confusing, it doesn’t have to be. Here are six tips for making the most of multiple savings accounts.

1.   Use account nicknames. If your bank allows it, consider giving each saving account a title, such as “Hawaii Fund” or “New Furniture Fund.” This makes it easy to identify the account and track your progress.

2.   Look for the best rates. If you’re looking to open a new savings account, see what online banks are offering (thanks to lower overhead, online-only banks often offer the most competitive APYs).

3.   Automate your savings. Setting up automatic transfers from your checking account to your savings accounts will ensure that you’re consistently saving toward your goals.

4.   Use technology to track your accounts. Many banks offer online or mobile banking apps that make it easy to track your savings goals and account balances all in one place.

5.   Resist the urge to dip into different accounts for different needs. For example, try not to touch your emergency fund to come up with cash for a home improvement project.

6.   Stay on top of your financial goals. If your goals change, you might want to adjust how much money is going into each account – and how often.

Recommended: How Much Money Should I Save a Month?

The Takeaway

Ultimately, the decision of how many savings accounts to have is an individual one. While having multiple accounts can offer benefits such as goal separation and organization, it’s important to weigh these benefits against the potential drawbacks, such as fees and complexity.

By carefully considering your financial situation and goals, you can make an informed decision about how many savings accounts are right for you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

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

FAQ

Is it a good idea to have multiple savings accounts?

Having multiple savings accounts can be a good idea for several reasons. It can help you organize your finances by separating your savings goals, such as an emergency fund, a vacation fund, or a down payment for a house. Being able to clearly see individual goals and track progress can help you stay committed and motivated to save.

However, having multiple accounts can also mean more fees (if your bank charges them) and more effort to manage them, so it’s important to weigh the pros and cons based on your individual financial situation and goals.

Can you have multiple savings accounts at the same bank?

Yes. Many banks allow customers to open multiple accounts, each with its own account number and possibly different features or benefits. This can be useful for organizing your savings for different purposes or for taking advantage of different interest rates or account types offered by the bank.

What is the cost of having multiple savings accounts?

The cost of having multiple savings accounts can vary depending on the bank and the specific accounts you have. Some banks don’t charge any fees for savings accounts. Others may charge monthly maintenance fees or only charge fees if your account dips below a certain minimum balance. Before you open multiple savings accounts, you’ll want to make sure you understand what fees (if any) may be involved.

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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.

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.

Our account fee policy is subject to change at any time.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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