Feb
12
2024

How Much Does a Nurse Make a Year?

By | Building Your Career, Life & Career, relay | Comments Off on How Much Does a Nurse Make a Year?

Nursing can be a well-paying profession. According to the Bureau of Labor Statistics (BLS), the median salary for a registered nurse (RN) is $81,220 per year or $39.05 per hour.

In fact, nursing can be a rewarding career path in more ways than one. Not only can these healthcare professionals provide for themselves financially, they also care for people during times of need.

To better understand what it’s like working as a nurse and what the earning potential is, keep reading.

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What Are Nurses?

An RN provides patients with care and support, and they offer education on health issues and conditions. Responsibilities can vary by workplace and specialty. For example, a geriatric nurse works with elderly patients and provides a different type of care than an oncology nurse, who supports patients with cancer.

Generally speaking, an RN’s tasks often include the following:

•   Evaluate the condition of patients.

•   Set up care plans for patients.

•   Consult and collaborate with doctors and other healthcare providers.

•   Operate and monitor medical equipment.

•   Document patients’ medical backgrounds and symptoms.

•   Administer medications and treatments.

•   Assist in conducting diagnostic tests and analyzing the results.

•   Educate patients and their families on managing illnesses or injuries.

•   Provide instructions for post-treatment care at home.

Nurses often work on a team made up of other nurses, physicians, and healthcare specialists. Some nurses may even supervise other RNs, nursing assistants, or home health aids. Because of how much collaboration and patient interaction is involved in nursing, this role may not be a great fit for introverts.


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How Much Do Starting Nurses Make?

On average, entry-level nurses earn around $80,321 a year or $39 per hour, according to ZipRecruiter. But keep in mind that amount represents a middle ground; incomes for nurses fresh out of school can run the gamut from $36,000 to $136,000.

Recommended: What Is Competitive Pay?

What Is the Average Salary for a Nurse?

Unlike some other healthcare professionals, nurses may be paid hourly or earn an annual salary. They can also make extra by working overtime, overnight, or on holidays. As mentioned, nurses who are paid by the hour earn a median rate of $39.05 or $81,220 per year.

It’s worth noting that where a nurse chooses to work can significantly affect how much they earn. When it comes to settings that pay the most money, the government comes out on top. Let’s take a look at the median annual wage for nurses across a variety of settings, per the BLS:

•   Government: $92,310

•   Hospitals: $82,250

•   Ambulatory healthcare services: $78,670

•   Nursing and residential care facilities: $75,410

•   Educational services: $65,450

Nurses also have the option to take travel assignments, which can be an attractive option for professionals seeking flexibility, short-term assignments, and competitive pay. Travel nurses can expect to earn anywhere from $81,000 to $128,00 a year.

To help manage that high level of income, consider digital tools like a money tracker app. In addition to being convenient, it can help take the guesswork out of budgeting and setting financial goals.

What Is the Average Salary by State for a Nurse?

The state a nurse chooses to work in can greatly influence how much they earn, as illustrated by the following table:

State

 Average Annual Salary
Alabama $68,782
Alaska $78,193
Arizona $70,717
Arkansas $71,792
California $78,490
Colorado $90,700
Connecticut $69,698
Delaware $84,924
Florida $56,707
Georgia $64,076
Hawaii $75,614
Idaho $75,172
Illinois $84,135
Indiana $72,210
Iowa $69,236
Kansas $65,099
Kentucky $76,147
Louisiana $63,306
Maine $76,539
Maryland $82,211
Massachusetts $78,960
Michigan $75,056
Minnesota $72,508
Mississippi $69,141
Missouri $80,121
Montana $69,652
Nebraska $80,357
Nevada $73,935
New Hampshire $74,558
New Jersey $76,040
New Mexico $72,231
New York $83,627
North Carolina $77,842
North Dakota $77,045
Ohio $70,515
Oklahoma $77,820
Oregon $77,062
Pennsylvania $76,604
Rhode Island $71,379
South Carolina $79,483
South Dakota $72,815
Tennessee $67,322
Texas $74,746
Utah $67,313
Vermont $81,802
Virginia $83,556
Washington $91,445
West Virginia $59,162
Wisconsin $75,198
Wyoming $73,262

Source: ZipRecruiter

Recommended: Is $100,000 a Good Salary?

Nurse Job Considerations for Pay and Benefits

Whether they’re paid by the hour or per year, a nurse can make a good living. And there are ways to supplement that income or create a flexible working schedule that supports a work-life balance. For instance, nurses can choose to work part-time, as many hospitals are short-staffed and need the extra help and expertise. There’s also travel nursing, which allows these healthcare professionals to pick up short-term assignments.

But if a full-time role with benefits is what you’re after, you may have little trouble finding one that fits. The BLS projects that between now and 2032, the number of RN jobs available in the field will grow 6%. And those on-staff positions can come with benefits like health insurance, retirement contribution matches, and tuition reimbursement.

Pros and Cons of Nurse Salary

Like any career path, working as an RN comes with a unique set of pros and cons that are worth keeping top of mind:


Pros Cons

•   High demand for nurses

•   Full-time work and benefits available

•   Flexible schedule may be an option depending on your employer

•   Physically and emotionally demanding job

•   Potential exposure to illnesses

•   May work nights, weekends, or holidays

•   Limited work-from-home options (aside from telehealth roles)



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The Takeaway

While the hours can be long and the work physically demanding, nurses have the potential to earn a lot of money. As they gain years of experience or enter more lucrative industries, these professionals can potentially earn a six-figure salary. Bottom line: If you’re passionate about health care and helping others, you may find that a career in nursing is professionally and financially rewarding.

FAQ

What is the highest-paid RN job?

The type of nursing role an RN takes can affect how much they earn. Those looking to earn high incomes may want to pursue government nursing, which earns a median salary of $92,310. This is much higher than the $81,220 median salary for all RNs.

How much money does a RN make in California?

In the state of California, an RN can expect to earn an average of $78,490 per year, or an hourly rate of $37.74, per ZipRecruiter.

What state pays nurses the lowest?

Of all the 50 states, Florida pays its nurses the least, according to ZipRecruiter. Nurses there earn an average of $56,707 a year, and their average hourly wage is $27.26.

Photo credit: iStock/FG Trade

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Feb
12
2024
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What Is 401(k) Matching and How Does It Work?

By | Growing Wealth, invest, Investing, Life & Career | Comments Off on What Is 401(k) Matching and How Does It Work?

Matching in 401(k) retirement accounts involves an employee making a contribution to the account, and their employer mirroring that contribution — or matching it. A 401(k) is a mechanism for saving retirement funds by making pre-tax contributions through deductions from payroll.

Some plans offer a 401(k) employer match, which can be the equivalent of getting “free money” from an employer. That can help increase an investor’s retirement savings over time.

What Is 401(k) Matching?

Matching a 401(k) contribution means that an employer matches or mirrors an employee’s contribution to their retirement account, typically up to a certain percentage. In effect, if an employee contributes $1 to their 401(k), an employer would also contribute $1, thereby “matching” the contribution. But again, there are limits to how much employers are generally willing to match.

There are certain advantages to 401(k) matching.

For one, investment gains and elective deferrals to 401(k) plans are not subject to federal income tax until they’re distributed, which is typically when:

•   The participant reaches the age of 59 ½

•   The participant becomes disabled, deceased, or otherwise has a severance from employment

•   The plan terminates and no subsequent plan is established by the employer

•   The participant incurs a financial hardship

Second, elective deferrals are 100% vested. The participant owns 100% of the money in their account, and the employer cannot take it back or forfeit it for any reason.

And third, participants choose how to invest their 401(k). The plans are mainly self-directed, meaning participants decide how they’d like to invest the money in their account. This could mean mutual funds or exchange-traded funds (ETFs) which invest in a wide array of sectors and companies, but typically doesn’t include investing in individual companies and stocks.

Investment tactics might vary from person to person, but by understanding their goals, investors can decide whether their portfolio will have time to withstand market ups and downs with some high-risk, high-reward investments, or if they should shift to a more conservative allocation as they come closer to retirement.

💡 Quick Tip: The advantage of opening a Roth IRA and a tax-deferred account like a 401(k) or traditional IRA is that by the time you retire, you’ll have tax-free income from your Roth, and taxable income from the tax-deferred account. This can help with tax planning.

How Does 401(k) Matching Work?

A 401(k) match is an employee benefit that allows an employer to contribute a certain amount to their employee’s 401(k) plan. The match can be based on a percentage of the employee’s contribution, up to a certain portion of their total salary or a set dollar amount, depending on the terms of the plan.

So, some employers might offer a dollar-for-dollar match, while others might offer matching based on a percentage, or a partial-match. Others may not offer any type of match.

That’s important to keep in mind: Not all employers offer this benefit, and some have prerequisites for participating in the match, such as a minimum required contribution or a cap up to a certain amount.

Meeting with an HR representative or a benefits administrator is a one way to get a better idea of what’s possible. Learning the maximum percent of salary the company will contribute is a start, then the employee can set or increase their contribution accordingly to maximize the employer match benefit.

401(k) Matching Example

Many employers use a match formula to determine their 401(k) matches (assuming they offer it at all). Some formulas are more common than others, too, which can help us with an example.

Consider this: Many 401(k) plans use a single-tier match formula, with $0.50 on the dollar on the first 6% of pay being common. But others use multi-tier match formulas, e.g., dollar-on-dollar on the first 3% of pay and $0.50 on the dollar on the next 2% of pay.

For the sake of breaking a few things down, here’s a retirement saving scenario that can illuminate how 401(k) matching works in real life:

Let’s say a person is 30 years old, with a salary of $50,000, contributing 3% of their salary (or $1,500) to a 401(k). Let’s also say they keep making $50,000 and contributing 3% every year until they’re 65. They will have put $52,500 into their 401(k) in those 35 years.

Now let’s say they opt into an employer match with a dollar-for-dollar up to 3% formula. Putting aside the likelihood of an increase in the value of the investments, they’ll have saved $105,000 — with $52,500 in free contributions from their employer.

That, effectively, is a no-cost way to increase retirement savings by 100%.

Average 401(k) Match

Average 401(k) matches is generally around 4% or 5%, and can vary from year to year. With that in mind, workers who are getting an employer match in that range, or within a broader range — perhaps 3% to 6% — are likely getting a “good” match.

But again, considering that some employers don’t offer any match at all, the chance to secure almost any type of match could be considered good for some investors.

Contribution Limits When 401(k) Matching

When deciding how much to contribute to a 401(k) plan, many factors might be considered to take advantage of a unique savings approach:

•   If a company offers a 401(k) employer match, the participant might consider contributing enough to meet whatever the minimum match requirements are.

•   If a participant is closer to retirement age, they’ll probably have a pretty good idea of what they already have saved and what they need to reach their retirement goals. An increase in contributions can make a difference, and maxing out their 401(k) might be a solid strategy.

A retirement calculator can also be helpful in determining what the right contribution amount is for a specific financial situation.

In addition to the uncertainty that can come with choosing how much to contribute to a 401(k), there’s the added pressure of potential penalties for going over the maximum 401(k) contribution limit.

Three common limits to 401(k) contributions:

1.    Elective deferral limits: Contribution amounts chosen by an employee and contributed to a 401(k) plan by the employer. In 2024, participants can contribute up to $23,000. In 2024, participants can contribute up to $23,000. In 2023, participants can contribute up to $22,500.

2.    Catch-up contribution limits: After the age of 50, participants can contribute more to their 401(k) with catch-up contributions. In 2024 and 2023, participants can make up to $7,500 in catch-up contributions.

3.    Employer contribution limits: An employer can also make contributions and matches to a 401(k). The combined limit (not including catch-up contributions) on employer and employee contributions in 2024 is $69,000 and in 2023 is $66,000.

If participants think their total deferrals will exceed the limit for that particular year, the IRS recommends notifying the plan to request the difference (an “excess deferral”) “be paid out of any of the plans that permit these distributions. The plan must then pay the employee that amount by April 15 of the following year (or an earlier date specified in the plan).”

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401(k) Vesting Schedules

“Vesting ” means “ownership” in a retirement plan. The employee will vest, or own, some percent of their account balance. In the case of a 401(k), being 100% vested means they’ve met their employer’s vesting schedule requirements to ensure complete ownership of their funds.

Vesting schedules, determined by 401(k) plan documents, can lay out certain employer vesting restrictions that range from immediate vesting to 100% vesting after three years to a schedule that increases the vested percentage based on years of service. Either way, all employees must be 100% vested if a plan is terminated by the employer or upon reaching the plan’s standard retirement age.

Tips on Making the Most of 401(k) Matching

Here are some things to keep in mind when trying to make the most of 401(k) matching.

Remember: It’s “Free” Money

An employer match is one part of the overall compensation package and another way to maximize the amount of money an employer pays their employees. Those employees could be turning their backs on free money by not contributing to an employer-matched 401(k) plan.

You Can Reduce Taxable Income

According to FINRA, “with pre-tax contributions, every dollar you save will reduce your current taxable income by an equal amount, which means you will owe less in income taxes for the year. But your take-home pay will go down by less than a dollar.”

If a participant contributed $1,500 a year to a 401(k), they’d only owe taxes on their current salary minus that amount, which could save some serious money as that salary grows.

Every Dollar Counts

It can be tempting to avoid contributing to your retirement plan, and instead, use the money for something you want or need now. But remember: The more time your money has to potentially grow while it’s invested, the more likely you are to reach your financial goals sooner. While that’s not guaranteed, every dollar you can save or invest now for future use is a dollar you don’t need to save or invest later.

The Takeaway

A 401(k) match is an employee benefit that allows an employer to contribute a certain amount to their employee’s 401(k) plan. Matches can be based on a percentage of the employee’s contribution, up to a certain portion of their total salary or a set dollar amount, depending on the terms of the plan.

Taking advantage of employer matches in a 401(k) plan can help workers reach their financial goals sooner, as a match is, in effect, “free money.” If you’re considering how matches can help bolster your investment strategy, it may be worth discussing with a financial professional.

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FAQ

How much should I match 401(k)?

It’ll be up to the individual investor, but to make the most of a 401(k) match, workers should likely try to contribute as much as possible up to their employer’s match — it may be worth discussing with a financial professional for additional guidance.

What does 6% 401(k) match mean?

A 6% 401(k) match means that an employer is willing to match up to 6% of an employee’s total salary or compensation in their 401(k) account through matching contributions.

What is a good 401(k) match?

A good 401(k) match could be in the 3% to 6% range, as average employer matches tend to be between 4% and 5%.

Is a 3% match good? Is a 4% match good?

Generally speaking, a 3% match could be considered “good,” as could a 4% match. On average, employers match somewhere between 4% and 5%, and when you get down to it, almost any employer match is “good.”

How do I maximize my 401(k) match?

Maximizing your 401(k) match involves contributing enough to get at least your employer’s full match, whatever that match may be. You should be able to change your contribution levels through your provider, or by speaking with your employer.

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Feb
12
2024
How to File a Tax Extension

How to File a Tax Extension

By | Family Finances, Life & Career | Comments Off on How to File a Tax Extension

You can file a tax extension in a few different ways, such as online or by mail. This process can help people who may need more time to finalize their return, whether they are missing documents, dealing with a personal emergency, or have other reasons for being behind schedule.

While a six-month extension can be a good safety net, it’s important to learn the facts. For instance, an extension doesn’t mean you have more time to pay any taxes you may owe.

Read on to learn the facts and important considerations to know when filing a tax extension.

What Is a Tax Extension?

A tax extension extends the deadline for filing your federal tax return by six months. All you have to do to get an extension is request one by April 15, 2024. Here are important points to know:

•   A tax extension does not give you extra time to pay any taxes owed. If you can’t afford to pay your full tax bill, it’s a good idea to pay as much as you can by Tax Day and then apply for an individual payment plan on IRS.gov or call the IRS (Internal Revenue Service) at 800-829-1040 to discuss payment options.

•   The agency may waive the late-payment penalty in a few cases, but it will not waive interest charges on unpaid tax bills. The interest rate is the federal short-term rate plus three percentage points. In early 2024, for individuals, the rate was 8%, compounded daily.

•   The late-payment penalty, aka failure-to-pay penalty (you filed for an extension on time but still owe taxes), is much less severe than the failure-to-file penalty (you didn’t file your tax return by the due date and did not request an extension). The failure-to-file penalty is usually 5% of the tax owed for each month or part of a month that your return is late, up to 25% of the total owed.

Either way, a penalty plus interest on taxes owed past the deadline might be a good incentive for many taxpayers to try to cough up most of their bill on time.

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How Do Tax Extensions Work?

There are three ways to request an automatic extension of time to file your return:

1.    File IRS Form 4868 electronically using your personal computer or through a tax professional who uses e-file. You’ll be asked to provide your prior year’s adjusted gross income for verification purposes. (If you do not know your prior year’s AGI and do not have a copy of that tax return, you can find the information by signing in to your IRS online account.)

2.    Mail a paper Form 4868. (The IRS says, though, not to mail in Form 4868 if you file electronically unless you’re making a payment with a check or money order.)

3.    Pay all or part of your estimated income tax due, and indicate that the payment is for an extension, using Direct Pay or the Electronic Federal Tax Payment System. You can also pay taxes with a credit card or debit card.

Special rules about filing extensions may apply to those serving in a combat zone or a qualified hazardous duty area or living outside the United States.

Recommended: Tax Season 2024 Help Center

Reasons to File for a Tax Extension

Many high earners routinely seek tax extensions because their business dealings and investments can take longer to sort out.
Other people might seek a tax extension for different reasons, such as:

•   Needing extra time to track down missing tax documents, especially if you’re dealing with an extenuating circumstance (for instance, the closure of a place of employment shortly before tax documents were due to be issued).

•   A major unplanned life event interrupts your plans and makes it hard to get things together on time.

•   You’re still figuring out how to do taxes as a freelancer and want to take all the deductions you can.

•   You’re going to take the home office tax deduction as a self-employed person and want to carefully crunch the numbers because you’re skipping the simplified deduction of up to $1,500.

•   General life busyness led to the deadline sneaking up on you.

•   Maybe you’re filing taxes for the first time and you simply procrastinated.

•   You have a primary and second home and are still unsure whether to itemize and take the mortgage interest deduction.

Filing for a Tax Extension Online

Remember, you don’t need to file Form 4868 if you make a payment using IRS electronic payment options or by phone and indicate that you want an extension.

If you do need to file Form 4868, you can do so electronically by accessing the IRS e-file with your tax software or by using a tax professional who uses e-file.

IRS e-file options include Free File, which lets you prepare and file your federal income tax online using guided tax preparation at an IRS partner site (for filers with AGI of $73,000 or less) or Free File fillable forms (for any income level).

Filing for a Tax Extension by Mail

You can simply download and print Form 4868 from IRS.gov, fill it out, and mail it in, along with a check for estimated income taxes owed.

The form itself includes information about where to send the document, depending on where you live.

Recommended: Steps to Prepare for Tax Season

Can I File for a Tax Extension If I Owe Money?

Yes, you can still file for a tax return extension if you owe the government money — but the money itself is still due on the original due date.

Unfortunately, there’s no way to file for an extension of taxes owed. Rather, your best bet is to pay as much of your estimated taxes as you can when you file for the extension, and then apply for a payment plan online or call the IRS to learn about your options for complete repayment.

Can Someone Be Denied a Tax Extension?

Yes, but it’s uncommon. If your tax extension was denied, it was probably because of a mistake in your personal information on Form 4868.

You can resubmit your request and make sure to enter your current address, name, and Social Security number correctly.

How to Know If You Owe Taxes

While self-employed individuals must estimate their taxes and pay on a quarterly basis, those who file using
W-2 wage reports may not do this kind of taxation math.

There are several easy ways to find out if you owe Uncle Sam.

•   You may receive a notice in the mail from the IRS, but ensure that it’s official correspondence and not a note from a scammer. The IRS will never email, text, or reach out to individuals via social media.

•   “Your Online Account” on IRS.gov allows you to see how much you owe in taxes. This user profile also allows you to pay any owed taxes directly.

•   You can always call the IRS at 800-829-1040 to confirm any amount of back taxes you might owe.

The Takeaway

Is it hard to file a tax extension? Not really. What may prove difficult is paying all taxes owed by the filing deadline (aka Tax Day) or paying a balance still owed plus a penalty and interest after the April date to file taxes.

It’s important to have a handle on your tax status and tax bill as April 15th arrives. It’s also wise to have a good banking partner and accounts that allow easy payment of any money you owe or refunds you receive.

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FAQ

How do I know if I’ve been approved for a tax extension?

Extension requests are rarely denied, but news of a denial would come by email. In the event of an error in an address or name, a taxpayer will be given a few days to remedy the error and file a tax extension again. Usually, you can get an automatic extension of time to file your tax return by filing Form 4868 electronically. You’ll receive an electronic acknowledgment of your request.

Is there a fee to file for a tax extension?

No. Filing for a tax extension is free.

Is the process for filing a tax extension easy?

Yes. You simply submit Form 4868 electronically or by mail before the filing deadline, or make a tax payment through approved methods and indicate you want an extension of time to file your federal return.

What happens if I file my taxes late and without an extension?

If you don’t pay your tax balance by the filing deadline and you did not file for an extension, you’ll get hit with a failure-to-file penalty (in most cases) and interest. Interest also compounds daily on any unpaid tax from the due date of the return until the date of payment in full.

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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.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Feb
08
2024
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Achieving Your Career Goals This Year

By | Building Your Career, Life & Career | No Comments

Are you ready to take your professional growth to the next level in 2024?

Whether you’re hoping to get a raise, clinch that promotion, or switch careers, the beginning of a new calendar year can be a great time to sit down and reflect on where you’ve been, where you want to go, and how you’re going to get there.

Why bother setting professional development goals? Without a specific direction in mind, it can be easy to fall back on what you’ve always done, or just take any opportunity that comes your way without thinking critically about what you want. This can leave you feeling unsatisfied and rudderless in your professional life.

Even if you’re just starting out, you have more agency over your work life than you might think. Setting clear and specific goals can set you on the right path, help you take control of your career, and lead you to the job you’ve always dreamed of.

To help unleash your full potential, here’s a look at four examples of career goals to consider for this year.

Get That Raise

When was the last time you got a pay increase? If it’s been longer than a year, it may be time to speak up. To build a case for a bump up in pay, consider doing some research into the going rates for your job in your area. If your compensation is below par, you can use this information as leverage for requesting an increase.

You can also increase your odds of getting a raise if you can effectively communicate your value to management. Rather than say you need more money, you might point out the hours and dollars you’ve saved the company, how you’ve improved productivity, or the additional responsibilities you’ve taken on since your last pay increase.

Asking for a raise isn’t easy, but you can do it. Even if the answer is no, you’ve started the conversation. This gives you the opportunity to ask what specific actions would be needed to merit a raise. If tight budgets are the issue, you might ask about a one-time bonus, either now or after a set time period.

Recommended: Guide on What to Do When You Get a Pay Raise: 12 Tips

Build Your Professional Network

The saying “it’s not what you know but who you know” has some truth to it. So in addition to polishing your professional skills, consider making 2024 the year you focus on expanding your professional community. You can build your network by attending networking events and connecting with other like-minded professionals via social media. You might also ask colleagues, friends, and family members to introduce you to contacts that may be a good professional fit.

Meeting professionals and keeping in contact with them can help you learn more about the industry, including job opportunities down the line. Individuals in your network may also be willing to serve as mentors and help you develop important career skills.

Climb the Ladder

Earning a promotion enables you to assume a more important role in your company, earn a higher salary, and gain a heightened sense of accomplishment. If your goal is to land one, start taking extra measures to become a prime candidate for your desired position. That might mean going above and beyond in your role, seeking out opportunities to get noticed, and demonstrating your leadership skills.

If you haven’t recently had a performance review with your manager, the new year is a great time to set one up. Let them know that you would like to discuss your career path, and come prepared with data on what you’ve accomplished and a clear ask on where you’d like to go next.

Recognize that while you may not get what you’re asking for tomorrow, you’re taking an important first step in the process. This meeting will allow you to get clear on what you’d need to do to earn a promotion, and discuss a timeline for next steps.

Recommended: Working Remotely Could Hurt Your Chances to Get Promoted

Move On

Not getting any traction on a pay bump or promotion? This might be the year to pursue a more challenging role at a different company. If you’re ready to move on (and, ideally, up), start scoping LinkedIn and networking with recruiters or HR representatives in your field.

Not happy with your current career? Pursuing an entirely different career path might be your main professional goal. You could find greater satisfaction and happiness in a new career, as well as a higher salary and more opportunities. Consider what your ideal career is and how you can reach it from your current job. What challenges seem exciting to you? What are you well-prepared to do, and what would you rather avoid? What other experiences can you draw on as examples of your skill set — for example, previous jobs, volunteer work, side hustles? Reach out to professional connections you have in other industries to determine whether they might be a good fit for you.

Recommended: New Year, New Goals: Set and Achieve Your Career Resolutions

Tips to Achieve Your Career Goals

Whatever your professional objective for the coming year, here are some steps that can help you get there.

•   Write down your goal and steps involved. It’s important to get your goal out of your head and down on paper. In addition, think through and list out the steps you’ll need to achieve it. This will help you remember and accomplish each step. Post your list where you will see it often.

•   Set deadlines. Turn “some day” into a specific day by setting deadlines for each step in your plan. Deadlines will keep you on your toes, and give you a sense of accomplishment as you meet your targets.

•   Reward yourself. Taking steps toward your career goals requires hard work and commitment. Think of small rewards to give yourself when you complete any step to help you stay motivated and on task.

•   Have a goal partner. Consider recruiting a friend or coworker to help you stick to your plan. Discuss your goals, and check in with them when you complete steps. If possible, do the same for your partner.

•   Connect with a coach. If you’re feeling unsure about your career direction, a professional coach can be a big help. Coaches are skilled at asking impactful questions to help you reflect and build more self-awareness. A coaching experience can provide clarity on what’s important to you and empower you to set realistic, flexible career goals.

The Takeaway

Setting — and working towards — goals isn’t easy, especially when it comes to your career. But the process can really pay off, both literally and figuratively.

Creating clear professional objectives prompts you to think about what you want, so you can pursue a position or career that truly satisfies you. While you may not achieve your goal overnight, simply having professional goals can give your work direction and purpose — you have an action plan and are working towards something you really want to achieve in your life.

To explore more work topics, check out SoFi at Work’s resource hub.

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

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

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Feb
06
2024

How to Use an ATM

By | Family Finances, Life & Career, money | Comments Off on How to Use an ATM

An automated teller machine (ATM) can be a convenient way to deposit or withdraw money, check your account balance, and conduct other aspects of your banking business. But did you know there are ways to make the process easier, faster, and perhaps less expensive?

In this guide, you’ll learn more about ATMs, including:

•   What is an ATM

•   How do you use an ATM machine?

•   How can you avoid ATM fees?

•   What are things you can and cannot do at an ATM?

•   What are tips for staying safe at an ATM?

What Is an ATM?

An ATM (short for automated teller machine) is a device that performs some of the same functions as a human teller at a bank, such as dispensing cash. ATMs made their U.S. debut in Rockville Centre, NY, in 1969, and there are currently between 520,000 and 540,000 of these devices in America.

Almost anywhere you go, you can find an ATM, providing certain banking services quickly and conveniently. For example, it is usually possible to find ATMs in major hotel lobbies, at grocery stores, in shopping centers, and in airports. (They also may turn up at convenience stores, night clubs, restaurants, and other places where cash could be needed.)

You can typically check your bank account balance and withdraw cash from ATMs. It’s likely you can deposit cash at an ATM or possibly checks (although deposits have more restrictions than withdrawals).

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

How Does an ATM Work?

An ATM machine gives bank customers easy access to their banking resources at various locations and around the clock. You insert your card into a reader that scans your banking information, and you can then conduct transactions. (At some locations, contactless transactions may be possible; see more on this below.)

Here are some of the main functions an ATM can usually perform:

•   Withdraw cash.

•   Make deposits, but to do so, the device typically needs to be within the same network as the customer’s bank. Often, it’s not possible to make a deposit at an out-of-network ATM or, if it is, you’ll be charged a fee.

•   Check your account balance, which can help you avoid overdrafting when making a withdrawal or using your debit card. The balance can appear on the screen or on the printed receipt. It’s usually only free to check an account balance at an in-network ATM. If the ATM is out-of-network, this service may come with a fee.

Some ATMs do make it possible to access their services without a debit card present. This is known as a cardless withdrawal. How does an ATM work without your plastic in hand? These types of withdrawals are typically supported by a smartphone app that uses technology such as a QR code in lieu of a debit card. This can provide the ATM with the account information it needs to complete the transaction.

Things You Can’t Do at an ATM

ATMs do have limitations; here are some things consumers likely can’t do at an ATM.

•   Withdraw coins or low-value bills

•   Open a new account (unless you have preselected and prescreened)

•   Close an account

•   Send a money order

•   Purchase a cashier’s check.

How Much Are ATM Fees?

It may be free to use an in-network ATM, but when there isn’t one around and you need cash (or to conduct another transaction), you’ll likely be hit with a fee for using an out-of-network device.

It’s wise to read the fine print associated with your checking account to better understand what kind of fees you may need to pay to use an ATM. It can also be helpful to make note of where some local in-network ATMs are. This can make avoiding ATM charges easier.

How much can ATM fees be?

•   The average out-of-network fee is currently $4.73. This typically includes a $1.58 fee levied by your bank and an average of $3.15 charged by the ATM’s owners.

•   Additionally, if you are traveling internationally, you may have fees of, say, $2 to $5 to make withdrawals as well as a conversion fee.

Worth noting: Several banks will waive fees when their clients use an out-of-network ATM. If you often rack up many out-of-network ATM fees, you might want to look into which banks offer this service.

Recommended: Can You Use Your Debit Card in Another Country?

How to Find an ATM

If you are hunting for cash or need to deposit a check, here are a couple of ideas for how to find an ATM:

•   You can usually use your banking app to find ATMs. There may be a map function or you may be asked to enter a zip code to see nearby devices.

•   If you bank at a traditional vs. online bank, you can visit a branch which will often have ATMs available.

•   There are third-party services that can help you access surcharge-free ATMs.

To make this process easier, you can bank with a financial institution that has a large network of ATMs you can use without a fee. Allpoint and STAR are examples of these networks.

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!

How to Withdraw Money from an ATM

Want to use an ATM machine to withdraw cash? Here are the standard steps.

1.    When prompted by the screen, insert your debit card into the machine.

2.    Enter your PIN number. This is the custom PIN (personal identification number) associated with the debit card linked to their checking account.

3.    Choose the transaction type. In this case, it would be a withdrawal.

4.    Pick the account to access. If you have multiple bank accounts, this will make sure the money is coming from the right place.

5.    You’ll likely be prompted to enter the dollar amount you want to withdraw (or press the option showing your choice of amounts), and you may be asked to select your bill denominations.

6.    Take the card back. Now it’s time to complete the transaction. Many ATMs say to take your card back and then the machine will dispense your cash.

How Much Money Will an ATM Let You Take Out?

There are typically limits on how much you can withdraw from an ATM. (This is often done to make sure there is enough cash in the machine to go around vs. a few customers draining the funds.)

•   Daily withdrawal limits are typically between $300 and $5,000.

Check with your bank to learn its limits and whether it determines that by calendar day or by a 24-hour period.

How to Deposit Money at an ATM

Next, take a look at how to use an ATM machine to deposit money. Keep in mind that only certain ATMs will accept deposits, so you want to be aware that depositing money may not be a possibility at the ATM closest to you.

1.    Find an in-network ATM or an ATM that allows deposits to the bank associated with your debit card.

2.    Insert your card and enter your PIN (typically a 4-digit code).

3.    Choose “deposit” as your transaction type.

4.    Type in the exact amount of the intended deposit.

5.    Insert the cash or check. If this is a check, endorse the back first; then follow the on-screen instructions to get your card back and a receipt, if desired.

Recommended: What to Do if an ATM Eats Your Deposit?

Other Transactions You May Be Able to Complete at an ATM

Now that you know how to withdraw money at an ATM and deposit as well, take a look at some of the other things banking customers can often do at these devices.

Cash Checks and Money Orders

Some ATMs may let you cash checks for free as well as money orders. These are typically in-network ATMs.

Make Bill Payments

At some ATMs (such as those in the Chase network) allow you to pay the mortgage, home equity loan, or credit card bill you have with them at an ATM.

Get a Cash Advance From a Credit Card

You may be able to get a cash advance from a credit card (though this typically carries a high interest rate, so proceed with caution).

Tips to Keep Yourself Safe at ATMs

With both in-person and online banking, security is important. When using an ATM machine, it’s important to learn how to do so safely, whether making a deposit or withdrawal. Here are some tips for staying safe:

•   Be aware of your surroundings. If there is someone loitering around an ATM that you’d like to use (especially at night), you might want to go elsewhere.

•   You may feel safer using ATMs located in bank branches.

•   Here’s what you should do before approaching an ATM: Have your card in your hand as you approach the device versus fumbling through your pockets or bag while at the ATM.

•   Cover the keypad when entering in the PIN number so no one else can see it. Some keypads are designed in such a way as to help protect your personal information as you type in those digits.

•   Review ATMs closely for misaligned card readers, skimming devices (more on that in a moment), or suspicious markings before using one.

•   If you are withdrawing cash, put it away ASAP when you receive it. Don’t walk away from the ATM with cash in your hands.

Also be aware that there are ATM scams. One common one involves card skimmers, a device that a fraudster attaches to an ATM (or gas pump card reader) in order to fraudulently collect the account information of users. Inspect card readers for signs of tampering; you may try to wiggle an ATM’s card reader to detect card skimmers.

If you have reason to be concerned, it could be wise to avoid this ATM and look for another or else get some cash back at, say, your grocery store to tide you over.

The Takeaway

ATMs can offer a convenient way to access a number of basic but essential banking services (such as withdrawing and depositing cash) without having to actually visit a branch location during business hours. It’s important to remember to pay attention to ATM fees, which are much easier to avoid when using an in-network ATM. It’s also essential to keep safety in mind to avoid theft or fraud when using an ATM.

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

What if the ATM gave me too much money?

Sorry, it’s not free cash. Contact your bank (or the owner of the ATM, if the device is out-of-network) and explain what happened. Keep your receipt, and follow the advice given.

What are the pros and cons of ATMs?

The major pro of using an ATM is probably convenience; you can access some banking services during non-business hours or wherever you may be. The cons associated with ATMs include the fact that services are limited, fees may be charged, and there’s the possibility of theft.

How many times can I use an ATM?

How many times you can use an ATM often depends on how much money you withdraw each time. Most banks limit the dollar amount someone can withdraw (usually $300 to $5,000) per day. Check your bank for its withdrawal limits.

Can I use my debit card at any ATM?

You can generally use a debit card to withdraw cash (although not necessarily to make deposits) at any ATM, even if it is out-of-network. However, making a withdrawal at an out-of-network ATM can lead to having to pay fees.

What should you do before you approach an ATM?

Before approaching an ATM, you should look around and make sure no one is loitering nearby. It’s also wise to have your debit card ready to use in your hand vs. having to dig for it at the terminal.

How much money will an ATM let you take out?

Banks typically have withdrawal limits per day. These vary among financial institutions but are usually between $300 and $5,000.

Photo credit: iStock/Eva-Katalin

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

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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

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