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There are multiple ways to get cash into your bank account, where it’s secure and might even earn some interest. You could go old school and deposit bills in person or take advantage of all the mobile transactions available.

Here’s help knowing all the different ways you can deposit money into your bank account, along with how-tos. Equipped with this knowledge, you can be even more ready to get your hard-earned dollars socked away.

6 Ways to Deposit Cash in a Local Bank Account

Wondering how to put cash into your local bank account? We can help. There are numerous ways you can do this, including:

Here, we’ll take a closer look at each, and, a bit later, how to use ATMs to deposit cash.

1. Using Direct Deposit

Direct deposit is by far the simplest and easiest way to get cash into your bank account. All you have to do is visit your bank branch, fill out a deposit slip, hand the slip and your money to the teller, and be on your way.

If the bank is closed or you want to avoid standing in a long line indoors, you can deposit cash at an ATM. You likely won’t need to fill out a deposit slip at the ATM because the computer can read the check or count the cash and then electronically credit the account associated with the ATM card.

Be sure, however, that you know your financial institution’s policies when you make a deposit at an ATM. Unlike an in-person deposit where your money is typically available immediately, your funds may not be available right away with an ATM deposit (especially if it’s not your bank’s ATM). Also, some ATM’s don’t accept cash deposits. So inquire before you make your deposit.

2. Deposit Cash Using an Account Transfer

Perhaps you have more than one account at your bank (there are often incentives to do so, which many people take advantage of). It can be quite convenient to move money via a bank transfer between accounts.

You might complete a one-time transfer at the bank or online to transfer money from savings to checking to cover a large, unexpected expense. Or perhaps you want to set up recurring automatic transfers on payday to whisk 10% of your salary into savings. Or, say you’ve accumulated a chunk of change in one account and want to open a certificate of deposit (CD) to lock in your interest rate. An account transfer could make that happen, too.

3. External Transfer

Maybe you don’t want to keep all your eggs in one basket, so you have more than one financial institution where you keep your money. No worries if you want to move money between accounts as part of managing your banking. Some financial institutions allow you to link accounts held elsewhere.

The how-to’s: Complete what’s necessary to link the accounts (this can involve just inputting an account’s routing and account number), and you can easily transfer money between them.

Recommended: How to Manage Your Money

4. Wire Transfer

How else to put cash into a bank account? Wire transfers may sound old-fashioned, but they are still an effective way to send money to someone else’s bank account. Say someone needs to send you money, but you don’t bank with the same financial institution. They can do a wire transfer from their bank to yours using providers like Western Union.

Wire transfers are fast, and the money arrives pretty much immediately. The downside is that you have to share your bank account information, which can give you cause for concern if you don’t know the person you’re dealing with.

Also, wire transfers charge the sender a fee, which may vary on factors such as whether you’re sending/receiving domestically or internationally. The person sending you the funds could want to deduct the fee from the money they are sending your way. And banks may charge fees related to wire transfers as well, so again, do a little research first to avoid any surprises.

5. Peer-to-Peer Transfer

Money-transfer apps or platforms like PayPal, Zelle, or Venmo can be convenient ways to move money around, whether that means a friend paying you back for their share of the dinner tab or someone who employs you as a gig worker sending you your fee. The way these platforms work is that you can receive money either directly into your account or into the money-transfer app and then transfer it to your bank account.

Worth noting: Sometimes you may pay a fee for an instantaneous transfer versus one that takes a day or two. There can be other costs and transaction limits involved as well, so familiarize yourself with the specifics of the platform you are thinking of using.

6. Depositing Cash at Your Bank Branch

One last way to put cash in your bank account. If you bank at a traditional financial institution with brick-and-mortar branches, you could take your money in person and fork it over. Typically, this involves handing the cash to a teller with a deposit slip.

While many people who are paid in cash may use this method, it is of course important to be cautious when en route to the bank with a pocket full of bills. If you lose the money or are robbed, that money would be gone.

4 Ways to Deposit Cash in an Online Bank Account

If your accounts are at an online bank, you may wonder how best to deposit your cash. After all, there isn’t a brick-and-mortar branch to stroll into, and no one wants to mail cash. But don’t worry; you likely have plenty of options.

One is to find an in-network ATM. Find out what network of ATMs your online bank is part of, and you can then deposit cash in one of those ATMs. Be sure to keep your receipt until the money surfaces in your account so you’re sure everything went through properly.

That’s not always convenient, though, so consider some other options:

1. Using a Mobile Deposit

You can deposit your checks remotely. It’s super simple and you don’t have to leave home, which is one of the benefits of mobile deposits. All you need to do is take a picture of the front and the back of the check and deposit it via your bank’s mobile app.

2. ACH Transfer

You can also get money deposited directly into your account by what are known as ACH (or Automated Clearing House) transfers. These can be set up to go into your account on a recurring basis, too. For example, you can have your HR department deposit your paychecks into your account, and you can do the same with government benefits if you enroll in the program to get your money this way. Once you know how to set up direct deposit, it might just be a game-changer for you.

3. Depositing Cash Using a Prepaid Card

There’s another option if your online bank account isn’t part of an ATM network: a prepaid debit card that’s linked to your account. With a prepaid card, you can load money on it in a variety of ways. For example, you can go to participating retailers to deposit cash. Then you could transfer the money from the prepaid debit card to your linked online bank account.

But of course, there can be a downside. You may be charged fees to get the card, deposit cash, or withdraw funds. Do the math. If you don’t need to do it frequently, it might be worth it. But if you have to do this often, the additional costs might be a deal-breaker. Shop around for a card that suits your needs.

4. Using a Money Order to Deposit Cash

If all else fails, you could go retro and buy a money order. You get one from the post office or businesses like Western Union. You’ll likely pay less than $5, though the fee depends on the amount of the money order. You can mail the money order to your online bank. Just double-check that the bank accepts money orders for deposits.

5. Transferring From Another Bank Account

Another option is to transfer funds from another bank account. Whether you keep multiple bank accounts at one financial institution or divide them between different banks, you can send money from one account to an online account simply. You can likely use the transfer feature in your bank’s app, add the necessary bank account and routing number, and get the money heading where you want it.

Can You Deposit Cash in an ATM?

Yes, you often can. Many ATMs accept cash, though a few do not. Check with your bank or look carefully at the ATM you are planning to use to see whether a cash deposit is an option.

Using a Deposit Slip for an ATM

Like many other bits of paperwork, deposit slips are used less often than in the past when banking. Most ATMs do not require deposit slips. The computer that’s part of the ATM can verify and count the bills without the need for you to provide extra paperwork stating the amount.

Of course, you’ll want to double-check that where you are making your deposit has a machine that doesn’t require a deposit slip before you put your cash in. There may still be some devices out there that still require a deposit slip and envelope.

Funds May Not Be Available Immediately

If you deposit cash into your bank’s ATM, the money is typically available almost immediately. This is a change from the past, when a teller had to receive and then verify the deposit before funds were made available. This typically took one of two days.

Also keep in mind that many banks don’t allow you to deposit cash into an out-of-network ATM. If they do, there might be a fee involved as well as a delay in funds availability. It’s wise to check such details before you attempt to put some bills into this kind of machine.

When Does a Deposit Typically Appear in Your Account?

Every financial institution has its own rules about how long cash takes to clear or how long a direct deposit takes. Know, however, that federal law establishes the maximum length of time a bank or credit union can make you wait.

Cash, as you might guess, tends to clear most quickly. If deposited in person to your checking or savings account, it may become available the same day or the next day. If you deposit it to an ATM in your bank’s network, it could take until the second business day to clear; if you use an out-of-network ATM that accepts cash from those who aren’t account holders, that can take five business days.

The typical time period for checks and money orders to clear is between two and five days. According to the Consumer Financial Protection Bureau (CFPB), generally, these are the guidelines:

Here are a few nice exceptions involving in-person deposits at your bank. You should be able to access the full amount on the next business day if you deposit:

The amount of time a bank or credit union holds funds you deposit by check is sometimes referred to as a “deposit hold” or “check hold.” Some banks or credit unions may make funds available more quickly than the law requires, and some may expedite funds for a fee.

If you need the money from a particular check, you can ask the teller or a customer service representative when the funds will become available. A receipt showing your deposit does not mean that the money is available for you to use.

Knowing these timeframes can be very helpful as you stay on top of your money and work to make sure you know your approximate balance and don’t bounce any checks.

Recommended: When All Your Money Goes to Bills

The Takeaway

There are many options in terms of depositing cash into your bank account, whether you use a traditional or online bank. You’ll find options from going to a brick-and-mortar branch to using an ATM to mobile and ACH deposits and more. The timeframes for all of these deposits will vary, so check your bank’s policies.

You’ll want to be sure you don’t draw on your funds before they are fully available. It’s an important move to keep your account in good standing and avoid the fees many banks charge for overdrafts.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

Can you deposit cash into someone else’s bank account?

Typically, you can deposit cash into someone else’s bank account if you know the name on their account and their account number and if you go into a branch with the cash.

When does the money I deposit get reflected in my account?

A deposit can reflect in your account almost immediately (especially if it’s cash) or take a day or two to show up in your account. Also, the timing of funds availability for withdrawal or transfer can vary depending on the size and form of the deposit (such as whether you deposited a money order in person at a branch or deposited cash into an out-of-network ATM).

How do you deposit large amounts of cash?

You can use any of the standard methods: as cash (though do be cautious), by transfer, by check, and with other techniques. But also know that a financial institution must report any cash transaction involving a deposit or withdrawal of over $10,000 to the Internal Revenue Service (IRS).

Is there a fee to deposit cash at a bank?

Most banks do not charge a fee to deposit cash at a bank. However, some banks may assess a fee if you deposit the funds into an out-of-network ATM.

Can you deposit cash without going to the bank?

Depending on your bank, you may be able to deposit your cash into an out-of-network ATM. You might have to pay a fee to do so.

Photo credit: iStock/JoeLena

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

This article is not intended to be legal advice. Please consult an attorney for advice.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-039

Banking today has a lot of one-click convenience, and you may hear the terms EFT and ACH used interchangeably. There is, however, a key difference between these two acronyms: ACH is one kind of EFT.

To understand this better, first know your definitions. Automated Clearing House (ACH) is a national network linking U.S. financial institutions. This electronic system allows them to debit money from one account and then credit it to another. ACH payments are one variety of EFT, or electronic funds transfer. The term EFT includes additional methods of moving money electronically, such as wire transfers.

So all ACH transactions are considered EFT, but not all EFTs are ACH. Read on to learn the details.

ACH Transfers

ACH stands for Automated Clearing House, a network governed by Nacha (National Automated Clearing House Association). The first ACH association appeared in 1972 in California; by 1974, multiple regional networks joined together to form Nacha, which has since overseen the ACH network nationally.

But what is ACH? Put simply, ACH is a type of electronic fund transfer (EFT) that allows individuals, corporations, and even the government to electronically move money from one bank account to another. It can be thought of as a hub that keeps funds flowing.

ACH payments work domestically; that is, among banks and credit unions within the United States. You may be able to send money via international ACH transfers, but other countries will have their own networks and governing bodies. Some countries do not have an equivalent network at all.

Funds first go to the Automated Clearing House, which then reviews the payments and releases them in batches throughout the day. For this reason, ACH transfers are not immediate. How long ACH transfers take can vary: Traditional ACH transfers can take one to two business days, but in recent years, Nacha has enabled same-day transfers for eligible transactions.

How Do ACH Transfers Work?

ACH transfers work thanks to a data file that includes information about a prospective payment. The file goes to the payor’s bank to the clearing house and then on to the payee’s bank, with details on the transaction. The funds get moved into the intended location, and the process is completed, transferring money from one account to another.

Recommended: ACH Payments vs. a Check

How Is ACH Used?

Consumers and businesses can use ACH for a variety of purposes.

•   For example, employers often use the ACH network for direct deposit into employees’ bank accounts. This enables them to deposit paychecks directly into employees’ bank accounts. When an entity, like an employer or the government, initiates the ACH process to send funds, this is classified as an ACH credit.

•   Individuals can provide bank account information to businesses, such as mortgage lenders and utility companies, to enable ACH debit transactions as part of their online banking. This means those companies are able to directly debit funds from the individual account using ACH as a form of electronic bill payment. Businesses and individuals may utilize ACH debit for autopay (recurring payments) or for one-time payments.

•   Even peer-to-peer (P2P) payment methods like PayPal and Venmo can utilize the Automated Clearing House network for electronic transfers. (When such services offer instant payments, they may charge a fee and use your credit card instead, so proceed carefully in these situations.)

Typically, the employer or merchant enabling ACH payments is the one to pay ACH fees.

What Is EFT?

Electronic fund transfers (EFTs) refer to a much broader range of electronic payments. ACH is a type of EFT, but EFT can also include payments like wire transfers, debit card payments, credit card payments, local bank transfers, instant P2P payments, and even ATM transfers. Electronic fund transfers can be domestic or international in scope.

The Consumer Finance Protection Bureau refers to electronic fund transfers as “any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape.”

Note: Another common term in finance is ETF (exchange-traded fund). The acronyms are similar, so it’s important to recognize that an ETF is an investment security, not a payment method.

How Do EFT Payments Work?

EFT payments may use the ACH network, or they may not. An example of a transaction that doesn’t use ACH is tapping or swiping your debit card to make a payment from your checking account. It’s an instantaneous transfer of funds, without banking information being exchanged. The money is moved from your account to the store’s without any verification other than your PIN.

Types of EFT Payments

EFT payment is a broad category, including common transfers like ACH and wire transfers. Here is just a short list of payment methods that can be classified as EFT:

•   ACH transfers

•   Wire transfers

•   Peer-to-peer payments (often done through ACH)

•   Debit card transactions (in person or online)

•   Credit card transactions (in person or online)

•   ATM transfers

•   E-checks

•   Telephone orders

Do EFT Payments Have Fees?

Typically, a merchant will pay a small percentage of a transaction’s amount for the privilege of using an EFT method. In some situations, you, the consumer, may be assessed a fee for using these methods. For instance, some merchants may add a surcharge for credit card vs. cash or debit card payments. Or if you pay by phone, there may be a surcharge. You should be alerted to these add-on costs, however, in advance, so you can decide if you want to proceed or not.

What Is the Difference Between ACH and EFT?

We’ve established that the key difference between ACH and EFT is that an ACH is a type of EFT. This table further breaks down the distinction:

ACH vs EFT vs Wire Transfers

When banking, you’re likely to hear about different ways to move money, including ACH, EFT, and wire transfers. Here’s a closer look: ACH is a type of EFT, but another common type of EFT is a wire transfer, which can be used to send money to someone’s bank account.

Wires can be both domestic and international and often have a fee for both the sender and the receiver, depending on the banks or transfer service agencies (like Western Union) involved. Wire transfers allow you to make an electronic payment “by wire,” such as through SWIFT, the Clearing House Interbank Payments System, or the Federal Reserve Wire Network. Wire transfers can take a day or two to fully process; international ones might take longer (up to five days).

Should You Use Electronic Transfers?

Electronic transfers are common in modern banking. It is likely that you already utilize some form of electronic transfer, whether you receive a direct deposit from your employer like 96% of American workers, have your utility bills on autopay, pay for groceries with a debit card, or use peer-to-peer transfer apps to split the dinner bill or pay a friend for concert tickets. When you buy a house, the mortgage company may even ask you to wire funds in time for the closing.

Recommended: How to Manage Your Money

The Takeaway

Automated clearing house (ACH) transfers are a type of electronic funds transfer (EFT), which allows for the direct debiting and crediting of funds from one bank account to another. Examples include direct deposit of your paycheck or an autopay debited from your account. Other types of EFT include wire transfers and debit and credit card payments, among others. These kinds of payments keep funds flowing quickly and securely as a key part of your banking life.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

Is EFT the same as direct deposit?

EFT stands for electronic funds transfer. Direct deposit is one example of EFT.

Is ACH a wire transfer?

While ACH and wire transfers are similar transactions, they operate on different timelines and according to different rules. Wire transfers (especially domestic ones) can occur almost immediately, while ACH transactions can take a couple or a few business days.

What is the difference between ACH and autopay?

ACH is a method for electronically transferring funds between accounts. Autopay involves your setting up recurring payments of bills with a vendor. It typically uses the ACH network to complete those transactions.

Is ACH the same as direct deposit?

Direct deposit is one kind of ACH payment, but other kinds of ACH transactions are possible as well.

What is the best EFT payment method?

The best EFT method will depend upon various factors, such as timing and the technology you can most easily access or are most comfortable using.

Photo credit: iStock/Cecilie_Arcurs

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q325-040

When you partner up, it’s not just about deciding how many throw pillows to have on the couch or who cooks dinner on which nights. Setting up a budget for two can be a critical move, whether you choose to combine some, all, or none of your funds. It can help you get on track for shared spending and saving, including hitting your short- and long-term goals as a duo.

Read on to learn more about your options and how to make the right decisions.

How to Budget as a Couple

Here are some steps to take when you budget as a couple.

Decide How Much You Want to Combine Your Money

Deciding how much you want to combine finances as a couple, such as in a joint account, is a key part of budgeting as a couple. Each of you will have your own money style and potentially money issues, so a frank discussion on how comfortable you are merging your money and sharing, say, your spending habits is a wise first step.

Calculate Your Combined Income

If you have decided on merging at least some of your funds, take a look at your shared income to know what amount you are working with. Consider if you are on salary, freelance, have side hustle income, or dividends or passive income to come up with the right number.

Determine Shared Expenses

Next, look at where that income will go. You likely have shared housing, food, utilities, transportation, insurance, and healthcare expenses in terms of necessities. You may have varying debt payments to make as well.

Perhaps one of you has more in the way of student loans or credit card debt than the other. Discuss what feels fair in terms of paying that down.

You will also probably want to take a look at your usual discretionary spending, such as what you pay towards dining out, travel, entertainment, yoga classes, clothing, and the like.

You may decide you are more comfortable keeping some of your money separate rather than have full transparency regarding every dollar spent. Not everyone wants their partner to see exactly how much is flowing out of their checking account. It’s your call.

Figure out Future Goals

Then, turn your attention towards saving. Perhaps you two want to buy a home in a couple of years, start a family, begin a business, or pad out your retirement account. Or all of the above. You’ll want to factor in those savings for tomorrow.

Make Your Budget

With this information in hand, you’re ready to create a budget. It can be wise to review a few different types together, such as the popular 50/30/20 budget rule, the envelope budget system, and the zero-dollar method.

Recommended: 50/30/20 Budget Calculator

Create Joint Accounts

At this point, if you have decided to merge some of your money, you may want to open shared accounts, such as a joint online bank account.

7 Reasons to Budget as a Couple

Budgeting as a couple vs. budgeting as two individuals can have its pros. Consider the following.

1. Controlling Your Spending as a Team

One of the basics of budgeting is to prioritize your spending. Once you, as a couple budgeting, have decided where your money must go every month — toward groceries, utility bills, car payments, rent, and other essential expenses — you’ll have a better idea of how much will be left for discretionary expenses.

And instead of being restrictive, your budget could give you some spending flexibility. You’ll know if you need to cut back and when you can loosen up a little, and you’ll be accountable to each other.

Sometimes, one person in a couple budgeting is better at finances or just enjoys it more. It might be a good fit for that person to be in charge of managing the bills. But it’s also a good plan to come together for regular budget reviews so both of you know where the money is going and there will be some balance in the financial decision making.

Leave room for some splurges, or the spender in the family probably won’t be too happy. And be proactive about big purchases: Identify a threshold for how much each of you can spend so there are no surprises. Or, of course, you can keep some discretionary spending separate if this feels too stressful for the two of you.

2. Being Honest About Money Problems

This can be the time to talk about any hidden debts, bad habits that cost money, or if you can’t trust yourself not to overspend when there’s a credit card in your wallet.

Then you can start tackling those issues by setting spending limits, cutting up some of those credit cards, perhaps getting financial therapy, and, of course, incorporating those looming debt payments into your budget.

3. Being Prepared for Emergencies

A common recommendation is to have three months’ worth of living expenses set aside in emergency savings in case you lose your job or are sick or injured and can’t work. An emergency fund can also be used for unexpected costs such as home or car repairs or a medical procedure.

Not only can a couple budgeting determine how much to set aside each month to build that emergency fund, you can also choose which expenses to put off or do without if you don’t have enough in your fund when a crisis strikes.

Some budget ideas for couples who need to cut back on spending are reducing the number of date nights you had planned or putting your tax refund toward a bill instead of taking a spring vacation.

Having a budget can help you replace panic with a plan, and using online tools, like a money app, can help you keep tabs on your cash flow and spending habits.

Recommended: How Much Should You Keep in an Emergency Fund?

4. Creating Goals

If there’s a “fun” part of working together as a couple budgeting, this is it: deciding your priorities for the future.

Whether it’s saving for a home, having children, taking a cruise, starting your own business, or all of the above and more, your budget will help you focus on the things that are most meaningful to you as a couple.

Your strategy can help you set aside the money to reach those goals, aka turning the dreaming into doing. And you’re more likely to stay on track if you’re checking in on your spending each month.

5. Deciding How Much to Combine Finances

You will likely want to tackle the question of whether to have joint bank accounts vs. separate bank accounts or even a little of both. Making the right call can strengthen your bond financially and holistically.

You may decide to completely merge your bills and bank accounts, or you might want to keep your own accounts and divvy up the bills. There are pros and cons to each approach in budgeting for married couples or cohabiting couples.

Combining accounts can simplify your finances and build trust. But if you feel strongly about financial independence — or you’ve been burned in the past — you may feel more secure if you have your own money. Negotiating an agreement that’s comfortable for both parties can be a real win-win.

6. Reducing Financial Stress

Here’s a solid upside to merging your money: Once you get the numbers down on paper instead of just swirling around in your head, you may feel more in control of your finances. Even if the situation is shaky, you can take steps to do something about it. What’s more, you are likely on a path to making your money work harder for you.

7. Having Something to Talk About

Here’s another benefit: Once you create your couples budget, you’re going to want to revisit it on a regular basis. You can discuss how your various budget categories are holding up and if you need to make adjustments. Or how to tweak your budget so you can afford that destination wedding, new furniture, or childcare. Or retiring early. You’ll be able to sync up as a team.

It’s a good idea to go over any upcoming expenses that aren’t in the budget or only come up occasionally. And you can talk about how you’re doing with your short-term financial goals as well as your long-term ones.

An example of longer-term money aspirations? You can take a closer look at how college expenses for your future kids are trending. Or what might be a good monthly retirement income for a couple.

Are There Any Downsides to Budgeting as a Couple?

Now that you know the positives, consider these potential negatives whether you are marking a married couple budget or budgeting as a couple living together:

•   A partner could feel as if they have less control over their money, which could be uncomfortable.

•   A person could feel as if their partner’s spending habits are challenging.

•   The full transparency of merging finances could be a problem for some people who don’t like sharing their financial life.

•   There could be more time and effort and potentially banking fees involved as you set up joint accounts and find a new way to operate as a team.

The Takeaway

Budgeting as a couple is an important concern. You can determine your spending and savings as a duo, and you may decide to share accounts, merge some accounts, or keep your finances separate. In addition, you likely will be setting short- and long-term goals to map out your future together. When aligning your financial lives, you’ll want to consider choosing the right banking partner, too.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

What is the best way to budget as a couple?

A key decision will be how much of your money to merge, looking at shared income and expenses, determining goals, and then finding a budget that works for both of you. Regular check-ins to see how you are managing your money are important too.

How do you split finances as a couple?

This will vary from couple to couple. Some will want to pool all of their resources and pay everything 50-50. Others may have circumstances (such as one partner having considerable credit card debt) that indicate a different arrangement may be necessary.

How much should a couple save per month?

How much a couple should save per month will depend on a variety of factors such as income, cost of living, and debt. However, many financial experts suggest saving 20% of one’s income is a good guideline.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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If you want your money to grow more quickly and to feel confident that you’ll reach your financial goals, there are smart ways to maximize every single dollar you earn. Yes, it will take some planning and focus, but it can have very real rewards.

A few tactics to make the most of your money involve leaning into your personal finances and recognizing the importance of financial literacy. Once you’re committed to doing that, you can take such steps and budgeting well, maximizing interest and rewards on your cash, spending smarter, and automating your savings. Learn the details here.

Making Your Money Work For you

These tips and ideas can help you put your money to work.

1. Learning How to Budget

An effective budget can help you make the most of your money, allowing you to understand where it goes so that you can feel empowered to save and spend on things that are most important to you. Here’s how to make a budget.

Layout Your Finances

An effective budget is an accurate budget. If you are starting your budget from scratch, some recommendations suggest reviewing three months’ worth of receipts, bills, etc., before moving forward. This will give you insight into your current spending habits. Then, split those expenditures into needs and wants.

A budgeting tip: The information for making your budget can be accessed by a physical copy, a spreadsheet, or using a money tracking app that can help you stay on top of your budget and expenses. See if your bank offers one, or else consider a third-party tool.

Figure Out Your Net Income

After you know how much you’ve been spending, you want to compare it to how much you earn. When making a budget, it can help to work with your take-home pay. This is the total income you earn from your job, after taking out all the required taxes, savings, and insurance payments from it. Those who are self-employed may work with different deductions than those who work a regular 9-to-5. In that case, subtract your self-employment tax (the sum of Social Security and Medicare taxes).

Using your after-tax pay can help you determine an accurate total for how much money you actually have available to spend. If you have any other income earners in your household, do factor in their income as well. Also include any investments or additional sources of income.

Plan Your Budget

Now you have to create a step-by-step plan and put it into action. One method you may want to think about is the 50/20/30 budget. This budgeting method breaks your spending and savings into the following amounts: 50% for your needs, 30% for wants, and 20% for savings and/or additional debt payments. If they need adjusting, shift the numbers to suit your plan.

Tracking multiple categories may not work for you, though. If you have trouble logging expenses in hyper-specific categories, simplify them. Overwhelming yourself will only make it harder for you to stay on target.

Review and Adjust

No matter how perfect the plan, things change. You might switch jobs, have a child, move somewhere else, or gain new needs. That’s why your budget can be flexible. When things change, change your budget to reflect those new priorities. If you have trouble fixing the plan, you may need to revisit some of the previous planning stages. Your budget and money should work for you, after all.

2. Getting Out of Debt

When you’re focused on getting out of debt, there are options to consider and steps to take.

Selecting a Debt Repayment Strategy

Here are some of the most popular debt repayment strategies to review. While these tactics encourage individuals to make additional payments on some of their debts, making the minimum payments on all debt is important.

•  The snowflake method encourages individuals to put any extra cash earned toward debt repayment. Any time there’s excess to play with, you put it towards your debt. Since that helps you pay over your monthly minimum, you’ll eventually finish off the debt. You can earmark any bonuses or tax refunds to go towards debt. Or you could earn additional money, say, by low-cost side hustles or selling items you don’t want anymore.

•  With the snowball strategy, you pay off your debts from smallest to largest, when evaluating the total amount owed. During this, you still make minimum payments on all your other debts. While it’s motivating to see some of your financial troubles disappear, this may not work for you. The snowball method ignores interest rates, which could give other debts a chance to grow.

•  The avalanche method works on the debts with the highest interest rates first, while making minimum payments on other debts. High-interest unsecured debts, like credit card balances and personal loans, can grow rapidly. Focusing on debts with the highest interest rate first could help you escape debt quickly and potentially spend less in interest overall.

3. Opening a High-Yield Savings Account

A high-yield savings account is an available option that can help you build wealth to meet your financial goals. High-yield savings accounts work similarly to traditional savings accounts but they offer a greater annual percentage yield (APY), to help your money grow faster.

While you still have to pay income taxes on that interest, these high-yield savings accounts are a great way to save money for significant, short-term expenses. You may find them most often at online banks.

4. Considering Passive Income Streams

America’s workforce is changing with the times. As the cost of living rises, many people want to find ways to increase their income. Many are turning to passive income to combat these financial hurdles.

Essentially, passive income is money that you earn without active involvement, outside of what you earn as a regular wage and salary. Instead, you put something you own to work, such as a rental property. Other examples of passive income include dividends from stock investments and royalties.

So, you still might put in some effort getting started, but not as much as your full-time job. Side hustles are one of the best ways to pad that income. You can put the extra cash flow directly towards your debt and interest, weekly necessities, or your savings.

5. Considering Investing as a Part of Your Financial Plan

Analyzing your situation and finding an acceptable amount of money to invest can help long-term. Investing can be an important part of a well-rounded financial portfolio for long-term goals such as retirement.

Investing can have the potential for a higher return on investment vs. a savings account, but the reward isn’t guaranteed. Unlike cash-based interest accounts, your portfolio balance will fluctuate with the market and isn’t covered by, say, Federal Deposit Insurance Corporation (FDIC) insurance.

Because of the risk associated with putting money into the market, some people may be hesitant to jump in, especially if they don’t fully understand how investing works. Getting a headstart on saving and investing can help you get prepared for retirement.

6. Automating Bill Pay or Automatic Savings

To avoid missing bill payments, consider autopay, or automatically withdrawing funds from your bank account or credit card to make payments. Once you set it up, you don’t have to deal with the pressure of juggling repayments. Instead, you just have to make sure there are enough funds in your account for the withdrawal.

Paying bills on time history makes up about 35% of your overall FICO® score, so enrolling in autopay could potentially have the added benefit of building your credit score.

It’s also possible to automate contributions to retirement accounts or savings accounts. This could help keep you on track for your savings goals. It allows you to pay yourself first, and getting money siphoned out of your checking account right around payday can help you steer clear of spending it.

7. Ditching the Fees

Fees charged by financial institutions can add up. Here are a few to consider avoiding:

Bank Fees

The list can include fees for account maintenance, returned deposits, foreign transactions, account minimums, replacing a lost or stolen card, making too many savings withdrawals, writing too many checks, closing an account, not using an account enough, speaking with a human, paying late, or even paying off a loan too early.

ATM Fees

At an average of $4.77 a pop, out–of-network ATM fees can add up quickly. One way to avoid paying ATM fees is to always make sure that you’re using one of your bank’s designated ATMs. However, if you’re on the road or your bank only has a few networked ATMs, that can be a challenge.

Just like bank fees, however, more and more financial institutions are offering fee-free ATM usage as part of their perks. Especially if you use an online accounts, this can add up to hundreds of dollars in savings.

Investment Fees

Paying a traditional financial advisor a percentage of your account balance to manage, monitor, and optimize your portfolio could be worth the expense, but it might not be an option that is available to everyone.

Financial advising is still a confidence-booster for the majority of investors who use it. But when advisors charge a typical fee of 0.25% to 2% a year based on your portfolio balance, your total return can be significantly impacted.

Fortunately, a growing number of competitors are offering the same types of advising service for less. Robo-advisors use algorithms to optimize portfolios, thus eliminating the overhead of live employees. Remember, though, all investments can carry risk.

8. Getting Rewarded for Spending

You also can find several ways to get rewarded for spending, such as retailer loyalty programs, coupons, or rebate apps. Cashback or reward credit cards can also be an effective way to save at your favorite store, provided you pay your statement balance in full every time it comes due.

Recommended: Savings Interest Calculator

The Takeaway

Moves like effective budgeting, opening a high-yield bank account, paying off debt, establishing a passive income stream, and investing can help you make the most of your money.

Everyone’s financial situation is different, and what works for one person may not work for another. A bit of experimenting can be helpful, as can finding the right banking partner.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

How do I have my money work for me?

You make your money work for you by keeping it in an interest-bearing savings account (these are often found at online banks). Other ideas include investing in assets that can create value and/or income, such as real estate, stocks, bonds, and so forth.

How can I make $1,000 a month passively?

There are many ways you might make $1,000 passively. Some popular options are investing, renting out real estate, peer-to-peer lending, and earning interest on one’s money.

What is the 50-30-20 rule of money?

The 50-30-20 budget rule is a popular guideline that says, of a person’s take-home pay, 50% should go to needs, 30% to wants, and 20% to savings and/or additional debt payments.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

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A common recurring bank fee is the minimum balance fee, also known as the monthly account maintenance or service fee. This fee generally kicks in if your account balance drops below a certain amount at some point during the month.

Fortunately, monthly account fees aren’t just something you have to accept. Read on to learn more about minimum balance service fees, including how to know if your bank charges them, and what you can do to avoid monthly maintenance fees entirely.

Minimum Balance Fee Definition

A minimum balance fee is a fee that many banks charge when your account balance dips below a certain dollar amount. For example, if the minimum balance required in your checking account is $500, but you only have $450, you would be charged a minimum balance fee.

These fees are often presented as account maintenance charges, with exceptions for account holders who maintain a monthly minimum balance in their account. Typically, the major national banks require you to maintain a minimum balance of around $300 to $500, although it can be more (say, $1,500), to avoid monthly service fees.

There are different types of minimum balance requirements. A bank may define a minimum balance in one of these three ways:

•   Minimum balance This typically means your account balance cannot drop below the specified amount at any time during your statement cycle or you will be charged a fee.

•   Minimum daily balance Often used for checking accounts, this means your balance can drop below the required amount at any point during the day as long as you meet the balance requirement at the end of the business day.

•   Average minimum balance Here, the bank takes the amount of money in your account at the end of each day during a statement period and divides it by the number of days during the statement period. If your average balance was below the minimum, you would get hit with a maintenance fee.

How Much Is a Typical Minimum Balance Fee?

As of mid-2025, on average, financial institutions are charging around $5 to $25 per month in maintenance fees, with interest checking accounts tending to charge more. That adds up to between $60 and $300 per year. Keep in mind, though, that this is just the average — minimum balance fees can be even higher at some banks.

Minimum balance fees are typically automatically deducted from your account.

6 Tips for How To Avoid Minimum Balance Fees

There are a number of ways to avoid getting hit with a minimum balance fee. Here are some to consider.

1. Keeping Your Account Above the Minimum Balance

Perhaps the most obvious way to avoid a minimum balance fee is to keep your account balance above the stated minimum amount. However, this might take some effort on your part.

First, you’ll need to read the fine print in your account information or contact your bank to find out what the minimum balance is and — equally important — how it’s calculated. In some cases, you may be penalized for having your savings or checking account balance dip below the minimum at any point. In others, the bank will look at the balance at the end of each day or average your daily balances for the statement period.

If it’s an account you pull from frequently (like a checking account), you’ll need to pay close attention to your balance to avoid fees. You might want to set up an alert for any time your account dips below a certain amount.

2. Linking Your Accounts

Another possible strategy is to link multiple accounts you have at the same bank. In some cases, banks will look at your combined account balance (such as your checking and your savings account balance) to determine if you’ll owe a service or maintenance fee. This may or may not be an option where you bank, so again, you’ll want to look into the details of your account.

3. Enrolling in Direct Deposit

You may be able to avoid minimum balance fees by signing up for direct deposit. This allows your employer to send your pay straight to your bank account. While the main benefit of direct deposit is the convenience, many banks provide added incentives to account holders who are paid this way, including monthly fee waivers.

Some banks will require you to receive a certain amount of money in direct deposits each month to dodge monthly fees. If so, you won’t want to distribute your income to more than one account. Rather than split your direct deposit between checking and savings, for example, you might have it all go to checking and then transfer some of that money into savings each month.

4. Using Your Debit Card More Often

Some banks will waive monthly maintenance fees for account holders who use a debit card linked to the account a certain number of times each month, often around 10 transactions. The reason is that whenever you swipe your debit card, the merchant pays your bank a transaction fee; these fees can make up for the loss of your monthly account fee.

5. Opting Into Paperless Statements

Some banks will waive monthly fees as long as you opt into e-statements. This means that instead of getting a paper statement in the mail every month, you’ll simply access it by logging into your account online (where you can view, download, or print your statements) or via your bank’s mobile app.

Recommended: Guide to How Much ATMs Charge

6. Hunting for a No-Fee Bank Account

One surefire way to get rid of minimum balance fees is to switch to a bank that doesn’t charge them. Online banks generally charge fewer fees because without brick-and-mortar branches to maintain, they have less overhead. In addition, they tend to offer higher annual percentage yields (APY), which makes it even easier to save each month.

If you’re in school, keep in mind that a number of banks offer no-fee checking accounts to college students. To open a student account, you typically need proof of student status (such as a college ID, an admittance letter, or a transcript).

Recommended: How to Make Money Fast

The Takeaway

A minimum balance fee is typically applied to certain bank accounts when the amount on deposit falls below an agreed-upon threshold. Not all accounts charge this kind of fee. It may be offered in exchange for certain perks, such as a higher interest rate. If you want to avoid account fees, you can look for a fee-free bank account.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

How do you avoid minimum balance fees?

Some ways to avoid minimum balance fees include keeping your balance above the minimum; opening both a checking and savings account at the same institution; making a certain number of debit card transactions each month; setting up direct deposit; and finding a bank with no minimum balance requirements.

Why do banks charge minimum balance fees?

Banks charge minimum balance fees for several reasons. One is that it allows the bank to have more deposits, which in turn allows them to lend more money and maintain certain regulatory reserve requirements. Minimum balance fees also help banks cover the cost of maintaining your bank account, plus earn a profit.

What is the penalty for being under the minimum account balance?

Possible penalties for having less than the required minimum in your bank account include getting hit with a fee, receiving less (or no) interest for that statement period, and having your account closed.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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