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Having money in the bank can be a very good thing, and there are multiple ways to actually get cash safely into your account. 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:

•   Direct deposit

•   Account transfer

•   External transfer

•   Wire transfer

•   Peer-to-peer transfer

•   Depositing Cash at Your Bank Branch

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.

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

Decades ago there were no money-transfer apps or platforms like PayPal, Zelle, or Venmo. Today, there are many ways to move money around with these tools, 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 (yes, they still exist) 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 let’s consider some other options:

•   Mobile deposit

•   ACH transfer

•   Prepaid cards

•   Money orders

•   Transferring from another bank

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 CVS and Western Union, among others. 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 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:

•   If you deposit a check or checks for $200 or less in person to a bank employee, you can access the full amount the next business day.

•   If you deposit checks totaling more than $200, you can access $225 the next business day, and the rest of the money the second business day.

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:

•   A certified check

•   A check from another account at your bank or credit union

•   A check from the government.

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 these days, 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 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 your 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 reflect?

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: Cash (though do be cautious), transfer, check, and 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. ©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.

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

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Money and your psyche can be deeply intertwined, and that’s where financial therapy can play a role. Financial therapy merges the emotional support of a psychotherapist with the money insights of a financial planner.

Working with a financial therapist can help clients begin to process their underlying feelings about money while optimizing behaviors related to their cash. This can minimize stress and anxiety, while honing plans for earning, spending, and saving more effectively.

Financial therapists can also assist couples in overcoming differences in their money habits and their approaches to cash management. The result? Possibly resolving and lessening money fights while building teamwork.

Read on to learn if this kind of professional counseling could help you, and, if that’s the case, what to expect from financial therapy and where to find a qualified professional.

What Is Financial Therapy?

A basic financial therapy definition is that it’s a practice that combines behavioral therapy with financial coaching. The goal is to help improve an individual’s feelings and behavior around money.

A certified financial therapist (or financial psychologist) can assist with issues such as money stress, overspending, or concerns about debt. But this differs from, say, a financial advisor who is helping you maximize your gain on investments or plan for your child’s future college expenses.

It also differs from financial coaching, which helps establish good money habits. Financial therapy can go deeper psychologically speaking. It can help a person work through childhood trauma related to money as well as money-related disorders.

How Financial Therapy Works

According to the Financial Therapy Association (FTA) , financial therapy is a process informed by both therapeutic and financial expertise that helps people think, feel, and behave differently with money to improve overall well-being.

The profession sprang out of increasing evidence that money can be intrinsically tied to our hopes, frustrations, and fears, and also have a significant impact on our mental health.

What’s more, money can also have a major impact on our relationships. Indeed, research has shown that fighting about money is one of the top causes of conflict among couples.

And, while it might seem like bad habits and money arguments are things you can simply resolve on your own, the reality is that it’s often not that simple. That’s where financial therapy can help.

•   Many financial roadblocks, such as chronic overspending or constantly worrying about money, often aren’t exclusively financial. In many cases, psychological, relational, and behavioral issues are also at play.

•   Financial therapy can help patients recognize problematic behaviors, such as compulsive or impulsive shopping. It also aims to help people understand how various relationships and experiences may have led them to develop those behaviors as coping mechanisms or to form unrealistic or unhealthy beliefs.

•   Along with offering practical financial advice, a financial therapist can reduce the feelings of shame, anxiety, and fear related to money. It can help people who are struggling to recommit to money goals.

The reasons why financial therapy can help are the same as why traditional psychological therapy can help: It can lead people to understand that they can do something to improve their situation. That, in turn, can instigate changes and healthier behaviors.

Like conventional therapy, the number of sessions needed will vary, depending on the situation. A financial therapy relationship can last from a few months to longer.

Generally, a financial therapist’s work is “done” when you feel your finances are orderly and you have the skills to keep them that way in the future.

Recommended: Tips for Recovering from Money Addiction

Financial Therapists vs. Financial Advisors

Financial advisors are professionals who help manage your money.

They are typically well-informed about their clients’ specific situations and can help with any number of money-related tasks, such as managing investments, brokering the purchase of stocks and funds, or creating a retirement plan.

However, psychological therapy is not why financial advisors are hired, nor is it their area of expertise.

If a person requires real emotional support or needs help breaking bad money habits, a licensed mental health professional, such as a financial therapist, should likely be involved.

A certified financial therapist (someone trained by the FTA) can work with you specifically on the emotional aspects of your relationship with money and provide support that gets to the root of deeper issues.

Due to the interdisciplinary nature of financial therapy, professionals who enroll in FTA education and certification include psychologists, marriage and family therapists, social workers, financial planners, accountants, counselors, and coaches. Some experts recommend being sure that the professional you work with is first and foremost a licensed therapist with a deep understanding of psychology.

Financial Therapy vs. Other Therapy

If you are having issues related to money (say, losing sleep due to anxiety or arguing with your partner about spending), you might think almost any mental health professional could help.

A financial therapist, however, can be your best bet in this situation. These professionals have special training and expertise related to how money can impact a person’s emotional wellness.

They also are also trained in techniques to help clients overcome issues related to money. In other words, they are laser-focused on the kind of emotional responses and problematic habits that crop up around money.

Do You Need a Financial Therapist?

If you’re considering whether a financial therapist could help you, you may want to think about your general relationship to money.

If you feel you have anxiety about money, or unhealthy behaviors and feelings when it comes to spending, budgeting, saving, or investing, you might benefit from exploring financial therapy.

Often, unhealthy saving, spending, or working habits are a symptom of other negative habits related to mental health (feelings of low self-worth, for instance).

Keep in mind that it’s possible to have an unhealthy relationship with money even if your finances are good on paper.

Top 4 Reasons People Seek Financial Therapists

Here’s a more specific look at why a person might benefit from financial therapy.

1. Avoiding Money Management

Some people hide from their finances. They don’t budget, don’t know exactly how much they earn, pay bills late (or not at all). Working with a financial therapist could expose the root of this behavior and improve financial management.

2. Money Stress

Many people have anxiety around their money. This could involve worrying about how they will pay off their debt to worrying about going bankrupt, even though they are earning a good salary. Others may feel guilty about spending money or carry a lot of trauma about money from their childhood. A financial therapist can work to explore and resolve these emotions.

3. Fighting About Finances

If you often argue with your partner, friends, or other loved ones about money, you might find that a financial therapist can help you defuse this source of tension. It can help couples deal with what’s known as financial infidelity.

4. Poor Money Habits

Do you tend to “shop til you drop” when bored? Have you spent or gambled away your emergency fund? Do you overwork yourself in an effort to accumulate wealth? Do you tend to hop from one “get rich quick” scheme to another? A financial therapist could help you break these habits and develop new, beneficial ones.

These are some of the scenarios that a financial therapist could help you with.

Finding a Financial Therapist

Like choosing any therapist, you often need to shop around a bit to find the right fit—someone you feel you can relate to, trust, and you also feel understands you.

For those who may not have access to a financial therapy professional in their backyard, many offer services via video conferencing.

You can start your search with the Find A Financial Therapist tool on the FTA website, which features members and lists their credentials and specialties.

Your accountant or financial counselor might also be a good source of referrals.

As with choosing any other financial expert or mental health professional, it’s a good idea to speak with a few potential candidates. In your initial conversations with candidates, you may want to discuss the therapist’s training and specific area of expertise, as well as your needs and situation. This can help you assess how good a match they are.

It can also be a good idea to ask how long they have been providing financial therapy services, what their fees are, as well as if some or all of the fee may be covered by your medical insurance.

The Takeaway

Financial therapy merges financial with emotional support to help people deal with and improve stress, decision-making, and habit-forming related to money.

If you frequently feel stressed and/or overwhelmed when you think about money (or you simply avoid thinking about money as much as possible), you might be able to benefit from at least a few sessions of financial therapy.

While it might seem like hiring a financial therapist is another expense that could complicate an already difficult financial situation, it might be better to view it as an investment in your emotional and financial wellness, one that could help you build financial stability and wealth in the future. It can be an important facet of your overall money management.

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.

What does a financial therapist do?

A financial therapist combines expertise in psychology and finances to help people improve their attitudes toward money and their habits relating to money. They can help individuals manage such issues as money anxiety, overspending, and financial infidelity.

Is financial therapy the same as financial planning?

Financial therapy and financial planning are not the same thing. Financial therapy can help a person improve their attitude toward money and their behaviors related to money. Financial planning is focused on budgeting, debt management, and growth of wealth.

Can therapy help with finances?

Therapy can help with finances. You might have stress related to money due to childhood trauma centered on finances. Or you might be compulsively overspending or ignoring your money due to emotions about such matters. Financial therapy could help you work through these and other issues.

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

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

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

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

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

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

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

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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It doesn’t matter whether you’re the student or the parents wading through college application and tuition figures: Going to college is a huge life decision, almost always synonymous with huge sticker shock.

According to U.S. News & World Report, the average cost for tuition and fees to attend a private college for the 2022-2023 academic year was $39,723. The price tag for a public college was $10,423 as an in-state student and $22,953 as an out-of-state student. Tuition, it should be noted, does not include room and board and other living expenses.

Fortunately, there are financial aid systems in place for college students to help offset the high costs. Here’s what you need to know about college financial aid, including how it works, the different types of financial aid, and how to apply.

What Is Financial Aid?

Broadly speaking, the term “financial aid” refers to any funding that doesn’t come from the student’s (or their family’s) savings. It can be heartening to know that schools typically don’t expect enrollees to cover college costs from their savings and income alone. According to the 2023 Sallie Mae survey How America Pays for College, the typical family covered 29% of college costs with scholarships and grants.

Financial aid is available from a variety of sources, including federal and state agencies, colleges, high schools, community organizations, foundations, and corporations. It can be awarded in the form of loans, grants, scholarships, and work-study programs. The type of aid determines whether it will have to be repaid or not: federal grants don’t need to be repaid, for example, but a loan will.

You can generally use financial aid to cover a range of college-related costs, including tuition and fees, room and board, books/supplies, and transportation.


💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Federal Student Aid

To apply for federal financial aid, you simply need to fill out the Free Application for Federal Student Aid (FAFSA). This form is required in order to be considered for federal aid as well as for most college and state assistance. (Some private colleges use a supplemental form called the College Scholarship Service Profile, or CSS, which is more detailed and can be more time-consuming to complete.)

The FAFSA form is known for being cumbersome, but the U.S. Department of Education is rolling out a new simplified FAFSA for the 2024-2025 academic year. It will be available in December 2023, a delay from the usual October 1 release.

There’s a run-down of the deadlines here, but the key one for the 2023-2024 academic year, for example, is June 30, 2024 to submit your FAFSA; the window for corrections or updates is by 11:59 p.m. Central Time, September 14, 2024. Note that each state and college may have its own deadlines on top of that.

The Federal Student Aid office advises filling out the FAFSA as soon as possible after it becomes available, even if you’re unsure whether or not you will qualify for any financial aid.

Some states award aid on a first come basis, so submitting a FAFSA application early could be helpful. A FAFSA application is also a pre-requirement to be considered for federal grants like the Pell Grant, which is “usually awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor’s, graduate, or professional degree.”

The FAFSA is also required to be considered for the federal work-study program, which provides part-time jobs to help pay for education expenses. Such programs usually encourage community service work and work related to the expected course of study. Here’s studentaid.gov’s official site tackling the FAQs of these highly variable programs.

State-Based Student Aid

Depending on where you live or choose to go to school, you’ll likely also have access to aid at the state level. Virtually every state education agency has at least one grant or scholarship available to residents, and many states have a long list of available student aid programs.

While eligibility for state-based financial aid is usually restricted to state residents attending a college in-state, that’s not always the case. SoFi has a state-by-state breakdown of grants and scholarships available for college students.

Some schools may also offer state-based aid or discounts.

Merit- vs Need-Based Financial Aid

Financial aid can generally be broken down into two types — need-based aid and merit-based aid.

Some federal aid is need-based — like the Pell Grant and Direct Subsidized Loans (more on this loan type below) — meaning eligibility is based solely on the assets and income of the prospective student and their family. Factors like test scores or athletic ability, for example, have no bearing here.

The opposite is true for merit-based scholarships, which are based on a student’s talents and interests, whether they are artistic, academic, or athletic. A student’s financial situation is not considered here.

To learn about both merit- and need-based aid programs that may be a good fit for you, it’s a good idea to talk to your high school guidance counselor, as well as the financial aid office at your selected school.

You’ll be automatically considered for many need-based aid programs just by filling out the FAFSA. However, you may also want to search for private scholarships (which can be merit- or need-based) online. While these awards tend to be small, you may be able to combine several scholarships, which could make a dent in your expenses.

Recommended: What Is a Scholarship & How to Get One?

Federal Student Loans

Most students’ federal financial aid packages include federal student loans, which are awarded based on financial need and the cost of attending college. These include Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

The advantages of federal student loans include low, fixed interest rates, no credit checks required to borrow them, unique borrower protections (like forbearance and deferment), and repayment plans based on income and/or your commitment to eligible public service work post-graduation.

With Direct Subsidized Loans, the government pays the interest while the student is attending school at least half-time. That’s what the “subsidized” means here. These loans are awarded based on financial need.

Direct Unsubsidized Loans, on the other hand, are awarded regardless of financial need. However, you are responsible for paying the interest on these loans from the moment you get them, though you can defer making any payments until six months after you graduate. While you are in school, the interest will accumulate and get added to your loan balance.

Direct PLUS Loans are also unsubsidized, and are awarded to either eligible graduate students or parents of undergraduate students and require a credit check to ensure there’s no “adverse credit history.” In short, that means they can be more difficult to qualify for as compared to Direct Unsubsidized Loans.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Private Student Loans

If your federal student aid package and other forms of funding don’t quite cover your cost of attending college, there are also private student loans to consider.

Private student loans are offered by banks, credit unions, and online lenders. The interest rates may be fixed or variable, and are set by the lender. Unlike federal student loans, private student loans require a credit check. Students who have excellent credit (or who have cosigners who do) tend to qualify for the lowest rates.

An advantage of private student loans is that you may be able to borrow up to 100% of the cost of college tuition and living expenses. However, private loans don’t always offer the same protections, such as income-driven repayment plans, that come with federal loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

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When companies reduce the dividends they pay investors, or stop paying them altogether, it can mean different things. Sometimes it’s a result of lower earnings or a shortage of available cash. Other times, a company is uncertain about the future, and wants to keep cash on hand to protect it against unforeseen risks or seize unexpected opportunities.

And sometimes, it’s because the company’s leadership thinks they can offer shareholders more value by investing the cash currently earmarked for dividends back into the business itself.

A Look At How Dividends Work

The reason that a company will offer a dividend in the first place is to reward shareholders. In some cases, companies pay dividends only to preferred stock shareholders, or pay a higher rate to certain classes of shareholders than others.

Most companies offer the regular cash payouts because management believes that paying a dividend is a better use of that capital than any strategic growth opportunities the company would otherwise invest in.

Companies that offer dividends are usually established businesses in mature industries, such as healthcare or utilities. They typically pay out their dividends on a regular schedule, annually, semi-annually, or even monthly.

Investors often rely on dividends, either as part of their investing strategy, or as a source of income. Dividend-paying stocks are especially popular among retirees, who use the income to help cover living expenses. Companies suspending dividends run the risk of alienating a sizable portion of their shareholders.

It’s important for investors to understand why a company in their portfolio has cut its dividend, and to use that information to determine whether that stock still makes sense for their broader investing strategy or whether it might be time to sell the stock. Sometimes when a company cuts its dividend, its stock price will also fall.


💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.

Examples of Dividend Cuts

History has provided many examples of companies that reduced, suspended or eliminated their dividends. We’ll start with a recent example, and cite several others from the past few years.

Intel — Dividend Reduction

In early 2023, Intel announced that it was cutting its quarterly dividend by almost two-thirds. That put the company’s dividends at their lowest levels since before the financial crisis in 2007. Intel’s leadership cited slowing business growth and an attempt to reallocate capital as the primary reasons for the dividend reduction.

Meredith Corp. — Dividend Suspension

In April of 2020, media company Meredith Corp, suspended its dividend payments. The move came just over two months after it had announced a dividend hike. The company eliminated its dividend amid widespread reductions in expenditures, including salary cuts after it had seen significant advertising cancellations and delays.

Antero Midstream — Dividend Reduction

In February of 2021, Antero Midstream reduced its dividend by 27%. The company, which builds and operates pipelines, storage facilities and other infrastructure for natural gas, and water handling and treatment, cut the dividend in order to grow.

By cutting its annual dividend from $1.23 a share to just 90 cents, Antero Midstream was able to free up an estimated $65 million to invest in new infrastructure. Unlike some other companies who eliminate or trim their dividend because of business reversals, Antero made the move in response to promising signals about growth opportunities. Even with the cut, the company maintained a 10.3% dividend.

Estee Lauder — Dividend Suspension and Reinstatement

Also in 2020, Estee Lauder announced it would suspend its dividend payments. At the time, the cosmetics giant paid an annual dividend of $1.92. The company projected that as fewer people went out socially during the pandemic at the time, they’d spend less on makeup — a projection proven correct. At the time, the company also announced other spending cuts, suspending stock buybacks and cutting executive pay by as much as 30%.

But as shops, restaurants, and bars began reopening in the first quarter of 2021, makeup sales also rose. As Estee Lauder benefited from higher sales it responded by reinstating its quarterly dividend. In May of 2021, it announced a quarterly dividend of 53 cents per share.

Healthpeak Properties — Dividend Reduction

Healthpeak Properties, a real estate investment trust (REIT) focused on properties related to life sciences, medical offices and senior housing, cut its quarterly dividend payment in February of 2021 from 37 cents per share to 30 cents per share.

At the time, Healthpeak had $1.6 billion in free cash flow. But it had concerns about the future, given the potential of recent pandemic-related mortalities to drive down demand for senior housing. Its net income in 2020, at $413.6 million, was already much lower than the $787 million it had made in dividend payouts in 2020. The dividend reduction freed up an estimated $150 million in cash flow for Healthpeak, which the company intended to use to transition its holdings away from senior housing.

National CineMedia — Dividend Reduction

During the pandemic, people stopped going to the movies. That had a major impact on theater chains, but also on companies like National CineMedia, which sells pre-screening advertising at theaters across the United States.

That’s why the company cut its quarterly dividend from seven cents to five cents per quarter in early March of 2021. At the time of the cut, the company was in solid financial shape, with enough cash to cover its expenses. But even with ample cash, the company trimmed its dividend amid concerns about how long it will take for theaters to return to pre-pandemic normals.

The Walt Disney Company — Dividend Suspension

In May of 2020, The Walt Disney Company announced it would suspend its dividend payments due to the impact of the coronavirus on its theme parks.

The dividend suspension occurred as the company’s earnings had plummeted due to the pandemic. By eliminating its semi-annual dividend, which it had kept at 88 cents a share since 2018, the company saved $1.6 billion of much-needed cash to preserve liquidity.

While Disney has not announced plans to reinstate its dividend, the company’s entry into the video-streaming business with its Disney+ service has many investors looking at the stock as less of an income investment, and more as a long-term growth play.


💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.

The Takeaway

Companies cut their dividends for many reasons, using the move as a way to preserve cash for future investments or during uncertain times. While investing in dividend stocks can be a smart way to generate income or increase returns on a portfolio, it’s important for investors to understand that dividends are not guaranteed in perpetuity and to consider changes in a company’s dividend payout as one factor in analyzing the value of that stock.

If you want to make dividends an important component in your investing strategy, you’ll need to do a good amount of research. There’s also some luck involved — you never know what might inspire companies to cut dividends.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

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