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A trust can simplify the transfer of what is often a person’s most valuable asset: their real estate. It can keep a home out of the probate process and allow it to become the property of loved ones or a charity upon the homeowner’s death.
For many households, home equity represents their largest financial asset, and it has burgeoned. U.S. homeowners with mortgages saw their equity increase by $281.9 billion at the end of 2024 compared with a year before, according to CoreLogic, a provider of property insights.

Here, a closer look at protecting assets by putting a house into a trust.

Why Put a House in a Trust?

There are two main reasons: avoiding the probate process and protecting your property if you become incapacitated.

Put simply, probate is a court review of a deceased person’s will and assets. This involves resolving any claims against the estate, paying remaining debts, and distributing the decedent’s assets to their designated heirs.

Probate can be a lengthy and costly process. In the absence of a will, the probate court divides the estate according to the state’s succession laws. These proceedings often require hearings and a variety of legal and court fees, which can significantly chip away at the estate before it reaches the heirs.

Even with a will in place, probate is often necessary for your heirs to have the right to carry out your will. Things can become further complicated if the estate includes property in multiple states or the will is contested.

Putting property in trust can avoid probate altogether. A trust designates a successor trustee to manage the estate, as well as beneficiaries to receive assets, after your death. The trust can include clear instructions and conditions for allocating assets. This can help reduce the time and cost to pass your home to your heirs.

It’s also worth noting that trusts can safeguard assets if you become incapacitated and are unable to care for yourself. A trust can be created to take effect in this situation, thus allowing a family member or loved one to manage your estate and assets in your best interests. If you recover, you can resume the role of trustee for the estate.

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Do You Need a Trust If You Have a Will?

Only one in four U.S. adults has a will, according to one recent report. And even if you have created one, you may wonder whether you are handling your assets properly. For instance, you may ask yourself, “Should I put my house in a trust?” The answer will depend on your own financial goals and the needs of your heirs.

Whom you intend to inherit your house is an important factor to consider. Federal estate and gift tax law permits the transfer of a house and other wealth to a spouse without tax liabilities. However, passing on a house to children or relatives of a subsequent generation can be more complex.

A trust goes into effect once you sign it and is generally more difficult to challenge than a will. Placing a house in a trust also avoids the probate process — it’s not uncommon for the courts to take months or a year to settle a will, especially for larger estates.

Wills and trusts can be complementary tools for estate planning. For instance, a will can take care of smaller assets like family heirlooms that aren’t covered by the trust. Also, wills can be structured to move assets into a trust when you die.

Types of Trusts for Estate Planning

There are multiple options available for putting your house in a trust. It’s important to consider financial goals, your beneficiaries’ needs, and creditor concerns when creating a trust.

Here’s an overview of common types of trusts, including how they work for passing on a house or other property. The basic kinds are revocable and irrevocable and they are typically part of an estate planning checklist.

Revocable Trust

Also known as a living trust, a revocable trust gives grantors more control in the management of their assets while alive. They’re still responsible for tax payments and reporting on investment returns.

If desired, a grantor can make changes or dissolve a revocable trust after it’s created. Getting remarried or buying a home could be possible reasons for altering a revocable trust.

Usually, the grantor (establisher) serves as the trustee (manager for beneficiaries), and a named successor only takes control if that person dies or becomes incapacitated.

A revocable trust becomes irrevocable upon the grantor’s death. A revocable trust does not protect a house and other assets from creditors while the grantor is alive.

Irrevocable Trust

An irrevocable trust differs in that it can’t be modified by the grantor without the approval of all beneficiaries. You effectively give up control and ownership of any assets placed in an irrevocable trust.

So why put your house in a trust with such rigid conditions? Irrevocable trusts can offer greater security for beneficiaries and render assets untouchable to creditors. Plus, you’re not subject to estate taxes because the assets are no longer yours.

Before permanently forfeiting assets to an irrevocable trust, it could be beneficial to consult a lawyer or find a financial planner.

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Other Types of Trusts

Aside from the two broad categories of trusts, there are more specialized options to address specific needs. Here are some additional types of trusts to consider.

• Charitable Trust: This type of trust transfers assets to a designated nonprofit organization or charity upon the grantor’s death. A charitable trust can be housed within a standard trust to allocate a portion of assets to a nonprofit while leaving the rest for family members or other heirs.

• Testamentary Trust: A trust can be created within a will, often for minors, with defined terms that take effect after your death. This is a type of revocable trust, as changes can be made up until death. It’s worth noting that a testamentary trust does not avoid probate court. The executor will probate the will and then create the trust.

• Generation-Skipping Trust: Instead of passing on a house to your children, you can use a generation-skipping trust to transfer assets to your grandchildren. This is more common for estates that exceed the federal estate tax threshold ($13.99 million in 2025) to avoid some estate tax payments down the line.

• Spendthrift Trust: If you’re concerned about how your beneficiaries will manage their inheritance, you can use a spendthrift trust to set stricter terms. For example, you could define a date or age when beneficiaries gain access to certain assets.

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Should I Put My House in a Trust?

It’s important to understand the implications of having a house in trust before making a binding decision. Here, the main advantages and drawbacks.

Benefits of a Trust

Bypassing the hassle, delays, and costs associated with probate is a leading reason for using a trust.

Probate expenses can vary by location and the size of the estate but traditionally include legal fees, executor fees, appraisal fees, and other administrative costs. While probate costs will vary depending on the size of the estate and the state you live in, they can often be 3% to 7% of the estate or more.

You may also want to avoid probate to keep the details of your estate private. Probate is a public process that can reveal your estate’s worth and chosen beneficiaries.

Trusts are also useful tools for providing a financial safety net for children in the unexpected event that both parents die. A trustee manages the assets on behalf of any minor beneficiaries. Terms can be set to transfer control of assets held in the trust to children when they reach a certain age.

Putting certain assets in a trust could help some seniors qualify for Medicaid. If you’re 65 or older, your home and furnishings are usually exempt from the asset limit to qualify, but the threshold is low: around $2,000 in most states.

Disadvantages of a Trust

Setting up a trust can be complex. There are usually more costs in creating a trust than a will.

With a revocable trust, you need to track income from assets held in the trust to report on your personal tax returns. If you designate a third-party trustee to manage the trust, maintenance costs could add up over time.

And if you put just your home in a trust, your other assets will still be subject to the probate process.

When a house is the only large asset, buying a house from a family member is a possible alternative. Though this can be contentious among relatives, it’s another option to pass on a valuable asset to the family while providing some financial security.

The Takeaway

Estate planning isn’t always easy. Putting your house in a trust is one strategy to reduce the time and costs associated with inheritance. Probate costs can eat up 3% to 7% of an estate, and putting assets into a trust can help avoid that. Even if you put a house in a trust, however, you are still liable for any mortgage payments due, which you may be able to lower via refinancing.

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FAQ

What are the disadvantages to putting your house in a trust?

There are some disadvantages to putting your home in a trust. Getting the trust set up and making sure it is being properly maintained can be expensive and complicated. With a trust, you will lose some control over your home, even with a revocable trust, but especially with an irrevocable one. And putting your home in a trust won’t prevent the rest of your estate from going through probate.

Can I put my house in a trust if it’s not paid off?

Yes, you can put your house in a trust even if you still have a balance on the mortgage. However, there is a specific process you’ll need to follow, and you will probably need to get permission from your lender. Your mortgage may have a “due on sale” clause, which means that the lender will ask you for full payment when you transfer the house’s title, so working with your lender may also help you avoid that. After that, you’ll have to transfer the title of the home to the trust and figure out how to manage insurance and any other liabilities.

Why do people put their house in a trust?

Often, people put their house in a trust to avoid the time and expense of having the home go through probate after their death. A trust can also help ensure continuity of the management of your house if you become incapacitated since your successor trustee would take over the management as needed.

Photo credit: iStock/BrianAJackson

SOHL-Q225-174

Personal loans are typically not considered to be income and are therefore not taxed by the Internal Revenue Service, or IRS.

Personal loans can be a useful, flexible source of a lump sum of cash to put towards everything from a major medical bill to a home renovation project to a summer vacation. But you may wonder whether that cash infusion is considered income and therefore subject to taxes.

Fortunately, a personal loan is usually not considered income, though there are some exceptions that could impact borrowers during tax season. Here’s a closer look.

Does a Personal Loan Count as Income?

If you take out a personal loan, you may treat the funds the same as you would your paycheck. But as far as the IRS is concerned, any kind of formal loan from a bank or lender with terms that require repayment is considered a debt and is therefore typically not considered income. This distinction is important because it means you may not have to pay taxes on money you receive from a personal loan.

However, there may be tax implications on informal loans from friends and family. For instance, loans above a certain amount must charge interest, which could potentially trigger some tax consequences. Before you enter into any agreement with a loved one, it’s a smart move to consult with an accountant.

Recommended: How to Pay Less Taxes: 9 Simple Steps

When Is a Personal Loan Considered Income?

While personal loans are generally not considered income and therefore taxable, there are exceptions that borrowers should know about.

If you take out a personal loan and then some or all of the loan debt is forgiven, the amount forgiven could be considered income. It might seem odd for canceled debt to be considered income, but think about it like this: Say you made an extra $5,000 from work and used it to pay off your personal loan. That $5,000 would be considered income, and your loan would be paid off.

However, if you made no extra money but your $5,000 loan was canceled, then you would be in the same financial position in the end. So the IRS considers that forgiven loan debt taxable income.

Once a formal debt is forgiven or canceled, you should receive a Form 1099-C from the lender. According to the IRS, the amount of the canceled debt is taxable and must be reported on your tax return for the year.

There are some exceptions, such as certain qualifying student loan cancellations or personal loans canceled as part of bankruptcy hearings. And that’s where professional tax guidance might come in handy. Another important point to know is that the interest on personal loans is generally not tax-deductible.

What Exactly Is a Personal Loan?

As you’re exploring your options, it helps to understand what a personal loan is and how it works. A personal loan is one of many types of loans offered by banks, credit unions, and online lenders. Personal loans typically range from $1,000 to $100,000, depending on the lender. There are both secured and unsecured personal loans. A secured personal loan means there is some sort of collateral to back the loan.

With an unsecured loan, there is no collateral. Generally, personal loans are unsecured. The terms of the loan—including things like interest rates, origination fees, and repayment schedules—are typically based on an applicant’s financial history, income, debt, and credit score. Because these types of loans aren’t tied to an asset, their interest rates can be higher than secured personal loans but are usually lower than credit cards or payday loans.

Exact eligibility requirements will vary by lender. The loans are then typically paid back with interest in monthly payments over a set schedule; typical repayment terms are extended over anywhere from 12 to 84 months.

Unlike a business loan or a home loan, the uses of an unsecured personal loan include a range of personal expenses, from home renovations to medical bills to consolidating credit card debt.

Applying for a Personal Loan

If you’re thinking about a personal loan, consider starting with this checklist:

•   Determine how much money you need.

•   Explore all your financial options.

•   Research various loans and lenders.

•   Choose the type of loan you want.

•   Compare interest rates.

If you decide a personal loan is right for you, the application process is relatively straightforward. You may be asked to submit paperwork, like a photo ID, proof of address, and proof of employment or income. Many lenders offer applicants the option to see if they prequalify for a loan, which can give them an idea of the rates and terms available to them.

If you’re planning to use a personal loan to pay off existing debt, you could also use a personal loan calculator to compare payments and rates to see if an unsecured personal loan could potentially help you save money.

Recommended: Preapproval vs. Prequalify: What’s the Difference?

The Takeaway

A personal loan can provide borrowers with funds for a variety of purposes. Generally speaking, the money isn’t taxable or considered to be income. However, there are some exceptions. For instance, if you take out a personal loan, and some or all of the balance is forgiven, the canceled debt could be considered income.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Do I report a personal loan as income on taxes?

No, a personal loan usually isn’t considered income as it is a loan that you repay with interest. Even if you receive the funds as a lump sum, it is still debt that you are repaying. However, if your loan is forgiven, you may owe taxes.

Is a personal loan tax-free?

Yes, personal loans are typically tax-free. They are not a form of income but a kind of debt that you repay with interest.

Does a loan from a family member count as income on taxes?

As long as it is properly structured and treated as a loan vs. a gift, a loan from a family member does not count as taxable income.

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

SOPL-Q225-070

Whether you’re refreshing a single room or outfitting an entirely new home, furnishing a space can be an exciting creative process. It’s the chance to bring your vision to life, curate your style, and find pieces that truly reflect who you are.

But let’s be real: furniture can be pricey these days. The good news? Affordable doesn’t have to mean cheap-looking. With the right strategies, you can score stylish, quality pieces without draining your wallet — or settling for the dreaded “first apartment” look.

Here are 25 savvy tips to help you furnish your space for less — and sometimes even for free.

25 Tips on How to Get Cheap Furniture

Scoring great furnishings on a tight budget takes some planning, and also knowing where to buy affordable furniture. These ideas can help you create a great space without spending a lot.

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1. Taking Stock of What You Already Have

Before going out to buy new stuff, you may want to do a walk-through of your space and make a list of what you already have. You can label each item “keep,” “donate/sell” or “toss,” so you know exactly what you need.

2. Taking Stock of Mom’s Basement Too

Do you have family members who may be harboring some perfectly good but no-longer-needed furniture? Consider scoping out their basements, attics, and garages for some free treasures.

3. Making a Wishlist

It’s okay to dream a little. In fact, a good way to start furnishing a new home is to go to your favorite furniture store’s site and fill your cart without considering price. You can then cull down your list to essentials, and start looking for those pieces (or something similar) for a cheaper price tag.

4. Renting Furniture

If your furniture budget is super tight, you may want to consider renting furniture from a company like CORT rather than buying everything you need. Renting can also be a good option if you’re only going to be in your current home for a short time.

5. Timing Your Purchases Right

Knowing when to make big purchases can help you get some steep furniture discounts. Furniture stores tend to get new inventory at the end of winter and end of summer. To make room for newer items, they will often run good sales in January/February and July/August.

When it comes to furnishing your porch or patio, the right time to buy furniture is typically the end of summer and early fall, when retailers are trying to clear out any leftover inventory.

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6. Checking Out Freecycle

Cheap is great, but free can be even better. Consider going to a reuse/recycle site like Freecycle.org to see what people in your area may be looking to get rid of. Keep in mind that good items often go fast.

7. Curbing Impulse Buys

It’s easy to fall madly in love with a cool sectional sofa and give in to an impulse buying that can leave you with major debt. Before you pull the trigger on a pricey new piece of furniture, you may want to press pause. By giving yourself a week or so to really consider the purchase, you may realize you don’t actually need it. Or you may be able to scout out a cheaper but equally good option.

Recommended: How to Combat Impulsive Spending

8. Mixing High and Low

Here’s another way to buy furniture cheap: You can often get a high-end look by splurging on one or two classic investment pieces and then going with cheaper, trendier accent pieces and accessories.

9. Putting the Word Out on Social Media

You may want to use social media to let people in your network know that you are on the hunt for furniture. You can even specify what you’re looking for (dining table, a chaise for the yard) and what you’re willing to offer (or barter) in return. You may be surprised at the response you get.

10. Selling Stuff You Don’t Need

To bolster your furniture budget, consider selling pieces that no longer work for your space. If you have a lot to get rid of, you might host a garage sale. For just a few items, you can list them on a resale site like Craigslist, OfferUp, or Facebook Marketplace and see how much you can score.

11. Doing a Furniture Image Search

If you see a piece you love but it doesn’t fit your budget, download a photo of the item and then go to Google Images. If you click on the “Search By Image” button (the camera icon) and upload the photo, you can search for similar items. You might find the item’s twin at a better price.

12. Searching Craigslist

Craigslist may be an oldie, but it can still be a goodie when it comes to finding affordable furniture. You can head to the site (which hasn’t changed much over the years), click the furniture tab, and search the possibilities.

13. Thinking Beyond Furniture Stores

Mass market retailers like Target, Walmart, and Home Depot actually have large furniture departments. You may be able to find stylish pieces at good prices, along with free delivery.

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14. Searching Amazon Warehouse

How else to buy furniture cheap? Check out Amazon Resale, a corner of Amazon’s main site that is dedicated to selling used, pre-owned, and open-box products (often things that were returned unused or close to it). You can click on the furniture tab and either search for your needs or just see what’s available.

15. Hitting the Yard Sales

You can spend a Saturday or Sunday morning driving around town looking for treasures. Or you can check out yard sale listings online, then map out a route that hits the yards or stoops with the most potential.

16. Asking About the Floor Model

If there’s a piece in a store you absolutely love but it’s a bit out of budget, you can always ask the manager if they will sell you the floor model for a discount.

Recommended: The Secret to Never Paying Full Price

17. Combing Flea Markets

It can take a little time and effort, but you can often find great, affordable treasures at flea markets. Sometimes a little DIY is all it takes to transform something past its prime into the perfect thing for your place.

18. Browsing Antique Stores

In the winter months, you can often get the flea market experience by combing through antique stores or, even better, antique malls that have multiple booths housed indoors.

19. Checking Online Resale Marketplaces

Sites like OfferUp and Facebook Marketplace (where you may have listed items to sell) can also be a great resource for finding what you need. You can even do a search for a specific item you saw in store to see if anyone is offloading that same piece.

20. Thrifting Furniture

Large thrift store chains like Goodwill and Salvation Army typically get lots of donated items every day and can be a great place to find your next book shelf or coffee table. Local thrift shops can be worth checking out too.

21. Checking Out Salvage Stores

One of the most widely known salvage stores, Habitat ReStore, has locations throughout the country and often sells new and used furnishings, as well as appliances, for far less than retail. Bonus: They are helping to divert those goods from the waste stream.

22. Going Cheap on Art and Accessories

Once you’ve made your big item purchases, it’s time to think small (and cheap) with accent pillows, throws, artwork, and other decorative accessories. These items don’t need to cost a lot to add serious personal style to a space. You may fall for a $150 throw pillow but, odds are, you could find a super cute one for a fraction of the cost.

23. Stopping by Estate Sales

You can often find beautiful, high-quality pieces of furniture, as well as artwork, at estate sales for a fraction of what you’d pay at a store. You can find estate sale listings in your area on Craigslist as well as Estatesale.com and Estatesales.net.

24. Haggling Over the Price

No matter where you are shopping for furniture, it can be worth trying to bargain the price down a bit. You can ask a seller if the listed price is as low as they can go, if they will offer a discount for buying multiple items, or if there is any wiggle room on the delivery fee.

25. Checking In With Neighbors

You can use Nextdoor, the neighborhood online hub, to let neighbors know what you are looking for and also scroll through the site’s “For Sale and Free” listings to see what your neighbors are selling or giving away.

What Contributes to High or Low Furniture Prices?

Here are some factors that contribute to whether a piece of furniture has a high or low price:

•   Production: Mass-produced pieces are likely to be less expensive than a piece that is made in smaller batches or handcrafted by an artisan.

•   Supply and demand: An item that is popular is likely to be pricier than something that has fallen out of favor.

•   Materials: A solid wood piece, for example, is probably going to cost more than a similar item made of particleboard.

•   Supply chain: If a manufacturer is using, say, a material that is scarce due to supply chain issues, they may have to pay more to obtain it. Those additional charges could be passed along to the consumer.

•   Source: Depending on trade conditions, labor, shipping, and other factors, there could be a price discrepancy based on whether the item was manufactured in the U.S. or elsewhere.

What to Look Out for in Secondhand Furniture

Secondhand furniture can be a great resource when you are buying furniture on a budget. Btw, you can even shop for used furniture online at sites like AptDeco and Kaiyo.

Here, some buying furniture tips when you’re hunting for preloved treasures:

•   Just say no to used mattresses: They can be a repository of stains, smells, dust mites, bedbugs, and more.

•   Inspect for structural damage: Cracks, duct tape, and evidence of past repairs can spell trouble.

•   Avoid upholstered furniture with an odor: Whether mildew, smoke, or pet smells, these smells can be very hard to eliminate.

•   Be wary of painted pieces that might have lead paint: This could include items that were made before 1978, when laws were passed banning lead paint. Crackly, “alligator skin” painted surfaces can indicate lead paint. Also, if you rub your hand over the surface and get a chalky residue, it might be lead.

•   Check for signs of mold: It can look like a patch of dirt that won’t rub away. That’s another health issue you don’t want to deal with.

With these warnings in mind, you could get a real deal by buying secondhand, especially if you use your imagination. Often, with the addition of a coat of paint and new hardware or a slipcover, tired pieces can turn into treasures. Look online for how-to ideas.

The Takeaway

Furnishing a new place can be daunting, especially if you’re shopping on a budget. But by thinking beyond traditional furniture stores and turning to alternatives like flea markets, resale and salvage shops, estate sales, and online marketplaces, you can often score chic and cheap pieces that won’t fall apart in a year or two.

You can also stretch your furniture budget by mixing higher-end investment pieces with cheaper accent decor and sprucing up secondhand finds.

Another way to cut furniture costs is to save up for your purchases in advance. Credit cards and store financing often come with high interest rates, which can significantly increase the overall cost of furnishing your home. Building a furniture fund in advance and paying cash eliminates these added fees.

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

How do you buy furniture on a budget?

You can buy furniture on a budget by shopping at estate sales, garage sales, thrift shops, and antique malls, as well as hunting at your usual retailers for floor models and other sale items. Also see what you might be able to score for free via a neighborhood online community or Freecycle.

Is it cheaper to buy furniture in-store or online?

It depends. Online retailers often offer lower prices due to reduced overhead costs and high sales volume. However, brick-and-mortar stores often offer bundled deals, local discounts, or free delivery. In-store shopping also allows you to inspect quality firsthand, possibly saving on return costs or buyer’s remorse. Overall, online can be cheaper, but savvy in-store shopping might offer better value and fewer risks.

What is the cheapest month to buy furniture?

It depends what you’re in the market for. If you’re looking for deals on indoor furniture, consider shopping in February. This is near the end of retail’s winter season, when stores generally try to get rid of inventory to make room for spring lines. If you’re shopping for outdoor furniture, August is often the cheapest month to shop. This is when many retailers are eager to get rid of summer items in order to make space for income merchandise.

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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, 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 members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% 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 members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible 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 an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% 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 Eligible 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 Eligible 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 Eligible 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 Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.

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

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