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If a student has goals of pursuing a career as a teacher, they may find that the Teacher Education Assistance for College and Higher Education (TEACH) Grant can help them meet their goals and can save them some money. The TEACH Grant is a form of federal financial aid that is focused on helping those pursuing a career in teaching pay for their college expenses.

As part of the TEACH Grant, recipients are required to complete a teaching service obligation in order to get the grant. If this obligation isn’t completed, the grant will be transitioned into a loan that will need to be repaid with interest. Continue reading for more detailed information on the TEACH Grant.

What Is a TEACH Grant?

The TEACH Grant is a federal financial aid program designed to help students pursuing teaching careers pay for college expenses. In order to receive a TEACH Grant, applicants have to agree to teach a subject that is considered “highly needed” in a low-income area with a shortage of specific subject teachers. These schools can be elementary and secondary schools. Grant awards are up to $4,000 a year when the recipient is in school, but once they start working they will be paid their normal salary without the addition of any grant funds.

TEACH Grants are eligible for multiple subject areas, including:

•   Bilingual education and English language acquisition

•   Foreign language

•   Mathematics

•   Reading specialist

•   Science

•   Special education

•   Any other field that has been identified as high-need by select governing agencies

After graduating, recipients have to teach at a low-income school or educational agency for a minimum of four years. This four-year teaching requirement must be completed within eight years of the recipient’s graduation.

Recommended: FAFSA Grants & Other Types of Financial Aid

TEACH Grant Eligibility

The TEACH Grant comes with certain eligibility requirements, including:

•   Student must be eligible for federal student aid programs

•   Student has to be an undergrad or graduate student

•   The recipient’s school has to participate in a TEACH Grant-eligible program of study

•   Student has to be enrolled in one of these eligible programs

•   Recipient must score above the 75th percentile on one or more portions of a college admissions test or has to maintain a cumulative grade point average of 3.25 or higher

How the TEACH Grant Works

Students who qualify for the TEACH Grant program may receive up to $4,000 a year in funding if they are in the process of completing — or one day plan to complete — the coursework required to start a teaching career.

In order to qualify for a TEACH Grant, the student has to sign a TEACH Grant agreement to work full-time as a teacher for four years at an elementary or secondary school or educational service agency that serves low-income students. They also need to teach in a high-need field and have to finish their teaching obligations within eight years after they graduate from or stop being enrolled at the institution of higher education where they received a TEACH Grant.

Do You Have to Pay It Back?

If the recipient fulfills all service obligations of the grant, they won’t have to repay their TEACH Grant. However, if they don’t fulfill the TEACH Grant requirements then all TEACH Grants they received will be converted to Direct Unsubsidized Loans that they must repay in full. They will be charged interest starting from the day of their TEACH Grant disbursement.

Can It Be Used for Living Expenses?

The TEACH Grant is intended to fund coursework (up to $4,000 annually) for students who are in the process of or will one day complete the coursework required to begin a teaching career. Consider consulting with the financial aid department of the school the student is attending to see if these funds can also be used for living expenses.

Pros and Cons of a TEACH Grant

Like any program, the TEACH Grant has some unique advantages and disadvantages associated with it.

Pros	Cons
Up to $4,000 in funding each year to pursue the coursework required to become a teacher	Must work full-time as a teacher for four years at an elementary or secondary school or educational service agency that serves low-income students
If service obligation is fulfilled, the grant doesn’t need to be repaid	If the service obligation is not completed within eight years, the grant will need to be repaid in the form of a Direct Unsubsidized Loan

Applying for a TEACH Grant

Applying for a TEACH Grant is pretty straightforward. The TEACH Grant application is a part of the Free Application for Federal Student Aid (FAFSA®). Students can apply for the TEACH Grant when they submit their FAFSA. Some grants may have limited funding, so it’s generally recommended that students submit the FAFSA earlier rather than later. When the student receives their financial aid offer, they’ll find out if they received a TEACH Grant.

Students must continue to apply for the TEACH Grant each year by submitting the FAFSA annually. They will also be required to complete TEACH Grant counseling and sign a new Agreement to Serve every year.

Not all schools participate in the TEACH Grant, so it’s helpful to contact the school’s financial aid office to find out if they participate in the program and to learn what specific areas of study are eligible for the program.

Alternative Forms of Funding

If a student doesn’t qualify for the TEACH Grant, finds it is not a good fit for their needs, or knows that they don’t want to complete the service obligations, these are some other options they may have for pursuing funding to help pay for college.

Scholarships

When a student receives a scholarship, they don’t have to repay those funds. It’s worth applying for multiple smaller scholarships, not just big ones. Those smaller scholarships can really add up.

Recommended: The Differences Between Grants, Scholarships, and Loans

Other Grants

Like scholarships, generally students don’t have to repay grants for college (unless the grant has obligations like the TEACH Grant). A student’s financial aid office can help point them in the direction of available grants and filling out the FAFSA annually can help them qualify for other federal grants, such as the Pell Grant.

Recommended: FAFSA Guide

Federal Student Loans

Federal student loans are funded by the U.S. Department of Education and there are a handful of different types of federal loans available to both undergraduate and graduate students. To qualify for federal student loans, students have to fill out the FAFSA each year. Federal student loans generally have better interest rates and terms than private student loans and they come with unique federal protections.

Recommended: Types of Federal Student Loans

Private Student Loans

Students can borrow private student loans from a variety of different financial institutions and they can help fill the gaps that scholarships, grants, and federal student loans leave behind. As mentioned, private student loans may not offer the same benefits as federal student loans, and for this reason, they are generally considered an option only after other funding resources have been exhausted.

Recommended: Guide To Private Student Loans 

Part-Time Work

If students are looking to avoid taking on student loan debt or want to lighten their student loan load, they could work part-time to help cover higher education costs and living expenses. There are often on-campus jobs designed to help college students balance their school work and their need to earn an income.

The Takeaway

Paying for college is expensive and a TEACH Grant can help soon-to-be teachers pay for college. That being said, the service obligations of this grant won’t appeal to all students and they may find they need to pursue alternative funding.

Some students may consider borrowing private student loans to fill funding gaps. SoFi Private Student Loans have no fees and can be completely managed online. SoFi student loans also offer a six month grace period after graduation before borrowers are required to make monthly loan payments.

Learn more about SoFi Private Student Loans today!

FAQ

Is the TEACH Grant worth it?

Each individual needs to consider carefully if the service obligation attached to the TEACH Grant makes the $4,000 in financial assistance worth it to them. If they don’t want to live or teach in an area that services low-income students they may find this program isn’t a good fit for them.

Do you have to pay back a TEACH Grant?

Recipients may have to pay back their TEACH Grant if they don’t meet the full requirements of their service obligation. If a recipient failed to meet these obligations, the grant funds they received through this program would be converted to Direct Unsubsidized Loans that have to be repaid in full with interest charges.

What does TEACH Grant stand for?

The acronym TEACH of TEACH Grant stands for Teacher Education Assistance for College and Higher Education (TEACH).

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

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The average cost of the CPA exam is about $3,500, but the exact cost varies for each candidate. The biggest reason for this is that each state has its own board of accountancy, each of which sets its own costs for several items that are needed to sit for the exam.

There are also necessary costs that aren’t tied to the exam itself, such as licensing fees and continuing education costs. If you have to retake or reschedule the exam, you may have to repay registration and examination fees. Plus, the single most expensive part of the process tends to be the review course, the price of which can vary widely.

Passing the CPA exam can be expensive. Fortunately, there are many ways to cover the costs, and the price can be well worth it if you pass the exam.

How Much Does It Cost to Take the CPA Exam?

As just noted, the cost to take the CPA exam is about $3,500, but the final estimate will vary depending upon where you live. Hence, you could end up paying several hundred dollars above or below this amount. However, while the total cost can vary significantly, there are certain items that are common expenses for all exam candidates.

CPA Exam Costs
Application Fee	$20 – $200+
Registration Fee	$60 – $340+
Background Check	$1 – $49
CPA Review Course	$1,500 – $3,000+
Examination Fees
Auditing and Attestation (AUD)	$226.15 (approx.)
Business Environment and Concepts (BEC)	$226.15 (approx.)
Financial Accounting and Reporting (FAR)	$226.15 (approx.)
Regulation (REG)	$226.15 (approx.)
Grand Total	$2,485.60 – $4,493.60

This is a wide range, but that is expected given that the costs can be different from one state to the next. Examination fees shown above are approximate; your state’s fees may be higher or lower.

In addition, the CPA review courses sometimes have tiered pricing, so even two people taking the same course and living in the same state may have different costs. There can be several differences between different tiers of review courses, such as 24-month access versus lifetime access.

Do You Need a Finance Degree to Take the CPA Exam?

Each of the 55 licensing jurisdictions (all 50 states, plus Washington, DC, Guam, Puerto Rico, the Virgin Islands, and the Mariana Islands) maintains its own licensing requirements. Because of this, each state may have slightly different requirements to sit for the exam.

All 50 states require a bachelor’s degree plus 150 credit hours in order to become a licensed CPA. However, rather than requiring a finance (or accounting) degree, states may require 120 credit hours of college credits plus 30 additional, accounting-specific credit hours to sit for the exam.

Still, you should review your state’s requirements before you begin preparing for the exam. Some states require 30 hours of accounting courses, while others require upper-level accounting courses. Your state or territory’s board of accounting website will list the specific requirements needed to sit for the exam.

Other CPA Exam Costs

There isn’t just one fee to sit for the CPA exam; candidates must cover several costs, all of which vary depending upon where you live. This is one of the reasons the cost can be quite different from one state to the next.

Ethics Exam

Your state may require you to take and pass an ethics exam in order to practice there. Some states have their own ethics exams, while others administer the AICPA exam exam. Currently, the AICPA exam costs $189 – $245 and can vary depending on the course option you select.

Registration Fees

Most states require a registration fee for each of the four exam sections. Fees vary but are generally $75 to $100 per section. Some states also have tiered pricing for registration, allowing you to save money if you register for multiple sections at once. If you choose to register for multiple sections at once, keep in mind that each section is estimated to take four hours, with a total of 16 hours for the entire exam.

Application Fees

Application fees are due when you apply to take the CPA exam. Because each state sets its own fees, these vary but are usually between $100 and $200. The fee is non-refundable, but you usually don’t have to pay the application fee again if you have to re-take the exam. But there are situations in which you may have to pay the fee more than once, such as if your application is rejected.

CPA Licensure

The CPA licensure fee is only necessary after you pass the exam; this is the fee you pay to your state accountancy board to be a licensed accountant. These fees also vary by state and can run anywhere from $50 to $500. This cost is an annual one, so you should expect to pay the fee every year to maintain your license.

Keep in mind that each state has its own licensing requirements and accountancy board. Hence, if you move out of state, you will have to be licensed in the new state to be recognized as a CPA there.

Background Check

Your state may require you to pass a background check as part of the licensing process. According to NASBA, the fee ranges anywhere from $1 to $49 if you are required to pass a background check. In the case of California, there is an additional “rolling” fee of $15 for fingerprinting.

Travel and Accommodations

Currently, the CPA exam cannot be taken online; it can only be administered at Prometric Testing Centers. You can find a testing center Prometric’s Pro Scheduler . Testing centers are only located in select cities, so you may end up spending hundreds of dollars on transportation and accommodations depending on how close you are to a testing center.

International Candidate Credential

If you want to take the exam outside the United States, you may be required to pay additional fees for international candidate credentialing. Most states allow international applicants to sit for the exam, but six states and two territories do not administer it. In addition to any domestic fees, you may also have to pay additional fees of $371.55 for each of the following: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting, and Reporting (FAR), and Regulation (REG).

Covering CPA Exam Costs

Although the exact cost of the CPA can vary significantly, one thing is for certain: the exam and licensing process is expensive. Fortunately, there are many ways to cover the costs.

Private Student Loan

A private student loan can help you cover some or all of the cost of the CPA exam. For example, SoFi student loans have no fees, come with multiple repayment options, and have low fixed and variable rates. Everything is handled online and the application process is simple.

Private student loans are different from federal student loans. Federal student loans may have more consumer protection, but private student loans may offer more competitive interest rates. Consider both private and federal student loans if you need to finance your CPA exam costs.

Credit Card

You may be able to pay for some or all of your costs with a credit card. In fact, if paying online, payment by credit card may be required for examination fees. The same may be true for application and registration.

Exam prep courses are offered by third parties, so you should be able to pay for them with a credit card in most cases.

Personal Savings

Avoid tapping into your emergency fund, but any excess savings can help cover exam costs. If you aren’t able to pay for the entire cost with scholarships, grants, and student loans can help you pick up the tab. But personal savings can also be useful, particularly if you still owe money after considering other options.

Scholarships

There are several scholarships available that can help you cover much of the cost of the CPA exam. For instance, the American Institute of Certified Public Accountants offers a scholarship of up to $1,500 to exam candidates. Another example is the Newt D. Becker scholarship, worth up to $2,399.

Your state board may also offer scholarships; for example, Wisconsin offers three $2,500 college scholarships to go toward your 150 hours required to sit for the exam. Check with your state board to see if the state offers any additional scholarships.

Employer Reimbursement

Some employers will reimburse you for the cost of the exam itself, review materials, or both. If you work for an accounting firm and the exam is relevant to your job, it’s a good idea to ask whether your employer reimburses these costs.

The Takeaway

There are many costs associated with CPA licensure, from prerequisite coursework all the way to maintaining your license each year. Each of the 55 licensing jurisdictions has its own requirements and fees, so where you live can affect not only licensing requirements but also the cost of the whole process.

However, what is for sure is that becoming a licensed CPA isn’t cheap. The price tag is likely to be four figures, which is high, especially before you are certified.

SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees.

3 Student Loan Tips

1. Can’t cover your school bills? If you’ve exhausted all federal aid options, private student loans can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.
2. Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
3. Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

FAQ

How much does the CPA exam cost to take?

The cost is about $3,500 on average, but the exact cost depends upon where you live. Each state sets its own fees, so they may vary significantly from one state to the other.

Are there any hidden costs to take a CPA exam?

Hopefully, there will not be any hidden costs of the CPA exam if you have considered all of the costs mentioned here. However, there may be some fees you don’t anticipate. For example, if you have to retake or reschedule the exam, you may have to repay the registration fee in addition to repaying fees per exam section.

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Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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.

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

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A retirement money market account is similar to a savings account where the money is liquid and earns a low interest rate. But a retirement money market account is held within a retirement account such as an IRA or 401(k), and is subject to the benefits and restrictions of those accounts.

While you might have most of your money in higher-return investments, it may also make sense to keep some funds in a retirement money market account. A retirement money market account, like a standard money market account, is a relatively low-risk place to store cash. Even if the return is lower than other investments, it’s predictable.

Another reason to have a retirement money market account is a holding place as you sell investments or transfer money between investments. Here’s what else you need to know about retirement money market accounts.

Recommended: What is a Money Market Account

What Is a Retirement Money Market Account?

As the name suggests, a retirement money market account is a type of money market account that is held inside a retirement account. The money market account could be within a traditional, rollover, or Roth IRA, a 401(k), or other retirement account, which means those funds are governed by the rules of that account.

So the deposits you make may be tax deductible and may grow tax free, but depending on the type of retirement account you might not be able to withdraw funds before age 59 ½ without paying a penalty.

Money in the retirement money market account is liquid. It’s usually where money is held when you first transfer money into your retirement account, or when you sell other investments in your account. You can use the funds in the money market to purchase investments within the retirement account.

What Is a Money Market Fund?

Bear in mind an important distinction: A money market fund, which is technically a type of mutual fund, is different from a money market account. A money market fund is an investment that holds short-term securities (and is not FDIC insured). For example, these funds may hold government bonds, municipal bonds, corporate bonds, cash and cash equivalents.

A money market account is essentially a type of high-yield savings account and it’s FDIC insured up to $250,000.

How Does a Retirement Money Market Account Work?

If you are starting a retirement fund, you’ll want to make sure that you understand how retirement money market accounts work. One big difference from a regular money market account is that money in a retirement money market account is governed by a retirement plan agreement.

This can place some limits on what you can do with the money in a retirement money market account. Typically, that will mean that you can’t withdraw money held in your retirement money market account until you have reached a certain age. But one advantage is that the money in the account will grow tax-free or tax-deferred (depending on what type of retirement account it is in).

For example, a money market account in a Roth IRA would follow different rules than money in a 401(k).

•   You can deduct contributions to a 401(k), but a Roth IRA is funded with after-tax money.

•   You can’t withdraw money from a 401(k) until you’re 59 ½, except under special circumstances.

•   Because contributions to a Roth are post tax, you can withdraw your contributions at any time (but not the earnings).

Advantages of a Retirement Money Market Accounts

•   Money is typically insured by the FDIC up to $250,000.

•   Can store proceeds of the sales of stocks, bonds, or other investments.

•   Many retirement money market accounts offer the ability to write checks against the account.

Disadvantages of a Retirement Money Market Accounts

•   Pays a low interest rate that may not keep up with inflation.

•   Requires a separate retirement account.

•   May not be able to withdraw money until retirement age without paying a penalty.

Retirement Money Market Account vs Traditional Money Market Account

The biggest difference between a retirement money market account vs. a traditional money market account is where they are held. A retirement money market account is held inside a separate retirement account, such as a 401(k) or IRA account. A traditional money market account is usually held at a bank or credit union.

While you can access money in a traditional money market account at any time, you may not be able to access the money in a retirement money market account until you retire. It depends on the type of account.

Recommended: What is an IRA and How Does it Work?

How Does a Retirement Money Market Account Differ From an IRA Account?

While you might think of an IRA as a type of investment account, it may be more accurate to think of an IRA as a collection of various types of investments. You can use your IRA to invest in stocks, bonds, options, real estate, cryptocurrency, and so on.

A retirement money market account is one type of investment that you can have in your IRA. Money in a retirement money market account inside your IRA, for example, can be used for daily living expenses in retirement or as a holding place as you move money between different types of other investments.

In terms of your asset allocation, funds in a money market are considered cash or cash equivalents. This can help balance your holdings that are more volatile.

What Should I Know Before Opening a Retirement Money Market Account?

If you are wondering how to save for retirement, there are a few things that you should know before opening a retirement money market account.

The most important is that money put into a retirement money market account is subject to the same conditions as any other money you invest into a retirement account. You generally will not be able to access it without penalty until you retire.

You also want to bear in mind that these are low-risk, low-return accounts. The money that you deposit, or money that is automatically transferred, is not going to provide much growth.

In some cases, a retirement account might come with a money market account within it, and funds may be automatically deposited there. In these instances, be sure to check that the money in that part of your account is then used to purchase the securities you want. Given the low yield of an MMA, you only want a certain portion of your savings to remain there.

Opening a Retirement Money Market Account

In most cases, you won’t open a retirement money market account separately, as you might with a traditional MMA.

Instead, you would open a retirement account with your bank or company provider. Depending on your IRA custodian, they may automatically include a retirement money market account as an investment option inside your IRA account.

Is a Retirement Money Market Account Right for You?

There are many different types of retirement plans, so you’ll want to make sure to choose the options that make the most sense for you. While it makes sense to have a retirement money market account inside your 401(k) or IRA, you might not want to put much money inside of it.

The reason for this is due to the relatively low interest rate that retirement money market accounts pay. In most cases, the interest rate will be lower than the rate of inflation, so money kept inside of a retirement money market account will lose purchasing power each year.

The one exception to this rule would be retirees who are currently living off of the money in their retirement accounts. These investors already in retirement will often want to keep some of their money in money market accounts so they have to worry less about market volatility.

Alternatives to Retirement Money Market Accounts

There are any number of low-risk alternatives to retirement money market accounts, including vehicles outside a retirement account, such as a high-yield savings. For similar alternatives within a retirement account, you could consider investing in bonds, bond funds, and other options that might provide a steady return, but with a lower risk profile.

The Takeaway

A retirement money market account is similar to a savings account, but it is held inside a retirement account such as an IRA or 401(k). While a retirement money market account has the advantages of being FDIC-insured and fairly liquid, it also doesn’t pay very high interest rates. Most investors will want to keep the money in their retirement accounts in investments that provide higher rates of return, although one advantage of a retirement money market account is that it can become part of the low-risk, cash/cash equivalents part of your portfolio.

Money market accounts are just one option for a secure, steady rate of return. If you’re looking for great interest rates while having flexible access to your money, consider SoFi’s all-in-one high yield bank account. Eligible account holders can earn a competitive APY by signing up for direct deposit.

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

FAQ

What does a retirement money market account require?

A retirement money market account is a type of money market account that is held inside a retirement account, e.g. an IRA or 401(k). You’ll need to open up an IRA or other type of retirement account to have a retirement money market account. Most IRA custodians will include a money market retirement account as one investment option for your IRA.

What is the difference between an IRA and a money market account?

A standard money market account is a liquid investment similar to a savings account. An Individual Retirement Account (IRA) is a tax-deferred account that can be used to invest in a variety of different ways. A money market account inside of an IRA or other retirement account is typically referred to as a retirement money market account.

What is the difference between a money market account and a 401(k)?

A standard money market account is similar to a savings account in that the money is liquid and it pays a fixed rate of interest. A 401(k) is a tax-deferred account that acts as a vehicle for a wide range of investments. Contributions are deductible and the investor must pay taxes on withdrawals. A money market account is funded with after tax dollars, and there are no tax benefits associated with these accounts. A retirement money market account, however, obeys the rules of the retirement account it’s in.

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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.

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

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.

Photo credit: iStock/Pixelimage
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A Certificate of Deposit (CD) is similar to a savings account, but it comes with a twist: You have to deposit a lump sum in and agree to not touch the money for a specific period of time: e.g. a few months to a few years. The shorter the time period (or term) of the CD, the lower the interest rate it will pay; the longer the term, the more interest you may earn on your money.

These days, though, the difference in the amount of interest you can earn from a long- vs. a short-term CD isn’t always significant. Nonetheless, it’s one of a few factors to consider when deciding which type of CD is right for you.

Certificate of Deposit Overview

A Certificate of Deposit is a type of account offered by most financial institutions, like banks or credit unions. With a CD you make one initial deposit to fund the account, and then your money remains in the account until the end of the term of the CD.

How long does a certificate of deposit last? One big difference between savings accounts and certificates of deposit is that with a savings account, you can deposit or withdraw money at any time. However with a CD you can’t deposit any additional money, and if you withdraw money before the end of the term, you will likely face early withdrawal penalties.

There are some no-penalty CDs on the market that don’t charge a penalty for pulling money out early, but be sure you understand the terms and potential tradeoffs in terms of lower rates or fees.

Recommended: What is a Certificate of Deposit and How Does it Work?

Are CDs Insured?

CDs are typically insured by the FDIC for up to $250,000, which makes them a relatively safe investment. Any money you deposit, up to $250,000, would be covered in the event of fraud or a bank collapse.

If the CD is issued by a credit union, it would be insured for the same amount, by the National Credit Union Administration (NCUA).

There are some CDs that are not federally insured, however, like a Yankee CD (which is a CD offered by the U.S. branch of a foreign bank). Be sure to understand the terms before you open the account.

How Long Are CD Terms?

Back to the question: How long does a certificate of deposit last, generally speaking? All CDs come with a term, and different banks might offer CD investing with different terms. As noted, the longer the term of the CD, generally the higher the interest rate paid out. While there aren’t definitive rules that differentiate between a short-term CD, medium-term CD, and long-term CD, the following is a general guideline:

•   Short-term CDs — 1 year or less

•   Medium-term CDs — 2 to 3 years

•   Long-term CDs — 4 years or more

What Is a Short-Term CD?

A short-term CD is a CD whose term is lower than average, generally 1 year or less. Different banks offer CDs with different terms, but 3-month and 6-month CDs are common.

A short-term CD gives you greater flexibility as you’ll have access to your money sooner than with a longer-term CD. But typically a short-term CD also offers lower interest rates than CDs with longer maturity dates. (Remember that the annual percentage rate or APY is different from the interest rate.)

Why Should I Consider a Short-Term CD?

The biggest advantage of a short-term CD is that it typically pays more than a standard savings account, and you have more flexibility than with longer-term CDs. This can be helpful if you need to save money for a large purchase, when you’d like to earn a steady rate, but you know you’ll need access to the money relatively soon.

Also, with a short-term CD your money is only tied up for a relatively brief period of time, so if interest rates rise and you want to invest elsewhere — or you decide you need your money for some other purpose — you would only need to wait a few months before you could withdraw your money without a penalty.

Advantages of Short-Term Certificates of Deposit

•   Higher interest rate than savings or money market accounts.

•   A relatively safe place to park savings for a big purchase, while earning a steady rate.

•   If rates change or your needs shift, you won’t have to wait long to access your money.

Disadvantages of Short-Term Certificates of Deposit

•   Lower interest rates than medium-term and long-term CDs.

•   You may be able to find higher rates with other financial products (e.g. a high-yield savings account).

Recommended: How Do High Yield Savings Accounts Work?

What Is a Medium-Term Certificate of Deposit?

A medium-term certificate of deposit is a CD whose maturity date is 2 to 3 years. That means that once you invest your money in the CD, you won’t be able to withdraw that money without penalty until the end of the 2- or 3-year period.

Generally medium-term CDs offer higher interest rates than short-term CDs but lower rates than long-term CDs.

Why Should I Consider a Medium-Term CD?

A medium-term CD can make sense if you are saving money for something that won’t happen until a few years down the road.

You’ll want to make sure that you also have an account to store short term savings like an emergency fund. That way, you are less likely to feel the need to withdraw your money before the term of the CD is up.

Advantages of Medium-Term Certificates of Deposit

•   Higher interest rates than short-term CDs.

•   Predictable rate of return with low risk.

Disadvantages of Medium-Term Certificates of Deposit

•   Lower interest rates than long-term CDs.

•   Risk of inflation or interest rates going up while your money is tied up in the CD.

What Is a Long-Term Certificate of Deposit?

Generally speaking, a long-term certificate of deposit is a CD that has a term of 4 years or more. Long-term CDs offer the highest rates of any type of CD, but the rates you’ll earn even with a long-term CD are lower than historical stock market averages. That said, the beauty of CDs is that they offer a predictable rate of return, in a vehicle that’s relatively low risk.

The tradeoff to the higher interest rates that come with long-term CDs is that you won’t have access to your money for several years without paying a penalty.

Why Should I Consider a Long-Term CD?

A long-term CD can be an option if you have money that is set aside for a specific purpose that won’t happen for several years. You might not want to put money that you know you’ll need in the stock market for growth.

Be careful though — if inflation or interest rates rise during the term of your CD, you might find the interest rate on your CD to be not as great as you thought it was.

Advantages of Long-Term Certificates of Deposit

•   Highest interest rates of any type of CD.

•   The predictable rate of return can help balance more volatile investments in your portfolio.

Disadvantages of Long-Term Certificates of Deposit

•   Your money is tied up in the CD for several years.

•   Risk of inflation or interest rates going up while your money is tied up in the CD.

•   You lose out on potential market growth while your money is tied up.

The Takeaway

Investing in certificates of deposit can be a smart way to earn a higher interest rate than you’d typically get from savings or money market accounts. The tradeoff is that most CDs will charge an early withdrawal penalty if you remove your money before the end of the CD’s term, so you have to be willing to lock up your funds for the specific term of the CD you choose (i.e. a few months to a few years).

Generally, CDs with longer terms offer higher interest rates than shorter-term CDs, so make sure to shop around for different rates before opening a CD. You may also be able to find competitive rates with other accounts, like high-yield savings.

Speaking of, if you’re looking for great interest rates while keeping flexible access to your money, consider SoFi’s all-in-one mobile banking app. Eligible account holders can earn a competitive APY when you sign up for direct deposit. That rate can compare favorably to the rates on CDs offered by some banks, and you maintain easy access to your money — without an early withdrawal penalty.

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

FAQ

Which makes more money: a short-term CD or long-term CD?

CD rates vary widely, so if you’re wondering what is a good return on investment for a CD, it can pay to shop around to find the best rates. Most times, you will make more money with a long-term CD compared to a short-term CD.

What happens if you need to withdraw your money from a CD prior to its maturity date?

You’ll get the best returns from your CD if you keep the money in the account until it reaches maturity. But if you do need to withdraw your money before the CD matures, you generally can. You’ll just need to pay an early withdrawal fee — often losing a couple of months’ worth of interest. Check the terms when you open the CD.

How old do you have to be to open a CD account?

To open a CD, you have to be a legal adult, which is usually 18 or 21 years old, depending on the state. Parents can still invest in CDs for their children or other minors, through use of a custodial account.

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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.

Photo credit: iStock/AndreyPopov
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Many of us have been in the situation of having our checking account be overdrawn (aka, bouncing a check) and may wonder, “Do I need overdraft protection?” The answer is: It depends. Overdraft protection may suit your financial habits and how your cash flows, but you will most likely literally pay a price for it. According to the Consumer Financial Protection Bureau, Americans pay more than $15 billion in overdraft fees per year.

To help you evaluate if overdraft protection is good for you, learn more about:

•   What is overdraft protection?

•   How much does overdraft protection cost?

•   What are the pros and cons of overdraft protection?

•   What happens if you don’t have overdraft protection?

•   How can you avoid overdraft fees?

What Is Overdraft Protection?

Overdraft protection is a set of measures put in place to ensure you have enough money in your bank account to conduct transactions such as debit purchases and bill payments.

An overdraft on your account means the bank is attempting to make a withdrawal — like an electronic payment or ATM withdrawal — and there aren’t enough funds to cover the amount requested.

If you opted into overdraft protection, the bank authorizes the withdrawal instead of declining it and pays the difference. This can be beneficial in those situations that crop up — say, you get paid tomorrow but don’t have the funds right now for a purchase, or if there’s a lag between your current vs. available balance. You’ll usually be charged a fee in addition to repaying the amount of the overdraft. In other words, you’re borrowing money from the bank to cover the transaction. You’ll need to pay it back by making a deposit to your bank account to get your account balance to zero or above.

This kind of protection gives you a safety net in a couple of ways. It can prevent your defaulting on or making a late payment of bills, while also ensuring that you won’t have your debit card declined.

Overdraft is not the same as non-sufficient funds (NSF). This is when the bank will decline rather than cover the transaction due to the fact that there isn’t enough money in your account. You could be charged a fee for this event as well.

How Much Does Overdraft Protection Cost?

Overdraft fees currently average around $35. However, some banks allow you to link a checking and savings account from the same financial institution so that you have no-fee overdraft coverage when money transfers between these accounts.

In some cases, you may pay overdraft fees multiple times in a day, though many banks limit the number of times you may be charged. For example, if you went to the grocery store and your bill came to $35 and you only had $10 in your bank account, you’ll be slapped with an overdraft fee. Later in the day, if your recurring utilities auto payment was processed, you’d face an additional fee for the bank covering that payment.

Keep in mind that you need to opt into overdraft protection in order for a bank to overdraft your account. That being said, it can depend on the type of transaction — check or recurring electronic payments may not require opt-ins. The bank could be able to charge you an overdraft fee regardless, depending on the fine print of your agreement when you opened your account. It’s best to check with your bank if you’re not sure whether you’ve opted for overdraft protection.

Pros of Overdraft Protection

To help figure out whether you should opt in or not, it’s worthwhile to review overdraft protection pros and cons. This banking service has several benefits, including:

•   Access to funds when an emergency occurs or during an unexpected event. You can write a check, say, for more than you have available, and it will be paid.

•   Can expedite transactions, especially when you’re making a necessary purchase like at the grocery store or gas station.

•   Potentially save you from being embarrassed when a transaction is declined.

•   May help you avoid fees if you link checking and savings accounts from the same bank.

•   Prevent returned check or payment fees from companies, such as utilities companies.

•   Can also prevent late bill payment by covering costs, which in turn can help boost your credit score.

Cons of Overdraft Protection

Although there are perks to opting into overdraft protection, there are also some drawbacks, such as:

•   Paying overdraft fees, possibly multiple charges per day

•   Could encourage you to overspend, knowing the bank will step in and cover you, rather than get better with money

•   Your bank account may not be in good standing if you have a history of overdrafts

Should I Get Overdraft Protection?

If you’re wondering, “Should I get overdraft protection?” the answer is: It depends on what your priorities are.

Sure, it can help to prevent transactions from being declined, especially when you have recurring automatic payments or when you’re paying for necessities, like a tank of gas. It can offer you peace of mind since you don’t have to wonder whether creditors are going to come knocking on your door because of failed payments.

However, this convenience does come at a price, which can add up. Being charged an average of $35 per transaction isn’t pleasant. It can become downright problematic if your account frequently overdrafts. Most people want to avoid paying bank fees, especially when they are this high.

If you’re concerned about making sure you have enough money to cover transactions, you can take measures to prevent your balance from sinking too low. It’s a smart idea to adopt these measures, described below, whether or not you opt into overdraft protection.

What Happens When You Don’t Have Overdraft Protection?

When you don’t have overdraft protection, your bank will typically decline a transaction if you don’t have the funds to cover it. So a check you write would not be paid or a debit card transaction would not go through if the cash isn’t in your checking account.

That being said, each bank will determine what action to take depending on the amount overdrawn and the type of transaction. For instance, if you pay someone a small amount via check and there isn’t enough money in your account, your bank might choose to overdraw your account and charge a fee. Or if you’re swiping your debit card to buy something not too costly, some banks may allow the overdraft and not charge a fee as long as you can cover that amount within a certain amount of time.

Tips for Avoiding Overdraft Fees

Your best bet to not pay any overdraft fees is to take measures to avoid your bank balance dipping below zero. Here are a few best practices to avoid overdraft fees:

•   Turn on the correct bank account alerts to monitor your balance and notify you — either via text, email or push notifications — when your balance is at a certain amount.

•   Download a budgeting app and set up alerts for when you’re overspending.

•   Set reminders for when automatic payments go through or when bills are due so you can deposit funds before those dates.

•   Link your savings and checking account together (check to make sure your bank won’t charge you a fee for this type of overdraft protection).

The Takeaway

Overdraft protection can be useful, but you don’t want to rely on it too frequently. Otherwise, you could pay hundreds of dollars in fees that could go towards other goals. Think carefully about your cash flow and spending habits to decide whether or not it’s right for you and will help you achieve financial fitness.

Luckily, there are financial institutions such as SoFi that don’t charge overdraft fees. This can help you earn, save, and spend responsibly. Banking with SoFi has other advantages as well. If you sign up for our Checking and Savings with direct deposit, you will earn a competitive APY, pay no other account fees, and have access to your paycheck up to two days early.

Start banking smarter with SoFi today.

FAQ

Should I have overdraft protection on or off?

Whether you should opt into overdraft protection is a personal choice. You should weigh some of the factors such as how many fees you are willing to pay, if you are comfortable with declined transactions, and how often you want to check your bank account balance.

Does overdraft protection hurt credit?

Overdrafting your bank account doesn’t hurt your credit score because this activity isn’t reported to the credit bureaus. However, if you link your bank account to a credit card account (for automatic payments, for instance) and you fail to make a payment, your score could be affected.

Do you have to pay back overdraft protection?

Yes, you’ll need to pay back the amount that’s overdrawn, plus an overdraft fee if the bank charges you one.

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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.

Photo credit: iStock/Prostock-Studio
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