What is a Dogecoin Mining Pool?

What is a Dogecoin Mining Pool?

While Dogecoin may have its origins as a joke currency, but the process of mining it is very real. A mining pool is one way of mining a proof-of-work (PoW) cryptocurrency like Dogecoin. (The other way is solo mining in which an individual tries to solve for a block on their own, using significant time and computing power.)

A mining pool is a collection of miners who pool their resources and share the rewards. Individual miners receive a portion of block rewards in proportion to how much hashing power they contributed.

Miners may earn less overall when mining in a pool. But they receive rewards on a more consistent basis and can maintain a profitable operation even with smaller amounts of computing power.

Recommended: Is Crypto Mining Still Profitable in 2021?

Before moving on to the subject of Dogecoin mining pools, let’s take a quick look at how Dogecoin mining works:

How Does Dogecoin Mining Work?

Dogecoin mining works in much the same way that mining any other proof-of-work cryptocurrency works. Dogecoin is based off of Litecoin, which forked from the original Bitcoin source code.

The main difference between Bitcoin (BTC) and Dogecoin (DOGE) or Litecoin (LTC) is that the latter two are altcoins that use a mining algorithm known as Scrypt. Bitcoin mining, by contrast, uses an algorithm called SHA-256. Scrypt allows for faster block confirmation times, which means faster transaction times.

Here’s a quick, simplified rundown on crypto basics and how the mining process works.

• A blockchain is a type of distributed ledger technology (DLT).

Blockchain networks are the highways on which cryptocurrencies travel.

• The computers that maintain a blockchain network are called “nodes.”

• Some nodes can add new blocks of transactions to the network. These nodes are called “miners.”

• Miners solve complex mathematical problems to process transactions and achieve consensus on the network, ensuring everyone agrees which transactions are valid.

Like gold mining, mining for crypto requires time and energy, whether you’re mining Bitcoin or an altcoin like Dogecoin. But unlike gold mining, computers do all the work in crypto mining. Individuals only have to set everything up and monitor the process. For some, mining cryptocurrency offers an opportunity to obtain cryptocurrency without buying it on an exchange.

Recommended: How Does Bitcoin Mining Work?

How Do You Mine Pool Dogecoin?

To participate in a Dogecoin mining pool, you must have all the necessary hardware and software listed below.

Using a pool only involves one extra step: telling the miners where to “point” their hashing power. This typically involves entering a single line of computer code into the mining software. The mining pool will provide the specific command, likely somewhere on its website or in the software itself.

Dogecoin Mining Equipment

Crypto mining requires sophisticated and powerful computers known as Application-Specific Integrated Circuits (ASICs). In the case of Dogecoin, the ASIC must be specifically designed to run the Scrypt algorithm.

While there might be some pools that allow users to use SHA-256 ASICs, contribute that hashing power to the pool, and take rewards in DOGE, those interested in mining DOGE specifically should stick to Scrypt ASICs.

ASICs take so much electricity that even smaller miners usually require a special power supply to connect to an electrical outlet. They also generate considerable heat, and miners must keep them cool to prevent damage.

In addition to the ASICs and their power supplies, miners will need a laptop or desktop computer. Running the mining software can take a considerable amount of central processing unit (CPU) or graphic processing unit (GPU) power, so that computer probably won’t be able to do much else while the mining is happening.

Recommended: What Is a Bitcoin Mining Pool? Should You Join One?

How to Join a Dogecoin Mining Pool

Most mining pools don’t have any special requirements for joining. They want to make it as easy as possible for new miners to contribute because they take a small fee from each block reward. The more miners in the pool, the more often the pool finds new blocks, and the more fees the pool will generate.

Mining pools often have instructions on their website that teach new miners how to join. It usually involves little more than entering a line of code into a mining program. Computers handle the rest.

Here is a rundown of the steps that an individual will take when joining a mining pool:

• Selecting a Dogecoin mining pool to join (more on this in the next section).

• Downloading and installing the software from the pool’s official site.

• Creating a DOGE wallet and entering the address into the software (so the software knows where to send the new coins.

• Obtaining the necessary hardware.

• Using a mining profitability calculator to estimate how profitable mining might be, based on variables such as electricity costs, hashing power, and mining difficulty.

• Each of these steps involves its own set of issues that need to be addressed.

How to Find the Best Dogecoin Mining Pool

To choose the best Dogecoin mining pool for you, consider the following factors:

• The fees charged by the pool.

• How the pool calculates and distributes rewards.

• The location of main servers.

• The total hashing power of the pool.

Because mining cryptocurrency comes with a significant investment of time and money, miners will want to choose a pool that earns them the greatest profit. That involves a pool with the lowest fees and most equitable reward structure. The biggest Dogecoin pool may or may not be the best, as there are other factors to consider.

Some mining pools mine multiple cryptocurrencies. This allows the pool to switch its mining activities should mining a different coin become more popular depending on the constantly changing variables of price and difficulty.

For example, some pools mine both Dogecoin and Litecoin since both rely on the same mining algorithm. If such a pool’s miners were focused on Dogecoin but the price of DOGE stagnates, it could become harder to mine DOGE due to difficulty increases, meaning reduced profits for miners absent a rise in DOGE. Then they could switch to Litecoin.

The Dogecoin mining pool power cost is also important to consider. Mining requires cheap electricity to be profitable. Many people turn to renewable energy sources like solar power for this reason, which also benefits the environment.

The Takeaway

Cryptocurrency mining is not an easy task and won’t be profitable for most people most of the time. All the right variables must align for an individual to make money mining in most instances. Many take up mining as a hobby and as a way to build a small crypto portfolio while contributing to the livelihood of the network of a particular coin.

If you’re interested in building a crypto portfolio without getting involved in mining, opening an account on the SoFi Invest brokerage platform is a great way to get started. SoFi members can trade crypto directly from the app, with the peace of mind of knowing that they’re keeping their holdings on a secure platform.

Photo credit: iStock/Thirawatana Phaisalratana


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal. Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
SOIN0821327

Read more

The Complete Guide to Out of State Tuition

When you’re considering colleges, admissions rates can seem like your biggest hurdle. But as acceptances roll in and you begin to look at tuition rates, you may see a huge difference in rates for in-state and out-of-state options.

If you’re considering out-of-state schools, tuition can be much more expensive than it is for in-state students. In some cases, it may seem more on par with what you might have expected to pay for private schools.

So does that mean you should exclusively look within your state? That depends on your goals, finances, and what you want out of your college experience. Some people decide to go out of state for programs that aren’t offered in local institutions. Some are drawn to a new adventure, or the opportunity to move away from home.

Regardless of where your first-choice college may be, understanding the financial implications of your decision can help you decide on financial aid packages and know what you’re getting into, finance-wise, before you make a final decision.

What Does Out of State Tuition Mean?

As you decide which colleges you’ll apply to, you may have public and private colleges on your list. Public colleges are colleges that are funded by a state and receive significant public funds, including taxpayer dollars, to function. Private colleges are not owned by the state and are privately held, with funding coming from tuition, research grants, endowment funds, and charitable donations.

Private colleges do not differentiate their tuition plans based on residency but, because public colleges and universities rely on tax dollars, they do. That’s because residents are already “paying” for the university or college through their tax dollars. Out-of-state students, who are not paying local or state colleges, are given a higher price tag.

But whether you’re applying in-state or out-of-state, it’s important to remember that the “price tag” of college tuition is independent of any financial aid, scholarships, loans, or grants you might have available.

Recommended: Private vs. Public College: What to Know When Deciding

Lowering the Bills on Out of State Tuition

Out of state tuition can cause sticker shock—and may lead to sizable loans. According to US News data , the average cost at a public out-of-state college or university was $21,184 for the 2020-2021 school year. In-state, tuition averages were around $9,687. This number is independent of additional costs, such as housing and books. And while the sticker shock is real, there may be some workarounds that open up your options without piling on unnecessary expense.

Reciprocal Tuition and Tuition Exchanges

Some states, such as Wisconsin and Minnesota, offer what’s called reciprocal tuition—in-state tuition offered for residents of both states. There are also some tuition exchanges and discount programs.

For example, the New England Board of Higher Education offers a tuition break program that offers discounts to New England residents when they enroll in another New England college. This savings may be as much as $8,000. Certain rules and restrictions apply, for example, you may have to prove the degree you wish to receive is not offered within public universities in your state. Speaking with your guidance counselor or your financial aid office may be helpful in determining whether these types of programs are available and eligible for you.

Becoming a Resident

“Residency” for in-state tuition isn’t as simple as moving into the dorms. Residency rules vary by state and university. In some cases, residency requires that individuals live in the state for at least twelve months, be financially independent (if your parents/guardians aren’t living in the same state) and have “intent”—ie, there’s a reason why you’re living in-state beyond just attending school. In some cases, intent to remain in a state can include getting a driver’s license, filing taxes, registering to vote in that state. States may have differing requirements for defining intent, so it can be worth confirming requirements for the state in which you plan to attend school.

Because residency rules can be strict, establishing residency may not make sense for everyone. But if you’re considering grad school or are going to undergrad as an independent or nontraditional student (someone who doesn’t fit the mold of a recent-high school graduate attending college), then it may make sense to establish residency first, which can also help you familiarize yourself with the university and assess whether it’s where you want to spend the next few years.

Starting at Community College

If you have your heart set on a pricey out-of-state school one way to potentially save is to begin your education at a community college. Like public colleges and universities, community colleges receive government subsidies that can make tuition more affordable. By commuting to a community college and obtaining general education credits, you can then potentially transfer to an out-of-state institution to finish your education and potentially minimize loans.

Recommended: Financial Benefits of Going to a Community College

Considering aid packages

Some private and public schools offer free or reduced-cost college tuition. These “free tuitions” are generally earmarked for students coming from families who make less than a set adjusted gross income, usually around $65,000 per year.

Some public universities also may offer generous scholarship packages to out-of-state students who reflect academic or athletic talent. If you get accepted to a school and receive a financial aid package, it may be worth speaking with the financial aid office to make sure you understand what the package entails and to make sure you have all questions answered. It may also be possible to appeal a financial aid package, which may be beneficial if your personal circumstances have changed.

Should You Go Out-of-State for College?

There is no right answer when it comes to which college is the best choice for you. But to prepare for college decisions, it can be a good idea to look beyond the honor of admission and consider the financials.

Comparing financial aid packages, assessing additional sources of tuition payment, including family contributions and private scholarships, and assessing how you might pay back your loans can all help you decide the best option for your future and for your wallet. It’s also important to remember that nothing is set in stone.

Regularly assessing your college experience—including the financials—can help determine whether you’re on a path that makes sense for you.

There is no “right” or “wrong” school or path and the right plan for you depends on a variety of factors. Speaking with people who graduated from your prospective school in your intended major can give you an idea of career paths. It can also be helpful to take advantage of any financial aid talk or info session available, to get a realistic look at what it may be like when you begin to pay back loans.

The Takeaway

At the end of the day, the best decision for you may be the one that addresses your goals and your finances. Understanding different avenues for tuition discounts, including geographic-based tuition exchanges, can open up avenues to less-expensive degree paths. For some students, including grad students, establishing residency may make sense to obtain in-state tuition.

Tuition is complicated, and scholarships, grants, federal loans, private loans, and family contributions are all part of paying for school. You also may use this time to assess the what-ifs: What if circumstances change and a tuition fee that was possible this year becomes impossible next year due to job loss or other change in circumstance? What sort of private loans are available, and what terms do they offer?

For example, students who did take out student loans for college or graduate school may consider refinancing after they graduate. In some cases, refinancing can help qualifying borrowers secure a lower interest rate, which may make the loan more affordable in the long-term.

Refinancing federal loans eliminates them from borrower protections, like income-driven repayment plans, so it’s not the right choice for all borrowers.

Assessing the tuition price of each place you’re accepted—and considering private loan options, if necessary—can be an integral factor in making a decision that makes sense for all aspects of the next step in your educational journey.

Interested in learning more about refinancing with SoFi? You can find out if you pre-qualify, and at what rates, in a few minutes.



SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF JANUARY 2022 DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

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

SOSL21007

Read more
What Credit Score Do You Need to Lease a Car?

What Credit Score Do You Need to Lease a Car?

When you’re thinking about buying a car, you’re probably taking a look at your financial snapshot—from the cash you have available to your debts and your credit score. Determining your credit score to lease a car is an important component of leasing a car—particularly if you want to save money!

Here, you’ll learn about the credit score needed to lease a car, the minimum credit score to lease a car, and find out the answer to the question, “Do you need good credit to lease a car?” Before you decide to lease a car instead of buying a car, it’s good to know how that decision will impact your finances and your credit.

What Are Car Lease Requirements?

It’s a good idea to know your credit score before you start shopping around because your credit score is an important factor influencing the final lease amount. If you have poor credit and only have $300 a month to spend on the lease and insurance, a lot of that amount might be going to the higher interest rate a lender could potentially offer you.

Whereas if you have good credit and $300 a month to spend on the lease and insurance, you may be able to lease a better quality car for that money since not as much will be going to interest payments. (It’s always a good idea to weigh the pros and cons of leasing vs. buying a car before pulling the trigger on either financial decision.)

When you’re thinking about do you need good credit to lease a car, the answer is yes, having good credit may make it easier to lease a car because a leasing company may not see you as financially risky as they might as an individual who has bad credit. Not all leasing companies will approve a car lease for someone who has bad credit.

You might also need to prove that you have a job with a certain income when you’re leasing a car, show recent bank statements, or that you have a co-signer with a good credit history.

The average credit score of people who leased cars in mid-2020 was 729—generally in a good credit score range. If you have excellent credit, the upfront costs of leasing a car might be lower than if your credit isn’t so great. Typically, leasing a car might require the first month’s payment, a security deposit, taxes, registration, and an acquisition fee. Someone whose credit score is in the low 600s might need to put money down on the lease in addition. Keep reading to find out more about how different credit scores affect leasing a car.

Recommended: Leasing vs. Buying a Car: What’s Right for You?

Leasing With a Credit Score Above 680

The credit score to lease a car and get favorable rates is one that’s considered a “prime” or “good” credit score. Having good credit typically makes it more justifiable for lenders to approve you for the lease because it’s less of a risk to them.

Just as with any type of financing, applicants who have good credit may be offered lower interest rates on auto leases. Having an above-average credit score could give you more negotiating power over the rates and terms of the car lease.

Leasing With a Credit Score Lower Than 680

Having a lower credit score means you’ll likely have difficulty finding a company willing to lease to you or you’ll pay more to lease a car. Leasing companies may see you as a risk-based on your credit history. You might find that having a trustworthy co-signer on the lease could help you get a lower interest rate or better terms than if you’re applying on your own.

If your credit score is lower than 680, you might want to work on raising it before leasing a car so you get a better deal. A good place to start is by checking your credit report . It’s important to check your report for accuracy—if there are any errors, contact the credit bureau that issued the report. Factors that affect your credit score are your payment history, length of your credit history, how much you owe compared to how much available credit you have, types of credit you have, and any new applications for credit that show up on your credit report.

Recommended: Is it Smart to Buy Your Leased Car?

Can Leasing a Car Build Credit?

Any time you apply for credit, you have the opportunity to build your credit. A car lease is credit just as a car loan would be credit. How you manage your lease payments affects your credit report just as a loan would. Making regular, on-time monthly payments will affect your credit in a positive way. Missing payments or being late with payments will hurt your credit and may negatively affect your credit score.

Can Leasing a Car Affect Your Credit Score?

You may see a small drop in your credit score when the lease begins because your credit report will show a new account is open. You may see a similar small drop when the lease is terminated because the account is closed. Both of these credit events—opening and closing a credit account—can affect your credit score.

If you’re shopping around at different leasing companies over the course of a few weeks, and apply for leases at those places, there will be inquiries into your credit history by the leasing companies. However, those multiple inquiries should show up as just one inquiry on your credit report and minimally affect your credit score.

Recommended: Smarter Ways to Get a Car Loan

The Takeaway

It’s important you know your credit score to lease a car before you go car shopping. Checking your credit reports in advance will uncover any surprises before you’re at the dealership. Knowing your credit score and working to improve it as much as possible before applying for a car lease may help you save money on your car lease and give you more negotiating power. The less you have to spend on interest and fees, the farther your money can go while leasing. If you’re happy with your leased car and it makes good financial sense for you, you may even decide to purchase it at the end of the lease.

Using a cash management app like SoFi Money® can help you save, spend, and earn all in one place. And using the SoFi Relay app can help you track all of your accounts, make it easier to meet your financial goals, and keep tabs on your credit score.

Learn more about SoFi Money.

Photo credit: iStock/dusanpetkovic


SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC .
Neither SoFi nor its affiliates is a bank. SoFi Money Debit Card issued by The Bancorp Bank. SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
SoFi’s Relay tool offers users the ability to connect both in-house accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a Vantage Score® based on TransUnion™ (the “Processing Agent”) data.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s
website
.

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.
SOMN0621053

Read more
Checking vs Savings Account: Choosing the Best for You

The Difference Between a Checking and Savings Account

When it comes to managing everyday finances, some people might wonder what type of account is best. Understanding the difference between checking and savings accounts and how to use them is a good place to start.

In a nutshell, checking accounts are designed for frequent banking transactions such as monthly bills, while savings accounts are not usually accessed as often, instead perhaps used to hold money being saved to meet a short-term goal or as an emergency fund.

Let’s take a closer look at the difference between a checking account vs. a savings account and which one might be a good choice for a person’s particular financial needs—it could be both.

Checking vs. Savings Account: Key Differences

Checking Account

Saving Account

Fees Varies Varies
Interest earnings Minimal (if at all) Yes
Debit card access Yes No
Check writing capabilities Yes No
Withdrawal limits None Typically 6 per month
Maintenance fees Variese Varies
Minimum opening balance Varies Varies
Best used for Spending Saving

Although there are similarities between savings accounts and checking accounts, such as varied minimum opening deposits, maintenance fees, and other monthly fees, three major differences lie in how account holders access their money, withdrawal limits, and interest earnings.

Interest Earnings

When it comes to earning a bit of a return on an account balance, savings accounts typically offer a higher interest rate than checking accounts. In many cases, checking accounts aren’t interest-bearing, meaning no interest is earned at all. Interest rates for savings accounts vary, from a current average of 0.06% APY (compared to a current average of 0.03% APY for checking accounts).

Recommended: APR vs. Interest Rate: What’s The Difference?

Debit Card Access

Checking accounts are typically used by account holders to frequently access their cash and will generally include a debit card which can be used for purchases or ATM withdrawals. Savings accounts, on the other hand, don’t usually come with debit cards. Some financial institutions offer an ATM card for deposits and withdrawals to a savings account.

Withdrawal Limits

Checking accounts allow unlimited withdrawals, whereas savings accounts typically allow up to six, after which the transaction could be denied or the account holder charged a penalty.

However, the Federal Reserve in April 2020 lifted the limitation imposed through Regulation D. Financial institutions are no longer required to limit savings account withdrawals or transfers to six per month, but some may continue to impose the limit.

What Is a Savings Account?

A savings account is an account held at a financial institution such as a bank or credit union—its primary purpose is to store your funds safely. Most savings accounts allow the account holder to earn interest on the account balance.

Savings account rates are generally higher than those offered with checking accounts, so they can be a good option as a savings vehicle for money that the account holder doesn’t need to access frequently. Common uses for savings accounts are emergency funds, short-term savings goals, and funds for occasional expenses. The cash can accumulate in the savings account and have an opportunity to earn interest.

As mentioned above, banks can still impose a per-month transaction limit on savings accounts—they’re just not required to by the Fed anymore. There could be fees imposed on these excess transactions, which can add up.

Some financial institutions may automatically close an account holder’s savings account or convert the savings account to a checking account if too many withdrawals are made each month on a regular basis.

Other financial institutions don’t charge a maintenance fee or require account holders to maintain a minimum account balance, although they may require a minimum deposit to open an account.

What Is a Checking Account?

A checking account is also held at a financial institution, though its primary purpose is to be used for everyday spending. These accounts generally don’t have any withdrawal limits, so account holders can make as many transactions as their heart desires.

Checking accounts may not earn as much interest compared to savings accounts, if they earn any interest at all.

Checking accounts also typically comes with a debit card so account holders can access their money in a variety of ways. This includes making purchases at brick-and-mortar and online retailers and withdrawing cash from an ATM.

Checking account holders may also be able to use paper checks, either complimentary or purchased by the account holder, which can be used to pay bills and make purchases.

Many financial institutions charge the same types of fees for checking accounts and savings accounts, such as monthly maintenance fees. Additional checking account fees may include overdraft or non-sufficient funds fees and out-of-network ATM fees.

Having enough money in the account and sticking with in-network ATMs are good ways to avoid charges like these, but banks are required to disclose certain fees it charges, so it’s also a good idea to look at the fee schedule for any particular type of account you are thinking of opening.

Recommended: How Much Are ATM Fees?

The Takeaway

Both types of accounts, checking and savings, may be equally important to have depending on a person’s financial needs. They serve different purposes and can be useful in working toward different financial goals.

Looking For Something Different?

A cash management account like SoFi Money® may also be a good option for some people. SoFi Money account holders can spend, save, and earn all in one place—all without paying account fees. With a convenient mobile app, your account can be managed from wherever you are.

Get started with SoFi Money.

Photo credit: iStock/AleksandarNakic


SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC .
Neither SoFi nor its affiliates is a bank. SoFi Money Debit Card issued by The Bancorp Bank. SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
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.
As of 6/9/2020, accounts with recurring monthly deposits of $500 or more each month, will earn interest at 0.25%. All other accounts will earn interest at 0.01%. Interest rates are variable and subject to change at our discretion at any time. Accounts opened prior to June 8, 2020, will continue to earn interest at 0.25% irrespective of deposit activity. SoFi’s Securities reserves the right to change this policy at our discretion at any time. Accounts which are eligible to earn interest at 0.25% (including accounts opened prior to June 8, 2020) will also be eligible to participate in the SoFi Money Cashback Rewards Program.
The SoFi Money® Annual Percentage Yield as of 03/15/2020 is 0.20% (0.20% interest rate). Interest rates are variable subject to change at our discretion, at any time. No minimum balance required. SoFi doesn’t charge any ATM fees and will reimburse ATM fees charged by other institutions when a SoFi Money™ Mastercard® Debit Card is used at any ATM displaying the Mastercard®, Plus®, or NYCE® logo. SoFi reserves the right to limit or revoke ATM reimbursements at any time without notice.
SOMN0821077

Read more
TLS 1.2 Encrypted
Equal Housing Lender