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Part of teaching your kids to be more independent is giving them money as part of an allowance. It can be an exciting time for your child — remember when you first got your hands on some cash? It can also be fraught with some bumps along the way as your child learns sound money management skills.

That’s not to say it’s not worth it. Rather, deciding on how to give them money and helping them budget their allowance can take time, but your kids will thank you for it. Read on for ways that you may handle this part of parenthood and help your child build financial literacy.

What Is an Allowance?

An allowance for kids is a predetermined amount of money you give them on a consistent basis, most commonly on a weekly or monthly cadence. You can choose to have your child earn their allowance by completing chores or “jobs” or do none at all. The idea is that with an allowance, your child can learn the value of work (if you have them do chores), gain experience handling money, and learn responsibility.

The decision to give an allowance is up to the family. The same holds true regarding whether the allowance is earned by completing chores. Depending on the age, some parents may feel more comfortable with giving their kids cash. Some may feel older kids can handle their own debit card and a children’s checking account — with some limits, of course.

Types of Allowances

The type of allowance you give your child is based on your preferences, what you want your child to learn, and their needs. Here are some options for how an allowance can work.

Chore-Based Allowance

The chore-based allowance tends to be the most common, where a child is given some household tasks and offered a certain amount once these tasks are complete.

•   Tasks typically will depend on your child’s age and their readiness to handle certain types of responsibilities.

•   It can be wise to assign tasks your child can realistically accomplish so that they don’t wind up feeling discouraged.

For example, say your nine-year-old wants to start doing chores regularly to receive allowance money, which they plan to save up to buy a new science kit. Based on what they’ve demonstrated to you in the past, you believe they’re able to load the dishwasher and help put the laundry away. You discuss this with your child, and you both agree that you’ll give them a weekly allowance if they complete all their assigned chores.

Pure Allowance

Some parents would rather teach their child money management skills without connecting this to some sort of labor. Instead of asking their child to complete chores, parents agree to give them an allowance — typically a consistent amount in cash or perhaps put on a debit card connected to a bank account. While your child may still do chores around the house, the allowance isn’t contingent upon their completion.

Hybrid Approach to Allowance

Parents who want to teach their kids about reaching a goal (and also how money is tied to work) can take the hybrid approach. Here, you’ll give your child a regular allowance that isn’t contingent on any chores. However, you give them an opportunity to earn more money by taking on extra chores around the house. In that way, they’d get more experience in allowance management.

•   For example, your child receives $5 a week, but they want to earn more so they can head to the local arcade for their friend’s birthday party or see their savings grow.

•   Based on their age and ability, you have them do a chore or two (pulling weeds in the yard or taking out garbage). Once the tasks are complete, you give your child the amount you agreed upon.

How Much Allowance Should You Give Out?

The amount you should give your child will depend on several factors. Ultimately, it will depend on your budget and what you can afford to give your child. One popular formula is to give a child $1-$2 per week for every year of age, which would mean $8-$16 for an eight-year-old and $16-$32 for a 16-year-old.

You might consider not just the age of your child but also how challenging or time-consuming the task is. A couple of other pointers:

•   If you’re unsure what’s a good amount, you can ask some of your trusted parent friends or family members about what they’re giving their child.

•   If your child reaches the age where they can get a part-time job, you may even consider lowering the amount or not giving an allowance at all since they can earn their own pocket money.

Whatever the amount you choose to give, make sure you set clear expectations. This means spelling out the chores in detail (for instance, is the child making their bed every day or just on weekdays?). It also means determining how much money will be paid, when, and how, as well as what (if anything) they will receive if a task isn’t fully completed. This can result in headaches down the road.

Advantages of Giving an Allowance

There are plenty of upsides to giving an allowance. Consider the following:

Teaching Money Management

Giving an allowance, whether tied to chores or not, gives you an opportunity to teach your kids about money. Plus, it can teach them that the items they want to purchase or activities they want to do cost money. It gives them hands-on experience earning, saving, and spending, providing a valuable lesson in money management for kids.

They’ll learn about what it takes to purchase something, such as looking at price tags in the store.

•   To go a step further, you can even teach the concept of saving and investing money and why that can help them as well.

•   If you open a children’s or teen’s bank account for your child’s allowance money, that will teach valuable basic banking and financial literacy skills too. They might see how interest compounds and grows their savings, for instance.

•   The same holds true if they get a debit card (typically one where you can view and possibly approve their spending).

Teaching Responsibility

An allowance can teach your child what it means to be responsible with money. They can learn not to spend their earnings on snacks if they’re saving for, say, a video game. They can learn to safely store their funds, be patient until their next paycheck rolls around, and earn extra money if they’re eager to accumulate a certain amount.

Building Confidence

Giving kids an allowance can help boost their confidence because it can show them you believe they’re ready to earn and learn money management. They may also feel proud of their ability to make cash and spend it as they see fit, whether that means buying themselves new clothes or making a donation to a favorite charity.

Creating a Safe Space to Learn

Instead of having kids learn about money and other types of responsibilities when they’re grown, giving an allowance can give them a bit of a head start. You can help guide them to make their own decisions, which can include making financial mistakes without huge consequences. Any errors they make can be an opportunity for you to teach your kid about what they can do differently next time.

Recommended: Guide to Opening a Bank Account for a Minor

The Takeaway

If you choose to give your child an allowance, whether it depends on chores or not, it can be a good way for them to learn how to manage a bit of money responsibly. You might have them work for the money, not work at all, or have them earn a bonus for doing additional chores.

Whatever amount you give, showing your child how to save their money in a savings account is a great teaching opportunity.

Currently, SoFi Bank doesn’t offer accounts to minors. But while you’re thinking about money management, why not take a fresh look at your own banking needs?

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is a fair allowance for kids?

A fair allowance for kids should be based on age and what you feel is appropriate. Many parents provide $1 or $2 per week for each year of the child’s age (meaning, if a child is 10, they get $10 or $20 per week). You might survey other parents in your circle and see what they give their kids as a way of coming up with a ballpark figure.

Are allowances bad for kids?

In most cases, allowances can have several advantages for kids, such as learning how to handle money and becoming more responsible. However, some parents may believe that allowances aren’t appropriate, and parents should in no way feel obligated to give one.

How do parents give allowance?

Parents can give an allowance in a weekly, biweekly, or monthly cadence (or whatever other frequency suits them). They can also give a consistent amount or vary it depending upon tasks completed. In addition, an allowance can be paid as cash, on a debit card for older kids, or deposited into a children’s bank account or an account that their parents hold for them.

Photo credit: iStock/SbytovaMN

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SOBNK-Q226-038

What happens to a bank account after someone dies depends largely on the type of account, how it was set up, and whether the account owner left a will or named beneficiaries.

In many cases, the transfer process is relatively simple if the account has a joint owner or a payable-on-death (POD) beneficiary. If there is no joint owner or beneficiary, however, the account typically becomes part of the deceased person’s estate and must go through probate before refunds can be distributed.

Understanding what happens to a bank account when someone dies can help surviving members manage the process more smoothly. It can also encourage you to organize your own accounts in a way that minimizes delays and legal complications for your heirs.

Here’s what to know about how bank accounts are handled after death.

How Do Banks Find Out When Someone Has Passed Away?

Bank generally learn about a customer’s death in one of two ways:

•   Family member or beneficiary notification: Commonly, a family member, joint account holder, or executor informs the bank that the account holder has died. The bank will usually request a copy of the death certificate, the deceased person’s Social Security number, and documentation proving the individual has authority to act on behalf of the estate.

•   Social Security Administration notification: Funeral homes often report the deaths to the Social Security Administration (SSA). If Social Security payments are sent after the person’s death, the SSA may contact the bank to recover those funds. This can alert the bank that the account holder has passed away.

What Are the Steps to Claim a Deceased Person’s Bank Account?

Once a bank is notified of an account holder’s death, it may temporarily freeze the bank account to protect the assets until the rightful owner or estate representative is identified. The steps required to claim the account will depend on how the account was titled.

Notify the Bank and Provide the Official Death Certificate

The first step is notifying the bank as soon as possible. Most financial institutions require a certified copy of the death certificate to officially verify the death. Photocopies are generally not accepted.

If the account has a POD beneficiary, the process is often straightforward. The named beneficiary can usually claim the funds by presenting the death certificate and valid identification. Because these accounts bypass probate, the funds may be released relatively quickly.

Present Executor Documents or Letters Testamentary

If there is no named beneficiary, the account becomes part of the deceased person’s estate. In that case, the bank will require legal documents identifying the person authorized to manage the estate.

If the deceased left a will, the court typically appoints the named executor and issues Letters of Testamentary. If there is no will, the court appoints an administrator and issues Letters of Administration.

Once the bank receives these documents and identification from the executor or administrator, the funds are often transferred into an estate account. From there, the money can be used to pay off outstanding debts, taxes, and funeral expenses before any remaining assets are distributed to heirs.

What Are the Rules for Sole Owner Bank Accounts After Death?

What happens to a solely owned bank account depends largely on whether the account owner named a beneficiary.

If the account has a POD beneficiary, the funds generally transfer directly to that individual upon the account owner’s earth. This transfer occurs regardless of what the will says because beneficiary designations usually override instructions in a will.

To claim the funds, the beneficiary typically must provide the bank with a death certificate and valid identification. After releasing the funds, the bank will usually close the account. If the beneficiary is a minor, a guardian or custodian may need to manage the funds until the child reaches adulthood.

If no beneficiary was named, the account becomes part of the deceased person’s estate and must go through probate.

Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts

A payable on death (POD) account allows the owner to name one or more beneficiaries who will inherit the account funds automatically after the owner dies. POD designations are commonly available for checking accounts, savings accounts, and Certificates of deposit (CDs).

Transfer on death (TOD) arrangements work similarly but are more commonly used for brokerage accounts holding assets such as stocks, bonds, and mutual funds.

Both POD and TOD accounts work similarly to help beneficiaries avoid probate, which can save time and reduce legal expenses.

Accounts Held Within a Living Trust

A living trust is a legal arrangement that allows a person to place assets — including bank accounts — into a trust during their lifetime. The person creating the trust usually serves as the trustee while alive and names a successor trustee to take over in the event they die or become incapacitated.

When a bank account is properly titled in the name of a living trust, the account generally avoids probate. After the owner dies, the successor trustee can manage and distribute the funds according to the trust’s instructions without court involvement.

What Happens to Joint Bank Accounts After a Death?

Typically, surviving owners of a joint bank account automatically retain ownership of the funds after the other account holder dies

Rights of Survivorship Explained

Many joint bank accounts include “rights of survivorship.” This means that when one account holder dies, ownership of the account automatically transfers to the surviving owner. The surviving account holder typically only needs to provide the bank with a death certificate to update the account records.

It’s important to note that the death of a joint account holder can affect FDIC insurance coverage. Joint accounts are generally insured up to $500,000 for two owners, but coverage drops to $250,000 after one owner dies and the six month grace period expires.

What Happens to a Bank Account When Someone Dies Without a Beneficiary?

If a bank account holder dies without naming a beneficiary, the account usually becomes part of the estate and must pass through probate before heirs can access the funds.

Navigating the Probate Process for Bank Accounts

Without a POD designation or joint owner, the bank will generally freeze the account once notified of the death. This helps prevent unauthorized withdrawals, while the court determines who has authority to manage the estate.

The probate court appoints an executor or administrator and issues legal documents authorizing that person to access the account. The process can take months, depending on the complexity of the estate and state laws.

How Are Outstanding Debts Handled Before Distribution?

Before heirs receive any inheritance, the estate’s representative must use estate assets to pay outstanding debts, taxes, and funeral expenses.

If the deceased left a will, remaining assets are distributed according to the will’s instructions. If there is no will, state intestacy laws determine who inherits the money. These laws vary by state but generally prioritize surviving spouses, then immediate family in order of relation.

Do Power of Attorney (POA) Rights Continue After Death?

No. A power of attorney (POA) ends immediately when the person who granted the authority dies. Once the principal dies, the agent no longer has legal authority to access accounts, make financial decisions, or manage assets unless they are also executor or trustee.

This rule applies to all forms of POA, including general, durable, and medical powers of attorney.

What Happens to Automatic Payments and Direct Deposits?

Automatic payments and direct deposits may continue briefly after a person dies until the bank receives official notification of the death. Once the bank freezes the account, however, automated transactions generally stop. As a result, recurring bills such as utilities, mortgage payments, subscriptions, and insurance premiums may go unpaid unless the executor makes alternate arrangements.

Direct deposits, including paychecks and government benefits, may also be returned to the sender after the account is frozen. In some cases, government agencies may reclaim benefits issued after the date of death.

It’s a good idea for executors to review account activity carefully to cancel unnecessary services and ensure essential expenses continue to be paid.

How Can You Prepare Your Bank Accounts to Avoid Complications for Your Heirs?

One of the simplest ways to help your heirs avoid delays is to add beneficiaries to your bank accounts. Just like a life insurance death benefit, this allows assets to transfer directly to beneficiaries without probate.

It’s also important to regularly review and update beneficiary designations, especially after major life events like marriage, divorce, or the birth of a child. Outdated beneficiary information can create confusion and legal disputes.

In addition, keeping an organized list of your financial accounts, passwords, and institutions can help loved ones locate important assets after your death. Some people also choose to establish a living trust as part of a broader estate plan to simplify the transfer of assets.

The Takeaway

What happens to a bank account after someone dies depends largely on how the account was structured. Joint accounts with rights of survivorship usually transfer directly to the surviving owners, while accounts with POD or TOD beneficiaries pass straight to the named recipient without probate. Accounts without beneficiaries generally become a part of the deceased person’s estate and must go through probate before funds can be distributed.

Planning ahead can make the process much easier for your loved ones. Keeping beneficiary designations current, organizing financial records, and considering tools such as living trusts can help reduce delays, avoid unnecessary legal complications, and ensure your assets are disturbed according to your wishes.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How long does it take for a bank to freeze an account after death?

A bank typically freezes an account once it is notified of the account holder’s death. The freeze is put in place immediately to protect the deceased’s assets until the proper legal authority, such as an executor or administrator, is established.

The exact time it takes to freeze the account is not fixed, as it depends entirely on how quickly the bank is informed. Notification usually occurs when a family member presents a certified copy of the death certificate, or when the Social Security Administration contacts the bank to reclaim payments sent after the person’s death.

Can a family member withdraw money before notifying the bank?

A family member can withdraw money before notifying the bank only if they are a joint owner on the account, as they have full and immediate legal access to the funds. If the deceased was the sole owner, no one can legally withdraw money until the bank is notified. Payable-on-death (POD) beneficiaries or court-appointed executors can eventually access the account, but they must first present a death certificate and legal identification to the bank.

What happens to direct deposits or automatic subscriptions after death?

Upon notification of death, the bank typically freezes the account, causing automatic transactions to fail. Direct deposits are usually recalled and returned to the payer, and all automatic bill payments will stop processing. Subscriptions often continue billing until cancelled, as they are not automatically notified. The executor must contact providers, and payments may require a new estate account.

Do joint bank accounts have to go through probate?

Generally, joint bank accounts do not go through probate. Joint accounts are typically held with a right of survivorship, which means ownership automatically transfers to the surviving account holder immediately upon the other owner’s death.

What happens if the listed beneficiary on a bank account is a minor?

If the listed beneficiary on a bank account is a minor, the funds cannot be released directly to them, even if the account is designated as payable-on-death (POD). Although the POD designation ensures the assets bypass probate, a legal representative must be officially appointed to manage the money on the minor’s behalf until they reach the age of majority.

Photo credit: iStock/nortonrsx

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

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

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

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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

SOBNK-Q226-139

An overdraft line of credit is a preapproved loan attached to your checking account. If you don’t have enough money in your account to cover a transaction (such as a debit card transaction or an automatic bill payment), the line of credit kicks in and covers the overdraft. This prevents denied and failed transactions, overdraft fees, non-sufficient fund fees, and potentially other fees and headaches. However, these credit lines come with costs of their own. Are they worth it? Here are key things to know about overdraft protection lines of credit.

What Is an Overdraft Line of Credit?

An overdraft line of credit is a feature offered by banks and credit unions that links your checking account to an established line of credit. If you sign up for this type of overdraft protection, you can borrow against that line of credit to cover shortfalls when (or if) you overdraw your checking account.

For example, let’s say your checking account is low on cash due to some unexpected expenses, and then an automated payment goes through, or a check you wrote a while ago (and forgot about) gets cashed. With an overdraft line of credit, the bank or credit union will cover that overage by drawing from your credit line. The payments will go through, and you won’t get hit with a non-sufficient funds (NSF) or bounced check fee.

However, there are still costs involved. Credit unions and banks that offer an overdraft line of credit will typically charge a transfer fee each time you draw from the credit line. On top of that, you’ll pay interest on the borrowed balance until you pay it off.

How Overdraft Lines of Credit Work

Typically, if your checking account doesn’t have enough money to cover a debit card purchase, check, or online bill payment, the bank will either cover the pending transaction and charge you an overdraft fee, or it will reject the transaction and charge you a fee for insufficient funds. You may also be hit with a fee from the party expecting payment.

If you have a checking account with an overdraft line of credit, on the other hand, any overdraft is automatically withdrawn from your line of credit and deposited into your account. You will typically be charged a small fee for each overdraft that is covered. You’ll also pay interest on the money you borrow from your credit line.

An overdraft protection line of credit has a preset amount it can cover on your behalf, which can range from $500 to $7,500 or more. As with other lines of credit, you only pay a transfer fee or interest if you actually borrow money from the credit line.

Banks and credit unions often have requirements for customers to qualify for an overdraft line of credit, such as maintaining a specific account balance for a certain period of time, depositing money regularly into the account, having a positive credit history, and having minimal overdrafts in your recent banking history.

What Happens if You Use Your Overdraft Line of Credit?

If you use your overdraft line of credit, the bank or credit union will typically charge a transfer fee and interest on the balance provided for your purchase. For example, say you spend $100 at the grocery store using your debit card but only have $60 in your account. The transaction will go through, and your overdraft line of protection kicks in, putting $40 in your account.

You’ll pay an overdraft fee, which varies between banks, but is frequently close to $35 or more. Then the $40 balance will start accruing interest until it’s paid back in full. You’ll need to repay the amount you borrowed according to the terms set by your bank. Typically, you need to make monthly payments, either manually or by having them automatically deducted from your checking account.

Keep in mind that once you use an overdraft line of credit, it can have an impact on your credit, since it qualifies as a loan. Paying off the balance in a timely fashion can have a positive impact on your credit, while carrying a high balance and/or making late payments can have a negative impact on your credit.

Recommended: Can You Overdraft a Credit Card?

Pros and Cons of Overdraft Lines of Credit

An overdraft line of credit can help you if you’re in a pinch, but it may also cause unwanted financial consequences. Here are some benefits and potential pitfalls to consider.

Pros of Overdraft Lines of Credit

•   Provides a safety net: Overdraft credit lines (which often come with high limits) can help you afford necessary expenses and handle emergencies without taking out a loan.

•   Ensures transactions won’t fail: With an overdraft line of credit, debit card purchases, online bill payments, and checks will go through successfully, even if you don’t have the funds in your account to cover them.

•   May be cheaper than other options: The transfer fee plus the interest charges can end up costing less than overdraft fees and the penalties for returned payments and checks.

•   Can help you build credit: Drawing from your credit line and then paying off your balance responsibly can have a positive impact on your credit.

Cons of Overdraft Lines of Credit

•   Not everyone qualifies: Approval for the line of credit may involve passing lender requirements, such as keeping a certain average account balance, signing up for direct deposit, and having a strong credit history.

•   Fees can add up: Typically, you incur a transfer fee for every advance. Some lenders also charge annual fees and account fees for overdraft lines of credit.

•   Interest rates tend to be high: Overdraft lines of credit tend to have high interest rates because there’s no collateral from the borrower, which increases risk to the lender.

•   It could negatively impact your credit: If you carry a high balance and/or don’t make your payments on time, an overdraft credit line could have a negative impact on your credit.

Alternatives to Overdraft Lines of Credit

While overdraft lines of credit offer convenience and might help you save money, other options might be more beneficial, depending on your situation. Here’s a breakdown of the alternatives to overdraft lines of credit.

Effective Account Management

Effectively managing your checking account and finances can help you avoid overdrafts altogether. This entails regularly monitoring your account balance, signing up for low-balance alerts, and always keeping a cushion of cash in your checking account.

Link Another Account to Your Checking Account

Linking your checking account to another financial account, such as a savings account, can provide a safety net in case of insufficient funds. If a transaction will overdraft your checking account, funds will automatically transfer from the linked account to cover the shortfall.

This option avoids overdraft fees and ensures that your transactions are not declined due to insufficient funds. However, you may pay a transfer fee when the protection is triggered, and you’ll need sufficient funds in your linked deposit account to cover the overdrawn amount to use this service.

Opt Out of Overdraft Coverage

If all of your bank’s overdraft protection options involve costs, you might consider going without overdraft coverage. If you go this route, your bank will decline any transactions that would bring your account into the negative. This could put you in a difficult situation if you can’t make a needed purchase, but you’ll avoid overdraft fees and/or running up interest.

Consider Switching Banks

You may be able to find a bank with generous overdraft protections for checking accounts. For example, some banks offer grace periods after overdrafts, such as one business day to cover the overage without incurring any penalties. In addition, many financial institutions have reduced or eliminated their overdraft fees.

Recommended: Switching Bank Accounts When in Overdraft

The Takeaway

Overdraft lines of credit give bank and credit union customers immediate access to funds to cover transactions and avoid costly overdraft and NSF fees.

While they can cover emergency expenses and prevent transactions from failing when your account balance is low, high interest rates and credit implications can lead to other challenges. Alternatives to using an overdraft line of credit include effective account management, linking accounts, and/or finding a bank with favorable overdraft policies.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Does tapping into your overdraft line of credit affect your credit score?

Tapping into your overdraft line of credit means taking on debt, which can impact your credit. If you consistently make timely payments and manage that debt responsibly, it can have a positive impact on your credit history. Conversely, if you fail to repay the borrowed amount on time, it could lead to negative marks on your credit report.

How does an overdraft protection line of credit work?

An overdraft line of credit is a safety net for checking accounts, providing funds to cover transactions that exceed available balances. When faced with insufficient funds, the bank or credit union extends a predetermined line of credit, allowing the transaction to proceed without incurring overdraft fees. The customer then repays the borrowed amount, along with any applicable fees and interest.

Can you overdraw your credit limit?

No, you cannot overdraw beyond the credit limit set for your overdraft line of credit. Your bank establishes a maximum limit based on your creditworthiness and financial history. If a transaction exceeds this limit, it will typically be declined, and you may still face fees for insufficient funds. It’s important to be aware of your credit limit and monitor your account to avoid transactions that might exceed it.

Photo credit: iStock/gzorgz

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

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

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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 .

SOBNK-Q126-134

As nice as a spa day or yoga class is, sometimes the best form of self-care doesn’t cost anything at all. It’s financial self-care, and practicing it may help you manage your money.

Financial self-care involves taking steps to avoid financial stress and meet financial goals. According to a 2025 report from the American Psychological Association, 66% of Americans say money is a significant source of stress, so practicing financial self-care can be a very good thing.

But what exactly does financial self-care mean, and how do you do it? Read on to find out.

What Is Financial Self-Care?

Financial self-care is a form of self-care that focuses on financial wellness. Essentially, instead of more traditional self-care activities (such as getting massages or enjoying dinners out), you learn the best way to manage your finances and improve your financial situation. This may not sound fun, but worrying about debt, paying the bills, and falling short of savings goals can all lead to a lot of stress that can be draining both physically and mentally. Self-care and money can go hand in hand.

Here’s another perk: Once you get your financial life under control, you’ll have more money to put toward the more exciting areas of self-care. Whether that means finally splurging on that cleaning service or a new puppy is up to you.

Tips for Practicing Financial Self-Care

Self-care and money can combine in the pursuit of financial self-care. Here are some strategies to help incorporate this form of self-care into daily life.

Creating Realistic Financial Goals

To make strides in the area of financial self-care, it’s important to set reasonable goals. That way, you can make progress and feel a positive boost when you finally do reach a goal. Here’s an example: Paying off your student debt in a single year would likely be hard even on a high salary. Instead, having a goal of paying off your highest-interest debt (perhaps a credit card balance) in a year may be more attainable. Look at your income versus your monthly necessary expenses (the “musts” in your life), and see if you can begin funneling some of the funds left over after bill-paying toward your debt.

Tracking Your Expenses Daily

Impulse spending can feel good in the moment, but it can do a lot of harm. You can be more mindful about your spending by reviewing your personal finances daily and focusing on where your cash is spent. You may not realize just how much money flows away from you on a typical day. Expense tracking will reveal that. On days that you don’t spend much or anything at all, give yourself a big pat on the back. You’ve just taken care of yourself financially.

Checking Your Banking Accounts Frequently

Good cash management is an important part of hitting your financial goals. Alongside tracking your daily spending, it can be helpful to check bank account balances daily or at least a couple of times a week. You’ll see where you stand financially and won’t be caught unaware by a low balance. This process will also give you a deeper look at how any automatic bill payments are impacting your cash flow.

After all, most people don’t see the money they earn or spend in cold, hard cash, so it can feel less tangible. Your paycheck may be directly deposited into your checking account, for example. When you know exactly where you stand financially, it can empower you and help better inform your purchasing decisions.

Making Any Needed Changes to Budgets

After keeping an eye on spending habits and account balances, it’s a good idea to review your monthly budget goals and see how you’re doing. Perhaps you put a reminder in your calendar to do a quick check-in on the last day of every month and see how things look. Maybe eating lunch out on weekdays has made it hard to stick to your food budget for the month. Perhaps having too many subscription services left no wiggle room in the entertainment section of the budget.

The end of the month is the perfect time to reevaluate spending habits, to see where you can cut back on spending, and to figure out how to increase savings.

Focusing On Getting Rid of Debt

Debt is likely part of your life, but it can also cause a lot of worry. Thanks to interest charges, debt can mount and be hard to pay off. So, when you have some extra money, sure, you might spend it on a new outfit or a weekend getaway and lift your spirits that way. Or you could pay down your debt instead.

By prioritizing debt, you’d be a step closer to eliminating some money stress from your life. Getting rid of debt can be a key aspect of financial self-care and can reduce money-related anxiety.

Improving Your Mindset on Money

Self-care has just as much to do with someone’s mental health as their physical health. Feeling negative about money can really drag a person down. That’s why it can be helpful to focus on what you have instead of what you don’t have.

If you’re feeling as if you can’t compete with other people’s lifestyles, it may be that your comparison framework is skewed. It may be beneficial to take a break from social media (or unfollow certain luxury accounts), stop watching reality TV, or skip hanging out with that friend who earns and spends big.

Recognizing what your money can do for you rather than feeling deprived is an important step. It can be a very empowering mindset to adopt.

Improving Financial Literacy

Money can be intimidating in part because most people lack a basic financial education. While you may not have learned about money management in school, you can teach yourself the financial basics and beyond. Knowledge is power, after all.

From learning about how credit scores work to the investing basics, take some time to read up on the financial topics that seem confusing. Also, look into apps that help you with budgeting, saving, and tracking your spending. These tools can be part of financial self-care, helping to boost your financial literacy and wellness.

Visualizing Retirement and Investing in It

Financial self-care means taking care of today’s and tomorrow’s needs. Retirement can seem like a distant concept, so try picturing your future self at retirement age and how you’d want to live then. That way, you may feel more motivated to save even though retirement is far away. Look at your budget again to see if there’s room to improve your retirement savings. Even saving an extra 1% a month can make a major impact.

Respecting Money

Money is a tool and a very valuable one at that. Embracing financial self-care means recognizing that money isn’t just about buying things. That may be the easy and fun part, but saving and investing it is what really makes the most of your cash. Educating yourself on saving and investing or seeking professional advice may help you harness the full power of the money you make. Money is a force to be reckoned with — respecting its importance could help you achieve your financial and lifestyle goals.

Why Financial Self-Care Is Important

Financial self-care is equally important, if not more so, than more traditional forms of self-care, such as heading to the spa or taking a personal day off work. When you prioritize financial self-care, you can work to reduce money stress and move closer to your short- and long-term goals.

The Takeaway

Financial self-care can be a way to help reduce money stress and make the most of what you earn. Being smart about your cash and building your savings can unlock the good things in life today and in the future. Try practicing some financial self-care ideas and see if you don’t feel more in control of your money and less stressed about it.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Why is financial self-care important?

Financial self-care can help reduce financial stress in your life. Specifically, prioritizing financial self-care may make it easier to reach financial goals, such as paying down debt or saving for retirement.

How do you take care of yourself and your money?

Budgeting, focusing on debt repayment, and setting clear savings goals are all good ways to take care of yourself and your money. Not having to worry about too much debt or overdue bills is another potential benefit of financial self-care.

How do I respect my money?

Respecting money involves not wasting it and instead looking for ways to make the most of it. Being mindful about purchases, sticking to savings goals, and not taking on high-interest debt are all ways someone can respect their money.

Photo credit: iStock/hatman12

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

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

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.

3.30% APY
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

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

SOBNK-Q126-129

Checks may seem old-fashioned compared to digital payment methods, but they are still a part of many people’s financial lives. In fact, there are an estimated 11 billion checks written every year in the U.S, according to the most recent data from the Federal Reserve.

You have options in terms of how to deposit a check, including in person at a bank, at an ATM, or via a mobile app. Here’s what you need to know about the different methods to deposit checks and the easiest way to get the job done.

How To Deposit a Check: A Simple 5-Step Guide

Typically, depositing a check involves these five simple steps (unless of course you automate the process with direct deposit). Follow these guidelines to successfully get a check into your bank account where you can then use it.

1. Select Your Preferred Method

Your financial institution may have different ways you can deposit a check, including in person, at an ATM, or through their mobile app. The method you choose will affect the specifics of what you need to do to deposit your check.

If you choose to go in person, double check the bank’s open hours. For mobile check deposit, you will need to download the app. Most ATMs will let you deposit a check as long as the machine is in your bank’s network.

2. Gather What You Need

Aside from your paper check, whether it’s a personal check, a business check, or a cashier’s check, the exact type of documentation you’ll need will depend on how you go about depositing a check:

•   In person: This procedure can vary depending on your financial institution. At some banks, you may be able to use your debit card at a teller’s window to deposit a check, no deposit slip required.

In other cases, you may need to get and fill out a deposit slip. This piece of paper outlines how much you want to deposit and to which account. Information you will need to fill out includes your name, bank account number, and deposit amount. Banks may also need to see a government-issued photo ID when you make the deposit.

•   Mobile app: You will need to log into your bank’s mobile app on your device. Be prepared to take a photo of the front and back of the check. Typically placing the check on a dark background helps the app take a clearer photo.

•   ATM: To deposit checks at an ATM, you’ll need your debit card. Check to see if the ATM accepts check deposits for your financial institution (SoFi, for example, only offers ATM withdrawals, not deposits, at this time).

Also, in terms of how you deposit a check at an ATM, you’ll need to know your PIN (personal identification number).

3. Endorse Your Check Securely

Endorsing your check means to sign your name on the back of it in the appropriate place (it typically says “Endorse here” or provides a line to sign on). You can write “for deposit only” on the back when making a deposit so that the money can only go to your account.

Some checks also have a box you can tick if you’re making a mobile deposit. Or your bank may request that mobile deposit checks are endorsed with your name and a phrase like, “for electronic deposit at [bank]” or “for mobile deposit at [bank].”

4. Confirm Deposit Amount

If you deposit checks in person, you may need to indicate the amount on a deposit slip. If you’re using a bank’s mobile app, you will enter in the payment amount of your check. Same goes if you deposit it at an ATM.

Before confirming your deposit, make sure you have indicated the correct information. Being even one digit off from your savings or checking account number, for example, could result in delays to access the funds you’ve deposited.

5. Wait for Confirmation

Once you’ve successfully deposited a check in person, the bank teller may give you a confirmation slip reflecting the transaction or you can request one. You can also check your bank’s website or app to see the pending deposit.

With mobile deposits, you may receive a pop-up confirmation message or an email acknowledging receipt of the check. Some banks may show the pending transaction in the app right away.

At an ATM, you usually receive a receipt of the transaction. Hang onto this piece of paper until you confirm that the deposit has indeed been posted to your account.

Where Can You Deposit a Check?

When it comes to depositing a check, the method you choose will depend on what your bank offers and what is most convenient for you.

How Do You Deposit a Check at an ATM?

Traditional and some online-only banks offer the convenience of depositing a check at an ATM, whether to your checking or savings account. Read your account’s fine print or contact customer service to see if this needs to be at an ATM in your bank’s network.

To understand how you deposit a check at an ATM, you’ll need your debit card, which you’ll insert into the machine. You’ll also need to punch in your PIN. Then, select “Deposit” from the menu of options, insert the endorsed check into the machine when prompted, confirm the amount, and you should be set. The ATM will offer you a receipt of the transaction.

How to Deposit a Check Using a Mobile Banking App

Many banks and credit unions offer mobile apps for their customers. A popular feature is mobile check deposit, which allows you to snap photos of the front and back of the check with your phone and deposit it remotely, no trip to a bank or ATM required.

How to Deposit a Check at a Traditional Bank Branch

Though not always convenient, you can take your check to a local branch of a traditional bank and deposit it into your account. You can do this by going up to the teller. Endorse the check; you may also need to write your bank account number on the back of the account underneath your signature. You may be able to use your debit card for the transaction or a deposit slip.

How Long Does It Take for a Deposited Check to Clear?

In terms of how long it takes for a deposited check to clear varies, depending on such factors as how you deposited it, the amount, and the bank it’s drawn on. It could take between one and several days.

Understanding Bank Holds and Funds Availability

When you deposit money into your bank account, you may not be able to use all of the money right away because of something called funds availability. This is when your bank places a hold on a portion of the money while they process the transaction and make sure it clears. Banks do this to protect themselves and their customers. For example, if a check bounces after it’s been processed, the bank account owner would generally have to repay the money and they will also likely be hit with fees.

The amount of time a bank can keep a hold on a deposit varies from bank to bank and depends on the factors mentioned above. A hold typically ranges from one day (the next business day) to up to five to seven days, for larger deposits.

How to Protect Yourself and Stay Safe When Depositing Checks

No matter which method you choose, it’s important to be safe when depositing checks. Keep these safety tips in mind:

•   One key step is to make sure a check is valid and comes from a legitimate source. If you’re not expecting a payment and receive a check in the mail, you’re not wrong to be suspicious. It could be part of a scam. The same holds true for checks you were expecting but that arrive for a higher amount of money than you anticipated.

•   If you want to verify a check, or see if it’s legitimate, hold the check up to the light to see if there are any watermarks (which are a good thing) or if there’s any evidence that it’s been tampered with (a bad thing). In addition, get a feel for the paper the check is printed on; if it feels thin, like the paper you put in a printer, it may be fraudulent.

•   Checks also have a safety feature called an MICR (magnetic ink character recognition) line. Located at the bottom of the check, this usually shows details like the issuing bank’s routing number. The ink should look flat and dull. If it looks shiny when you hold it under the light, it may be a fake check.

Think you have a fake check in hand? Talk to your bank about how to proceed, and you may want to report it to the Federal Trade Commission (FTC) or the Better Business Bureau (BBB), which has a Scam Tracker database.

One last suggestion: You might also keep in mind that mobile deposit and direct deposits are often good options in terms of safety. These techniques can be preferable to looking for a bank branch or ATM that can accept your check, especially at night or in bad weather.

These methods also provide convenience. For instance, you can have your paycheck direct-deposited each payday, saving you the step of having to deposit it yourself. Setting up direct deposit with your employer is usually simple. You will need to provide your bank account number and ABA number, so it’s a good idea to have those things on hand.

You’ll likely have to fill out a form for your employer with your personal information, including those account numbers noted above. You may also be asked to void a check and submit that as well.

Recommended: Certified Check

The Takeaway

Depositing a check typically involves five simple steps: Select a deposit method, gather materials, endorse the check, confirm its amount, and be sure that it’s hit your account.

While checks are a common, time-honored way to receive funds, you have plenty of options today to send and receive money. Check out what different banks offer (and how much services cost) to make sure you have the right banking partner for you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do you deposit a check at an ATM?

You can deposit a check at an ATM by going to a machine that will accept your deposit — your bank may stipulate which ATMs are in your bank’s network. Insert your debit card and enter the PIN number. Choose “deposit” from the menu, then insert the endorsed check into the machine. Confirm the transaction and the amount, and the machine should give you a receipt of the transaction for your records.

Can I deposit a check at an ATM without a debit card?

Possibly. You can deposit a check at an ATM without a debit card if your bank supports cardless ATM access. You may be able to use a verification code or QR code issued through your banking app to confirm your identity and authorize the transaction. Just be aware that, although they are growing in popularity, cardless ATMs are not yet available everywhere.

How long does a check take to clear after an ATM deposit?

Checks deposited via an ATM typically take one to two days to clear. However, larger amounts of money (generally amounts over $275) may take longer.

What is the safest way to deposit a large check?

Generally speaking, the safest way to deposit a large check is in person at the bank with a bank teller. That way you can get an immediate receipt and know that the check was safely received. You could also deposit the check through your mobile banking app — just make sure the amount is within your bank’s daily limit.

Do I need to endorse a check if I use mobile deposit?

Yes. Most banks require you to endorse a check when using mobile deposit. You will generally need to add: “for mobile deposit only” (or similar wording specified by your bank) under your signature.

Photo credit: iStock/AndreyPopov

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

SOBNK-Q226-046