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Checking accounts generally aren’t known for their high interest rates. But the days of earning nothing (or practically nothing) on the money sitting in checking may be coming to an end. While the average annual percentage yield (APY) on checking is still a scant 0.07%, many banks and credit unions now offer significantly higher rates for their checking accounts. These high-yield checking accounts often pay more than many savings accounts, and some even rival high-yield savings accounts.

However, you may need to follow certain strict rules to earn the high rate. If you don’t, you may earn little or no interest for the month. Are high-yield checking accounts worth it? Here’s what you need to know.

What Are High-Yield Checking Accounts?

High-yield checking accounts (also known as high-interest checking accounts) are checking accounts that offer higher interest rates than standard checking accounts. Like any other checking account, you can use it for everyday transactions, such as paying bills online, receiving your paycheck, writing checks, and making purchases with a debit card.

The key difference between a traditional checking account and a high-yield checking account is that the latter offers a higher interest rate. Although rates vary, you can currently find high-yield checking accounts from banks with APYs of approximately 0.25%-2.00%, as well as others that range from about 3%-5%, though these tend to come with strict requirements. The current national average rate for checking account APYs, however, is 0.07% APY.

Some high-yield checking accounts offer the same APY on all balances, while others offer a tiered rate with higher APYs for higher balances. You may also have to meet certain requirements to access the advertised rate, such as making a certain number of transactions each month, signing up for direct deposit of your paycheck, maintaining a higher balance, and enrolling in electronic statements.

How High-Yield Checking Accounts Work

You can use a high-yield checking account as you would a standard checking account. That means you can deposit and withdraw funds, pay bills, transfer money to and from linked bank accounts, use a debit card for purchases and cash withdrawals at ATMs, and more.

At the same time, your checking account balance earns interest each statement period. To earn the highest APY or waive a monthly account maintenance fee, however, you may need to meet certain requirements. For example, you may have to:

•   Use your debit card for a certain number of transactions each month

•   Maintain a minimum balance for the statement period

•   Have a minimum amount in direct deposits each month

•   Use bill pay a minimum number of times each month

•   Enroll in online banking and electronic statements

•   Have other accounts at the same financial institution, such as a savings account or investment account

If you can’t meet your financial institution’s requirements, you likely won’t be able to earn a competitive interest rate, or you might get hit with a fee that can outweigh the benefits of a high interest rate.

Advantages of High-Yield Checking Accounts

Deciding whether high-yield checking accounts are worth it means considering both the benefits and drawbacks of these accounts. Here’s a look at two key advantages.

Extra Interest

A high-yield checking account allows you to earn significantly more interest than you could in a regular checking account. The best high-yield checking account rates may be competitive with high-yield savings accounts or certificate of deposit (CD) rates (though, again, these tend to be more restrictive).

While you likely have money moving in and out of your checking account, it may be worth earning as much as you can on the money that sits in the account. This is especially true if you tend to keep a large balance in checking and can easily meet the bank’s requirements to earn the higher rate.

Liquidity

High-yield checking accounts offer the interest often associated with savings accounts combined with the accessibility of a checking account. Though the Federal Reserve no longer requires banks to limit savings account transactions to six per month, many banks have continued to impose the rule and will charge you a fee if you exceed the limit. Checking accounts don’t impose these limitations, however. You can write checks, use a debit card, and make withdrawals as needed.

Recommended: Checking vs Savings Accounts: A Detailed Comparison

Potential Disadvantages of High-Yield Checking Accounts

Although you may earn a competitive interest rate with a high-yield checking account, these types of accounts also come with a few drawbacks.

Transactional Requirements

To earn the high interest rate, high-yield checking accounts typically require you to meet specific transactional requirements. These may include making a certain number of debit card purchases per month, having direct deposits, or logging into online banking regularly. The requirements may be complex, and if you’re unable to meet them at any time, you may risk not earning any interest or earning a much lower rate than you anticipated.

Rate Caps

Many high-yield checking accounts cap the balance eligible for the high interest rate. For example, the high rate might only apply to balances up to $10,000, with any amount above that earning a significantly lower rate or no interest at all. This can limit the overall interest you can earn in the account, especially if you maintain a higher balance.

Who Benefits Most From These Accounts?

Those who can easily meet the requirements to earn the highest interest rate may stand to benefit the most from a high-yield checking account.

For example, if you frequently make debit card purchases or get your paycheck from your employer through direct deposit, you may already meet the requirements for the top rate without putting in any extra effort. In this case, a high-yield checking account earns interest on money that would otherwise sit there earning little to nothing.

However, a high-yield checking account probably doesn’t make sense if you’ll struggle to meet the bank’s criteria to earn a high rate or avoid fees. In that case, you might be better off with a regular checking account and a high-yield savings account, which can pay as much as and typically more than high-yield checking accounts but with less hassle.

Comparing High-Yield vs Regular Checking

High-yield checking accounts serve the same basic purpose as regular checking accounts, but they have different benefits and requirements. Here’s a look at how they compare.

Interest Earnings Examples

•   High-yield checking: If you have a $10,000 balance earning a 0.50% APY in a high-yield checking account, you could earn $50 in one year.

•   Regular checking: If you have a $10,000 balance earning the national average rate for checking accounts, which is about 0.07% APY, you could earn $7 in one year.

•   Total difference: The high-yield checking account would provide $220 more in interest over the course of a year.

Other Considerations

•   Fees: Regular checking accounts may have fewer or lower bank fees compared to high-yield accounts.

•   Accessibility: Both types of accounts offer similar access to funds through checks, debit cards, and ATMs.

•   Requirements: High-yield checking accounts often have stricter usage requirements to qualify for the higher interest rate.

Alternatives to Consider

High-yield checking accounts are a useful financial tool, but they aren’t for everyone. If you’re interested in a bank account that pays a higher-than-average APY, here are some alternatives to consider.

•   High-yield savings accounts: The interest rate you can earn in a high-yield savings account can be the same or higher than a high-yield checking account, but without the stringent requirements. While you generally can’t pay bills and make purchases directly from a savings account, you can easily transfer the funds to your checking account when you need to make payments.

•   Money market accounts (MMAs): MMAs typically offer higher APYs than traditional savings accounts while providing some of the conveniences of a checking account, like a debit card and checks. These hybrid accounts may have certain requirements, however. For example, some institutions require high minimum balances to open an account or avoid fees. MMAs can also be subject to transaction limits, so they aren’t a perfect substitute for a checking account.

•   Certificates of deposit (CD): Certificates of deposit offer a fixed APY that’s usually higher than regular savings accounts. In exchange, you agree to leave the money untouched for a set term, which can range from a few months to several years. If you have a large chunk of cash you won’t need for several months or more but want a guaranteed rate of return, a CD may be worth considering.

The Takeaway

If you want the features of a checking account, such as a debit card and frequent access, while growing your money, a high-yield checking account may be worth looking into. However, you’ll want to make sure that you can meet the requirements of the account. If you can’t, you could end up earning little or no interest and/or getting hit with fees. In that case, you may be better off with a regular checking account and a savings account that pays a competitive APY.

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 good high-yield checking rate?

A good high-yield checking account rate is typically 0.25%-2% APY or higher. This is significantly higher than the current average APY for checking accounts, which is 0.07%.

Keep in mind, though, that in order to earn the advertised rate on a high-yield checking account, you may need to meet certain conditions, such as a minimum number of debit card transactions, a minimum amount in monthly direct deposits, or maintaining a certain balance.

Do these types of checking accounts have debit cards?

Yes, high-yield checking accounts typically come with debit cards, just like regular checking accounts, allowing you to make purchases, withdraw cash from ATMs, and manage your daily transactions.

In fact, using the debit card is often a requirement to qualify for the high interest rates offered by these accounts. A bank or credit union may specify a minimum number of debit card transactions per month as part of the account’s conditions to earn the advertised high yield.

What are the disadvantages of using a high-yield checking account?

High-yield checking accounts may have some disadvantages, including stringent requirements to earn the high interest rates. For example, you may need to maintain a high balance or make a minimum number of debit card transactions and direct deposits per month. If you don’t meet the requirements, you may earn very low (or no) interest for that month or get charged a fee.

Some of these accounts also have rate caps, which means that the high interest rate only applies to a specific balance limit, with amounts above that earning lower or no interest.

Photo credit: iStock/Dilok Klaisataporn

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. 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 NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

^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 a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

SOBNK-Q126-026

It’s often, but not always, possible to deposit cash at an ATM. Whether you can feed bills into the machine depends on your bank, the specific ATM you’re using, and other factors. If you’re able to make the deposit, you might be charged fees.

It’s important to understand the rules for depositing cash at an ATM so you can get your money where you want it to go, with minimum hassle.

How to Deposit Cash at an ATM

Here are the usual steps for depositing cash at an ATM, once you have your bills counted and ready.

Locate an ATM

In order to avoid wasting time at an ATM that won’t accept cash, it’s a good idea to do a bit of research beforehand. Log onto your financial institution’s website or app and look for an ATM locator, which will show you all nearby machines and may also specifically mention which services those ATMs can perform.

It’s worth noting that those convenient ATMs that you may see at your local grocery store or at a concert venue may not accept cash. They are primarily there to provide people with spending money.

Insert Your Bank Card

When you arrive at an ATM that accepts cash deposits, you’ll most likely use your debit card, or another bank card, and your PIN to confirm your identity. This gives you access to the ATM’s service options. Some banks may offer access to ATMs using cardless withdrawal technology, which lets you use your phone instead of your bank card to complete transactions.

Follow the On-Screen Instructions

Next, you’ll follow the instructions on the ATM screen to make a cash deposit. If you have multiple accounts, such as a checking and a savings account, you’ll typically be asked to select which one you want the money to be deposited into.

Feed Your Money Into the ATM

Ready for the main event? It’s now time to feed your bills into the machine. Depending on the bank and the machine, the ATM may have limits on how many bills it will accept per deposit (often around 30 to 50 notes). Some older ATMs still require you to put bills into the provided envelope before making your deposit. Most ATMs typically don’t take coin deposits.

When inserting the bills, you can usually confirm the deposit amount, giving you the chance to double-check the transaction details.

As with any cash-accepting machine, a bill may be rejected if it appears damaged or potentially counterfeit. And, of course, any time you are handling cash, it’s important to remain aware of your surroundings and make sure you feel safe.

Sign Out

Once you’ve made your deposit, you’ll usually be offered the option of a printed or an emailed receipt (either of which can help with record-keeping). Finally, always make sure you’re signed out of the ATM and have collected your debit card before you leave.

Can You Deposit Cash at Any ATM?

You can’t necessarily deposit cash at any ATM. If you are a customer of the bank that operates its own ATMs, you can likely utilize those machines if they accept deposits. You may not be able to deposit bills at an out-of-network machine at all, even if it can accept deposits.

For this reason, it’s important to check which ATMs are part of your bank’s network and accept cash. This can save you a wasted trip to an ATM that doesn’t accept deposits for your financial institution or doesn’t accept bills at all.

If you are permitted to deposit cash in an out-of-network ATM, you may have to pay a fee. Currently, out-of-network fees are on average close to $5.00 per transaction, according to a recent study. In addition, you may have to wait longer for the funds to become available in your account.

Can You Deposit Cash at an ATM for an Online Bank?

If you’re a customer at an online-only bank, you may be wondering whether you can deposit cash at an ATM. Some of the leading online-only banks partner with ATM networks to offer their customers access to tens of thousands of machines around the world. However, it is important to note that cash deposits are usually restricted to specific, deposit-enabled machines within those networks, and oftentimes deposits at ATM machines are not an option.

Recommended: 12 Top Mobile and Online Banking Features

Will My ATM Cash Deposit Be Available Immediately?

Some banks will make cash deposits immediately available when you use their own branded ATMs. Others offer same-day availability if you make a deposit before the bank’s daily cutoff time. If you use an out-of-network ATM or make a large deposit, you may experience longer processing times before the funds become available.

The Federal Deposit Insurance Company requires banks to make cash deposits available within a certain amount of time. If you use an in-network ATM, your funds must be available on the second business day after the deposit. When using an out-of-network ATM, however, funds don’t have to be made available until the fifth business day. Take this into account if you’re making a cash deposit and need the funds within a shorter time frame.

It’s a good idea to contact your bank or visit its website for more information about its specific policies.

Things to Consider When Depositing Cash at an ATM

Most of the time, depositing cash into an ATM goes smoothly and often without added service fees if you use your own bank’s network. But there are a couple of scenarios to be aware of and potential hiccups to be prepared for.

Depositing Cash at an ATM That Isn’t Your Bank

As mentioned above, you may or may not be able to deposit cash at an out-of-network ATM. This means that, if you have a bank account with one bank, you may not be able to deposit bills into an ATM operated by a different financial institution.

What’s more, if you can make a deposit at an out-of-network ATM, there may be fees involved. The funds will also likely take longer to process before becoming available than if you stay within your bank’s network.

If you use an online-only bank, you will need to determine what deposit services are available. You can usually locate in-network machines or other options for making cash deposits by checking your bank’s app or website or by calling their customer service number. Another option may be to transfer money into the online account from a separate bank account that accepts cash deposits.

Potential Problems

Technology offers many benefits, such as speed and convenience, but it isn’t perfect. When depositing cash at an ATM, you may very occasionally encounter an issue. Perhaps the machine retains your card, or miscounts the amount deposited.

If this happens, make sure to note the details, including the date, time, location, and what occurred. You can then report the issue to your bank or the ATM owner for help resolving the matter. If you lose money as a result, you may want to contact the Consumer Financial Protection Bureau to file a complaint.

Fees

You’re unlikely to encounter a fee if you make a deposit at your bank’s own ATM machines (if they have them). However, you may need to deposit cash when an in-network device isn’t anywhere nearby. In that case, you’re likely to incur an out-of-network ATM fee from the bank. As noted above, these are currently averaging about $5.00 per transaction, so this can really add up.

Check with your bank ahead of time to get a better grasp of their specific ATM fee policies and avoid these unnecessary costs when possible.

Limits

There may be limits on how much you can deposit at a given time at an ATM. You’re typically limited to inserting 30 to 50 bills per transaction. If you need to deposit more bills, you can make multiple transactions, but there may be a daily transaction limit. Dollar limits are less common but do exist at some financial institutions.

Recommended: How to Avoid ATM Fees

The Takeaway

You can usually insert bills into an ATM in a few simple steps, and this can be a convenient way to get money into your checking or savings account. Depending on whether you deposit your cash at an out-of-network or an in-network machine, the transaction may involve fees and a potential delay in the funds becoming available. Researching your options and understanding the deposit services your bank provides can help you make financially sound cash deposits.

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 cash at an ATM?

To deposit cash at an ATM, you’ll need an ATM that accepts cash, your bank card, and your PIN (or, if the machine allows cardless transactions, you’ll need your mobile device). Then you simply follow the instructions on the machine’s screen. Before going to a machine, it’s a good idea to locate your nearest in-network ATM or find out about the fees you’ll be charged to deposit cash at an out-of-network ATM.

Can you deposit checks at an ATM?

Yes, but financial institutions almost always require you to use their own ATMs for check deposits. Independent ATMs found in convenience stores, gas stations, and hotels generally lack the technology needed to process checks.

Are there ATM deposit fees?

If you use an ATM that belongs to your bank or the network of ATMs it partners with, you won’t typically be charged a fee for making a deposit. However, if you use an out-of-network machine for any transaction, whether withdrawal or deposit, you’ll likely be charged a fee.

How much cash can be deposited in an ATM?

The limit on the number of bills you can insert in one cash deposit transaction is usually 30 to 50. If you need to insert more bills than this, you can complete multiple transactions. Some ATMs may have a dollar limit, but this is less common.

How can I deposit money without going to the bank?

You can often deposit cash at an ATM that’s owned by your bank or is part of your bank’s network. In addition, an easy way to deposit money into your bank account without leaving your home is to make a mobile check deposit through your bank’s app. Mobile check deposits may take one or more days to clear, however.

Photo credit: iStock/RgStudio

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

^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 12/23/25. 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 a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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

SOBNK-Q126-046

Online and mobile banking are now woven into many people’s daily lives. With just a few clicks or taps, you can check your balances, pay bills, and make other financial transactions from virtually anywhere, at any time. Nearly half of the respondents to SoFi’s April 2024 Banking Survey of 500 U.S. adults said they use online banking daily.

Banks are not only convenient, they also implement numerous security measures to help safeguard your accounts. With cyber thieves and hackers finding increasingly sophisticated ways to try to access your information, however, it’s also important to be aware of steps you can take on your own to help keep your financial and personal details safe. Here’s what you need to know.

Tips on Securing Your Bank Account From Hackers

These days, cyber thieves are getting increasingly savvy, even setting up fake bank websites and banking apps designed to steal your personal information and, in turn, the contents of your checking or savings account. In SoFi’s Banking Survey, 42% of people said they were very or somewhat concerned about the security of their online bank accounts. More specifically, the survey found that:

•   42% were concerned

•   29% were neutral

•   29% weren’t very or at all concerned

No matter your level of worry, it’s important to know that there are a few simple things you can do to help secure your accounts from the different types of bank fraud. Here are six easy strategies that can help you stay ahead of scammers and hackers and protect your hard-earned cash.

Recommended: Are Online Savings Accounts Safe?

1. Choose Trustworthy Financial Apps

Whether you’re using your bank’s mobile app or some other financial app (like a budgeting app), be sure to only download verified ones from a trusted platform, such as the App Store for iPhone or iOS users or the Google Play Store for Android users. Fraudulent activity can often occur through fake apps or those downloaded from unofficial sources.

Before downloading a third-party money management app, it’s also a good idea to look up online reviews of the providers from reliable sources, research the app’s security policies, and look for any past data breaches.

2. Choose Strong and Unique Passwords

It’s wise to choose a unique password for every bank account and avoid repeating any ones you use for other online accounts, even nonfinancial ones. That way, if a fraudster is able to uncover your Facebook password, they won’t be able to access your checking or savings account.

To create a secure password, try to combine uppercase and lowercase letters, numbers, and special characters. You generally want to avoid using easily guessable information such as birthdates, kids’ names, or sequential numbers. To keep the login information for all of your accounts organized, consider using a physical or online password manager.

3. Use Multifactor Authentication

If possible, it’s a good idea to enable two- or multifactor authentication. This adds another layer of security by requiring one or more forms of verification in addition to a password, such as a PIN sent to your mobile device via email or SMS. This way, if hackers gain access to the login credentials for your savings account, for example, it may be difficult for them to log in without your second verification.

You may also want to take advantage of biometric authentication methods, such as fingerprint or facial recognition, if offered by your bank. Biometrics protect your account by using unique physical characteristics to verify your identity, making it harder for hackers to gain unauthorized access.

Recommended: Avoiding Mobile Deposit Scams, Fakes, and Hacks

4. Set Up Account Alerts

You can typically set up banking alerts via email, text, or your bank’s app to monitor unusual activity, such as large withdrawals, a profile/password update, a newly linked external account, or an unusual login attempt. This allows you to identify suspicious activity quickly and report any unusual or unauthorized transactions to your bank right away. You can then work with the bank to swiftly resolve the issue.

5. Watch Out for Phishing Attempts

Phishing scams are ever more prevalent and sophisticated. These scams trick you into providing your personal and banking information that can then be used for fraudulent activity.

For example, you could receive an email, supposedly from your bank, informing you that there’s a problem with your account and asking you to click on a link that requires you to log in and update your information. The website you are led to may look exactly like your bank’s website. If you input your details, hackers will have access to your login information. Here are a few ways to avoid online bank scams:

•   If you receive a message that says it’s from your bank and asks you to click a link, don’t. Log in to your banking website or app and check your messages there to see what’s going on. You can also call your bank to ask if the message is legitimate.

•   Hover over the email sender’s address. You may be surprised to see that it does not match the email address of the entity that it’s pretending to be. If that’s the case, don’t click on anything and mark the email as spam.

•   Never download attachments from unknown sources, as they may contain malware designed to steal your login credentials.

6. Be Wary When Using Public Wifi

The public wifi at your favorite coffee shop or local library can help you stay connected when you’re out and about, but you can’t count on it to be entirely secure. While it’s generally fine to use public wifi for browsing the web, it’s best to avoid using it for any activities that require login information, such as signing in to your bank account. The open connection could potentially give cyber thieves a chance to grab your username and password as they move between you and your bank’s website.

To make public wifi more secure, consider putting a virtual private network (VPN) app on your device. A VPN encrypts your data as it passes to and from your device and acts as a protective pathway so that your data is not visible as it passes through a network.

The Takeaway

Online banking is generally safe and convenient, but it’s also important to take precautions to minimize the risk of getting hacked or scammed. Luckily, there are steps you can take to reduce the risk of your bank account being compromised. These include using strong passwords and multifactor authentication, only downloading apps from reputable platforms, never clicking on links in communications that claim to come from your bank, and never logging into your bank account using public wifi.

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

Can hackers steal money from a bank account?

Hackers may be able to steal money from a bank account if they gain access to your account credentials. They might be able to do this by using deceptive emails and websites to trick you into revealing your bank details or exploiting vulnerabilities in a bank’s security systems to access sensitive data.

Fortunately, banks implement numerous security measures to safeguard your accounts, and you can help keep your accounts safe by using strong passwords, enabling multifactor identification, and being wise to phishing scams.

Who pays if your bank account is hacked?

If your bank account is hacked and unauthorized transactions occur, the bank will likely reimburse the stolen funds, provided you report the incident quickly.

As soon as you see something suspicious, call the number on the back of your bank card and go through the fraud department’s recovery process.

Am I protected if my bank account is hacked?

Yes, you are usually protected if your bank account is hacked, as long as you let the bank know about the fraudulent transaction in a timely manner.

Generally, if you report an unauthorized bank transaction within 48 hours, your liability will be limited to no more than $50. However, if you wait months to report an incident, you might have difficulty recovering any of your lost funds.

Can someone hack your bank account with a routing number and an account number?

Access to your bank routing number and account number could potentially enable a hacker to make fraudulent payments, create checks for your account, and possibly shop online with retailers that only require bank account information.

However, a routing number and account number is typically not sufficient on its own for hackers to gain direct access to your bank account. Most banks employ multiple layers of security measures, including authentication protocols and monitoring systems, to prevent unauthorized access to customer accounts.

Photo credit: iStock/insjoy

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. 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 a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Whether you’re renting a car for a vacation or because your own vehicle is in the shop, the representative at the counter will likely ask, “Would you like to buy additional insurance protection?” The answer isn’t always a simple yes.

In many cases, this extra cost is unnecessary. Not only does your personal auto insurance often cover rentals, but many credit cards provide built-in protection — sometimes even primary coverage — that makes expensive agency waivers redundant.

Below, we take a closer look at credit card rental insurance, including how it works and what steps you need to take to ensure your rental is covered.

What Is Credit Card Rental Car Insurance?

Rental car insurance through a credit card is also called an “Auto Rental Collision Damage Waiver.” This type of rental car insurance essentially offers protection against damage or theft of your rental vehicle when you pay for it using your credit card and decline the rental company’s collision damage waiver.

Credit card rental car insurance is most commonly secondary insurance, which means it kicks in after your personal auto insurance pays. It typically covers damage to or theft of the rental vehicle itself, but not injuries, liability to others, or personal belongings in the car.

Understanding Your Credit Card’s Coverage for Rentals

When offered, credit card car rental insurance generally falls into one of two categories: primary or secondary coverage.

Primary Coverage

Though not common, some issuers offer credit card rental car insurance as primary coverage. Primary coverage means that, in the event of damage or theft, you can file a claim directly through the card issuer for reimbursement. You’re not required to file a claim through other insurance sources, like your personal auto insurance company, before the primary credit card car rental insurance benefit applies.

Secondary Coverage

More commonly, credit cards provide secondary rental car insurance protection, which kicks in after your personal auto insurance policy pays for damages. However, this coverage can be highly valuable, as it typically reimburses deductibles and other costs not covered by your primary insurance.

Recommended: How Much Auto Insurance Do You Need?

How Does Credit Card Rental Insurance Work?

Most major credit card networks (including Visa, Mastercard, and American Express) offer some form of rental car coverage. However, the extent of the coverage can vary depending on the type of card and the bank that issued it.

When a credit card offers car rental insurance, it typically covers:

•   Collision/damage: Physical damage to the rental car resulting from accidents.

•   Theft: Costs associated with the vehicle being stolen.

•   Loss of use fees: Administrative fees and revenue lost by the rental company while the car is being repaired.

•   Towing: Reasonable expenses related to towing the damaged vehicle.

However, credit card rental insurance does not replace full auto insurance. It generally does not cover:

•   Liability: Damage to other people’s property or vehicles, or medical expenses for you, your passengers, or other people.

•   Certain car types: Exclusions may include high-value, exotic, or antique cars, motorcycles, RVs, and trucks.

•   Personal property: Items stolen from the car (this is often already covered by homeowners or renters insurance).

•   Extended car rentals: Policies often cap coverage at 30 days.

Questions to Ask Your Credit Card Issuer

You can find out the details of your credit card’s coverage for rental cars by checking your “Guide to Benefits” (if you didn’t save this, you can often find it online). If you’re unclear about how your card can protect you while using a rental car, contact your issuer’s customer support number. Here are some important questions to ask:

•   Does the rental car insurance benefit offer primary or secondary coverage? The answer to this question can help you choose the best payment option to use for your next rental car. It will also give you a sense of what to expect if you need to file a claim.

•   What is included and not included in the coverage? In addition to reimbursements for damage, you’ll want to know if the card’s rental car insurance covers loss-of-use charges from the rental company, for example. Be clear on what isn’t eligible for reimbursement, too.

•   What are the coverage timelines? Depending on your credit card issuer, the number of days when your rental coverage is in effect might be limited.

•   Are there any countries in which the coverage is ineligible? Rental car insurance coverage might not be offered if the incident occurred in certain countries.

•   What do I need to do to ensure I’m covered? Ask what you can do on your end to ensure your rental car is covered by the credit card’s insurance benefit. This may include putting the entire purchase on the card, declining supplemental rental insurance coverage from the rental company, or other requirements stipulated by your insurer.

•   What’s the process for filing a claim? Knowing how to swiftly file a claim after an incident can offer some peace of mind during an already stressful situation.

Recommended: When Are Credit Card Payments Due?

Guide to Choosing the Right Credit Card for Car Rental Insurance

If you have multiple credit cards in your rotation that offer differing levels of credit card car insurance protection, see if one happens to offer primary coverage. This helps you avoid the added step of going through your own auto insurance company before being able to successfully file a claim through the card issuer.

The next factor for consideration is coverage amounts. Your maximum reimbursement amount may vary from one card to another, so be mindful about how high or low this limit is. Also, pay attention to the exclusions for coverage, including ineligible countries, activities (e.g. off-roading in the rental vehicle), and restrictions on vehicle type.

Other Ways Your Card Can Protect You When You Travel

When a credit card is used responsibly, it can offer many travel-related benefits. In addition to rental car insurance coverage, some credit cards provide protection for lost luggage expenses and trip interruptions.

Credit card travel insurance is especially useful if your travel plans are canceled due to reasons like severe weather or illness.

Keep in mind that many premium travel credit cards come with substantial annual fees. They typically also have higher credit score requirements.

The Takeaway

If your credit card covers rental car insurance, in many cases you can decline the duplicative car rental company’s offer for collision coverage. However, it’s worth learning whether your credit card car rental insurance coverage is primary or secondary and what its coverage limits are in case you need to file a claim.

While SoFi does not currently offer credit cards with rental car insurance, we do offer other credit cards that may suit your needs.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

Do you need a credit card to rent a car?

You do not always need a credit card to rent a car, but it is highly common. Rental car companies generally require a form of payment and a hold for a security deposit. While a credit card is the most accepted method, some agencies may allow you to use a debit card, though this often comes with more restrictions, such as a credit check, a higher deposit hold, or proof of a return flight. It is best to check the specific rental company’s policy before booking.

Do all credit cards have car rental insurance?

Not all credit cards include rental car insurance and while it is a common feature of travel rewards cards, the specific level of coverage varies significantly between different cards and issuers. You can check your credit card’s benefits guide to see if you’re eligible for rental car insurance.

How do I know if my card comes with primary or secondary insurance?

You can refer to your credit card’s “Guide to Benefits” to learn whether your credit card offers car rental insurance protection and, if it does, whether it’s primary or secondary coverage. You can also contact the customer support phone number listed on the back of your credit card to speak to a representative about your specific card’s car rental insurance benefits.

Photo credit: iStock/g-stockstudio

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

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Anyone who’s ever had a credit card knows they have an interest rate, which represents the cost consumers pay for borrowing money. What you may not know is that interest rates come in two forms: fixed and variable interest rates.

Fixed interest rates stay the same over time and are generally tied to your creditworthiness. Variable interest rates, on the other hand, may change over time and are connected to economic indexes. Read on to learn how to determine if the interest rate of a credit card is fixed or variable, as well as why it’s important to know.

What Is Credit Card APR?

A credit card’s annual percentage rate, or APR, represents the yearly cost a consumer pays to borrow money from a credit card issuer, including both interest and any fees the card issuer might charge.

When a cardholder doesn’t pay off their credit card balance in full each month, they’ll owe credit card interest charges on the remaining balance. Credit card interest rates vary among credit card issuers, individual cardholders, and credit card categories. The average credit card interest rate stands at 20.97%, according to the most recent report from the Federal Reserve Bank of St. Louis.

Recommended: Pros and Cons of Charge Cards?

Types of Credit Card APRs

Your credit card payment is impacted by what type of APR your credit card has. Let’s have a look at how a fixed-rate credit card and a variable-rate credit card may affect your credit experience. (If you have other questions about credit cards, how they work, and how to manage your credit card responsibly, check out our credit card guide.)

Fixed Interest Rate

Fixed-rate credit cards have an interest rate that generally doesn’t vary over the course of your credit card contract. Rather than being tied to economic indexes, fixed interest rates are generally determined based on payment history and creditworthiness, as well as any ongoing promotions.

However, just because the term “fixed” is used, doesn’t mean a fixed interest rate can never change. While a fixed-rate credit card’s interest rate won’t change based on factors like the prime index, increasing credit card APR can occur if payments are late or missed or if your credit score dips. If that occurs, the credit card company must notify the cardholder at least 45 days before the adjusted rate takes effect.

While fixed-rate credit cards offer the benefit of predictability, one downside is that their rates are, on average, higher than variable credit card rates.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Variable Interest Rate

A variable-rate credit card offers interest rates that can shift over time. There’s a reason for that, as variable card rates are tied to major benchmark interest rates, like the U.S. prime rate.

Since major benchmark rates change, so will variable interest rates. That’s why banks and other major financial institutions often shift rates for things like credit cards, home mortgages, auto loans, and student loans. When major interest indexes change, the rates for loans change with them.

What does that mean for a cardholder? For starters, there’s more risk with variable interest rates. Rates can go up, and credit card payments increase when interest rates rise. Conversely, variable rates may go down, which works in favor of the credit cardholder, who will then pay less in interest.

Credit card consumers should check their credit card contracts for the specific conditions that can trigger a variable rate change. Credit card issuers don’t have to notify you of interest rate changes with variable rate cards, so it’s up to the consumer to keep a sharp eye out for changing interest rates.

Recommended: When Are Credit Card Payments Due?

When Do Variable APRs Change?

As mentioned, the interest rate on a variable-rate credit card changes with the index interest rate, such as the prime rate. If the prime rate goes up, so will your credit card’s APR. Similarly, if the prime rate goes down, your APR will drop.

How often your interest rate changes will depend on which index rate your lender uses as a benchmark as well as the terms of your contract. As such, the number of rate changes you may experience can vary widely, often multiple times a year.

Details on how a card’s APR may fluctuate over time will appear in a cardholder’s agreement, which you can generally find on the card issuer’s website. If you’re unable to locate it, you can request a copy from your card issuer.

Differences Between Fixed and Variable Credit Card Rates

Both fixed and variable credit card rates have pros and cons. Here’s a look at the major differences with a credit card with a variable or fixed interest rate.

How Credit Card Interest Rates Are Determined

Credit card interest rates are generally determined based on your creditworthiness — meaning, your payment history and credit score — as well as prevailing interest rates and the card issuer and card type.

For instance, a basic card may have a lower rate than a premium rewards card. Additionally, credit cards can have different types of APRs, such as an APR that applies for credit card charges and another rate for cash advances or balance transfers.

Another factor that can impact credit card rates is promotional offers. Sometimes, credit card issuers may offer low- or no-interest periods. After that period ends, the card’s standard APR will kick in, and the card’s rate will go up.

Once determined, how and why a credit card’s interest rate changes over time depends on whether the interest rate is fixed or variable. A fixed rate will generally stay the same, though it may increase if payments are late or missed, or if the cardholder’s credit score takes a dive. Meanwhile, variable rates fluctuate depending on current index rates.

Recommended: Tips for Using a Credit Card Responsibly

Reducing Interest Charges on Credit Cards

Perhaps the easiest way to reduce interest charges on credit cards is to pay your statement balance in full each billing cycle. By doing so, you’ll avoid incurring interest charges entirely.

Of course, this isn’t always feasible. If you may end up carrying a balance and want to decrease how much a credit card costs, there are ways to do so. For one, you can call your credit card issuer and request a lower rate. Of course, for this to be successful, you’ll likely have needed to stay on top of payments and have a history of responsible credit card usage.

Perhaps the surest way to secure a better interest rate on your credit card is to build your credit score. In general, lower interest rates are awarded to those who have higher credit scores and follow the credit card rules, so to speak.

You can build your credit score by making your payments on time, every time, and by keeping your credit utilization ratio (how much of your available credit limit you’re using) well below 30%. You might also avoid applying for new credit accounts, which results in hard inquiries and temporarily lowers your score.

And if you simply feel in over your head with credit card debt and a skyrocketing APR, you may choose between credit card refinancing or consolidation as potential solutions.

💡 Quick Tip: Credit card interest rate caps have recently been proposed in response to rising interest rates. However, one option already available to borrowers is securing a fixed, lower-interest rate loan. A SoFi credit card consolidation loan may offer a lower interest rate, set terms, and a transparent pay-off plan.

Fixed vs. Variable Interest Rate Cards: Which Is Right for You?

In a word, choosing between a fixed-rate and a variable-rate credit card comes down to whether you prefer stability or risk versus reward.

A fixed-rate credit card offers a known quantity — a rate that stays the same over time, as long as you pay your credit card bill on time. On the other hand, a variable-rate credit card offers an element of risk and reward. If the rate goes up, cardholders usually spend more on interest if they carry a balance. If card rates go down, however, the cost of using the card usually goes down, too, as interest rates are lower.

Of course, cardholders can largely negate the impact of credit card interest rates by paying their bills in full every month. Of, for those who don’t quite feel ready to tackle the responsibility, there’s always the option of becoming an authorized user on a credit card of a parent or another responsible adult.

The Takeaway

As you can see, it’s important for a number of reasons to know whether a credit card is fixed or variable. Fixed interest rates offer more predictability (though there’s no guarantee they’ll never change), but rates also tend to be higher compared to variable rates. With variable rates, your interest rate will fluctuate over time based on market indexes.

As you shop around for credit cards, interest rate is critical to pay attention to. It can have an impact on your ability to pay your credit card bill and use credit responsibly.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

Do all credit cards have fixed interest rates?

No, actually most credit cards come with variable interest rates tied to major interest rate indexes. That connection to interest rate changes enables card companies to keep rates competitive on a regular basis.

How do I get notified of an interest rate increase?

By law, credit card companies must notify cardholders in writing at least 45 days ahead of a significant interest rate change taking effect. The exception? Card companies are not required to notify variable-rate cardholders whose rate is tied to a benchmark index rate. Nor must they alert you if you have an introductory interest rate that is expiring and changing to the previously agreed-upon post-expiration rate. And if you have failed to make your payments on your card, the rate may change without you being notified as well.

Can I control whether I have a fixed or variable interest rate?

Yes, you can opt for a fixed or variable-rate credit card, but know that most credit cards come with variable rates. It’s tougher to find a fixed-rate card, but banks and credit unions, which are more likely to offer both, are a good place to start your search.

Photo credit: iStock/AlekseiAntropov

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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

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