At What Age Should You File for Social Security? 62 vs 65 vs 67?

What Age Should You File for Social Security? 62 vs 65 vs 67?

Social Security is a critical part of most people’s retirement plans, and knowing when to start drawing on those benefits is important. Having an idea of how much you could ultimately receive from Social Security can help you determine other parts of your plan, and help you reach your retirement goals, particularly when you rope in a retirement plan like a 401(k) or IRA.

Americans can start drawing Social Security benefits at age 62, but there can be benefits to waiting until full retirement age (67), or longer. Deciding when to apply for Social Security can be complicated, and there’s likely a different answer for each person depending on their circumstances. The earlier you file, the lower your benefit amount, but the more payments you receive over time. There are many other factors to consider when choosing your retirement date, but thinking early about your potential Social Security benefits, and how they can pair with a retirement plan like an IRA or 401(k) long before you need to tap those benefits, may be beneficial.

Key Points

•   Social Security benefits can be claimed at 62, but increase if delayed until 67 or 70.

•   Claiming at 62 results in reduced benefits – about 70% of full benefits.

•   Full retirement age is 67, offering 100% of benefits. Delaying benefits until age 70 increases monthly payments by approximately 25%.

•   Factors influencing when to claim include health, life expectancy, marital status, and financial situation.

•   It may be wise to supplement your Social Security benefits by investing in a retirement account, such as an IRA.

How Might Social Security Impact When You Retire?

As noted, Social Security is likely an important part of your retirement plan. But it’s important to keep in mind that it’s only one part, as most people will likely need more savings and investments to fund their retirement. Knowing your potential Social Security benefits can, however, help you figure out what your additional or supplemental savings or investments need to amount to to give you the best chance of making them last.

With all of that in mind, you’ll want to give some thought to additional factors, such as your health and family situation, to help you figure out when you should start or plan to start drawing your Social Security benefits. For many people, it may be best to wait until full retirement age, rather than at the first opportunity. But again, thinking ahead is key, and giving consideration to how a retirement plan like a 401(k) or IRA can work in tandem with Social Security can be wise.

What Is Full Retirement Age (FRA)?

Full retirement age, as outlined by the Social Security Administration, is 67, assuming you were born in 1960 or later. As such, “full retirement age,” as it stands, is 67. That’s the age at which you’d be eligible for your full Social Security benefit. But as noted, that doesn’t mean you can’t start drawing Social Security benefits before that, and for some people, that may be a good idea.

The earliest you can apply for Social Security is age 62, but your benefits will be diminished. Conversely, if you wait longer (up to age 70), you could get more. So, if it’s possible to start drawing from a retirement plan without tapping your Social Security benefits, that may be a tactic to delay, and potentially receive more later on.

Here’s a look at the percentage of Social Security benefits that you could be paid monthly depending on the age at which you decide to retire (assuming you were born in 1960 or later):

Retirement age

Percentage of full Social Security benefit paid out*

62 70%
63 75%
64 80%
65 86.7%
66 93.3%
67 100%
68 108%
69 116%
70 124%


*Data reflects percentages for those born in 1960 or later, with a full retirement age of 67.

Source: Social Security Administration

Claiming Social Security at 62 (Early Retirement)

The earliest most people can apply for Social Security is age 62. The greater the difference between when you apply and when you reach full retirement age, the more the Social Security Administration will reduce the amount of your benefit.

How Much Social Security Will You Get at 62?

As discussed, for those born in 1960 or later, full retirement age is 67. Taking retirement at 62 will cause your benefit to be reduced by about 30%.

If your benefit at full retirement would be $1,000 a month, and you file for benefits at 62, you will only receive about $700 or 70% of the amount you would have received at full retirement. For each month you wait past the age of 62, that amount rises a little bit. At $700 a month starting at 62, if you lived to the average U.S. lifespan of about 80 years old, you would receive $151,200 over your lifetime.

Benefits of Claiming Early

The benefit of claiming early is that you’d start seeing money sooner – potentially years sooner than if you had waited. Depending on numerous factors (health issues, etc.), this may be more advantageous to some people.

When Claiming Social Security at 62 Might Be a Good Idea

It may be a good idea to start claiming benefits early if you have health issues, or are unable to work or otherwise find a source of income. Again, you’ll take a hit in the form of a reduced benefit, but for some people, it may be worth it. However, it bears repeating: It all depends on your individual circumstances.

Claiming Social Security at 67 (Full Retirement Age)

Claiming Social Security at age 67, which is the full retirement age for people born after 1960, means you’re eligible for your entire, or 100%, of your benefits.

How Much Social Security Will You Get at 67?

If you wait to apply for benefits until full retirement, you will get the full amount of your benefit. In the example used above, that would be $1,000 a month. In this scenario, if you live to age 80, you would receive $156,000 over those retirement years, which is close to $5,000 more than if you filed five years earlier.

Benefits of Waiting Until Full Retirement Age

The most obvious benefit of retiring at 67 is that you get your complete Social Security benefit, without reduction. If you continue to work between 62 and 67 as well, you may also have more time to add to your savings and investments, too, to help you stretch your retirement accounts.

When Claiming Social Security at 67 Might Be a Good Idea

Claiming Social Security at 67 might be a good idea if you don’t have any immediate need to retire early. Waiting to get your entire benefit can be helpful, especially since retiring at, say, 62, would reduce that benefit by up to 30% – a decent percentage. So, if you have no immediate concerns about your health or ability to continue earning income, waiting may be a good idea.

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Delaying Social Security Until Age 70

Every month you delay applying for benefits causes the monthly benefit amount to grow, up until age 70. If you file at age 70, your monthly Social Security retirement payment is close to 25% higher than it would have been if you filed at full retirement.

How Much Social Security Will You Get at 70?

Continuing with our hypothetical scenario, rather than receiving $1,000 a month you would receive about $1,300 a month. If you live to age 80, that comes to $156,000 which is the same total amount you would receive if you filed at full retirement age. This brings into the equation one of the factors that influences at what age you may want to file for Social Security benefits: how long you expect to live.

Benefits of Delaying Your Social Security

The biggest benefit of delaying your Social Security benefits is, again, a larger benefit. If you stand to draw a significantly bigger benefit at 70 than you would at 62 or 67, it may be worth it to wait — so long as you’re able.

When Claiming Social Security at 70 Might Be a Good Idea

Your benefits won’t increase after age 70, so it may be a good idea to start claiming that at 70 whether you need to or not. And even if you are taking Social Security at 70, it doesn’t mean you need to stop working or generating income otherwise, either. But again, everything comes down to an individual’s specific circumstances.

What Factors Should You Consider When Deciding to Take Social Security?

Besides your age, there are some other key factors and variables you should keep in mind when deciding when to start drawing Social Security, or affect your retirement plan. Those include your health, life expectancy, whether you’re married or not, and your overall financial situation.

Health and Life Expectancy

No one knows for certain how long they will live. But if you expect to live only to age 75 for one reason or another, you might be inclined to take your Social Security benefit early so that you could enjoy it for a longer time. But if you live until age 90, taking Social Security retirement benefits early could cost you a lot of money. Here’s how your lifetime benefit would be impacted by filing at different ages if your full retirement benefit is $1,000 a month:

•   At age 62, you would receive a total of $235,000 over your retirement years.

•   At age 65, you would receive $260,100.

•   At 67 that jumps to $276,000.

•   If you wait until age 70 it is $312,000.

So, if you expect to live a long life, waiting a few years to file could make a big difference in your total benefit.

Financial Situation and Other Retirement Income

A lot, and perhaps a majority of the money spent after retirement goes toward typical retirement expenses of housing and healthcare. The average Social Security benefit as of 2024 was a little less than $1,800 per month. So an average married couple would receive around $3,600 in benefits.

Consequently, many people have to rely on other forms of income including wages from a job, pensions, dividends, interest or capital gains in addition to their Social Security benefit. In fact, having access to other forms of income may impact when you can retire.

If you do have income besides your Social Security benefit, you might want to delay claiming your benefit. If you earn income from working, and you claim your benefit before full retirement age, your benefit may be reduced. If you have other types of income, such as pensions or interest on the money you’ve saved in your retirement account, your benefit will not be reduced; these don’t count as earnings. However, you may have to pay taxes on it.

Spousal Benefits

There are many myths around Social Security benefits, so it’s important to delve into your particular situation. Spouses may be eligible for half of the benefit their spouse would receive at full retirement age. That amount is reduced if the primary beneficiary files early.

For instance, if the primary beneficiary or spouse were to apply for Social Security benefits before you reach full retirement age, you would automatically be deemed as applying for spousal benefits as well if your spouse is already receiving benefits. The maximum spousal benefit you can qualify for is typically 50% of your partner’s benefits calculated at full retirement age.

One option for spouses is to file for one spouse’s benefit early, say at 62, and postpone filing for the other spouse’s benefit until age 70. This can provide money now and more money later. If one partner dies, the surviving partner is automatically assigned the higher benefit between their own and their late spouse.

How Social Security Fits Into Your Retirement Plan

When it comes to how Social Security benefits ultimately slot in with your retirement plan, including your investments, it’s important to try and take a holistic, top-down view of your situation. The fact is, most people are not going to be able to get by during their retirement years on their Social Security benefits alone, so they’ll likely need some investments and savings to augment that income.

With that in mind, it may be a good idea to invest in, or consider opening up, a retirement plan if you haven’t already.

401(k)s and IRAs

To supplement your Social Security benefits, you may consider opening a retirement plan, which can include either a 401(k), if your employer offers one, or an IRA. There are differences and pros and cons between those two types of retirement plans, and it may be worth speaking with a financial professional to get a sense of what may work best for you.

But the goal should be to think about what you’ll need to supplement your Social Security benefits during retirement, and plan – save and invest – accordingly.

The Takeaway

For most people, their Social Security benefit is unlikely to sustain them through their retirement years; they need to have another source of income. The earlier they retire, the smaller their benefit will be and the more they may need a second or third source of income. Gaining that income through wages can reduce your benefit if you retire before full retirement age.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

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FAQ

Is it better to take Social Security at 62, 67, or 70?

The best time to take Social Security depends on your specific circumstances. But in a broad sense, waiting until 70 may be the best thing to do in order to maximize your benefits.

How much do you lose if you retire at 62 instead of 67?

If you retire at 62, you could see your benefits reduced by as much as 30% compared to what you would have received at age 67.


Photo credit: iStock/FG Trade

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Should I Buy a New or Used Car in 2021?

Should I Buy a New or Used Car? Pros and Cons

If you’re wondering whether to get a new or used car in the year ahead, there isn’t one single answer. Each car shopper’s situation is likely to vary, and you need to make the decision that best suits your needs and your budget. Factors like the features you’re seeking in a car, price, insurance costs, and depreciation may come into play.

To help you decide where to spend your cash if you plan to buy some wheels, read on. You’ll learn the pros and cons of new and used cars, plus tips for making your choice.

Key Points

•   Choosing between a new or used car involves evaluating multiple factors like features, price, depreciation, and insurance.

•   New cars provide the latest features and warranties but depreciate quickly and are costly.

•   Used cars are more budget-friendly and depreciate more slowly, though they might have reliability issues.

•   The purchase decision often hinges on price and depreciation, with new cars losing value faster.

•   Personal preferences can dictate the better value; new cars for features and warranties, used cars for cost savings.

Pros and Cons of Buying a New Car

For some people, there’s nothing that can compete with the allure of a bright and shiny new car. However, it’s important to consider the pluses and minuses before making your purchase.

thumb_up

Pros:

•   Pristine condition

•   Latest features

•   Warranty and service benefits

•   Multiple financing choices

thumb_down

Cons:

•   Immediate depreciation

•   Higher price

•   Higher insurance costs

•   Limited ability to negotiate

Pros

•   Pristine condition: With a new car, you don’t have to kick as many tires. New vehicles arrive on dealer showroom floors (and at online auto sales platforms) in pristine condition with very few miles on the odometer, so you don’t have to spend time checking for vehicle inefficiencies and maintenance or repair issues.

•   Latest features: Some people may feel “the newer the car, the better.” Here’s why: The auto industry is doing wonders with new vehicle construction, with features like better gas mileage, longer ranges in the case of EV vehicles, and technological advancements that improve vehicle performance. Those upgrades come most notably in car safety, cleaner emissions, and digital dashboards that improve driving enjoyment.

•   Warranty and service benefits: New car owners are typically offered a manufacturer’s warranty when they buy a new car, which typically grades out better than third-party warranty coverage on a used car. Additionally, extended car warranties may be available, and auto dealers are more likely to offer services like free roadside assistance or free satellite radio to lock down a new car sale. Those services and features are harder to get with used vehicles.

•   Multiple financing choices: It’s often easier to get a good financing deal with a new car vs. a used car. That’s because the vehicle hasn’t been driven and should have no structural problems, maintenance, or repair issues. That’s important to auto loan financers, who place a premium on avoiding risk.

Next, learn about the potential downsides of buying a new car.

Cons

Some disadvantages of a new car purchase might sway a buyer’s decision.

•   Immediate depreciation: The moment you drive a new car off the dealer lot, it loses several thousand dollars in value, plus an estimated 20% in the first year of ownership and then 15% annually for the next few years afterward, which is not a fun fact when you are making car payments at the same level month after month.

•   Higher price: Saving up for a car is a big undertaking, and you may owe a lot of money on a new vehicle. The average price for a new car is $47,452 as of late 2024, which is a significant figure.

•   Higher insurance costs: Auto insurers typically deem new cars as being more valuable than used cars and assign auto insurance premiums accordingly. Also, since new cars cost more, auto insurers prefer to see new auto drivers get full coverage and not minimum coverage.

•   Less room to negotiate: New car models may be less negotiable in price than used ones. Because they are the latest shiny new thing, demand may be higher and inventory lower. A dealership may be less likely to knock down the price for this reason, while they might do so on a used car sitting on the same lot.

Recommended: 10 Personal Finance Basics

Pros and Cons of Buying a Used Car

Used cars offer buyers value and savings, which are attractive benefits to drivers who may not have a big budget, but still want to drive a quality vehicle. However, there are other benefits and downsides to consider as well.

thumb_up

Pros:

•   Lower price

•   Slower depreciation rate

•   Your down payment may go further

thumb_down

Cons:

•   Reliability issues

•   Fewer options

•   Maintenance costs

Pros

•   Lower price: No doubt about it, most used cars sell for significantly less than a new car with the same make and model. You learned above that the average new car is retailing for just under $50,000. How about used cars? The average is currently about $25,571, a considerable savings.

•   Slower depreciation rate: New cars tend to lose value quickly, as noted above, especially if they’re not properly cared for. But used cars tend to depreciate more slowly, especially if they’ve had regular maintenance, and their sustained value makes them a good resale candidate if the owner wants another vehicle, but still wants to make a good deal when selling the vehicle.

•   Your down payment may go farther: Buyers who can manage a robust down payment on a used vehicle can bypass a good chunk of the debt incurred in purchasing the vehicle. It comes down to simple math — if a buyer purchases a $25,000 used vehicle with a down payment of $15,000, there’s only $10,000 left to pay on the vehicle. If a buyer purchases a new vehicle for $48,000, and puts $15,000 down, that buyer still owes $33,000 on the auto loan. Buying a used car could leave more money in your budget to put in a high-yield savings account for emergencies or another purpose.

Cons

When deciding whether to buy a used car or not, these potential disadvantages may also be worth considering.

•   Reliability issues: With a used car, an owner may be getting a quality vehicle — or maybe not. A used car may have spent years on the roads and highways, incurring a fair share of dings, dents, and general wear and tear that may have aged it prematurely, particularly if it hasn’t been maintained well.

•   Fewer options: You may not get the exact make and model you want. The options can dwindle when it comes to buying a used car. Whereas auto dealers can offer a wide range of makes, models, and colors for a new vehicle, those choices can be significantly limited with a used car, truck, or SUV. That could mean that a used vehicle buyer may have to compromise on different factors, in contrast to someone who is buying new and can often get their dream car, down to the last detail.

•   Maintenance costs: You may pay more for vehicle maintenance. Auto repairs often cost more over time and become more frequent, too, as a car ages. So you may well pay more for maintenance and repairs with a used car. With a very old car, finding parts to complete repairs may also be a challenge. In other words, it may take more time and have you spending more from your checking account to keep the car running.

Is It a Better Value to Buy a New or Used Car?

As noted above, there’s no one-size-fits-all answer to whether a new or used car is the better value, but often, a used car is considered a better value. This is because, with a used car, depreciation has already occurred, meaning the price is lower. In this way, you may be able to get more car for the money you’ve earmarked for this purchase, and the car could have a better resale value. Insurance costs may be lower as well.

Is It Easier to Get Approved for a New or Used Car?

In general, it’s considered easier to get approved for a new car loan vs. one for a used car. That’s because new cars are thought to be less risky since they are new, without wear and tear issues. Their value is thought to be simpler to determine.

It’s worthwhile to consider how your credit score could impact which loan offers you might qualify for:

•   If you have very good or excellent credit (say, 781 or above), your interest rate as of late 2024 would typically be close to 5.08% APR (annual percentage rate) for a new car or 7.41% APR for a used car.

•   If you have good to very good credit (between 661 and 780), your APR for a new car would be close to 6.70% APR and 9.63% APR for a used car.

•   If you have a credit score that’s in the fair range to lower good range (between 601 and 660), you’d likely be assessed an APR of close 9.73% APR for a new car and a 14.07% APR for a used car.

•   If your credit score was between 501 and 600 (in the lower section of the fair range), you may have a more difficult time accessing financing and could expect to be charged close to 13.00% APR for a new car and 18.95% APR for a used car.

•   Have a lower score, in the 300 to 500 range (poor)? You might expect to face challenges getting financing. Those who do offer you a loan could charge close to 15.43% APR for a new car and 21.55% APR for a used car.

Consider Buying a New Car If…

As you make your decision between buying a new or used car, you likely will have your own set of needs and preferences. Here’s when buying new may be your best option:

•   If you can afford what is likely to be the higher price tag of buying a new car and loftier insurance costs (as noted above), then you may want to go ahead and buy the latest model.

•   You want the latest bells and whistles: If you feel you need an auto with certain new features (whether it’s the design or a safety system), then you may opt for this year’s model.

•   If you are financing your purchase, you may be able to get a more favorable APR when buying a new vs. used vehicle. Doing research on how to get a car loan can help you prepare for this path.

Consider Buying a Used Car If…

For some people, though, buying used can be the wiser choice. For instance:

•   If you have a fixed budget, a used car will generally offer a lower price and possibly lower insurance costs, too.

•   Is there a feature you need but can’t afford in a brand new car? A used car may suit your needs. For instance, if you really need a vehicle with a third row of seats but can’t afford one brand new, that may lead you to a used car.

•   If you want to avoid the steep depreciation that comes with buying a new car, a used car may work better for you. It may help to know your car will retain much of its purchase price in the coming years. This could be helpful if, say, you know you’ll be selling the car in a year or two and want to forecast how much you’ll net to put in an online bank account.

By weighing your choices on these fronts, you will likely be able to make the right move, both in terms of the car you buy and how well it fits into the type of budget you use.

As you would with any major purchase decision, you’ll want to shop around, check the book value of preferred vehicles, and look at the car’s maintenance and repair history to ensure it’s in good condition. You may also want to make sure it’s inspected by a trusted mechanic.

Recommended: How to Automate Your Finances

The Takeaway

The choice between a new and used car likely will depend upon your personal preferences and financial situation. New cars may have the latest features and lower maintenance and financing costs, but they tend to be pricier and trigger higher insurance costs. And they will depreciate rapidly. A used car will usually have a lower sticker price but maintenance costs and higher rates on financing should be noted.

As you think about car financing that best suits your needs, you may want to make sure that your banking partner is the right one, too, and is helping your money work harder for you.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

Do used cars require more maintenance vs. new cars?

You may pay more for maintenance on a used car vs. a new one. Typically, older cars need more work than their younger counterparts.

Are used cars a better deal than new cars?

Used cars can be more affordable than new ones, from the sticker price to the insurance costs, and because they don’t depreciate as rapidly as new cars, they can be a better deal.

What are options to buying a new or used car?

Buying a certified pre-owned car, which has been vetted to be in very good condition, or leasing a car are other options you might consider when thinking about buying a new or used car.

Photo credit: iStock/Ivanko_Brnjakovic


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Should You Work While in College?

Working while in college is a big decision, and it comes with both rewards and challenges. On one hand, having a job can help you gain financial independence, build valuable skills, and expand your professional network. On the other hand, it can also add stress, take time away from studying, and limit your social life.

If you’re debating whether or not you should get a job in college, it’s important to carefully weigh both the benefits and drawbacks. Here’s a look at how the pros and cons stack up, plus some important factors to consider when looking for a college job.

Key Points

•   Working during college enhances financial independence by reducing reliance on loans and providing extra income.

•   A college job helps students develop valuable work skills likes time management, communication, and teamwork.

•   Working can expand your professional network, connecting you with future job opportunities and career guidance.

•   Potential drawbacks include negative impacts on academic performance, social life, and overall well-being due to increased stress.

•   Students should seek flexible jobs that align with their academic goals to maintain balance.

Pros of Working While in College

There are several reasons to consider working while in college. Some of the key benefits include:

•   Extra cash for discretionary expenses: Even if your education is entirely funded through financial aid, you can’t use that money for fun things, like streaming services, concerts, road trips, and social events. Money earned from a part-time job, however, can go right into your student bank account and is yours to spend freely.

•   Reduced debt: Given the high cost of tuition and other college expenses, many students turn to federal and private student loans to fill in funding gaps. Earning money through a part-time job or flexible side hustle can help cover your expenses and lessen your reliance on loans, allowing you to leave school with less debt.

•   Work experience and skill development: Holding a job while in college can provide valuable work experience that can enhance your resume. You can develop skills such as time management, communication, teamwork, and problem-solving, which tend to be highly valued by employers. Gaining work experience early can also give you a competitive edge when entering the job market after graduation.

•   Networking opportunities: No matter how many hours you work each week, having a job in college can help expand your professional network. Part-time jobs, internships, and on-campus positions often give students the opportunity to connect with professors, employers, and colleagues who may be able to provide job opportunities or career guidance in the future.

💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.

Cons of Working While in College

While working during college comes with financial and other benefits, there are some potential drawbacks to consider:

•   Impact on grades: There are all kinds of ways to earn extra cash as a student. But time spent working is time you can’t spend on your school work. If you work too much and don’t allocate enough time to complete your homework, school projects, and/or study for tests, you might notice your grades starting to slip.

•   Less time for socializing and other activities: College is not only about academics but also about building friendships and gaining new experiences. While you may meet new people through a job, you may find yourself working evenings and weekends — prime socializing time with your classmates. A demanding job can also limit your ability to get involved in extracurricular activities, which is another important aspect of college life.

•   Increased stress and fatigue: Balancing work and school can be stressful. Long hours at work, combined with academic responsibilities, can lead to burnout and exhaustion. If not managed properly, this stress can negatively affect your mental health and well-being, and take a toll on your work performance and academic success.

•   Impact on future financial aid: While money earned through work-study programs can’t impact your financial aid, any other income you earn needs to be reported when you file your Free Application for Federal Student Aid (FAFSA). If you bring in more than $11,000 from working while you’re in college (from non-work-study jobs), it could potentially affect your financial aid package in future years.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 3.80% APY on savings balances.

Up to 2-day-early paycheck.

Up to $2M of additional
FDIC insurance.


Things to Consider If You Decide to Work While in College

If you feel the pros of working while in college outweigh the cons, here are some important factors to keep in mind when searching for a job, as well as deciding on how many hours you should work as a student.

Work Schedule Flexibility

A flexible work schedule is important when you’re balancing school and employment. The best jobs for students generally offer adjustable hours and/or allow you to alter your schedule each semester as your class schedule changes. Work-study programs (which may be offered as part of a financial aid package) can be ideal, since they are designed to work around a student’s schedule, allowing you to prioritize class time and study time.

Impact on Academics

If you think a particular part-time job could have a negative impact on your academic performance, you’ll want to think carefully before applying. This is particularly important if you have a scholarship that depends on maintaining a certain grade point average. Losing merit money would likely negate any of the financial benefits of working while in school.

Type of Job

Not all college jobs provide equal benefits for college students. Some roles, such as internships or on-campus jobs, may align with your academic and career goals and offer valuable experience. Others may be unrelated to your field of study but come with other perks, like allowing you to do some studying while you’re on the job or generally being low stress. When considering different employment options, you’ll want to weigh all the pros and cons.

Recommended: 15 Side Hustles With a Low Startup Cost

Campus Resources

Your college or university may offer a number of resources to help you find part-time work, particularly jobs that pair well with being a part- or full-time student. Consider tapping your school’s career center, student employment office, and your college advisor for guidance on job opportunities, as well as time management strategies that can help you juggle working with being a student.

Stress and Time Management

Before you commit to working a set number of hours each week, you’ll want to assess how much time you realistically have to devote to working. Be sure to factor in classes, homework/studying, extracurricular activities, and (yes) downtime. Also consider how stressful the role might be. Generally, the best jobs for college students are low-pressure positions that don’t require checking your email outside of working hours.

While working may be financially helpful, understanding your personal limits and avoiding overcommitment is essential to maintaining overall well-being while you’re in college.

Logistics

If you live on campus and don’t have access to a car, you may want to limit your job search to employers located on or near campus, or you might look into remote job opportunities. If you need to expand your search to jobs that require public transportation, keep in mind that transit time will cut into the time you have for studying and other activities.

The Takeaway

Working while in college has a number of benefits, including financial rewards, job experience, skill development, and building a network you may be able to tap after you graduate. But having a job while you’re in school also has some downsides, including added stress and less time for studying, extracurricular activities, and socializing.

Ultimately, the decision to work while in college will depend on your individual circumstances and goals. With careful planning and time management, students can often successfully navigate both work and academic responsibilities, setting themselves up for success both in college and beyond.

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.

FAQ

How many hours a week should a college student work?

The number of hours a college student should work depends on individual circumstances, academic workload, and financial needs. Generally, experts recommend working no more than 15 to 20 hours per week to ensure your academic performance isn’t negatively affected. Part-time jobs with flexible schedules can help students maintain a healthy balance between work and school.

Is it common to work while in college?

Yes, it is common for college students to work while pursuing their degrees. Many students take on part-time jobs, internships, or work-study positions to support themselves financially and gain work experience. According to the most recent U.S. Bureau of Labor Statistics, about 81% of part-time undergraduate students and 42% of full-time students in the U.S. work while they are in school.

What are common jobs for college students?

There’s a wide variety of jobs for college students. Work-study programs typically offer students on-campus jobs, such as being an assistant in a library, administrative office, or lab. Many students also find employment off campus. Common off-campus jobs include being a barista, cashier, restaurant server/host, retail sales associate, receptionist, line cook, and childcare provider. Remote jobs, such as social media management or online tutoring, are also popular among students looking for flexibility.


Photo credit: iStock/ferrantraite

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

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

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

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

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

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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9 Side Hustles for College Students

If you need extra cash to cover college expenses but you don’t have time for a regular part-time job, you might want to pursue a side hustle. Unlike a traditional college job, a side hustle gives you a fair amount of control over what you do, when you do it, and how much time you spend doing it.

Whether you need a flexible schedule or prefer remote work, there are plenty of opportunities to earn money without significantly disrupting your studies. Here’s a look at some of the best side hustles for college students, including key details like the job’s income potential, costs, and ease of entry.

Key Points

•   Driving for rideshare apps offers flexible hours but incurs vehicle-related expenses.

•   Food and grocery delivery is a side hustle you can do with or without a car.

•   Dog walking and pet sitting are flexible gigs with low or no startup costs.

•   Babysitting offers good pay and flexibility, and may allow time for studying.

•   Online freelancing in creative fields can be profitable but competitive.

1. Driving for a Rideshare App

If you enjoy driving and have a reliable four-door vehicle, you might consider transporting people from one place to another through Uber or Lyft. This is a flexible side hustle for students, since you can drive as little or as much as you’d like and work around your classes.

To earn extra money this way, however, you’ll need to meet some basic requirements: To drive for Uber, you need at least three years of driving experience if you’re under age 25; to drive for Lyft, you need to be 25 or older. There are also costs involved with this gig, including gas and car maintenance, which can reduce how much actual profit will land in your student bank account.

Average income: $19 per hour

Costs: Gas, maintenance, insurance, and vehicle depreciation

Remote vs. in-person: In-person

Ease of entry: Moderate (must meet driver requirements and have a qualifying vehicle)

Platforms: Uber, Lyft

2. Delivering Food or Groceries

If you’re not wild about having strangers in your car, you might prefer delivering meals, groceries, or other items through a delivery app like DoorDash, Grubhub, or Instacart. For this college side job, you don’t necessarily even need a car. Some delivery apps allow you to make deliveries by bike or scooter, which can reduce your out-of-pocket expenses.

When you work for delivery apps, you generally get paid per order and can keep your 100% of your tips. One way to potentially boost your earnings is to work for multiple apps at the same time.

Average income: $18 per hour

Costs: Gas, vehicle maintenance, and sometimes insulated delivery bags

Remote vs. in-person: In-person

Ease of entry: Easy (for driving you’ll need a valid driver’s license and a reliable vehicle)

Platforms: DoorDash, Uber Eats, Instacart, Grubhub, Shipt

💡 Quick Tip: Banish bank fees. Open a new bank account with SoFi and you’ll pay no overdraft, minimum balance, or any monthly fees.

3. Dog Walking

If you love dogs and being outside, dog walking can be a good side hustle while you’re in college. If you can find enough clients in a close radius, you might be able to walk several dogs each day in between classes.

Dog walking apps like Rover or Wag make it easy to get started by giving you access to an existing pet-owner network. These apps also allow you to set your own rates and schedule. The downside is that there are typically startup fees, and the app will take a cut of your earnings (anywhere from 20% to 40%). Alternatively, you could start your own dog walking service and drum up business through flyers, word of mouth, social media posts, and/or a website.

Average income: $17 per hour

Costs: Minimal (leashes, treats, or pet waste bags if not provided by owners)

Remote vs. in-Person: In-person

Ease of entry: Easy (some experience with dogs is beneficial)

Platforms: Rover, Wag, Fetch!

Recommended: 15 Low-Cost Side Hustles

4. Pet Sitting or House Sitting

Instead of dog walking, you might pick up work as a pet sitter through apps like Wag and Rover. This generally involves being with the pet for longer stints than dog walking and doing additional tasks, such as feeding pets, playing with them, and giving them medication.

Housesitting is another potential side hustle for college students. When people travel, they may hire someone to stay in their homes, water the plants, get the mail, put out the trash cans, etc. while they’re away. This can be an easy way to earn money with minimal effort. It can also be a nice break from living in the dorms. Some jobs combine house sitting with pet sitting.

Average income: $16-$17 per hour; $50-$100 per day (for live-in)

Costs: Minimal (transportation, possible background checks)

Remote vs. in-person: In-person

Ease of entry: Easy (trusted references and experience can help)

Platforms: Wag, Rover, HouseSitter.com, TrustedHousesitters, House Sitters America

5. Babysitting

If you’re good with kids, babysitting can be a good side hustle for college students. Child care positions generally pay well, particularly if you have babysitting experience or special certifications, like CPR. These gigs may also allow time for studying while the kids are sleeping or doing homework.

You can find nearby babysitting gigs on sites like Care.com and Sittercity. Another option is to market your services by networking and/or posting flyers on bulletin boards where parents of young children tend to go, such as a local coffee shop, gym, or library.

Average income: $18 per hour

Costs: Minimal (transportation, potential background check fees)

Remote vs. in-person: In-person

Ease of entry: Easy (experience with children is helpful, and CPR certification can increase opportunities)

Platforms: Care.com, Bambino, UrbanSitter, Sittercity

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 3.80% APY on savings balances.

Up to 2-day-early paycheck.

Up to $2M of additional
FDIC insurance.


6. Resident Advisor (RA)

Resident advisors (RAs) are an important part of college dorm life. They serve as mentors to new students, host events and activities on their floor, and help resolve student conflicts. In some cases, RAs get paid a flat salary or stipend. But more commonly they receive compensation in the form of free room and board which typically includes a single-occupancy room, for the duration of their RA appointment.

To become an RA, you generally need to complete an application, interview, and training. You also typically need a certain minimum GPA and have spent one year living on campus.

Average income: Stipend or free housing (varies by school)

Costs: None

Remote vs. in-person: In-person

Ease of entry: Moderate to difficult (requires an application, interview process, and often prior dorm experience)

Platforms: University housing departments

7. Cleaning, Yard Work, and Odd Jobs

If you’re willing to put some muscle into your college side hustle, there’s a wide range of gigs you might be able to get, including yardwork, housekeeping, painting houses, running errands, and assembling furniture. This type of work offers a lot of flexibility, making it a good way to earn extra cash when you have gaps in your schedule. You can advertise your services on your own (family members, friends, and neighbors can make great initial clients) or find work through an app like TaskRabbit or Care.com.

Average income: $18 per hour

Costs: Minimal (cleaning supplies or tools if not provided)

Remote vs. in-person: In-person

Ease of entry: Easy (can start by offering services to neighbors or through gig apps)

Platforms: TaskRabbit, Thumbtack, Angi Services, Handy, Care.com (housecleaning only)

8. Tutoring

If you excel in a particular subject, tutoring can be a lucrative and flexible side job for college students. Potential clients might include peers who are taking a class you already aced and high schoolers looking for help with their classwork or prepping for a test like the SAT or ACT.

To get started, you might advertise your services through fliers, word of mouth, and social media. Alternatively, you could apply to work through a tutoring platform like Wyzant or Varsity Tutors. Either way, tutors can typically set their own rates and availability and have the option to work in-person or virtually.

Average income: $20 per hour

Costs: Minimal (teaching materials, advertising)

Remote vs. in-person: Both

Ease of entry: Moderate (requires expertise in a subject and possibly certification for some platforms)

Platforms: Tutor.com, Wyzant, Varsity Tutors, TutorMe

Recommended: Benefits of a Side Hustle

9. Freelancing Online

Freelancing offers numerous opportunities for students skilled in writing, graphic design, programming, marketing, or other creative fields. It’s also one of the best remote side hustles available.

If you’re new to freelancing, sites like Upwork and Fiverr may be your best bet for finding work. Just keep in mind that competition for jobs on these platforms tends to be fierce, and rates may be lower than what you might get on your own. Alternatively, you can also use word of mouth, social media, and a website to market your creative services.

Average income: $48 per hour

Costs: Minimal (may need software subscriptions, portfolio, website)

Remote vs. in-person: Remote

Ease of entry: Difficult (some fields are highly competitive)

Platforms: Upwork, Fiverr, Behance, Freelancer.com, FlexJobs

The Takeaway

Balancing work and school can be challenging, but the right side hustle can make it possible to earn extra money without too much interference with your studies. Some of the best side hustles for college students include driving for a rideshare or delivery app, walking dogs, babysitting, tutoring, freelancing online, and picking up odd jobs like painting or assembling furniture.

As you start making money from your side hustle, you’ll need a great place to deposit it. To make the most of your earnings, be sure to look for a bank account that charges minimal or zero account fees and offers competitive interest – even on checking.

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


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.


Photo credit: iStock/Maksym Belchenko

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


SoFi members with direct deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. 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 (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

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

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

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

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

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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Average Cost of Car Insurance in Arizona

Average Cost of Car Insurance in Arizona

When you’re shopping for car insurance in Arizona, it can help to know the average cost of coverage. That way, you can compare the figure to the quotes you’re receiving.

Of course, a number of factors can influence how much you pay for car insurance. Besides geography, insurers may consider your driving record, age, gender, credit score, car type, and level of coverage. Rates can also vary by insurance company, which is why it makes sense to shop around.

Here’s a look at the average cost of car insurance in Arizona and how different factors may impact how much drivers there pay for protection.

Key Points

•   Arizona drivers pay an average of $1,626 annually for car insurance, which is lower than the national average of $2,068.

•   Insurance rates in Phoenix are the highest among Arizona cities.

•   Younger drivers, particularly males, face higher insurance premiums.

•   Arizona drivers with poor credit scores typically pay more for car insurance.

•   Accidents or traffic violations can lead to increased insurance rates.

How Much Does Car Insurance Cost in Arizona?

Drivers in Arizona pay an average of $1,626 per year for car insurance coverage, according to a 2025 U.S. News & World Report analysis of cheap car insurance companies. This is lower than the national average of $2,068 per year.

Average Car Insurance Cost in Arizona Per Month

The average monthly cost of car insurance in Arizona is $135.50. That’s lower than the national monthly average of $172.33. As the chart below shows, the amount you pay can vary by insurer.

Company Average Cost per Month Average Annual Cost
Allstate $176.92 $2,123
Farmers Insurance $158.50 $1,902
Geico $103.33 $1,240
Mercury $129.92 $1,559
Nationwide $128.33 $1,540
Progressive $114.25 $1,371
State Farm $111.08 $1,333
The General $252.92 $3,035
Travelers $90.42 $1,085
USAA $102.33 $1,228

Source: U.S. News & World Report

Average Car Insurance Cost in Arizona By City

Where you live can impact how much you’ll pay for car insurance. That’s because when determining how much to charge for coverage, insurers often take into account local rates of traffic, accidents and crime. As a general rule, people living in cities tend to pay more for car insurance than those living in small towns or rural areas. And as the chart below shows, that amount can also fluctuate depending on which city you call home. Here are estimates for five of the biggest cities in Arizona:

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City Average Annual Cost
Chandler $1,938
Mesa $1,976
Phoenix $2,251
Scottsdale $1,958
Tucson $1,879

Source: Insure.com

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Average Car Insurance Cost in Arizona By the Age and Gender of the Driver

Your age can impact premium prices. In general, younger, newer drivers tend to pay higher premiums because they tend to have more accidents than older, more experienced drivers. Gender can play a role in costs, too. Women often pay lower premiums than men because they tend to get into fewer severe accidents.

Age of Driver Average Annual Cost for Male Drivers Average Annual Cost for Female Drivers
17 $6,324 $5,527
25 $2,026 $1,901
60 $1,452 $1,336

Source: U.S. News and World Report

Average Car Insurance Rates After an At-Fault Accident

Your driving record matters, and car insurance rates can go up after an accident or traffic violation. For example, drivers in Arizona with one accident on their record pay an average rate of $2,373 per year for coverage, or $747 more than the state average. One speeding ticket can boost a driver’s average annual rate to $2,035, or $409 higher than the state average. And one driving under the influence (DUI) offense may raise the average annual rate to $2,412, or $786 higher than the state average.

Average Car Insurance Costs for Good and Bad Credit

Some states prohibit insurance companies from pulling your credit report, but it’s allowed in Arizona — and the results could impact how much your coverage costs. Drivers with bad credit could end up paying hundreds more per year for car insurance. An analysis from LendingTree found that drivers with poor credit pay an average of $4,088 per year for full coverage insurance, while those with good credit pay around $2,096.

What Else Affects Your Car Insurance Cost?

Let’s look at other factors that can impact how much someone pays for car insurance.

Insurance History

Drivers who allow their coverage to lapse may be more likely to cancel their policy, so having a reliable history with one insurer may qualify you for a lower rate. In fact, it’s possible you’ll get a better quote when switching car insurance carriers than if you purchased insurance after going a few years without it.

Make and Model of the Car

When setting a rate, insurance companies often consider how expensive it would be to repair or replace the driver’s car. The higher these costs are, the more the driver will likely pay for coverage. However, if you have a newer car that’s equipped with more safety features, you may be eligible for a lower rate.

Marital Status

Married drivers may qualify for more discounts than single drivers, since insurers often place them in a different risk category.

Amount of Coverage

How much car insurance do you need? The answer depends on a number of factors, including your state’s minimum car insurance requirements, your budget, and your lifestyle. As a rule of thumb, the more coverage you have, the more expensive your policy will likely be.

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How to Get Affordable Car Insurance

The cost of coverage varies by insurer. To find affordable coverage, it’s a good idea to shop around and compare quotes from various online insurance companies.

But first, you’ll want to figure out how much car insurance you need. Keep in mind your state’s minimum car insurance requirements as well as additional coverage you may need.

Looking to lower your car insurance? There are several strategies to consider. You may want to explore different policy options; look for bundling opportunities, such as getting your home and auto insurance from the same company; ask about possible discounts: and consider whether a policy with a higher deductible makes sense for you.

The Takeaway

Drivers in Arizona pay an average of $1,626 per year for car insurance, which is lower than the national average of $2,068 per year. But as in most states, the amount you pay in Arizona can depend on a wide range of factors, such as your age, gender, driving record, credit score, and even where you live. You can search online insurance companies and compare multiple car insurance rates.

When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.

Find affordable auto, life, homeowners, and renters insurance with SoFi Protect.

FAQ

How much is full coverage car insurance in Arizona?

The average cost of car insurance is $1,626 annually, which breaks down to $135.50 monthly. Your costs may be different, depending on your age, gender, driving record, credit scores, the city or town you live in, and more.

Is $300 per month a lot for car insurance in Arizona?

In many cases, the average monthly cost for coverage is below $300. But premium amounts vary based on a number of factors. A 17-year-old male driver, for example, could very well pay more than $300 per month because of his age and lack of driving experience.

How much car insurance should I have in Arizona?

Arizona requires the following minimum coverage limits: $25,000 for one person who sustains injury or death in an accident; $50,000 for two or more people sustaining injury or death; and $15,000 for property damage (other people’s). You can have more than that amount but not less.


Photo credit: iStock/twildlife

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
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SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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

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