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Doom spending is spending money to cope with stress when the future seems uncertain or troubling, such as when the economic or political outlook appears grim. For example, a person might be feeling anxious about how high their housing costs are and what will happen in an upcoming election. To distract themselves from these worries, they might splash out on a special sushi dinner, concert tickets, or new clothes. The thinking here? “What’s ahead looks dicey; I might as well enjoy myself now.”

If you can relate to this, read on to learn more about the causes of doom spending and how not to let it harm your financial standing.

Understanding Doom Spending

Doom spending is a phenomenon in which people may overspend in response to stressful times. For instance, when the world is filled with political and economic uncertainty, consumers (especially younger ones) may feel there’s no point in saving. A voice inside their head may ask, “Why bother?” Instead, they decide to live in the moment and go shopping as a distraction and mood lifter.

A November 2023 survey by Qualtrics on behalf of Credit Karma found that 27% of all Americans engage in doom spending, and it’s especially prevalent among younger adults. In fact, 43% of millennials and 35% of Gen Zers admit they have spent money in this way.

Financial experts say these generations may be especially vulnerable to feelings of hopelessness and doom spending, as they came of age in a time of economic uncertainty and are living in an era with high housing costs, massive student debt, and considerable inflation (consumer prices rose approximately 20% between January 2020 and January 2024). Many may find that they currently have a lot less in their bank accounts that they’d like.

While there is nothing wrong with occasional rewards, doom spending can result in credit card debt and a reduced ability to save for the future. In the Qualtrics/Credit Karma study, about one-third of Americans reported an increase in debt in the past six months, and nearly half said the amount of money they’re saving has gone down.

Recommended: What Are Fixed vs. Variable Expenses?

Psychological Triggers Behind Doom Spending

Here’s a closer look at some of the causes of doom spending.

Stress and Anxiety

Stress and anxiety can trigger doom spending, and there’s little doubt that they are rampant right now. According to the American Psychological Association (APA), many people in the U.S. have been negatively impacted by the trauma of the pandemic, global conflict, racial injustice, inflation, and environmental challenges around us. All of those issues can swirl together and create a feeling of future doom.

According to a June 2024 Axios Vibes/Harris Poll survey, a majority of millennials and Gen Zers agree that it is better to treat themselves now rather than hold off for a future “that feels like it could change at any moment.”

Impulse Control Issues

Shopping can bring joy in a few different ways. Research has shown that purchasing an item you desire can empower you with a sense of control. It can also flood your brain with dopamine, a “feel good” neurotransmitter.

When people feel that the future is gloomy, they may crave that “feel good” flood even more and, therefore, easily give in to impulse purchases. Spending money in this way can be a relief and a release. It’s a distraction that lets you treat yourself and temporarily escape your worries.

Societal and Peer Pressure

Social media can exacerbate doom spending by driving you to spend money to “keep up with the Joneses.” It can also lead to FOMO (fear of missing out) spending and YOLO (you only live once) spending.

Because the future seems cloudy and so expensive, you may not bother to plan for it. Instead, you might follow a friend’s, coworker’s, or social media influencer’s lead and spend money on the latest trendy purchase or experience. It can create a feeling of belonging and help you escape all the doom-driven anxiety.

Recommended: Financial Planning Tips for Young Adults in Their 20s

Consequences of Doom Spending

The consequences of doom spending can be mild or more significant, but typically include the following:

•   Blowing your budget. Additional spending can make it hard to stick to a budget. If you’re buying more non-essentials, you may come up short when it’s time to make your student loan payment. Or you might have to stop contributing to your retirement plan so you can make ends meet.

•   Credit card debt. Credit card debt in the U.S. reached a record high in the second quarter of 2024 (hitting $1.142 trillion). That’s a whole lot of swiping and tapping going on, and doom spending may be a contributing factor. Shopping with credit cards can feel as if purchases don’t cost anything since no hard cash changes hands. But if you go overboard with doom spending, you may get an eye-watering bill. Given today’s ultra-high credit card interest rates (currently averaging over 20%), it can be hard to get out from under credit card debt once it starts racking up.

•   Ability to save. When you spend money on fun treats and impulse purchases to relieve stress and buoy your spirits, it may well be “borrowed” from money you were going to save. Whether those dollars were earmarked for an emergency fund, retirement account, the down payment on a house, or other purpose, doom spending can set you back in terms of your short- and long-term financial goals.

•   Increased stress. Knowing that you’ve overspent can heighten the anxiety you are already feeling. Many people feel guilty about spending money, and a doom-triggered spending spree can create more worries about your financial future.

Strategies To Manage and Prevent Doom Spending

If you’ve been doom spending (or tempted to), these strategies can help you reign in the impulse.

Setting a Budget

A good budget helps organize your money and keep your spending on track; it can provide guardrails for how your income will be spent and saved. There are many different types of budgets, so you may need to experiment to find the method that works best for you. One popular approach is the 50/30/20 budget rule, which says that 50% of your take-home pay should go to needs, 30% to wants, and 20% to savings and/or additional debt payments. With a budget like this in place, you know just how much (30%) can go toward fun expenditures and can stick to that figure.

Once you determine how much you want to put towards savings each month, it’s a good idea to set up an automated transfer from your checking account to your savings account for the same day each month (perhaps right after you get paid). That way, the money gets whisked away and won’t sit there, tempting you to spend it.

You can set a budget and track your spending with pen and paper, or you might want to download a budgeting and spending app to your phone to simplify the process.

Self-Control Techniques

Being aware of what triggers you to doom spend can help you stop. For example, if you know you tend to shop on Sundays when you start feeling anxious about the week ahead and life in general, fill your calendar. You might set up a standing date to go walking or running with a friend or take on a volunteer gig or side hustle so you are too busy to spend.

Many people impulse buy online or on social media. If you tend to overspend in this way, consider disabling one-click shopping. It’s also a good idea to delete your credit card details from your devices — that way, it won’t be so easy to mindlessly spend while scrolling.

Recommended: How to Stop Spending Money

Seeking Professional Help

If you feel your doom spending isn’t yielding to the above techniques, you might want to enlist the help of a professional. A financial planner could help with budgeting or a therapist could guide you to uncover and address the emotional aspects of your spending.

A financial therapist could also be helpful. They merge money know-how and an understanding of human behavior to resolve issues such as doom spending.

The Takeaway

Doom spending is a way of coping with stress by spending money. When you feel as if the world is uncertain and anxiety-provoking, you may find relief by shopping. But this can negatively impact your finances and create more money worries. Fortunately, there are several strategies that can help you control doom spending and stick to a budget.

The right banking partner can also help by giving you tools to help you track and grow your money.

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 are the common signs of doom spending?

Common signs of doom spending include:

•   Making impulsive purchases in response to feeling stressed or anxious about the future

•   Feeling temporary relief or pleasure after spending but later regretting the purchase

•   Frequently buying things you don’t need

•   Neglecting to save for the future

How can I break the cycle of doom spending?

Here’s a look at some strategies that can help you break the cycle of doom spending:

•   Create a monthly spending budget.

•   Set up a recurring monthly transfer from checking to savings.

•   Uncover your spending triggers and work to avoid or eliminate them.

•   Practice mindful spending by pausing before each purchase and assessing if it’s truly necessary.

•   Seek alternatives for stress relief, such as exercise or hobbies, to replace spending as a coping mechanism.

•   Work with a financial advisor or psychologist/therapist

Are there tools or apps to help manage spending habits?

Yes, there are a number of online tools and apps that can help you manage your spending habits, set up a budget, and monitor financial goals. Popular options include YNAB (You Need a Budget), Goodbudget, and EveryDollar. You might also check with your bank to see what tools they offer to track and organize your finances.

Photo credit: iStock/YakobchukOlena

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.

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

Third-Party Brand Mentions: No brands, 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.

SOBNK-Q324-033

If you’re looking for a safe place to invest and grow your money, you might be considering both certificates of deposit (CDs) and U.S. Treasury bills (T-bills). Both investment options offer steady and predictable returns, while protecting your principal. However, there are some key differences between them, including how long you need to lock up your money, initial investment requirements, and how your earnings will be taxed. Read on for a closer look at T-bills vs. CDs.

What Is a Certificate of Deposit?

A certificate of deposit, commonly referred to as CD, is a type of savings account offered by banks and credit unions. You can also get CDs through brokerages, called brokered CDs, though these are still issued by banks. When you open a CD, you deposit a set amount of money into the account and agree to leave it there for a specific period of time, which generally ranges from three months to five years.

CDs pay a fixed interest rate that is typically higher than the average annual percentage yield (APY) for savings accounts. If you withdraw your money early, however, you will likely have to pay a penalty, often in the form of interest earned over a certain time period.

Like other types of savings accounts, CDs are insured, which means you get your money back in the unlikely event your bank goes bankrupt. CDs at banks insured by the Federal Deposit Insurance Corporation (FDIC) are typically covered up to $250,000 per depositor, per ownership category, for each insured bank. Co-owners of joint accounts at the same bank are typically each insured up to $250,000. Credit unions offer similar insurance through the National Credit Union Administration (NCUA).

Pros and Cons of CDs

CDs come with a number of benefits, but also have some drawbacks. Here’s a look at some of the top reasons you might or might not want to invest in a CD.

Pros

•   Guaranteed returns: CDs offer a fixed interest rate, so you know exactly how much you will earn by the end of the term. Even if market interest rates go down, your CD rate will stay the same.

•   Safety: As FDIC- or NCUA-insured products, CDs provide a high level of security, protecting your principal up to $250,000.

•   Higher interest rates: CDs typically offer higher interest rates than traditional savings accounts, which can help your money grow faster.

Cons

•   Limited liquidity: Funds invested in a CD are locked in for the entire term of the CD. If you need to access your money before the CD matures, you will typically incur a penalty, which can eat into your earnings.

•   Could potentially earn more: While guaranteed, the returns on a CD can be lower than what you might earn with more aggressive (aka, higher-risk) investments like stocks or bonds.

•   Inflation risk: If the interest rate on your CD doesn’t exceed, or even keep up with, the rate of inflation, the actual purchasing power of your money can erode over the term of the CD.

What Are U.S. Treasury Bills?

Another safe way to invest your money is to buy U.S. Treasury bills. Also called T-Bills or Treasuries, Treasury bills are short-term government securities issued by the U.S. Department of the Treasury. Treasuries are backed by the full faith and credit of the U.S. government and considered one of the safest investments available.

When you buy a T-bill, you pay less than the bill’s face value, which is the amount you will receive at maturity. The difference between the purchase price and the face value at maturity is your interest earned. You’ll owe federal taxes on any income earned, but no state or local tax. T-bills are considered short-term securities because they mature in four weeks to one year.

Pros and Cons of Treasury Bills

Like CDs, Treasuries come with both benefits and drawbacks. Here are some to keep in mind.

Pros

•   Safety: T-bills are backed by the U.S. government, making them virtually risk-free if held until maturity.

•   Predictable returns: Returns are guaranteed, based on the agreed-upon rate of the Treasury bill that you purchase.

•   Tax benefits: The interest earned on a U.S. Treasury bill is exempt from state taxes, which can be a significant advantage for investors in high-tax states.

Cons

•   Lower returns: While safe, the returns on T-bills are generally lower than what you can potentially earn by investing in the market over the long term.

•   Inflation risk: Like all fixed-rate investments, if the rate you earn on your T-bill doesn’t exceed the inflation rate, the actual purchasing power of your money will diminish over the term of the Treasury.

•   Market risk: While treasuries are stable, their value can fluctuate over time. If you sell before the T-bill reaches maturity, you may not get as much interest as you expected.

Recommended: 7 Places to Put Your Cash

Comparing CDs vs Treasury Bills

While CDs and Treasury bills have a number of similarities, there are also some key differences that you’ll want to understand before investing in either one. Here’s a closer look.

Tax Implications

One key difference between CDs and Treasuries is that interest on CDs is taxable at the federal and state level. Treasuries, on the other hand, are exempt from state income tax. If you are investing in a taxable account and live in a state with a high income tax, this can make investing in Treasuries attractive.

Another tax difference: With CDs, you pay taxes on interest earned the year it is added to the account, whether you cash out the CD or not. With Treasuries, the interest you earn is only taxable when you sell the T-Bill, which may be a different tax year than the year in which you bought it.

In both cases, the interest you earn will be reported on Form 1099-INT.

Expected Earnings

With both a CD and a Treasury bill, you’ll know beforehand how much interest you’ll earn if you hold it until its maturity. If you sell a CD early, you may forfeit some or all of your expected interest and also possibly pay a penalty. Selling Treasury bills before they reach their maturity may be possible (since there is a secondary market for them) but if you do, you may not earn all the interest you would earn if you held it to its maturity.

Other Key Details to Consider

When deciding whether to put your money in T-bills or CDs, here are some other factors to keep in mind.

•   When you’ll need the money: T-Bills are more liquid than CDs since they typically have shorter maturities and can be sold on the secondary market. If you need access to your funds quickly, T-Bills may be the better option. While you can sell a CD before maturity, doing so typically incurs a penalty that can reduce your returns.

•   Initial investment amount: The minimum investment for opening a CD varies by bank but is typically at least $500. The minimum purchase amount for Treasury bills is $100. A higher initial investment requirement could make opening a CD difficult if you are just starting out and don’t have a lot of extra cash to invest.

•   Interest rate environment: While T-bills and CDs generally offer comparable rates, you may want to consider time to maturity and where interest rates could be headed. If interest rates are expected to fall, for example, locking in a good rate on a multi-year CD could be a smart move.

How To Purchase CDs and Treasury Bills

You can buy CDs directly from banks and credit unions, either online or in-person. Rates and terms vary by institution, so it’s generally a good idea to shop around to find the best CD for your needs. You typically don’t have to have an existing account at a bank or credit union to open a CD.

You can purchase Treasuries either through a brokerage firm or directly from the U.S. Department of the Treasury at TreasuryDirect.gov. The most commonly offered maturity dates are four weeks, eight weeks, 13 weeks, 17 weeks, 26 weeks, and 52 weeks. T-bills are sold in increments of $100, and the minimum purchase is $100.

Similar Investments to Keep in Mind

If you are looking for a relatively safe place to park your savings and earn a decent return, there are other options besides T-bills and CDs. Here are some to consider.

•   Series I savings bonds: I bonds are a type of U.S. savings bond with an overall rate that is based on both a fixed rate that never changes and a variable interest rate,designed to keep up with inflation, that resets every six months. You need to hold the bond for at least one year and will pay a penalty if you cash out before five years. Like T-bills, interest payments are exempt from state taxes.

•   Money market fund: A money market fund is a type of mutual fund that invests in CDs, short-term bonds, and other low-risk investments. The money you invest is liquid, and yields are typically higher than regular savings accounts. However, the funds are not protected by the FDIC or NCUA.

•   High-yield savings account: While not technically an investment, high-yield savings accounts pay more than the average APY for savings accounts, while offering more liquidity than CDs or T-Bills. Your money is insured, but the APY on a high-yield savings account isn’t fixed, meaning it can rise or fall depending on market rates.

The Takeaway

CDs and Treasury bills are both considered safe investments, allowing you to earn a guaranteed return without putting your initial investment at risk. However, there are some key differences that can make one a better fit than the other.

T-bills often have shorter terms than CDs, making them a good option for a savings goal that is a year or less down the road, like buying a car. With some terms as long as five years (or more), a CD may work better for a longer-term savings goal, such as making a downpayment on a home. If you’re looking for safety and competitive returns along with liquidity, you might also consider putting your money in a high-yield savings account.

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

Are CDs and Treasury bills considered safe investments?

Yes, both certificates of deposit (CDs) and Treasury bills (T-bills) are considered safe investments. CDs offer a fixed interest rate over a specified term, and are typically insured up to $250,000, making them low-risk. Treasury bills are short-term government securities backed by the U.S. government, making them one of the safest investments available. They are sold at a discount and mature at face value, with the difference representing the investor’s interest. Both options can be ideal if you’re a conservative investor seeking minimal risk.

Should I keep my emergency fund in a CD or Treasury Bill?

You generally want your emergency funds to remain highly liquid and easily accessible, so a regular savings account can work better than a certificate of deposit (CD) or Treasury bill.

CDs usually require you to leave your funds untouched for a fixed term, with penalties for early withdrawal. Treasury bills also tie up your money, though terms are relatively short (typically four weeks to one year). A Treasury bill might work for an emergency fund if you have other funds you can tap in a pinch before the maturity date. Otherwise, consider keeping your emergency cash in a high-yield savings account or a money market account.

How do CDs and Treasury bills differ from savings bonds?

Certificates of deposit (CDs), Treasury bills, and savings bonds are all low-risk investments, but there are some key differences between them.

•   CDs offer fixed interest over a specific term, and are typically used for short- to medium-term savings goals.

•   Treasury bills are short-term government securities that mature in a year or less and are sold at a discount.

•   Savings bonds, such as Series I and EE Bonds, are long-term government bonds with interest that compounds semi-annually. They are generally intended for long-term savings goals, such as education or retirement.

Photo credit: iStock/Liudmila Chernetska

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.

*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.

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.
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.

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

SOBNK-Q324-012

A substitute check is a legal copy of a check created by a bank from a digital image of the original check. Creating substitute checks allows banks to process checks electronically instead of sending paper checks through the system, which speeds up the process and cuts costs.

Not all copies of checks qualify as substitute checks, though. The images of checks you may get with your bank statement are not substitute checks; nor are the photos you take of a check when making a mobile deposit. As a result, substitute checks are often a source of confusion to consumers. Here, we shed light on what substitute checks are, how they work, and what happens to the original checks you write or deposit into your account.

Defining a Substitute Check

A substitute check is a special copy of an original check that contains all of the same information, including signatures, dollar amount, account numbers, and the MICR (magnetic ink character recognition) line. Banks create these checks by using high-speed scanners that capture the front and back of the original check. These checks are good for the same amount of time as the original check.

Once generated, the substitute check can be sent electronically to the payer’s bank. This process is faster than the old method of physically transporting paper checks. If a paper check is needed for certain processing or record-keeping purposes, a substitute check can be printed from that electronic image.

Banks can use photos of an original check to make a substitute check. But in order to be valid, the duplicate must be made by the bank. When you create an image of a paper check to complete a mobile check deposit into your bank account, your financial institution converts those images into a substitute check using their check-processing software platform.

Recommended: Guide to Outstanding Checks

Substitute Checks vs. Original Checks

A substitute check looks similar to the original but has a few differences: It will be slightly larger than the original and the front of the check will feature this statement: “This is a legal copy of your check. You can use it the same way you would use the original check.”

While substitute checks look somewhat different from the original checks, they are considered legally equivalent. This means that banks are no longer required to keep the original physical checks, as long as they have an authorized substitute check. In some cases, a bank will destroy original paper checks right away; in others they will store original checks for a set period of time and then destroy them.

Legality and Usage of Substitute Checks

The Check Clearing for the 21st Century Act (often referred to as the Check 21 Act) authorized the use of substitute checks when it was passed in 2003. The act was designed to improve the efficiency of the check-clearing process by allowing banks to use electronic images of checks instead of physical paper. This legislation aimed to reduce costs, expedite check processing, and minimize the risks associated with transporting paper checks.

Thanks to the Check 21 act, checks now typically clear within one or two business days, providing faster access to funds for consumers and businesses. Due to the swift processing speed for checks, you want to be certain you have sufficient funds in your checking account before writing a check.

When Substitute Checks May Be Used

Banks use substitute checks to facilitate the check-clearing process, as these checks are accepted as legal tender by other financial institutions. While account holders typically don’t use substitute checks to make payments, they can be used as proof of payment. Upon request, your bank can provide you with a substitute check. They may provide one for free or it may involve a fee.

Recommended: Where to Cash a Check Without Paying a Fee

Advantages of Using Substitute Checks

Here’s a look at two of the main benefits of using substitute checks.

Faster Processing of Check Transactions

One of the biggest advantages of using substitute checks is that it allows for more convenient and faster processing of check transactions. Instead of having to send, track, and store the physical checks, banks can use electronic images of substitute checks to facilitate payments.

Easier Handling of Electronic Check Images

Substitute checks make it easier for banks and businesses to manage large volumes of checks without the need to physically transport or store them. Electronic check images can be transmitted, retrieved, and stored more efficiently than paper checks. This digital approach improves record-keeping and reduces the chances of checks getting lost or damaged. If a paper check is required for legal or practical reasons, a substitute check can be printed on demand from the stored image.

Potential Drawbacks of Substitute Checks

While substitute checks benefit banks and customers alike, they come with a few potential drawbacks. Here are two downsides to consider.

Authenticity Concerns

Since substitute checks are created from electronic images, it may be harder to verify their authenticity compared to original paper checks. While the Check 21 Act includes measures to ensure that substitute checks are legally valid, there is still the possibility of errors and check fraud. An inaccurate or altered image could lead to disputes or financial losses. In rare cases, fraudulent substitute checks may be used to manipulate transactions or deceive people.

Readability Issues

The process of converting a check into a digital image and then printing a substitute check may result in a lower-quality reproduction. In some cases, the substitute check may be difficult to read, especially if the original check had poor handwriting, smudges, or damage. This can lead to errors in processing or disputes if the substitute check cannot be interpreted accurately.

Handling Substitute Checks as a Consumer

Since substitute checks are now commonplace, you may occasionally encounter them in your banking activities. As a result, it’s important to understand your rights regarding substitute checks and how to handle any issues that may come up.

Your Rights Regarding Substitute Checks

Under the Check 21 Act, substitute checks are considered legally equivalent to original checks, which means that consumers and businesses can use them as proof of payment or for other legal purposes.

If you experience any errors or problems related to a substitute check (such as a discrepancy in the check amount or a transaction that appears incorrect), you have the right to file a dispute with your bank. The bank is required to investigate the issue and either correct the error or explain why the substitute check is valid.

Disputing Errors Involving Substitute Checks

If you notice an error involving a substitute check, such as an incorrect amount being withdrawn from your account or money being withdrawn for a check more than once, it’s important to contact your bank as quickly as possible. The bank is obligated to investigate and respond to your dispute within a reasonable timeframe. In some cases, you may be entitled to a refund if the substitute check was processed incorrectly, including any fees that may have been charged as a result of the error (such as a bounced check or non-sufficient funds fee) or any lost interest.

The Takeaway

Substitute checks have revolutionized the way checks are processed, making transactions faster and more efficient. By allowing physical checks to be converted into digital images and then reproduced as substitute checks, the Check 21 Act has modernized the check-clearing process.

While substitute checks look slightly different from original checks, they are considered the legal equivalents. If you have any concerns about a substitute check, or if you feel any errors were made in processing a check, it’s important to contact your bank.

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 the difference between a substitute check and an electronic check?

A substitute check is a copy of a check used by banks in place of the original. While a substitute check is usually processed electronically, it is not the same as an electronic check. An electronic check (e-check) is a completely digital version of a check where no paper copy exists. E-checks are processed electronically from start to finish, without any physical checks involved.

Are substitute checks legally valid as proof of payment?

Yes, substitute checks are considered the legal equivalent of the original check and contain all the essential information, including the check number, account information, and payer/payee details. Because substitute checks are considered the equivalent of original checks, they can be used in disputes, for record-keeping purposes, or as evidence of payment.

Can a substitute check be used in place of the original check?

Yes, a substitute check can be used in place of the original check. Under the Check 21 Act of 2003, a substitute check is considered legally equivalent to the original and can be used for all the same purposes, such as clearing transactions, providing proof of payment, or resolving disputes.

Photo credit: iStock/payphoto

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.

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.

SOBNK-Q324-011

Setting up your first credit card is a major money milestone: When you get one, you join the more than three out of four Americans with plastic in their pocket. A credit card can allow you to buy goods and services pretty much whenever, wherever you like. You’re starting on an important credit-building journey as well.

As you comparison-shop and fill out an application or two, it’s valuable to understand the ins and outs of setting up a credit card. This can help you select the right card for your needs and use it responsibly. So read on to learn the full story on:

•   The basics on credit cards

•   What you need to get one

•   How to apply

•   The smart way to purchase with plastic once you’ve been approved.

What is a Credit Card?

A credit card is a physical card (typically a plastic one, rectangular in shape) that allows you to use your credit card account. By physically presenting the card to a vendor or keying in its details online, you can use your credit card to make purchases, donate funds, and withdraw cash up to your credit card limits. Some details:

•   The average credit limit in the U.S. now is almost $30,000, but the amount you’ll be given will vary based on such factors as payment and account histories, how much debt you are carrying, and your income.

•   A higher credit limit isn’t necessarily better (you’ll learn more about why below) as it can allow you to rack up more debt than might be financially healthy for you. Also, note that if you are new to credit, your limit may start low and rise as you show you can responsibly pay it back on time.

•   A credit card is a revolving form of a short-term loan. You then make payments to the credit card issuer. There are various types of credit cards (including all kinds of points to be earned and other rewards) to consider.

•   Depending on your particular situation and what kind of purchase you are trying to fund, there’s also the personal loan vs. credit card difference to ponder.

As you mull over your options, let’s be clear: Credit cards aren’t giving you this purchase power for free.

•   You may pay an annual fee and other credit card fees, and you are charged a typically high rate of interest on the balance you carry on your card.

•   The latest figures say that offers of new credit card accounts have an average interest rate of more than 20% at the start of 2024. In addition, if you miss a payment’s due date, you will probably be assessed late fees as well.

•   The latest Fed intel shows that Americans carry more than $1 trillion in credit card debt. That means a lot of people may have considerable debt. Paying careful attention to keeping your credit card account and your personal debt in good shape is an important responsibility.

Why You Might Need a Credit Card

Let’s look on the bright side of why so many of us have and reply upon credit cards.

•   They definitely make our lives easier. If you’d like to make purchases or pay bills online, then a credit card can be ideal.

•   It’s a convenient way to make in-person transactions without needing to carry around cash.

•   If cash is lost or stolen, it may be gone forever. With a credit card, though, you can report yours as lost or stolen and the issuer can cancel your old account and provide you with a new number and card.

•   When you’re short of cash, a credit card can help you to make necessary purchases. Say your washer/dryer breaks and you’d need about six months to save up for a new one. A credit card lets you get the appliance right now (and clean your laundry) while paying over time. Or maybe you get hit with a major car repair or dental bill. A credit card gives you the power to pay upfront and then gradually whittle that balance down.

•   Another reason you probably need a credit card: Many lodging facilities and car rental companies, as just two examples, may ask for a credit card number to hold your reservation.

Basic Requirements to Get a Credit Card

Credit card issuers may differ somewhat in the specifics of their requirements to get a card. In general, though, the financial institutions look for good credit scores and the financial ability to make credit card payments. Here are some pointers as you get set to apply:

•   Before you apply for a credit card, you can get copies of your credit reports from the three major credit bureaus for free at AnnualCreditReport.com. If there are any errors, dispute the data, and provide correct information, sending it to each of the credit bureaus that list incorrect details. The better your credit reports look, the higher your scores should be. This makes you a better candidate for loans and lines of credit.

•   A credit card issuer will also use financial criteria to help ensure that you’re able to make the payments. This can include your income and employment stability. In fact, the CARD Act of 2009 requires credit card issuers to consider a consumer’s ability to make required payments — at least the monthly minimum based on the outstanding balance.

•   Other requirements include being at least age 18 and having a Social Security number.

Recommended: How Many Credit Cards Should I Have?

How to Apply For a Credit Card

Next up: how to open a credit card. It basically requires filling out an application and then submitting the application for approval.

You can apply for your credit card in multiple ways:

•   in person at a financial institution

•   by mail

•   by phone

•   online.

After checking your credit scores, you may want to compare offers (including interest rates and APRs). As we’ve noted, interest rates can be high, so do research; there are plenty of online tools and sites that allow you to scan various offers.

Some cards may be no-interest credit cards during a promotional period. Benefits can be obvious (not paying interest) but also check the length of the promotional period, what happens when it ends, and what fees may be involved.

Then apply for the card of choice that you believe you can qualify to receive. Many people opt to apply for a credit card online. You fill in basic information about yourself, and agree to a “hard inquiry” credit check (which may briefly lower your score when it shows up that you are applying for credit). Typically, there is no application fee involved to seek out a credit card.

How to Use a Credit Card Once You Have It

Once you’re approved and receive your card, it’s important to use a credit card responsibly. Strategies for doing that include the following:

•   Don’t make too many impulse buys. ”Too many,” of course, will depend upon your budget and how much your impulse purchases cost. But the truth is, when you are not pulling out cash to pay for an item, it may feel almost like it didn’t happen. Using a debit card in some situations can counteract this.

•   Use the appropriate credit card. If you have more than one card, consider which one is best to use; for example, will you earn rewards on a certain card?

•   Take advantage of perks. If your card comes with a reward or cash-back program, take advantage of the benefits.

•   Sign up for automatic payments or for payment due-date reminders. That way, you can make payments on time, which helps with credit scores. If you fall behind, this can lower your credit scores and make it more challenging to get good interest rates going forward.

•   Check your monthly statements for errors. This is how you can catch identity theft and other credit card fraud. Let the issuer know ASAP when you spot something that’s not right — and report a lost or stolen card as soon as possible.

After you make purchases on your card, you’ll receive monthly statements, typically with a minimum payment (perhaps 1% to 4% of the balance or a fixed amount) and the outstanding balance. Credit card companies usually give you a grace period in which you can pay off the balance in full to avoid owing interest.

Consider these two caveats:

•   A common mistake new credit card holders make is thinking that the minimum payment due is the “right” amount to pay and somehow improves their credit. Wrong! The minimum payment is just what it says: the minimum to avoid certain fees. It is actually preferable to keep your balance low or non-existent (meaning pay the entire amount owed each month). What’s best for your credit score and financial health is often using only 10% or less of the credit limit on your card.

•   If your credit card allows you to take cash advances, know that interest rates are often higher than what you’d pay on purchases, plus there may be cash advance fees. If you take the money from an ATM or a bank, there will likely be additional fees. Also, it’s standard that interest accrues from the date of withdrawal with no grace period. In other words, this can be a very costly way to get your hands on some cash.

Recommended: Understanding Purchase Interest Charges on Credit Cards

The Takeaway

Getting a credit card is a major rite of passage as well as a big responsibility. As you’ve learned, it can be simple to apply and get approved for a card, but staying on top of your debt can take some attention and effort. Given how many Americans have at times unwieldy credit card debt and how high the rates are, use credit carefully, and you’ll enjoy its convenience and credit-building powers for years to come.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What are the benefits of having a credit card?

You can use credit cards to make purchases in person and online, and then make payments over time (although interest will accrue if you don’t pay the balance in full each month). Also, many offer rewards, among other benefits.

What are the requirements for opening up a credit card?

Requirements vary, but typically issuers want to see a good credit score and the financial ability to make payments on the card. Additional requirements:The applicant must be 18 years old with a valid Social Security number.

How should you use your credit card?

There are a wide range of ways to responsibly use your credit card. In fact, one of its key benefits is its flexibility. So, as long as you follow the credit card rules and manage the balance responsibility, how you use it is really up to you.

Photo credit: iStock/Alesmunt

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.

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.

SOCC0124001

You probably like your home to be clean, but when it comes down to breaking out the mop and bucket, the vacuum cleaner, the wood polish, sponges, and bleach, do you really have the time or inclination to dive in?

If you feel like groaning just reading about tidying up, it could be worthwhile to hire a cleaning person or service.

There are many factors to consider when thinking about hiring out this task, and that’s where this guide will come in handy. Read on to learn:

•   What’s the difference between a cleaning person and a cleaning service?

•   How much does hiring a cleaning person or service cost?

•   What are the pros and cons of hiring a cleaning person vs. a cleaning service?

•   What are the alternatives to hiring a cleaning person or cleaning service for your home?

What Does a Cleaning Person or Service Do?

A cleaning person or service takes care of basic tasks such as dusting, vacuuming, sweeping, mopping, disinfecting the toilets, cleaning the sinks and bathtub/shower, and taking out the garbage.

There are typically add-on services available: laundry, changing the sheets, and doing the dishes for starters. Some of these could be included in the cost depending on the cleaning person or service.

“But, I can (or should) do all that myself!” you may be thinking. In which case, you are likely wondering: Is hiring a cleaning person worth it?

If a spic-and-span home is high on your checklist for maintaining a house, a little research can help determine if a cleaning person or service is right for you. Read on for more detail which can assist you as you make your decision.

How Much Does a House Cleaner Cost?

The cost for hiring a cleaning person (or independent contractor) will depend on where you live, the size of your home, and how often they will come, but individual cleaners typically charge between $50 and $100 an hour.

Going with an individual generally costs less than hiring a cleaning service. However, they may not offer as many guarantees as a large company.

How Much Do Cleaning Services Cost?

Full-service cleaning companies can charge between $175 and $300 per visit. You can typically get a customized quote based on the size of your home and services you want before you hire a cleaning service. Some companies may have a minimum fee per visit. Generally the more frequently a service comes, the lower the cost per cleaning.

You can also hire a service for specialized, one-time cleaning services, such as after an event or before moving out or moving into a home.

Things to Consider When Hiring a Cleaning Person or Service

When deciding if hiring a house cleaner or cleaning service is worth it, you’ll benefit from addressing a few questions about your monetary situation, schedule, and level of desired cleanliness.

Your Budget

The first step in determining if you can afford a cleaning person or service is to set up a basic budget if you don’t already have one up and running.

If you’re wondering how to make a budget, consider using the 50/30/20 rule. This means putting 50% of the household income toward necessities or musts (which typically includes housing, utilities, food, and debt); 30% towards wants (like dining out and entertainment); and 20% on saving (including retirement) and debt payments beyond the minimum.

Once you see how much cash you have coming in and going out, you’ll be better able to assess if you can afford to pay for cleaning from that 30% that covers “wants.”

Recommended: What is the 50/30/20 Budget?

How Valuable Is Your Time?

A good way to decide whether hiring a house cleaner is worth it is to remember this saying: Time is money. If paying a professional $50 an hour frees you up to make $65 an hour while working, the cost might be worth it, since you’ll come out ahead financially.

Schedules (How Often Are You Home?)

If you work long hours at an office or other workplace, outsourcing your house cleaning will allow you to enjoy your time at home without having to clean. And if the cleaning person or team comes while you’re at work, you won’t have to worry about staying out of their way.

However, if you are someone who works from home, or you or your spouse are a stay-at-home parent, a cleaning person or service can potentially be disruptive.

How Often You Need Your House Cleaned

Frequency of cleaning will matter. While a service may charge less per cleaning if they come weekly vs biweekly or monthly, you’ll still likely save money by having your home cleaned less frequently.

Worth noting: Do you sometimes list your house for renters? If you rent out on Airbnb, you’ll be asked to adhere to Airbnb’s cleaning protocol standards. A cleaning crew is helpful for a quick turnaround between renters.

Cleaning Requirements

The price of a house cleaner or cleaning service can go up depending on what is required of them:

•   Level of mess. Do you entertain frequently or have small children? It may take longer to clean up the aftermath. Or maybe you haven’t done a deep-clean in ages. That too may make cleaning take longer.

•   Area of mess. Does the whole house always have to be cleaned? You can save money by only having the common areas and bathrooms tidied up.

•   Pets. Vacuuming dog and cat hair can add many minutes to a cleaner’s timesheet.

•   Are you a neat freak? A deep-clean or super detailed job will cost more than basic dusting, vacuuming, and mopping.

How Good You Are At Cleaning

If you are a disciplined and effective cleaner who loves getting your place spotless, there may be no need to hire someone. That said, there might be times you get too busy to clean or want some help tidying up before the holidays or a houseguest’s arrival.

If you’re the kind of person who ignores dust bunnies or the sight of a broom stresses you out, perhaps you should outsource household tasks and enjoy some time elsewhere.

Cleaning Services vs Individual Cleaners: What’s the Difference?

An individual cleaning person typically costs less than a cleaning service. A cleaning person often works alone, while a cleaning service can be a crew of two, three, or more who clean simultaneously.

An independent cleaner generally keeps 100% of the earnings, while a portion of the money for a cleaning crew goes to the service provider.

There are other key differences between individual cleaners and cleaning services:

Pros of Hiring a House Cleaning Person

Here are some of the perks that can make a cleaning person worth it:

•   Lower costs. An independent contractor can be less expensive than a cleaning service. Fewer workers can mean cheaper rates.

•   Price flexibility. You may be able to negotiate cleaning add-ons more easily (and affordably) with an individual.

•   Familiarity. The same person comes to your home every time. This can provide a sense of comfort and trust for you and your family.

•   Personal recommendations. You can get referrals from someone you trust — a friend or a neighbor.

Recommended: 15 Creative Ways to Save Money

Pros of Hiring a Cleaning Service

If you’re considering getting help tidying up around the house, a cleaning service can be worth it. They come with several benefits:

•   Vetted employees. Full-service cleaning companies typically check their employees’ backgrounds, so you don’t have to.

•   Set standards. Many companies train their employees to uphold a certain level of cleaning criteria.

•   Faster service. Since cleaning services are composed of crews, a team of workers can get the job done faster than an individual house cleaner.

•   Customer service. If a job isn’t up to snuff, professional companies will deal with any complaints you may have.

Cons of Hiring a House Cleaning Person

•   You’ll do the vetting. The responsibility of getting references and background checks on the cleaning candidate will fall to you.

•   Longer cleaning time. Since a house cleaner usually works solo, they might not be as fast as a cleaning service with multiple workers.

•   Unpleasant boss duties. If your cleaning person is not meeting your expectations, it will be up to you to address the problem and, possibly, terminate the arrangement.

•   Inflexible schedule. If the contractor has a lot of clients, there could be fewer timeslot options available.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

Cons of Hiring a Cleaning Service

•   Higher prices. A cleaning service generally costs more than an independent maid.

•   Lack of familiarity. The company could send different people every time.

•   Add-ons can be costly. Since the company sets the prices, you could spend a lot for a deep-clean of the fridge. A cleaning person, on the other hand, might not charge extra if they can get the job done within their hourly time frame.

Alternatives to House Cleaners or Cleaning Services

House cleaners and cleaning services are generally the route people take when hiring help, but there are a few other options:

•   Gig-based workers. Apps and online services such as Taskrabbit and Fiverr feature a variety of folks willing to do odd jobs, including house cleaning. Whether they pursue this full-time or as a side hustle, you may well find affordable options.

•   College students. If you live near a campus, check the online or physical job boards. Students are generally eager to make extra dough.

•   Your kids. Shelling out for an allowance can be a lot cheaper than a cleaning service.

Tips for Saving Money on Cleaning Services

There are a few things you can do to potentially reduce the cost of a cleaning person or service:

•   Shop around. It’s a good idea to interview more than one house cleaner or get estimates from multiple cleaning services.

•   Make the terms clear. You’ll want to clarify exactly what tasks need to be done, so you won’t get charged for any unexpected add-ons.

•   Consider a trial run. It can be a good idea to try out a house cleaner or cleaning service for a month or so before committing to a long-term agreement.

•   Inquire about fees. It’s a good idea to ask about any potential extra fees so you don’t hit with any surprises. Some cleaning services may tack on a processing fee if you pay with a credit card vs. direct deposit.

•   Look for promotional deals. Cleaning services will occasionally run specials. They may also offer package deals and referral bonuses.

•   Tidy up before they come. Keeping your house orderly in between appointments allows the hired cleaner to perform more efficiently.

Recommended: How to Set and Reach Savings Goals

The Takeaway

If your messy home is stressing you out, a cleaning person or service can take some of the weight off your shoulders. As long as you can justify the extra expense, hiring a professional can make your home look great and improve your mood, plus leave you with more free time to enjoy your favorite pursuits.

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

Are individual house cleaners better than cleaning services?

Both are good options if you need help cleaning your house. Typically, a cleaning person can be cheaper and is someone you see regularly and can build a relationship with. A cleaning service, on the other hand, may be able to get the job done faster and may have more professional training and customer service.

Is it safe to hire a cleaning person or service?

To feel secure, it’s a good idea to get recommendations and references (and check them) for an individual cleaning person. Cleaning service companies generally vet their employees for you.

Should you hire a house cleaner if your house is not very dirty?

Whether to hire a cleaning person or not depends on how clean you want to keep your home, and how much time you are willing to personally spend on it. Even if you’re a regular duster, a house cleaner can help with larger tasks like cleaning the fridge and oven, heavy-duty vacuuming, and/or window washing.

Photo credit: iStock/Tatiana

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.

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

Third-Party Brand Mentions: No brands, 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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