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Bank transaction deposits are monetary deposits made into transaction accounts, also often known as checking accounts. Transaction deposits allow a person to have ready access to their money held at a depository financial institution, such as a bank or credit union, without delay or advance notice.

They differ from non-transaction deposits, which are deposits made into non-transaction accounts, such as certificates of deposit (CDs). Non-transaction accounts come with restrictions on when or how often you can access your money. Learn more about transaction deposits and their pros and cons here.

What Are Transaction Deposits?

A transaction deposit (sometimes also called a demand deposit) refers to a deposit made into a transaction account that is readily available for use — meaning you can use the money any time for other transactions.

The most common example of a transaction account is a checking account. This type of account allows account holders to make unlimited deposits, withdrawals, payments, and transfers. In other words, you can use the account as often as you want to get cash, make purchases, pay bills, and/or deposit cash at an ATM.

Savings accounts that allow account holders unlimited access are also considered transaction accounts. Typically, however, savings accounts may come with withdrawal and transfer limits (such as a certain number per month). As a result, they are generally considered non-transaction accounts.

💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure mobile banking app.

Understanding Transaction Deposits

Transaction deposits can be made at a branch of the bank, at an ATM, and by transferring funds from another account. If you set up direct deposit with your employer, these deposits also qualify as transaction deposits.

If you want to access a transaction deposit, you can so for in a number of different ways, including:

•   Withdrawing money at a branch or ATM

•   Transferring the money to another account

•   Writing a check

•   Using auto-pay

•   Making a wire payment

Transaction Deposits vs Non-Transaction Deposits

To better understand transaction deposits, it helps to know the difference between the two main types of deposit accounts: transaction accounts and non-transaction accounts.

Transaction accounts allow account holders easy access to their money. These accounts may earn interest, but typically they do not.

Non-transaction accounts, such as most savings accounts, money market accounts, and certificates of deposit (CDs) typically earn interest, providing a return on the account holder’s investment. However, deposits made into a non-transaction account (called non-transaction deposits) are not as fully accessible as transaction deposits. Account holders may be limited or restricted from accessing all or some of the money, or they may need to make a request for a withdrawal.

For example, if you open a CD, your money is locked up for a certain period of time. If you want to access the money before the CD matures, you will typically pay a penalty. With many savings and money market accounts, the bank will impose limitations on the number of transactions you can make each month. If you exceed that limit, you may be charged withdrawal fees.

Here’s a look at transaction accounts vs non-transaction accounts:

Real-Life Examples of Transaction Deposits

A checking account is an example of a transaction account where transaction deposits are made. The key feature of a transaction account, and the deposits made into it, is that the money is liquid, or readily available. There are no requirements for leaving the money for a set amount of time like there are with a time (or term) deposit account, such as a CD.

Here are some common examples of transaction deposits:

•   Direct deposits from your employer into your account

•   Check or cash deposits made at your bank

•   Mobile deposits

•   An electronic funds transfer (EFT) made into your account

•   Payments from third parties

•   Refunds from vendors

Restrictions of Transaction Deposits

There are some instances, however, where a bank may impose some restrictions or a waiting period on certain deposits made to transaction accounts. This could happen if you deposit a large check that requires verification, or if the account is new and the account holder doesn’t yet have an established history. Once the holding period ends, the funds are fully accessible.

Non-transaction deposits, however, come with far more restrictions. In the past,
The Federal Reserve’s Regulation D restricted withdrawals from money market accounts and savings accounts to six per month. If you went over this limit, the bank would charge you a fee. If you consistently went over this limit, they could convert the account to a regular (non-interest-bearing) account.

However, the Federal Reserve suspended Regulation D in 2020. Banks can now set their own restrictions on savings account transactions, and they can vary from one bank to another. In other words, some financial institutions still limit savings accounts to those six transactions; check with your bank or read the fine print on your account agreement.

Recommended: How Long Does the Direct Deposit Transaction Take?

Advantages of Transaction Deposits

There are a number of advantages that come with transaction deposits. These include:

•   Money is readily available

•   No maturity period

•   No eligibility restrictions

•   No limit on the number of deposits, withdrawals, or transfers the account holder can make

•   No early withdrawal penalties

•   Sometimes interest-bearing

Disadvantages of Transaction Deposits

The main disadvantage of transaction deposits is that the money being deposited will generally earn no, or only a small amount of, interest.

The Takeaway

A transaction deposit is a deposit made to a transaction account, such as a checking account. This type of account is ideal for everyday banking, since you can generally put money in and take money out whenever you like.

Non-transaction deposits are the opposite — they are funds put into non-transaction accounts, which include savings accounts, money market accounts, and CDs. With a non-transaction account, you will face some restrictions in when and how often you can access your money. However, the advantage of non-transaction deposits is that this money will typically earn more interest than a transaction deposit will.

If you’re interested in getting the benefits of both types of accounts in one, consider what SoFi offers.

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

FAQ

What is a bank deposit transaction?

A bank deposit transaction is a deposit into a transactional bank account, such as a checking account. It includes direct deposits, transfers, and deposits made at a bank or ATM.

Is a deposit considered a transaction?

Yes, a deposit is considered a transaction. Any money moving into and out of your account is considered a transaction.

What banks offer transaction deposits?

Any bank that offers a checking account is a bank that offers transaction deposits.

Photo credit: iStock/Prostock-Studio

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.

SOBK-Q224-1939779-V1

Having a side hustle has become increasingly popular. According to one recent study, 54% of Americans said they have taken on a side hustle as a way to supplement their income.

And why not? Everyone likes a little extra cash in their pocket, especially if it’s from an activity they enjoy. Whether a side hustle involves using your tech skills to help people set up their computers or selling photos you take, it can be a great way to build an additional revenue stream.

But beyond the cash, there are other, potentially surprising benefits to having this kind of money-making venture.

What Is a Side Hustle?

A side hustle is a job or work, in addition to full-time employment, that helps boost an individual’s monthly income. It can involve ways to make money from home (say, as an online tutor or writer) as well as a part-time job outside the home.

For instance, maybe you do some pet-sitting when people in your town go on vacation. Or perhaps you have a Sunday gig as a barista. Or maybe you hunt for treasures at local yard sales and resell them on eBay or Etsy. These are just a few examples of side hustles, which can help you earn extra cash that you could use to pay bills or put into a bank account.

The amount Americans earn via a side hustle varies tremendously, as you might expect. Another recent survey of individuals with side hustles found that the average side hustle brings in about $688 a month. However, approximately 46% of people say they earn less than $250 a month from their side. About 19% say they make more than $1,000 a month.

Having a Side Hustle: 11 Benefits

An obvious benefit of a side hustle is the potential to generate extra cash each month. But on top of earning money, there are additional advantages to taking on extra work outside the typical 9-to-5.

If you’re wondering, “Should I start a side hustle?” read on and explore the unexpected benefits below.

1. Improving Ability to Budget

Having a solid budget is one of the important ways to improve your financial health. But getting that budget in place can be a challenge when money is tight, and it’s a struggle to make ends meet each month.

A side hustle has the potential to bring extra income, creating a little wiggle room in your budget. Creating a realistic budget may be easier with some more padding each month.

2. Developing Skills That Translate to Other Areas

Learning new skills is one of the more unexpected benefits of a side hustle. If a side hustler is starting to drive a ride-share, for instance, they may get a crash course in accounting as they learn to manage this income stream. Or if a side hustler’s gig is working weekends at a local café, they could develop important customer service skills they normally wouldn’t cultivate at their day job.

In other words, taking on an additional work endeavor can help you develop a more robust toolkit for future endeavors.

3. Improving Income and Financial Stability

Most people start side hustles to earn extra cash, and that benefit can’t be overstated. Additional monthly income can help give side hustlers a sense of financial stability. It could translate into less stress when the bills are due or even create a little breathing room to start saving and planning for the future.

With surplus cash in the budget, it may be time to set up a financial plan if you haven’t already. While it may be tempting to have fun spending the extra money, those funds could be put to work to help you build wealth.

4. Building a Stronger Work Ethic

Side hustles can be fun, but they are still a job. Spending more hours working can enhance your work ethic. After all, you are devoting what others might consider leisure time to a pursuit that will uplift your financial health. You should recognize your dedication and bask in the self-confidence boost you get along with the additional cash.

5. Improving Time Management Skills

It may be obvious, but taking on a side hustle means taking on more work hours. That translates into fewer free hours in the day, which means a side hustle can be a crash course in time management skills as well as cash management know-how.

With more responsibilities on your plate, you will likely get much more adept at being on time, meeting deadlines, and knowing how to pack in leisure activities in the time available. These are skills that will serve you well outside your side hustle.

6. Allowing You to Put More Into a Savings Account

Some start side hustles to help pay off outstanding debt or save for an upcoming trip, but earnings can be used to build up savings.

Once immediate financial needs are met, including bills and debt, surplus cash from a side hustle can go into a savings account. Not sure where to park your cash? Consider a high-yield bank account to help build your savings.

7. Allowing You to Better Prepare for an Emergency

One of the benefits of a side hustle is the ability to contribute to an emergency fund. As noted above, once immediate needs are met in a budget, extra cash from a side hustle could go into a savings account or help you grow your emergency cash supply.

A general recommendation is to have at least three to six months’ worth of basic living expenses set aside in an easily accessed account. This gives you a cushion if an unexpected medical or household expense crops us or if you were to lose your job.

8. Allowing You to Pay Debt Quicker

If high-interest debt is eating away at paychecks, money from a side hustle can be a help. Interest from high-interest credit cards can compound, for example, making it harder to pay off as the balance grows. The current average credit card interest rate (as of mid 2024) is 24.62%, which can mean that those carrying a balance may have a challenging time paying debt down. With limited income, it may feel impossible to get on top of that monthly bill.

Using income from a side hustle to pay off debt could lead to paying it off faster or at least relieving some of the pressure.

9. Improving Ability to Reach Financial Goals

Even an extra $100 a month can help side-hustlers as they work to reach financial goals.

For example, if you’re planning a vacation in the next year but don’t have enough in your budget to save for it, you could take on seasonal gig work and put those paychecks towards the vacation. Without it, you might not be able to take the vacation.

Beyond small savings goals, a side hustle can help you work towards bigger financial goals like saving for a downpayment or putting more money into a retirement fund.

10. Allowing You to Expand Your Network

One of the less-discussed benefits of a side hustle is the ability to meet new people and expand your network. Whether a side hustle is related to your day job or is something completely different, you’re bound to meet new people and create new connections.

These connections may lead to many benefits, including more work, new friends, or a new career opportunity.

11. The Opportunity to Do Something You Love

In addition to bringing in more money, a side hustle can also reignite someone’s passion for a hobby or activity.

Because it’s not your primary source of income, you can experiment with turning a personal interest into an income source. If you don’t enjoy your side hustle, it can feel exhausting. But working on something you love might not even feel like work.

For example, a nurse might love quilting in their off time and decide to open an Etsy shop. If they were already using their spare time to quilt for family and friends, now they can keep doing what they love, earn money from home, and make a profit off the sale of their quilts. It’s a win-win! Who knows? Some side hustles even become a person’s main job over time as their network and their skills grow.

The Takeaway

While the biggest benefit of a side hustle is bound to be the extra cash it brings, there are plenty of secondary benefits. From plumping up an emergency fund to meeting new people, a side hustle can be both a key to financial freedom and an avenue for exploration and personal growth.

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

FAQ

Why is a side hustle important?

Having a side hustle can generate more income and help people pursue something they’re passionate about on the side. It also can build skills and open up new networks and opportunities.

Is it worth having a side hustle?

If someone has a side hustle they enjoy and it generates extra income without taking up every last minute of their day, it may be well worth it. However, deciding if a side hustle is worth it is ultimately up to the individual.

How much does the average side hustle make?

The average side hustle brings in about $688 a month, according to one recent survey, though 46% of those with a side hustle report they earn less than $250 monthly. Even so, a couple hundred dollars is a nice sum to help pay off student loans or credit card debt faster, or to put towards a vacation fund.

Photo credit: iStock/visualspace

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

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

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.

3.30% APY
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.

SOBK-Q224-1939801-V1 Read more

A health savings account (HSA) and a flexible savings account (FSA) are both tax-advantaged savings accounts that help you pay for out-of-pocket medical expenses. To contribute to an HSA, you must be enrolled in a high-deductible health plan. To contribute to an FSA, you can have any type of health plan but your employer must offer an FSA as a benefit. Here’s a closer look at the similarities and differences between FSAs and HSAs and how to choose between them.

HSA and FSA, Explained

A health savings account (HSA) is designed to help individuals with high-deductible health plans (HDHPs) save for medical expenses. Contributions to an HSA are tax-deductible (or deducted from your paycheck pretax), and the funds can be used for a wide range of qualified medical expenses. HSAs also offer investment options and grow tax-free. In addition, withdrawals for qualified expenses are tax-free.

In 2024, a health plan is considered an HDHP if it has a minimum deductible of $1,600 for individual plans and $3,200 for family coverage.

A flexible spending account (FSA) is a benefit offered by employers that allows employees to set aside pretax dollars for eligible healthcare expenses. Unlike HSAs, FSAs do not require an HDHP. However, FSAs typically have a “use-it-or-lose-it” rule, meaning that any unused funds at the end of the plan year are forfeited unless your employer offers a grace period or a certain amount to roll over.

If you leave your job, you lose your FSA unless you’re eligible for FSA continuation through COBRA.

Differences Between HSA and FSA

Even when you have health insurance, you may run into medical expenses that your plan doesn’t cover, such as copays, eyeglasses, dental expenses, medications, diagnostic tests, and hospital fees. Both HSAs and FSAs allow you to set aside pretax money to cover these costs. But there are some key differences between them. Here’s how these two types of savings accounts compare at a glance.

Similarities Between HSA and FSA

Despite their differences, HSAs and FSAs share several similarities:

•   Funds from either type of account can be used for qualified medical expenses.

•   With both accounts, you can save significantly on medical expenses due to tax advantages.

•   Employers are allowed to contribute to both HSAs and FSAs (though this is not common with FSAs).

•   You can access funds immediately with either type of account. With an FSA, however, you’ll have access to full elected contribution at the start of the year.

Recommended: HSA vs HRA: Main Differences and Which Is Right for You

Can You Have an HSA and FSA at the Same Time?

Generally, no. However, there is one exception: If you have a limited-purpose FSA (LPFSA), which only covers dental and vision expenses, you can contribute to both an HSA and an LPFSA. This allows you to put more pretax dollars aside for your healthcare expenses than you could with an HSA alone.

Just keep in mind that you can’t “double dip,” meaning you cannot get reimbursed twice for the same expense — you must decide which account you want to use for reimbursement.

Recommended: HSA vs. HMO: What’s the Difference?

How Do You Choose Between an HSA and FSA?

Choosing between an HSA and FSA depends on your healthcare needs, financial situation, and employment status.

Scenarios When You Should Consider an HSA

•   You have a high-deductible health plan. If you have an HDHP, you are eligible for an HSA. The tax advantages and ability to save for future healthcare expenses can make opening an HSA a smart choice.

•   You’re interested in long-term savings. HSAs allow you to roll over unused funds year to year, making them ideal for long-term healthcare savings. And at age 65, you can treat an HSA like a traditional 401(k) or IRA — you can withdraw funds for any reason, though you will pay taxes on any funds not used for qualified medical expenses.

•   You want to grow your healthcare savings. HSAs offer investment options like stocks, bonds, and mutual funds.

•   You want to be able to take your healthcare savings with you if you leave your job. HSAs are portable and remain with you even if you change jobs, providing consistent coverage regardless of employment status.

Recommended: 15 Easy Ways to Save Money

Scenarios When You Should Consider an FSA

•   You don’t have (or want to enroll in) an HDHP. FSAs do not require a high-deductible health plan, making them accessible regardless of current health insurance.

•   You have fairly predictable healthcare costs. If you’re able to anticipate regular healthcare expenses each year, an FSA can help you save money by using pretax dollars for these predictable costs. If you over-contribute, however, you forfeit any unused balance (unless your employer allows a grade period or a certain amount to roll over).

•   Your employer offers FSA contributions. Some employers offer contributions to FSAs, providing additional savings and making FSAs a valuable benefit.

•   You want to have immediate access to your healthcare savings. FSAs provide immediate access to the full annual contribution amount at the beginning of the year, which can be beneficial for upfront medical expenses.

The Takeaway

Both HSAs and FSAs offer valuable tax advantages and can help you manage healthcare costs, but they cater to different needs and situations.

If you have a high-deductible health plan and want long-term savings with investment opportunities, an HSA can be a great choice. On the other hand, if you don’t have a high-deductible health plan and your employer offers an FSA, you’ll likely want to take advantage of this benefit. An FSA can help you save for (and save money on) healthcare expenses in the coming year.

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

Is it better to have an HSA or FSA?

It depends on your healthcare plan and employment situation. A health savings account (HSA) can be a good fit if you have a high-deductible health plan (HDHP), since it offers higher contribution limits and allows you to carry funds forward. An FSA can work well if your employer offers this benefit, you do not have an HDHP, and you have predictable healthcare expenses (since these plans are often “use-it-or-lose-it”).

Is it good to have both an HSA and FSA?

Generally, you cannot contribute to or spend from a health savings account (HSA) and a flexible spending account (FSA) simultaneously, as both accounts are designed for medical expenses and have overlapping benefits.

However, there is one exception: You can have an HSA and a limited-purpose FSA (LPFSA) at the same time. An LPFSA specifically covers dental and vision expenses. This combination can be beneficial if you have significant dental and vision expenses in addition to regular medical costs, providing comprehensive coverage and enhanced tax advantages.

What happens if I switch from an HSA to an FSA?

If you switch from a health savings account (HSA) to a flexible savings account (FSA), you can no longer contribute to your HSA once your FSA becomes active. However, you still own the HSA and can use the remaining HSA funds for qualified medical expenses. In addition, the funds in your HSA will continue to grow tax-free.

Can I have an HSA if my wife has an FSA?

If your wife’s flexible savings account (FSA) is a general-purpose FSA, which covers a range of medical expenses, you cannot contribute to a health savings account (HSA). However, if her FSA is a limited-purpose FSA (LPFSA), which only covers dental and vision expenses, you can contribute to your HSA.

It’s important to review the specific rules and eligibility criteria for both accounts and coordinate with your spouse to optimize your tax savings and healthcare benefits.

Photo credit: iStock/zimmytws

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.
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.

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.

*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.

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.

SOBK-Q224-1920649-V1

Outside of housing and transportation, Americans spend more on food than anything else. According to the Bureau of Labor Statistics, the average household spends $5,703 annually on food in the home (not including takeout and dining out). That figure is more than $1,000 higher than three years ago.

While food is an essential expense — you have to eat to survive, after all — you can lower your grocery costs while still enjoying great-tasting and nutritious meals. Here are 22 ideas for saving on food purchases to get you started.

How to Save Money on Groceries

Ready to start trimming your grocery costs? Read on.

1. Have a Plan

Before you craft your grocery list, it’s wise to plan what meals and snacks you want to prepare for the week or weeks ahead. If you write it all down and then create your shopping list, you’re less likely to forget key items for certain recipes. You’ll know exactly what you need when you enter the store and will be less inclined to wander the aisles and pick up impulse purchases.

2. Scan Your Fridge

While you’re making your meal plan, check your pantry and refrigerator for items you already have on hand. Not only can you avoid buying duplicates, but you may find some hidden veggies in the fridge you’d forgotten about. You can put them to good use before they spoil.

3. Go Semi-Vegetarian

Meat tends to be one of the most expensive ingredients in many meals. But there are plenty of tasty recipes out there that use other sources of protein, such as beans, eggs, and tofu. Also, don’t count out using tasty veggies or grains as the star of a dish.

Planning just one or two meatless meals each week can automatically cut your food spending — and also help you eat a little healthier. You might start by searching online for “Meatless Mondays” recipes and seeing what inspires you.

💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure mobile banking app.

4. Stick to a Grocery Budget

If you don’t include your groceries when making your budget, you may want to consider doing so. It can help you track exactly how much you’re spending and where you can cut back (like those cookies or snacks you may not always need but are in the habit of buying). Or you might realize that the fancy coffee beans you usually buy cost way more than the excellent French roast ones at your supermarket. By looking at the numbers, you’ll gain valuable insights.

5. Use Only Cash

Do you “get inspired” when you’re at the supermarket and find yourself snagging a container of pricey cashews here and some fancy cheese there, even though they aren’t on your list? It can be easier to overbuy when you use a credit card for your purchases. By paying with cash or your debit card, you can often do a better job of sticking to your grocery list.

6. Outsmart the Supermarket Selling Tactics

Grocery stores use a number of marketing tricks to get shoppers to spend more. These include stocking the most expensive items on the shelves right at your eye level, using end caps to grab your attention, and placing staples like milk, eggs, and bread at the back of the store so you’re forced to pass through several aisles of delicious food to get to them.

You can avoid falling for these marketing ploys by carrying a list (and sticking to it), and also by keeping your eyes on the upper and lower shelves, as this is where you’ll tend to find the more affordable brands.

7. Go Generic

Brand name products in the supermarket can often cost considerably more than store brands. Yet many store brands offer essentially the same quality as their brand name counterparts, and in some cases are produced at the same facilities (just packaged with a different label). One recent report found that you can save up to 40% by buying store brand. In other words, you could almost cut some grocery expenses in half.

While not all store brands are built the same, it’s worth trying a few if you’re grocery shopping on a budget. If you find that you can’t tell the difference, you may be able to enjoy some solid savings.

8. Use Store Loyalty Apps

If you shop at a large grocery store chain or mass retailer, you can often get special promotions and additional savings by downloading the store’s app.

Target, Walmart, Wegmans, Whole Foods, and other major stores have apps and programs that offer exclusive coupons to frequent shoppers. Often, taking advantage of these deals is as simple as letting the cashier scan a barcode on your phone as you’re checking out.

9. Prune Your Produce

Before you put fruits and veggies in the plastic bag and head to the register, you may want to take a moment to remove any stalks, leaves, or stems that aren’t edible. Since you’re paying by weight, anything that you remove to lower the weight lowers the price.

10. Shop In Season

Fruits and vegetables tend to be cheaper, and also taste better when they are in season locally. While you may be able to purchase fresh strawberries year-round, they’ll likely be more expensive (and less sweet) in the winter when they’re being harvested and shipped from somewhere far away.

You can check out this seasonality chart to find out when foods are in their prime where you live, and then adjust your menu planning accordingly.

11. Avoid Pre-Cut Products

If you just love that bag of grated cheese, you may want to consider comparing it to the price of the non-grated block. There’s a big difference in price, and grating cheese is really not a daunting task. The same goes for precut fruits and vegetables. Sure, they’re handy for snacking, but extra money in your savings account could be nicer. The same goes for salad kits and similar items that wind up costing you for the convenience.

12. Eat Before You Shop

Yes, this may be a common tip, but it’s a good one. Going grocery shopping while hungry can increase your chance of impulse buying. Expensive snacks can look especially enticing.

Shopping after you’ve already had a meal is a great way to keep any hunger pains from adding items to your shopping cart.

13. Keep an Eye on Unit Price

Comparing price and value can be tough when items don’t come in the same size. When in doubt, you can always turn to unit prices, which are often listed on the shelf tag. Unit price gives you an apples-to-apples comparison, such as ounces to ounces or liters to liters.

For example, the cheapest bottle of olive oil on the shelf might not be the best value. If you bought a larger one, it might cost a few bucks more, but its overall cost per ounce is lower, saving you more in the long run.

14. Use Rewards Credit Cards

Some credit cards offer extra cash back for groceries and even eating out. If you use one of these cards for your purchase, you could end up saving a pretty nice amount of money each month — sometimes as much as 5% depending on which card you carry.

Recommended: Examining the Price of Eating at Home vs Eating Out

15. Shop at Discount Grocery Stores

Some stores are simply more economically priced than others. According to one recent study, shoppers say these stores offer the best grocery deals for your buck: Food 4 Less (a subsidiary of Kroger), BJs, WinCo Foods, Giant Eagle, Grocery Outlet, Market Basket, Wegmans, Aldi, Costco, and Sam’s Club. There are a lot of Trader Joe’s fans out there as well.

Meal planning entails thinking ahead and creating a menu for the week, then using your menu to create a shopping list. You don’t have to plan every meal to the letter, but picking a few simple recipes you can whip up for dinner can save you from having to get take-out after a long workday.

Recommended: How Much Should I Spend on Food a Month?

16. Join a Wholesale Club

You might have noticed that a few of the stores mentioned in the tip above are wholesale clubs or warehouse clubs. These chains typically charge an annual membership fee. In return, you’re likely to find large, institutional size grocery items at discounted prices.

If it feels like too big a quantity for your household alone to get through before the food goes bad, you might partner with a friend. You can split the costs and share the bounty that you buy.

17. Buy in Bulk

Another way to shave down your grocery bill is to consider buying in bulk. Often, these retailers have a green angle and promote reusable packaging (such as bring your own container policies or using glass and metal vessels) to buy everything from nuts to cereal to pasta to olive oil from jumbo bins. The savings on packaging can be passed along, making these purchases more affordable. You may hear these stores referred to as refilleries; search this directory of refilleries for one near you.

Recommended: Does Buying in Bulk Save Money?

18. Reduce Food Waste

The average U.S. household wastes 38% of the food it buys, according to Feed America. That’s a huge number, totaling $92 billion pounds of food per year. It’s also expensive: Those figures mean almost four out of 10 of your hard-earned grocery dollars is basically being thrown away.

Focus on using what you buy so you don’t have to run to the grocery store and replace what’s spoiled. For example, you can increase the lifespan of lettuce by wrapping it in a paper towel to absorb moisture while it sits in your fridge.

19. Take Advantage of Rebate Apps

When you’re searching for easy ways to save money, it’s worth checking out all the many grocery rebate apps that are now available.

Apps like Ibotta, Receipt Hog, and Checkout 51, will often give you cash back for things you’d purchase anyway. While rebates don’t give you a discount upfront (like a traditional coupon), you should see savings in the long run.
Some apps send checks once you reach a certain cash back amount, such as $20.

20. Start a Kitchen Garden

Fresh herbs at the grocery store can be expensive, and often, recipes call for only a few sprigs or leaves, leaving the rest of a purchase to go to waste.

To avoid having to buy fresh herbs at the store, you may want to consider setting up a windowsill garden containing the herbs you reach for most often, such as parsley, mint, thyme, or basil.

Start-up costs are minimal, and these plants tend to be easy to grow — no green thumb required.

21. Hit the Farmer’s Market Later in the Day

If you love shopping at the local farmer’s market but don’t enjoy the dent it makes in your wallet, you may want to consider showing up near closing time.

At the end of the day, farmers often don’t want to pack up their food and take it home with them. If you walk around and make a reasonable offer on a box of produce they have left, you might score a great deal on fresh (and delicious) fruits and veggies.

22. Watch for Seasonal Deals

After major holidays like Halloween, Christmas and Easter, you can often get good deals on holiday-related items like candy. (And February 15th can be a great day to get a yummy heart-shaped box of chocolates at a deep discount.) If you don’t care about themed wrappers, you can save a nice chunk of change.

23. Shop Online

Buying dry goods and other non-perishables online instead of at the grocery store can end up saving you a lot of money, especially if you buy in bulk sizes and get those items delivered on a regular schedule. For example, Amazon offers up to a 15% discount for consumers who schedule auto-shipments for their products. However, do be cautious about using home-delivery food services, which can be pricey once the fees for delivery are added.

What’s the Average Cost of Groceries per Month?

The average cost of groceries per month will vary depending on several factors, such as the size of the household, the age of its members, location, and dietary habits. Someone who loves fish (wild-caught, not farmed, thank you) a few times a week and lives in San Francisco or Boston will likely be spending more than a person who lives in the Midwest and is a vegetarian who eats a lot of rice and beans.

That said, here are some figures on the cost of groceries per month:

•   Per person, the average cost of groceries in America in 2023 is $415.53 a month per person, according to Numbeo data.

•   Wondering about the highest and lowest costs? Move.org found that those living in Honolulu, Hawaii, pay the most for food every month (a steep $638.57), while residents of Cheyenne, Wyoming, have the lowest tab at $335.97.

The Takeaway

Wondering how to save money on groceries? With a little planning and a few fresh habits, you may be able to slash your food bills without sacrificing quality, taste, or nutrition. The cash you free up can then be put toward savings or another financial goal.

You may find that setting up a monthly food budget — and targeting spending amounts per week — can also help you spend less on food. Using a money management app can help you stick to your food budget.

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

FAQ

How can I make my grocery bill cheaper?

There are many ways to lower your grocery costs, such as planning meals in advance and sticking to your list; buying (and eating) less meat; shopping at discount supermarkets and wholesale clubs; and learning how to compare prices per ounce vs. the price tag.

How can I cut my grocery bill in half?

Cutting your grocery bill in half could be possible with dedication and planning. One quick way to start saving is to buy store brands (sometimes called generic brands); this can save as much as 40% vs. brand names.

What are some discount grocery stores?

Some discount grocery stores include BJs, Costco, Food 4 Less, Aldi, and WinCo Foods.

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.

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.

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If you received a raise at work, first things first: Congratulations! Your first impulse may be to celebrate with a big purchase or party. But rather than blowing your salary bump right away, it’s wise to be strategic. Take a little time and consider how you might use that extra cash. It could help you reach some short- and long-term financial goals.

There can be a lot to consider, but keeping a few things in mind may help you figure out the best course of action.

How to Financially Handle a Pay Raise

To help you decide what to do with a pay raise, you’ll want to think broadly, and about the future. Here are a dozen tips that may help you be better informed as you make your decision about what to do when you get a raise.

1. Using It to Get Rid of Debt

Your raise may be able to help you get rid of some debt that is dragging down your finances. It’s worth noting that some debt can be good, like a mortgage on your home, which tends to have a relatively low interest rate. Every time you make a payment, you are building equity and wealth.

But if you have debt that carries a high interest rate and doesn’t have a long-term benefit, you may want to pay it off as soon as you are able. Credit card debt is the classic example of this. Interest rates on new cards can be as high as 20% or more, which means this kind of debt can grow quickly. With a raise, you can pay that debt down sooner rather than later. This can help free up your finances to focus on other money goals.

💡 Quick Tip: As opposed to a physical check that can take time to clear, you don’t have to wait days to access a direct deposit. Usually, you can use the money the day it is sent. What’s more, you don’t have to remember to go to the bank or use your app to deposit your check.

2. Using It to Build Your Emergency Fund

Having extra cash is a perfect opportunity to build an emergency fund if you don’t have one or if yours could use a boost. Financial experts advise having at least three to six months’ worth of basic living expenses in the bank. This can tide you over if, say, a big medical bill or car repair hits or if your family were to endure a job loss. A raise can allow you to set a lump sum of money aside or motivate you to regularly allocate toward your emergency fund so you are financially secure in times of need.

3. Re-Evaluating and Updating Your Budgeting

When you get a raise, you may be wondering how to manage this extra cash. There are probably a lot of wish-list items tempting you to increase your spending. Instead of shopping, it may be a good time to reevaluate your budget to see how you can best put your money to work.

Typically, budgets recommend that you first allocate funds toward your mandatory monthly expenses like mortgage, rent and other bills. Next, don’t forget to pay down debt, followed by adding some money to your emergency stash if needed. Have you also thought about retirement funds?

Make sure to figure out how much to save every month and put some of your money to work in a 401(k) or another retirement fund. With the money that’s left, you can spend as you see fit, invest it in the stock market, make charitable donations, or decide other ways to use it.

If you need more guidance on budgeting, look online at different techniques, such as the 50/30/20 budgeting rule, or test-drive some apps that help you see where your money is going and determine how to best manage it.

4. Avoiding Lifestyle Creep

If you are contemplating what to do with a raise, one thing to sidestep is lifestyle creep. That happens when a person makes more money but also spends more of it, typically on luxuries. So if you get a raise and then rent a more expensive apartment or sign up for a luxury-car lease, that’s lifestyle creep. You have bought into some of life’s finer things, but you may wind up just breaking even. In fact, even with more money, you may feel as if you are living beyond your means.

It can be smart to try and avoid this behavior because you don’t want to spend every penny you make. That’s not a healthy financial habit; it doesn’t help you build wealth over time. Yes, you can allow yourself to enjoy some discretionary spending (more on that in a minute). But if you let lifestyle creep happen, it may be hard to make ends meet and find opportunities to save for longer-term goals.

5. Re-Evaluating Your Retirement

When you get a raise, you have a prime opportunity to increase your retirement savings. It may not sound like fun compared to taking a vacation, but allocating money this way can be a good financial strategy to reach your goals.

If you have, say, a 401(k) plan with your employer, you can increase your monthly contribution and possibly snag the employer match, too, which is akin to free money. While it may not feel like a fun use of your raise now, your future self will thank you when you see how well your retirement savings are growing.

6. Invest in Yourself

Consider how your raise might help your long-term wellbeing, your mood, and your quality of life. Would it be wise for you to get in better shape? Have you been having trouble sleeping for a while? Do you feel hungry to learn a new skill? A bit of extra money might help you resolve those situations. Sometimes, not having enough money is a common and valid reason for not doing more of this kind of self-care.

Maybe, with your raise, you can now afford to take a few fitness classes and learn some moves you can do on your own. Perhaps you can work with a therapist on what’s keeping you up at night. Or maybe it would bring you joy to take some guitar lessons or pursue a continuing-ed class in a topic that has always fascinated you. Putting a portion of your raise to work this way can be rewarding on so many levels.


💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

7. Considering Inflation

Inflation has been very much in the spotlight lately. In recent years, inflation has reached highs not seen in decades. When inflation is high, your purchasing power declines. Simply put, your dollar doesn’t go as far.

If you get a raise during a period of high inflation, do the math. If you receive a 5% raise and inflation is 3.6%, then you are staying (just barely) ahead in terms of your finances. That raise is helping to protect your money against inflation but unfortunately it won’t stretch much further. This perspective is good to keep in mind so you don’t overspend and wind up with debt.

8. Preparing for Taxes

Getting a bump in your salary may impact your tax liabilities; it may nudge you into a higher tax bracket. If this is the case, your tax rate will rise, and you may need to pay out a higher percentage in taxes. Typically, this will only take your effective tax rate up a couple of percentage points, but it can make a difference to your bottom line.

To offset that, you may want to adjust your withholdings with your employer. If more money is withheld during the year, you could owe less or get a refund at tax time. This could help you avoid an unpleasant surprise (namely, a tax bill) come April.

9. Saving up More for a Large Expense

Are you saving for a vacation, a wedding, a home renovation, or a new car? If you have a big-ticket item on the horizon, you may want to put part of your raise towards that goal. It can be a good move for your finances in the long-run. The extra money can help you afford what you are saving toward. You can sidestep debt as you make your dream a reality. By doing so, you’re likely improving your credit and building wealth — it’s a win-win situation.

10. Investing Your Money

Investing your hard-earned money is historically one of the best ways to build wealth. For some, that can be a good reason to allocate some of your raise to increasing their investments.

A good place to start is by creating an investment portfolio with stocks, bonds, exchange-traded funds (ETFs) and other assets. This can be a vital part of making your financial plan.

11. Funding and Starting a Side Hustle

If you dream of building your own business from a hobby someday, you could use money from your raise to start a side hustle. If, say, you love making pastry, you might invest in cookware that will take your game up a notch. Or if creating apps is your passion, perhaps there’s a weekend class that could boost your skills. Keep tabs on how much money you allocate toward this side hustle and make sure these funds put you on a path to building a business.

12. Enjoying Your Financial and Career Successes

Many of these tips for using your raise wisely revolve around paying down debt, achieving long-term financial goals, and building wealth. But of course, do use a portion of your raise to reward yourself. You’ve received a financial award because of your hard work and dedication. You deserve to treat yourself! Whether that means having a fantastic dinner out with a couple of close friends or buying a coat you’ve been eyeing for a while now, you should find a way to mark this happy moment.

Managing Your Finances with SoFi

Getting a raise is an exciting life event. It shows that your hard work has paid off and your career is making progress. But it also means that you need to make some decisions about what to do with your money – it can be both exciting, and nerve-wracking.

Making some smart decisions about saving, investing, or even investing in yourself may be a good path. But again, it’ll come down to you, your goals, and your preferences. It may be helpful to speak with a financial professional, too.

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

FAQ

How do I avoid spending too much after I get a raise?

Create and stick to a budget. Even though you are making more money, you still have to be conscious over where your cash goes and avoid lifestyle creep, which involves spending more as you earn more. This can make it harder to achieve your financial goals.

Is it okay to treat myself when I get a raise?

It’s definitely reasonable to treat yourself when you get a raise; you earned it! But it’s not a habit that you want to get out of hand. You want to make sure you’re spending within your means and not accumulating debt.

Can a pay raise be a negative?

A raise can potentially be a negative if you spiral into unreasonable spending. You could wind up with debt to deal with. Also, take note if your raise pushes you into a higher tax bracket, which still means you’re making more money, but you’d be paying a higher tax rate on a portion of your earnings.

Photo credit: iStock/fizkes

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.
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.

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