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Before the age of digital payments, traveler’s checks were considered one of the safest and most convenient ways to carry money while traveling, especially abroad. Though their popularity has waned with the rise of credit cards and mobile wallets, traveler’s checks do still exist and are issued by a limited number of banks and credit unions.

Whether you’re curious about their modern use or holding onto a few from a past trip, understanding traveler’s checks can help you make informed financial decisions on your next journey.

Traveler’s Checks Defined

Traveler’s checks are paper checks you can purchase at a bank or credit union then carry when you travel abroad in a place of cash. Unlike cash, however, travelers checks are secured by the issuing financial institution, which means that the issuer will replace the funds if the checks are lost or stolen at any point at home or abroad.

Issuers print checks in varying denominations, such as $10, $20, or $50, and they are available in a range of currencies. Depending on where you buy traveler’s checks, you may be charged a fee in the range of 1% to 3% of the total purchase amount.^[1]

You can use travelers checks just like cash to pay merchants for goods and services, as long as they accept traveler’s checks. Typically, any change due back to you will be given in local currency. You may also be able to get the checks converted into cash in the local currency at some banks, hotels, and currency exchange offices, though you may need to pay a fee.

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

How Do Traveler’s Checks Work?

Traveler’s checks operate somewhat like regular checks but are pre-paid and come with built-in fraud protection. Here’s a step-by-step explanation of how they work:

Where Can I Get a Traveler’s Check?

While traveler’s checks still exist and people still use them, they are getting increasingly hard to come by. American Express — which issued traveler’s checks for over a century — no longer offers new checks (though they will honor previously issued checks). However, some financial services companies — including Visa —- still issue traveler’s checks, which are sold through various partner banks.

If you’re interested in buying traveler’s checks, you will likely need to contact several banks and credit unions to find one that still offers them.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Pros and Cons of Traveler’s Checks

Traveler’s checks offer a mix of benefits and drawbacks. For some, they are a nostalgic or extra-safe backup option. For others, they may seem outdated compared to more modern financial tools.

Pros of Traveler’s Checks

Cons of Traveler’s Checks

Do I Need Traveler’s Checks When Going Abroad?

Generally, no. Modern travelers often find credit cards, debit cards, and mobile wallets to be more convenient, widely accepted, and cost-effective. However, there are exceptions. You might consider traveler’s checks if:

Still, for the majority of travelers, modern financial tools usually make traveler’s checks unnecessary.

4 Alternatives to Traveler’s Checks

Traveler’s checks are no longer the only secure option for carrying money while abroad. Here are four modern, practical alternatives:

1. Prepaid Debit Card

A prepaid travel card is the modern-day version of a traveler’s check. You can load the card with a set amount of money from your bank account before you travel, then use it to get local currency, shop, dine, and more while you’re abroad.

Like traveler’s checks, prepaid cards are not linked to your bank account, which prevents anybody from draining your checking account if the card gets lost or stolen — and you can’t go into debt. On the downside, these cards limit you to a pre-set spending amount. And if you lose your card, there’s no way to get your money back.

2. Credit Card

Using a credit card is a convenient and secure way to pay for goods and services while you travel. These cards come with robust fraud protections that safeguard your money if your card gets stolen or lost while overseas. And many cards also offer spending rewards, such as points, miles, or cash back. However, there may be fees involved with using your card overseas, called foreign transaction fees.

And unless it’s an emergency, you’ll likely want to avoid using your credit card for getting cash at an ATM. When you request a cash advance from a credit card, you can get hit with a fee (often 3% to 5% of the advance amount), as well as interest, which can run as high as 29%. You may also pay an ATM fee of several dollars.

3. Debit Card

Another alternative to traveler’s checks is your debit card, which you can use to get local currency at ATMs and also to make purchases while traveling. Unlike a credit card, you’re spending your own money when you pay by debit card, so you can’t run up debt.

Like a credit card, however, you may get hit with a foreign transaction fee when you pay something overseas using your debit card. You may also have to pay out-of-network ATM fees every time you withdraw cash. However, some banks have partnerships with banks in other countries that allow travelers to make fee-free withdrawals. Before you travel, it’s a good idea to check to see if your bank has this kind of arrangement.

4. Mobile Wallet

Mobile wallets like Apple Pay, Google Pay, and Samsung Wallet are becoming more accepted around the world. You can link your credit and debit cards and pay directly from your phone without needing a physical wallet. This method of payment is not only convenient, it’s also highly secure, since digital wallets use encryption and tokenization to protect your data.

Just keep in mind that not all merchants accept mobile wallets, especially in rural areas, so you may not want to rely on this as your only payment option when you travel.

💡 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.

How to Keep Your Money Safe While Traveling

Regardless of your preferred payment method, keeping your money safe while traveling is essential. Here are a few tips:

Recommended: How to Keep Your Bank Account Safe Online

What Can I Do With Old Traveler’s Checks?

If you still have old traveler’s checks from past trips, don’t throw them away — they may still be redeemable. Here’s what you can do:

Keep in mind that in order to redeem old traveler’s checks, you’ll need to provide identification and possibly documentation proving you were the original purchaser.

The Takeaway

Traveler’s checks were once the gold standard of secure travel funds, but the rise of digital banking has made them largely obsolete. Still, they retain some usefulness as a secure backup for international travelers, especially in less developed regions or for those who prefer not to rely on digital methods.

For most modern travelers, credit cards, debit cards, prepaid cards, and mobile wallets offer more convenience, better exchange rates, and broad acceptance. However, understanding traveler’s checks — and knowing how to use or redeem them — can still come in handy.

Ultimately, the best approach is a balanced one: carry multiple forms of payment, stay aware of local customs and banking norms, and prioritize security. Whether you’re heading off the beaten path or to a major city, having a thoughtful plan for managing your money can make your travels smoother, safer, and more enjoyable.

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

FAQ

How does a traveler’s check work?

A traveler’s check is a prepaid, fixed-amount paper check used as a secure alternative to cash while traveling. You purchase it from a financial institution, sign it when issued, and sign it again when spending it or cashing it, allowing merchants or banks to verify your identity. If lost or stolen, traveler’s checks can usually be replaced quickly. However, traveler’s checks are not as widely issued and accepted as they once were. They have largely been replaced by prepaid debit cards and credit cards.

Why are traveler’s checks not used anymore?

Traveler’s checks have largely fallen out of favor due to the convenience and widespread use of credit cards, debit cards, and digital wallets, which are accepted almost everywhere and offer strong fraud protection. ATMs are now globally accessible, making it easy to withdraw local currency as needed. Additionally, it’s hard to find banks that still issue traveler’s checks, and many merchants no longer accept them as payment.

Can you cash traveler’s checks?

Yes, you can still cash traveler’s checks, though it might take some effort. Some major banks will cash them for account holders, especially if they issued the checks. Some currency exchange offices and hotels may also accept them. You’ll need valid identification, and you’ll usually sign the check in front of the cashier. However, because these checks are less common now, it’s best to call ahead and confirm if a location will accept or cash them.

Do financial institutions still carry traveler’s checks?

Some financial institutions still offer traveler’s checks, but their availability is limited. American Express no longer issues travelers checks. However, Visa still offers them through participating banks. You may need to call around to find a bank in your area that offers these checks. Those that do may also require advance notice or only provide them to account holders. As the travel industry shifts toward digital and card-based payment methods, traveler’s checks are now less commonly sold or promoted.

What can I do with old traveler’s checks?

If you have old traveler’s checks, you can generally still cash or deposit them, as they typically don’t expire. Visit a bank — preferably one that issued the checks or one with international banking services — and present valid identification. You can also contact the issuing company (e.g., American Express) for assistance or to process a refund. You may be able to deposit them into your bank account (though check with your bank first). They retain their original value if unused.

Photo credit: iStock/AndreyPopov

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 11/12/25. 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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q225-112

No one intends to waste money, yet it’s all too easy to look back and wonder where your paycheck went — and why it disappeared so fast.

Spending is personal. Whether you treat yourself to nights out or a biweekly fitness class, it’s your money and your choice. As long as these purchases align with your budget and priorities, they’re not inherently “bad.”

Still, you might find yourself wanting to rein in your spending. And that’s often easier said than done. Budgeting doesn’t come naturally to everyone, and many of us could benefit from a little guidance in spotting where our money might be slipping away.

With that in mind, here are some common ways people waste money — often without even realizing it. A few small changes can make a big difference.

Recurring Subscriptions

Set it and forget it is great when it comes to automating your personal finances, but it’s less than ideal when it comes to subscription services. A full 81% of American homes have at least one streaming service subscription, and the average U.S. subscriber has signed up for around four services.

On top of streaming entertainment services, many American consumers subscribe to a regular delivery service, like Dollar Shave Club, Hello Fresh, or FabFitFun. Whether you are ready to ditch some monthly services or not, you can try tracking your monthly recurring spending on a spreadsheet, using your bank’s app, or enrolling in a free service, like Trim by OneMain or Hiatus, to catch those monthly bills.

From there, you can decide what stays and what goes. Consider what might be worth the cost based on frequency, or what is worth canceling because you didn’t even realize you were signed up. For instance, you might decide to save on streaming services and reduce the number of subscriptions you have on that front.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Food Expenses

Buying groceries is an essential part of your monthly budget, but it’s still one to keep an eye on. Purchasing too many groceries can be a big wasted expense. The average American throws away 325 pounds of food a year, and the average U.S. family of four throws out $1,600 a year just in produce. Meal planning and buying only what’s needed can help you spend less on food and reduce waste, too.

But groceries aren’t the only area where people waste money on food. The average home in America spends nearly $4,000 on food away from home per year, which includes home delivery.

Dining out is great for special occasions and, yes, ordering in makes sense sometimes, too. But eating even a few more meals at home a week can lead to some serious long-term savings.

Recommended: Savings Calculator

Small Impulse Buys

When a purchase is one click or tap away, buying things on impulse — like a new gadget, treat, or toy for the kids — becomes all too easy. Many of us rationalize these purchases because each item is not all that expensive.

But $5 here and $20 there can add up faster than you realize. Recent research suggests that more than one in five Americans (22%) have made impulse purchases that have significantly impacted their finances in the past 12 months.

Impulse spending ranges dramatically from shopper to shopper, but curbing it can look the same across the board. Try waiting at least 24 hours before making a nonessential purchase. This pause helps you to assess whether the purchase is truly a need or just a passing desire.

When shopping for not-so-small items online, consider implementing the “30-day rule” That means letting something sit in a digital shopping cart for 30 days before determining if it’s worth purchasing.

Slowing down the buying cycle can help separate want from need and prevent purchases that are forgotten moments after the transaction.

Unreturned and Unused Items

Some of us leave a lot of cash sitting on the floor of our closets. Ordering clothing and other items online has become fast and seamless, but when something doesn’t meet our expectations, returning it becomes a chore. So we let it sit.

Obviously, summoning your energy to deal with unwanted items and returning them is one solution. But if you missed the return window and/or have a closet full of unworn (or barely worn) clothes, you may be able to recoup some of your costs by finding places to sell used stuff. These can range from local consignment shops to online marketplaces like Poshmark or Depop.

Transportation Costs

Transportation is a major expense for many people, and it’s easy to overspend without realizing it. One common way people waste money in this area is relying heavily on ride-hailing services like Uber or Lyft, even for short or routine trips. Owning a car you don’t truly need — especially a new or luxury model — can also be a financial drain due to monthly payments, insurance, maintenance, and gas.

To cut back on spending, you might evaluate how often you truly need a car. If you live in a city with decent public transit, using buses, trains, or biking can significantly reduce costs. Carpooling or using ride-sharing services for occasional needs may also be more cost-effective. If owning a car is necessary, consider choosing a fuel-efficient used vehicle with lower insurance rates and maintenance costs.

Other ways to save money on transportation include using public transportation, walking or biking whenever possible, planning trips in advance to avoid peak ride-share pricing, and consolidating errands to reduce gas usage. Tracking your monthly transportation spending can help you spot areas to cut back without sacrificing convenience or mobility. Small adjustments can lead to major savings over time.

Bank Fees

Many Americans might not even realize how much they’re being charged simply for accessing their money. The average bank overdraft fee is around $31 per occurrence. If you’re not paying attention, you could overdraw multiple times before realizing what you’ve done and end up with a negative bank balance.

Some banks will even charge customers just for holding an account with them. Costs vary, but the average monthly account maintenance fee is around $14 per month.

ATM fees can also deplete your account over time. If you use an ATM that is not part of your bank’s network, you may pay two fees — one charged by your bank, and one charged by the ATM operator. Combined, these two types of fees add up to an average of $4.55. While that’s not a large sum, it can multiply quickly if you frequently use ATMs.

The Takeaway

Being mindful of how you spend your money is crucial for achieving long-term financial stability and peace of mind. By recognizing common areas of wasteful spending — such as food, unused subscriptions, impulse buys, Uber rides, unreturned items, and unnecessary bank fees — you can make more intentional financial decisions.

Regularly tracking your expenses and reviewing your budget can help eliminate unnecessary costs and ensure you’re using your money in ways that align with your income, needs, values, and goals.

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

FAQ

How do you know if you are wasting money?

You might be wasting money if you frequently make impulse purchases, pay for unused subscriptions, or buy items you don’t need. Track your expenses to identify patterns and unnecessary spending. If you find yourself consistently overspending in nonessential categories or not meeting your financial goals, it’s a sign to reassess your budget and spending habits. Regularly reviewing your finances can help you make more mindful and intentional spending decisions.

What is the 70/20/10 rule money?

The 70/20/10 rule is a budgeting strategy that divides your income into three parts: 70% for living expenses (including necessary and discretionary spending), 20% for savings and investments, and 10% for extra debt payments or charitable donations. This approach helps you manage your finances responsibly, build wealth, and contribute to causes you care about.

What do Americans waste the most money on?

Americans often waste the most money on dining out, unused subscriptions, and impulse purchases. Other common areas include high-interest credit card debt, expensive coffee and snacks, and overpriced phone plans. Regularly reviewing your expenses can help identify wasteful habits and help become more mindful of how you spend your money.

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 11/12/25. 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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q225-073

No one wants to see their hard-earned cash sitting in the bank and earning a minuscule amount of interest. Instead, most people want their money to work hard and grow at a healthy rate over time.

Achieving that may be as simple as switching banks or even just swapping account types. Or trying a couple of other smart financial moves that can help you build your wealth.

Read on to learn smart strategies that may help you earn more interest than you are currently.

What Is Interest?

Interest is the percentage paid when money is borrowed or loaned out. Here are a couple of examples.

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

How Do You Earn Interest?

When you deposit money into a bank account, you are, in effect, loaning them the money. They pay you interest in return.

The financial institution can use that money in any number of ways, including lending it out to others. Say you deposit $10,000 in a savings account that earns a 3.00% interest rate. The bank could then use some of your money and that of other depositors to make a $100,000 mortgage loan at 7.00% to a borrower.

The difference between the 7.00% they are charging the person with the home loan and the 3.00% they are paying you and other savings account holders is one of the ways banks make money. And it’s also a good example of how and why you earn interest on your deposit.

How Does Interest Work?

Interest can work in a couple of different ways.

Here’s an example of what a $10,000 savings account would look like at the end of a year if you earned 3.00% simple interest:

$10,000 principal + $300 interest = $10,300 at the end of the year.

However, if that interest was compounded daily, by the end of the year, you would have:

$10,000 principal + $304.53 interest = $10,304.53 at the end of the year.

While it doesn’t sound like much, over time, the difference is amplified. If you’re wondering how to make money with interest, consider what those numbers would look like after 10 years:

Simple interest: $13,000
Compound interest: $13,498.42

It can be wise to check with financial institutions and see how often interest is compounded. The more frequent the compounding, the more your money will grow.

Recommended: Compound Interest Calculator

7 Ways to Gain Interest on Your Money

Now that you understand what interest is, consider these seven ways you might help your money grow faster thanks to the power of interest.

1. High-Interest Savings Accounts

Want to earn more interest on savings? Some banks offer high-interest or high-yield savings accounts that can pay higher rates than traditional savings accounts, while still providing fairly easy access to your money.

How big a difference can this make? When comparing annual percentage yield (APY), regular savings accounts are paying an average of 0.42% APY as of December 16, 2024 while high-yield accounts are offering about 3.00% APY.^[1] When looking for a good interest rate for a savings account, most people would rather snag the latter.

Some high-interest accounts may limit you to six withdrawals or transfers per month, which was previously required by the Federal Reserve. While this Regulation D rule has been suspended since the coronavirus pandemic, some banks will still charge fees or have other penalties for more than six withdrawals, so be sure to check.

You can often find high-interest savings accounts at online-only banks. Because these institutions tend to have lower operating costs than brick-and-mortar banks, they often offer higher rates than traditional banks. They may also be less likely to charge monthly fees.

A high-yield savings account can be a great place to build an emergency fund or save for a vacation or home repair while providing safety and liquidity.

2. Rewards Checking Accounts

Checking accounts are traditionally used for storing money that you use frequently, and they typically don’t pay much, if any, interest. However, some banks offer rewards checking accounts. These may pay higher interest rates than traditional checking and savings accounts. For instance, while some standard checking accounts may pay little or no interest, rewards accounts may offer an APY of around 0.50%, or 1.00%, or more.

However, there may be some restrictions. For instance, the balance that earns the elevated rate may be limited. In addition, you may have to meet certain direct deposit or debit card transaction requirements each month to earn the higher rate.

Like other checking accounts, rewards checking accounts are highly liquid and typically come with check-writing privileges, ATM access, and debit cards. Plus, deposits can be withdrawn at any time.

If you’re considering a rewards checking account, however, you may want to first make sure you can meet any requirements.

3. Credit Unions

Another of the best ways to earn interest on your money is to consider joining a credit union.

Unlike banks, credit unions are owned by the people (or members) who hold accounts at the credit union. Because of this, these financial institutions work for the benefit of account holders instead of shareholders.

In some cases, that can translate into lower fees, better account perks, and higher interest rates. To join a credit union, you typically need to live or work in a certain geographic area or work for a certain employer.

If you have a credit union near you, you may want to check the rates it offers and see if you can get a good deal.

4. Money Market Accounts

A money market account is a type of deposit account that usually combines the features of both checking and savings accounts. This kind of account often requires a higher minimum balance to open than a standard savings account and typically earns a higher interest rate.

Some money market accounts also come with a debit card or checks (which you generally won’t find with savings accounts), but financial institutions may require that they not be used more than six times per month. Some will charge a fee if you go over that number.

It can also be a good idea to ask about other fees, such as monthly account fees and penalties, before opening one of these accounts.

Recommended: Guide to Deposit Interest Rates

5. Certificates of Deposit

Certificates of deposit (CDs), which are a kind of time deposit, typically offer higher interest rates than traditional savings accounts in exchange for reduced withdrawal flexibility.

When you put money in a CD, you agree to leave the money in the account for a set period of time, known as the term. If you withdraw your deposit before the term expires, you’ll usually have to pay an early withdrawal penalty.

One benefit of CDs is that you typically lock in a set interest rate when you open the CD. Even if market rates drop, you’ll keep earning the same rate. On the other hand, if rates rise, you’ll be stuck earning the lower rate until the CD matures.

One way to work around this is to open several CDs that mature at different times, a technique known as CD laddering. Having a mix of short- and long-term CDs allows you to take advantage of higher interest rates, if they bump up, but still have the flexibility to take advantage of higher rates in the future.

A CD ladder also helps with the lack of liquidity that comes with CDs. Because of the staggered terms of the certificates, one is likely to be coming due (or available) if you need to use the cash.

6. Bank Bonuses

Many banks offer special bonuses from time to time; these can be a way to boost the earnings on your money. You may want to keep your eyes open for high-yield savings accounts that offer a sign-up bonus or an interest rate bonus. These incentives can boost your earnings, though you may have to maintain a high minimum balance in the account to earn the higher rate.

You may want to keep your eyes open for high-yield savings accounts that offer a sign-up bonus.

Some banks also offer cash bonuses to customers who open new checking accounts. While this may also come with some requirements, such as setting up direct deposit and/or keeping your account open for a certain number of months to earn the bonus, it can be another good way to increase the income you earn on your bank deposits.

7. Bonds or Bond Funds

Another way to gain interest on your money could be with bonds, which are loans that the government or companies issue. These pay investors interest on a regular basis until the bond hits its maturity date.

These investments, however, are not insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) the way an account is at a bank or credit union. U.S. savings bonds are backed by the government, but bonds may carry risk.

Other Ways to Make Your Money Work For You

If you’re planning to park your cash for at least five years or so and you are willing to take some risk, you may want to consider investing your money in the market.

While an investment may have the potential to generate a higher return, all investments come with the risk that you could lose some or all of your money.

You may better weather this risk by investing for the long term, which essentially means only investing funds that you would not likely need to touch for maybe five years or longer, so that the market has time to recover from downturns.

There are a variety of ways to start investing. If your employer offers a 401(k), that can be one of the easiest ways to start investing. Another option for retirement is opening an individual retirement account (IRA).

You could also open a brokerage account to help you target your financial goals. This is a taxable account, typically opened with a brokerage firm, that allows you to buy and sell investments like stocks, bonds, and mutual funds.

If you’re ready to start investing, you may want to speak with a qualified financial advisor who can help you establish your savings goals and risk tolerance and help you develop a personalized investment strategy.

Creating a SoFi Savings Account Today

If you’re looking to make more interest on your money, you may be able to increase returns by opening a high-yield account at SoFi.

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

FAQ

What does it mean to “gain interest”?

Gaining interest is similar to earning interest. It means that your money (the principal) is growing over time thanks to the interest rate being paid. The exact amount it grows will be determined by the interest rate, how long it sits, and how frequently (if at all) the interest is compounded.

How can you make money with interest rates?

You can earn interest through various types of accounts. High-yield savings and high-yield checking accounts typically offer better rates than traditional ones. Money market accounts, which combine features of checking and savings accounts, may offer higher interest rates, but often come with certain restrictions. Certificates of deposit (CDs) provide a fixed interest rate for money locked in for a set time period. You may also consider investing in bonds, which provide periodic interest payments until the bond matures.

How much interest does $10,000 earn in a year?

How much interest $10,000 will earn in one year will depend on the interest rate and how often the interest is compounded, if at all. If the interest rate is 3.00%, without compounding, it would earn $300. With daily compounding, it would earn $304.53. If the interest rate were 7.00%, the account holder would have $700 in interest at the end of the year with simple interest, and $725.01 with daily compounding.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

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

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

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

*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.

The death of a spouse can be one of the hardest things a person ever has to go through. It can be extremely difficult to process how we feel during such a difficult time. In addition, losing a spouse can also cause financial strain.

Depending on the circumstances, it could mean a loss of income or a bigger tax bill. Fortunately, there are certain steps you can take to help avoid the worst impacts of an already precarious situation.

Here are 11 key financial steps to take after a spouse’s death. This insight can help as you move through a deeply challenging time.

The Difficulty of Losing a Spouse

As you navigate this difficult and uncertain time, it’s important to surround yourself with the right people. A spouse can be someone’s biggest source of emotional support, and you may need someone to provide that support where your spouse would have in the past.

Who that person might be won’t be the same for everyone. Perhaps you have a relative or a close friend who will be there for you. If necessary and if you have the means, you could also consider working with a professional therapist. For many people, the best solution will be to talk to a few people.

During this time of tremendous grief and stress, it can be wise to remember to take care of yourself. While there will be a lot to manage during this time, it’s important to get the rest, good nutrition, and the other forms of self-care that you need.

11 Financial Steps to Take After Losing a Spouse

Taking the right steps after losing a spouse can help you avoid financial stress later. You should ensure you have documents in order, update records, and submit applications as necessary.

Here are 11 steps that will help with this endeavor and can provide a form of financial self-care as you get these matters under control.

1. Organize Documents

One of your first steps should be to gather and organize documents. You may need several documents, such as a birth certificate, death certificate, and marriage license. You will likely want to order or make several copies of each, as you might need them multiple times as you work through the steps ahead.

2. Update Financial Accounts

You may have several financial accounts that need updating, especially if you and your spouse had joint finances. For example, you might have personal banking and investment accounts with both names. You might also have credit cards in both names. Contact the financial institution for each account and let them know it needs updating.

3. Review Your Spouse’s Estate and Will

Review your spouse’s estate and will to see how their assets should be handled. Their planning documents, such as a will, are usually filed with an attorney or may be held in a safety deposit box. Contact the attorney with whom your spouse filed the documents to find the paperwork if necessary.

If they didn’t already have a will or estate plan, you can work with an attorney to determine next steps. State law will likely play a role in determining how assets are managed. Working with a lawyer skilled in this area can be an important aspect of financial planning after the death of a spouse.

4. Review Retirement Accounts

Your spouse may have left retirement accounts, such as a 401(k) or individual retirement account (IRA). Check whether you are the beneficiary of your spouse’s retirement accounts. If you are the beneficiary of any of them, you will need to establish that with the institution holding the account. When that’s settled, it will likely be up to you to determine how to handle the funds.

While it is possible to transfer all of the money to your accounts, that isn’t always the best move. For instance, if you roll a 401(k) into your IRA and need the money before age 59½, there will be a 10% penalty on the withdrawal. There may be tax consequences, too.

In some cases, the best choice may be to leave the money where it is until you reach retirement age, if you haven’t already.

5. Consider Your Tax Situation

A spouse’s death can also create tax complications. For example, the tax brackets for individual filers have lower income thresholds than those for married couples filing jointly. A surviving spouse may still file jointly in the year their spouse dies (assuming they don’t remarry in that timeframe), and, in certain circumstances, may also be able to claim the qualifying surviving spouse filing status in the two years following in order to receive the lower tax rate.

Otherwise, if you are still working and filing as a single, you might find yourself in a higher tax bracket, especially if you were the breadwinner. As a result, you might decide to reduce your taxable income by putting more money in a traditional IRA or 401(k).

6. Review Social Security Benefits

Another financial step to take after a spouse’s death: Review Social Security benefits if your partner was already receiving them. If you’re working with a funeral director, check if they notified the Social Security Administration of your spouse’s passing; if not, you may take steps to do so by calling 800-772-1213.

If you were both receiving benefits, you might be able to receive a higher benefit in the future. Which option makes the most sense depends on each of your incomes.

For instance, if your spouse made significantly more, you might opt for a survivor benefit.

Recommended: 9 Common Social Security Myths

7. Apply for Survivor Benefits

Survivor benefits let you claim an amount as much as 100% of your spouse’s Social Security benefit. For instance, if you are a widow or widower and are at your full retirement age, you can claim 100% of the deceased worker’s benefit. Another option is to apply for survivor benefits now and receive the other, higher benefit later.

You can learn more about survivors benefits on the Social Security website.

8. Review Your Budget

If you had joint finances with your spouse, you should revise your budget. Chances are, both your expenses and your income have changed. While you may have lost the income your spouse earned, your Social Security benefits may have increased.

Your revised budget should reflect all these changes and reflect how to make ends meet in your new situation. This kind of financial planning after the death of the spouse can be invaluable as you move forward.

9. Downsize if Necessary

As you review your budget, you may realize your living expenses will be too much to cover without your spouse’s income. Maybe you want a fresh start, or maybe you decide the big house you owned together is too much space these days. You might move into a smaller house and sell a car you no longer need.

Whatever the case, downsizing your life can be a way to not only lower costs but also simplify things as you enter this new phase. Financial planning for widows

10. File a Life Insurance Claim

If your spouse had a life insurance policy with you as the beneficiary, now is the time to file a claim. It might include a life insurance death benefit. You can start by contacting your insurance agent or company. Life insurance claims can sometimes take time to process, so it’s best to submit the claim as soon as possible.

Your spouse might have had multiple policies as well, such as an individual policy and a group policy through work. You might have to do some research and file multiple claims as a result. And, once you receive a life insurance benefit, you will need to make a decision about the best place for that money.

11. Meet With a Financial Advisor

These steps might be a lot to process, and you might feel overwhelmed thinking about everything you must do. And you may not know the best way to handle the myriad decisions — benefits, retirement accounts, investments, etc. You likely don’t want to make an unwise decision, nor wind up raising your taxes.

Fortunately, some financial advisors specialize in this very situation. It can be worth meeting with one at this moment in your life, at least for a consultation. They can help you decide how to handle your assets as you move forward and help you do some financial planning for widows. That can help to both reduce your money stress and set you up for a more secure future.

The Takeaway

For many people, there is nothing more emotionally challenging than losing a spouse. It can also be a financially challenging time as well. As you navigate this difficult time, there is no shame in seeking a helping hand. By taking steps like reviewing estate plans, filing a life insurance claim, and applying for survivor benefits, you can take control of your finances as you move into this new stage of life.

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

FAQ

Which is the most important financial step to take after a spouse’s death?

There isn’t one single step that is most important. However, filing insurance claims, reviewing your spouse’s will, applying for any survivor benefits, and updating financial accounts are among some of the important moves to make.

How can I help a widow(er) financially?

How you can help a widow depends on your expertise and how long it has been since the widow lost their spouse. If the death happened recently, they might still need help submitting documents and updating accounts. However, they might need emotional support long after that process is done.

Are there any tax breaks for widow(er)s?

Widow(er)s may qualify for certain tax breaks, such as state property tax credits. Check with your state’s department of revenue to find out what tax breaks are available, if any.

Photo credit: iStock/martin-dm

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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. 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.
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.

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.

*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.

SOBNK-Q225-094

Mapping out your financial future can be daunting, especially if you only have a vague sense of what you want to accomplish.

It can be useful to consider financial milestones to help you chart your journey from college graduation through retirement. Here’s a look at some common savings goals by age to help you orient yourself and build a plan.

Savings Goals for Your 20s

In your 20s, people are often just out of school, starting a career, and getting their life in order. As if that weren’t enough, they may face challenges like student loan debt or credit debt. Now is the time to set financial goals, consider an investment strategy, and start building healthy financial habits.

Paying Off High Interest Debt

If you have any high-interest debt — typically debts close to 8% or more — you might focus on paying it off. High-interest payments can cost you a lot over the life of a loan.

Credit cards, which often allow minimum payments that are much less than the total balance due, can be particularly costly as interest on the balance accrues. The more money going toward high-interest debt, the less you can focus on your savings goals.

Building Emergency Savings

At this age, people are often just getting on their own feet and might not have a lot of extra cash to stock away. Establishing a rainy day fund can be a useful savings goal. Generally, emergency funds contain at least three to six months’ worth of living expenses.

This fund can help cover emergencies like unexpectedly needing to replace a car transmission, a trip to urgent care, or losing your income. Since you never know when you’ll need to access your emergency fund, consider saving it in an easily accessible vehicle, such as a high-yield savings account.

Putting your money into interest-bearing accounts can help your money grow exponentially over time through the power of compound interest. Compound interest allows you to earn interest on the interest you earn as well as the principal, so higher interest rates can translate into higher savings over time.

Recommended: Planning your emergency fund? Our emergency fund calculator can assist you in setting the right target.

Saving for Retirement

The earlier you start investing for retirement, the longer you can take advantage of the returns you may earn on your investments.

Compound returns refers to the gains investors may see on both their initial investments and any profits they may generate, assuming they’re reinvested. Unlike compound interest, the rate of return on investments can vary significantly depending on market performance, and investors may experience losses on their initial principal, as well. Over the long-term, however, a well-diversified portfolio has the potential to see substantial growth, and this is true of investments in retirement plans, as well.

Consider taking advantage of any retirement accounts your employers offer, such as a 401(k). If your employer doesn’t offer a retirement plan, there are other options, such as setting up an individual retirement account (IRA), where you can save for retirement in a tax-advantaged way on your own.

Savings Goals for Your 30s

In your 30s, people are often more settled into a career path and may be thinking about other goals, such as purchasing a house or having kids.

More Saving for Retirement

As your income grows and retirement gets a little bit closer, consider increasing the amount you’re setting aside for retirement. If your employer offers a match to your 401(k) contributions, taking advantage of the match can be a wise move, since this is essentially free money.

Buying a Home

If you’re thinking about buying a home, you’ll want to focus on saving for a down payment. The amount you will need to save will depend on housing prices in the area where you’re looking to buy. A larger down payment can make it easier to secure a mortgage, and can also mean that you pay less interest over the life of the loan.

Also, lenders may require borrowers to have mortgage insurance if they’re making a down payment smaller than 20%, which is an added expense to the home-buying process.

Setting up College Funds

If you have children, another consideration is saving for their college education. One way you can do this is to open a 529 college savings plan that helps you save for your child’s tuition and other education-related expenses. Just be sure not to neglect other long-term goals, such as retirement, while saving for your child’s college education.

Savings Goals for Your 40s

As you enter your forties, you are likely entering your highest earning years. If you have your high-interest debts behind you, you can devote your attention to building your net worth.

Keeping an Eye on Your Emergency Fund

The amount of money you needed to cover six months’ worth of expenses in your 20s is likely far less than what you need now, especially if you have a mortgage to pay and children to support. You’ll want to make sure that your emergency fund grows with you.

Protecting Your Assets

Now that you may have a more substantial income and own some valuable things, such as a home and a car, you’ll want to make sure you protect those assets with adequate insurance. Home and auto insurance protect you in the event that something happens to your house or your car.

You may also want to consider getting life insurance if you haven’t already. This can provide a cash cushion to help your family replace your income or cover other expenses should you die. The younger you are when you purchase life insurance, generally the less expensive it will be.

Savings Goals for Your 50s

In your 50s, you’re likely still in your top earning years. You may still be paying off your mortgage, and your kids may now be preparing for college or out of the house.

Taking a Closer Look at Retirement Savings

As retirement age approaches, you’ll want to continue contributing as much as you can to your retirement account. When you turn 50, you are eligible to make catch-up contributions to your 401(k) and IRAs.

These contributions provide an opportunity to boost your retirement savings if you haven’t been able to save as much as you hoped up to this point. Even if you have been meeting your savings goals, the contributions allow you to throw some weight behind your savings and take full advantage of tax-advantaged accounts in the decade before you may retire.

Continuing to Pay Off a Mortgage

If you think your monthly mortgage payments may be too high to manage on a fixed income, you might consider paying off or refinancing your mortgage before you retire.

Goals for Your 60s

As you enter your 60s, you may be nearing your retirement. However, when it comes to saving, you don’t have to slow down. As long as you are earning income, you might want to keep funding your retirement accounts.

Thinking Long-Term

Now is a good time to assess how much you have saved for retirement and perhaps adjust what you are contributing (based on how much you’ve already put aside and how much you can afford). At the same time, you may want to plan out a retirement income strategy to determine when you’ll start withdrawing funds and how much you’ll take each month or year. You’ll also want to decide when to take Social Security retirement benefits. Delaying benefits until age 70 could increase the monthly payments you receive.

The Takeaway

Everyone’s personal timeline is different. The milestones you hit and when you hit them may vary depending on your personal situation. For example, someone graduating from college with $50,000 in student loan debt is at a very different starting point than someone who graduates with no debt. And while someone might be able to buy a house in their early 30s, others may live in a more expensive area and need more time to save.

No matter your starting point and situation, a simple way to manage your finances at any age is to open a checking and savings account where you can spend, save, and earn all in one product.

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

FAQ

What primary savings goal should I focus on in my 20s?

The top priority in your 20s is building a solid financial foundation. This may mean creating a plan to pay off high-interest debt, establishing an emergency fund that can cover three to six months of living expenses if a financial emergency arises, and starting to save for retirement.

What are the benefits of starting to save for retirement early?

Starting to save for retirement early allows you to take full advantage of compound returns. While all investments are subject to the risk of loss, compound returns may lead to substantial growth over the long term. Even small contributions can grow significantly over decades, making it easier to meet your retirement goals.

Besides retirement, what other major savings goals should I consider?

Beyond retirement, important financial goals include building an emergency fund to cover unexpected expenses, saving for a down payment on a home, and setting aside funds for children’s college education. It’s also wise to regularly review insurance coverage to help protect your assets.

What should I consider when planning my retirement income strategy?

The first step in planning your retirement income strategy is to assess how much you have saved. You may need to adjust your contributions to your retirement accounts or other investments to help you reach your goals. You should also decide when you want to start withdrawing money from your accounts, along with when you want to start taking Social Security benefits.

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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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

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

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

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

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

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

*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.