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If you have a bank account, you may be familiar with the monthly fees that many financial institutions charge their clients simply for having an account. These may be known as “maintenance” or “service” fees and tend to be assessed on checking accounts. However, some banks will charge them on savings accounts too.

If you don’t scrutinize your monthly bank statements, you may not be completely aware of what your charges are on this front or how they can add up over time. And you may not be aware that not every financial institution charges these fees. Some banks will lower them in certain situations, and others don’t collect them at all.

Since maintenance fees can eat away at your hard-earned cash, take a closer look here at how they work and how you might avoid them.

What Is a Monthly Maintenance Fee?

Banks often charge fees on personal and business checking accounts and sometimes even some types of savings accounts to help them offset operational costs or help to “maintain” your account.

Institutions may also charge these fees as a way to incentivise customers to make larger deposits. Many banks will waive fees if customers keep their balances high or use their account more frequently, all moves that benefit the bank. (Banks may also encourage activity by assessing inactivity fees if you let your account just sit.)

Monthly maintenance fees are usually automatically withdrawn from a customer’s account each month.

How Much Are Monthly Maintenance Fees?

While not all banks charge a monthly maintenance fee, many of the large traditional financial institutions in the U.S. do charge monthly fees.

For Savings Accounts

Monthly maintenance fees on savings accounts can vary greatly. Typically, though, they range from $1 to $8 per month. Some banks may not charge any fee at all.

For Checking Accounts

How much varies from one bank to another, but the average monthly maintenance fee for a checking account is currently around $13.95 per month, according to a recent MoneyRates.com survey.

While that may not seem like a lot of money when viewed as a one-time charge, it adds up to a whopping $167 per year.
Add in other deductions, like for using an out-of-network ATM or triggering overdraft or NSF fees, and these surcharges can start to chip away at your hard-earned money.

10 Tips on Avoiding Account Maintenance Fees

Fortunately, there is often some wiggle room when it comes to maintenance fees. Here are some simple ways you may be able to minimize, or even completely avoid this type of account fee.

1. Choosing the Right Institution

Fees can vary quite a bit from one major U.S. bank to another. Some charge $4.95 a month just for maintaining a checking account, while others charge $12 or more for the same exact service. Others may not charge any maintenance fee at all. For that reason, it can pay to do a little digging before you open a new account.

When comparing banks, it can be helpful to understand exactly what the monthly maintenance fee (if any) will be, and if there are any ways to avoid the fee.

Many banks will waive the monthly fee If you meet certain requirements. If you won’t be able to meet those conditions, however, you may want to keep shopping around.

2. Maintaining a Minimum Balance

Many institutions will waive the monthly account fee if you keep a certain amount of money in your account, known as a minimum balance.

That means If your average monthly balance dips below this amount, the maintenance fee would be triggered for that month and deducted from your account.

If your average monthly balance is above this threshold, the bank would waive the fee for that month.

3. Opening More than One Account

Many institutions will reward you for loyalty and waive monthly fees if you have multiple accounts with them, such as a savings account, money market account, or certificate of deposit (CD), in addition to a personal checking account.

In some cases, linking your accounts (such as a checking and a savings account) can help you meet the balance requirement to avoid the monthly maintenance fee.

4. Signing up for Direct Deposit

Many checking accounts are free when you elect to have your paycheck or benefits check automatically deposited into your account.

Each bank may have slightly different qualifying criteria. Some banks waive the maintenance fee if you make a certain number of direct deposits to your account each month, while others might require you to deposit a minimum dollar amount.

Recommended: How Long Does a Direct Deposit Take to Go Through?

5. Using Your Debit Card Frequently

You may want to find out if your financial institution waives checking account fees if you use the bank-issued debit card linked to the account to make purchases or bill payments a certain number of times per month.

This number will vary from one bank to another, but 10 is often the number required to make fees disappear.

Banks are able to ease up on customer fees because they get paid transaction fees from the merchants.

6. Reading Your Bank Notifications

Your free checking account is sometimes only free until…it isn’t.

While it’s important to read your account agreement when you first open up an account (and make sure you understand the bank’s requirements to avoid fees), you may also want to keep in mind that your bank can change its rules at any time as long as it notifies you about the change in writing.

For that reason, it’s a good idea to read the notifications the bank sends (via email or snail mail) about changes to its terms and conditions.

This will allow you to keep up to date on what you need to do to avoid monthly service fees before you start seeing these debts show up on your account.

7. Giving up an Interest-Bearing Checking Account

If you have an interest-bearing checking account with your bank, it may be worth checking to see whether you can avoid a monthly maintenance fee by switching bank accounts to an interest-free one. This could actually help you come out ahead.

Today’s interest rates are so low that the interest you are earning on your checking account may not even cover the monthly service fee you are paying in order to have an interest or “rewards” checking account.

8. Considering an Online Bank or Credit Union

Because online-only banks typically have lower overhead expenses than brick-and-mortar institutions, they can be less likely to charge their customers monthly fees. (They often pay considerably higher interest rates as well.)

Credit unions can be worth checking out as well. As nonprofit, member-owned institutions, credit unions typically aren’t as focused on the bottom line as for-profit banks. This enables them to charge lower rates on credit products and levy fewer (and lower) account fees compared to banks.

9. Asking About Student and Senior Discounts

Many banks will offer a break on monthly fees to students. So, if you are currently in school it can be worthwhile to ask if a discount is offered, what age group is covered, what proof you’ll need to show that you’re a student, and what types of schools are included.

Similarly banks may offer a lower fee or no monthly fee if you’re over a certain age, and qualify as what they consider a “senior.”

10. Signing up for Electronic Statements

You may be used to getting that statement in the mail and there is something to be said for having it handy, but is it worth paying a fee for?

Since financial institutions save money by not printing and mailing you a paper statement each month, they often pass that savings along by offering discounts to customers who agree to go paperless.

The discount is often a reduced or eliminated monthly maintenance fee.

The Takeaway

You don’t necessarily have to settle for high monthly checking account fees.

Many financial institutions will waive monthly fees if you maintain a certain balance, make a minimum number of purchases with your debit card each month, or sign up for direct deposit.

Another way to avoid paying monthly fees is to consider a SoFi Checking and Savings Account. With SoFi, you can earn a competitive annual percentage yield (APY) and save and spend, all in one account. And SoFi Checking and Savings doesn’t have any account fees which could eat away at your savings.

FAQ

How can you avoid monthly maintenance fees?

There are several ways to avoid monthly maintenance fees on your bank account, including switching banks, meeting minimum balance requirements, opening additional accounts, and skipping paper statements, among other moves.

Why are you getting charged a monthly maintenance fee?

Banks typically charge maintenance fees as a way to recoup some of their operating costs. You may be able to take steps, however, to avoid these fees in part or totally.

Are maintenance fees yearly?

Bank maintenance fees are typically deducted automatically from your account on a monthly basis.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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.

SOBK0523021

Have you ever noticed the nine-digit code at the bottom left of most checks? No, it’s not your account number. Called the ABA routing number (also known as a bank routing number), it identifies which financial institution is responsible for paying the check.

You might also think of it as your bank’s numerical address or ID number.

It’s no big deal if you don’t know your bank’s ABA number by heart, but nevertheless, those nine digits are an important facet of many daily financial transactions, such as online bill-pay and signing up for direct deposit.
Here, you’ll learn what this number is, how it’s used, how to find it, and more information to keep your financial life running smoothly.

What Is an ABA Number?

Developed by the American Bankers Association (that’s where the ABA comes from), the main purpose of an ABA routing number is to make sure money gets where it needs to go.

In other words, routing numbers help identify which bank is responsible for paying money or giving credit to another bank. The routing number can also be used to identify which bank will receive payment or credit for a check or electronic transaction.

Rather than reading the name of a bank off a check (and potentially making a mistake), these numbers help enable bank employees and the machines that process checks do that job quickly and accurately.

Both the receiving and paying banks can use the routing number to improve the efficiency of their payment process operations.

ABA numbers also give consumers and businesses a reason to trust the banking system.

Sellers can feel confident they will in fact get paid with funds from a legitimate bank and the buyers can rest easy knowing that they can prove their money is accessible and they can make a purchase or pay a bill.

What Do ABA Digits Stand for?

Here’s a closer look at what those routing number digits actually stand for (which you can also see reflected in the image here):

The first four digits at the left indicate the Federal Reserve Bank that oversees the financial institutions in a particular location.

The next four digits identify your financial institution, or its ABA identification number.

The last digit is what’s known as a check digit number. It verifies the authenticity of the routing number.

ABA Number vs. Bank Account Number

Two crucial pieces of banking information are an account’s ABA number and the account number.

•  The ABA number identifies the financial institution where the account is held.

•  The bank account number reflects a particular, specific bank account, whether it’s checking, savings, or another kind of account.

What Is an ABA Number Used for?

The ABA number, as mentioned above, reflects the bank where an account is held. This is a critical piece of information when financial transactions take place. It allows these to be processed correctly and swiftly.

The History of the ABA Number

These routing numbers were first developed in 1910 by the American Bankers Association (ABA). At that time, it was just helpful in check processing, but it has continued to keep pace with banking innovation, including automated clearinghouses as ACH vs. checks become more popular, online banking protocols, and electronic funds transfer. It continues to play a vital role in so many basic banking matters.

Who Can Use ABA Numbers?

For a bank to be issued an ABA number, they must be a federal or state chartered financial institution and they must be eligible to have an account at a Federal Reserve Bank.

To obtain a routing number, the financial institution will work with Accuity, which is the official registrar of ABA Routing Numbers. Any newly formed financial institutions will have to submit an application to Accuity if they want to be assigned an ABA routing number.

Recommended: How to Write a Check to Yourself

Where Is the ABA Number on a Check?

When looking for the ABA routing number, look at the row of numbers at the bottom of a check.

There are a lot of numbers there, but the ABA number is the nine-digit, leftmost number. It will be the first set of nine numbers that you’ll see and begins with a 0, 1, 2, or 3.

Typically, to the right of that is the consumer’s account number, then, to the right of the account number, is the number of the check.

It’s important not to get these numbers confused, since it could lead to a delay or an error in the processing of a check, as well as any online payments you authorize.

How to Find Your ABA Numbers Without a Check

Every check in a consumer’s checkbook should include their ABA number, but if a check isn’t available, there are other ways for consumers to find out the routing number they’ll need to transfer money.

Bank Statements

Recent bank statements should list the bank’s ABA routing number alongside account information. Some bank statements come by mail or as paperless electronic statements.

Bank Website

A lot of banks prominently feature their ABA numbers on their website since so many customers want to know this information. You may want to keep in mind that some larger, national banks may have different routing numbers for different states, as well as different routing numbers for wire transfers or ACH (Automated Clearing House).

Asking Your Local Bank

Customers can always call their bank to ask what the correct ABA routing number to use is. Or if you have your account at a traditional vs. online bank, you could stop by a local branch.

ABA Online Lookup Tool

The ABA actually offers a free ABA Routing Number Lookup tool that can make it simple to find routing numbers for banks. Please note that users can only utilize this tool to look up two ABA numbers per day, and can’t look up more than ten numbers in the course of a month. Also keep in mind that some banks have different numbers for different states, as well as for different transactions.

When to Use an ABA Number

While you probably won’t need to use your ABA routing number every single day, you will likely need to enter this number for a number of common transactions, such as:

•  Direct (or ACH) deposits. When someone starts a new job and wants to set up direct deposits via ACH, they will most likely have to provide their ABA number and their bank account number.

•  Wire transfers. This involves sending or receiving money via a wire transfer, which is especially common for international transactions.

•  IRS direct deposits. To receive a tax refund, the IRS gives an option to have that money refunded via direct deposit. Allowing a direct deposit can speed up the refund process.

•  Paying bills or friends. You will likely need your routing number to sign up to pay bills online or to use mobile payment apps.

•  Making a deposit to your retirement account or transferring money to another bank. When you invest money for retirement or move money between banks, you might need to set up the transactions via ACH transfer, and that requires your bank routing number.

Recommended: What Is an Outstanding Check?

What’s the Difference Between ABA and ACH Numbers?

The terms ABA and ACH (Automated Clearing House) are easy to mix up. ABA numbers are sometimes referred to as ACH numbers, although this is not technically correct.

ACH refers to an electronic fund transfer made between banks that is processed through the Automated Clearing House network.

The ACH is the main system that financial institutions utilize for electronic fund transfers. When using ACH, the funds are electronically deposited in the designated financial institutions, allowing payments to be made online.
Unlike wire transfers, ACH transfers are typically used for relatively small, and often regular, payments.

Consumers can utilize ACH for many types of transactions that put money in someone’s account and often do so without realizing it.

For example, through ACH someone could have their paychecks directly deposited into their checking and savings account or can make monthly debits for any routine bill payments, such as a student loan payment.

Many merchants allow their customers to pay their bills via ACH. The payer typically has to provide an account number and bank routing number to do so.

Online services transactions can also be conducted with ACH and most banks and credit unions use ACH for online bill payment services.

The Takeaway

The ABA routing number is a sequence of nine digits used by banks to identify specific financial institutions within the U.S. Found on the lower left of a check (as well as online and on your bank statements), you need to know your routing number for many basic financial transactions, such as paying bills online, signing up for direct deposits at work, using a mobile payment app, as well as transferring money from one financial institution to another.

The ABA routing number helps ensure that your deposits and payments go exactly where they need to go.

One way to make money transfers (and all your other everyday money transactions) fast, simple and safe, is to sign up for a SoFi Checking and Savings online bank account. With SoFi Checking and Savings, you spend, save, and transfer funds from one convenient place, plus have features like Vaults to help you organize your savings goals and your financial life.

FAQ

Are ABA numbers and routing numbers the same thing?

Yes, an ABA number and a bank routing number are the same thing. Those nine digits at the bottom of a check and to the left can be referred to by either term.

Is an ABA number always 9 digits?

Yes, the ABA or bank routing number is always nine digits long.

Does a debit card have an ABA number?

Debit cards do not have routing numbers; those nine digits are only found on checks to identify the financial institution that issued the check. Instead, debit cards have an account number as well as a PIN.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

SOBK0223051

When you think about your basic living expenses, your mortgage or rent may be top of mind, but utilities are a considerable component for most people. Doling out money for electricity, water, maybe natural gas, garbage/sewer/recycling, cable television, and internet access can really add up. The average American household can spend anywhere from $300 to $450 a month or more on utilities.

Here, you can learn smart ways to save money on your utility bills. Some are simple ways to cut costs by tweaking your daily habits, and others may require investment, such as buying an energy-efficient appliance that will cost less over the coming years.

Read on to see which money-saving tips work best for you.

5 Ways to Save Money on Your Electricity Bill

The average electric bill in the US is currently $142.73 per month, with an average cost of 16.11 cents per kilowatt hour (kWh). Here’s advice on saving money on electricity.

1. Unplug!

It may be possible to save $100 or more each year by unplugging your appliances and devices when they’re not in use. Bonus: When you unplug, you’re also protecting them from damage that could occur during power surges.

What’s known as standby power can add up to 5% to 10% of your monthly electricity bill, according to the US Department of Energy. Electronics can draw power when not in use: Your laptop’s sleep mode, for instance, is different from being turned off, and it can still use energy.

Your home entertainment system can use electricity to keep some indicator lights on, including the ones, ironically enough, that tell you the system is off. And if you are the type who has one or two mobile phone chargers always plugged in, ready to revive your low-battery phone, know that those too are raising your bill.

Granted, it may be too much of a hassle to unplug your washer/dryer when not in use, but you work on not letting your phone charger, coffee maker, and computer eat up electricity when not in use.

2. Replace Old Appliances

Is your dishwasher, refrigerator, or clothes dryer reaching the end of its lifespan? Do yourself and your budget a favor and opt for an energy-efficient model.

Although this strategy means you need to spend money up front, ENERGY STAR®-certified appliances can save significant dollars in the long run. In general, a home appliance lasts for 10 to 20 years, on average, with ENERGY STAR-designated ones can save you up to $450 a year on your utility bills, according to the US EPA (Environmental Protection Agency).

Plus, you can sometimes get federal, state, or local rebates (like those made available by the Inflation Reduction Act) when you purchase energy-efficient appliances, so it might be wise to research this before you buy. You could wind up with even lower costs this way.

3. Wash Clothes in Cold Water

When you wash your clothes in cold water, you save significantly on energy usage, while also being kinder to your clothes. ColdWaterSaves.org shares that 90% of the energy used while washing clothes goes towards heating the water.

To put a dollar figure on this, the site calculates that the average household could save $200 per year by switching from washing laundry in warm or hot water to using cold instead. And guess what? Today’s detergent technology uses enzymes that actually work more effectively in cold water.

Also make sure your loads are full to save even more money; you’ll do your laundry less frequently that way.

Recommended: How to Save on Streaming Services

4. Dial Down Your Hot Water Heater

Here’s an especially easy hack—heck to see where your hot water heater’s thermostat is set. If it’s above 120 degrees Fahrenheit, consider lowering it! For every ten degrees that you dial it down , you could save 3% to 5% on your energy bills. Plus, you’ll make it less likely that someone in your family gets burned by hot water.

5. Dry Clothes More Efficiently

According to Energy.gov, in a standard household, the appliance that uses the most energy is the dryer. To calculate your costs, try the calculator they provide, and follow the following tips. They’re ideas for how to save on utilities.

•   Right-size your loads. Too full, and it takes too long for your clothes to dry. Too small? You’ll be spending too much energy per item as you dry them.

•   Air-dry on a rack when you can.

•   Add wool or rubber dryer balls to cut down drying time.

•   Regularly clean your dryer’s lint filter.

•   Use the lower heat settings to use less energy.

•   If your dryer has a cool-down cycle, use it.

•   If your dryer has a moisture sensor option, use that as well.

2 Ways to Save Money on Your Water Bill

The national median water bill is about $30 or $35 a month, though some people may pay two or three times that amount. Follow this advice to take your costs down a notch.

1. Invest in Efficient Appliances

Is it time for a new washer? If so, note that energy-efficient washers typically use 40% to 50% less energy and use 55% less water than conventional models. This switch can save you up to $60 a year on utility and water bills.

2. Shower Smarter

By going with a lower-flow showerhead, you can significantly reduce water usage, to the tune of $70 a year. Want to save even more? Become a fan of the five-minute shower, and quit sending money (quite literally) down the drain.

Recommended: 10 Personal Finance Basics

3 Ways to Save Money on Your Gas Bill

The average gas bill in the US is about $63 but could be even lower if you follow these tips.

1. Save on Heating and Cooling Costs

By resetting your thermostat, you may be able to save a significant amount.

You might be able to save about 1% of your energy costs for each degree that you adjust for an eight-hour period, and the Department of Energy recommends that you adjust your thermostat by seven to ten degrees (up in summer, down in winter) for an eight-hour period each day to annualize savings of as much as 10%.

If you have a smart thermostat, you could set it to be higher or lower when you’re out at work. You might also reset it overnight, when you’re sleeping.

For example, the Department of Energy recommends keeping your thermostat at 68 degrees when you’re up and about in winter, and at 58 when you’re away from home or sleeping. When the season is warm, their recommendation is to keep your thermostat at 78 degrees when you’re home, and at 85 when you’re not. If you do this, you can save an average of $83 or more annually.

Recommended: How to Automate Your Finances

2. Go Solar

If you really want to invest in your energy efficiency, you could also consider solar panels to create clean electricity and minimize your gas usage. You can potentially receive tax credits for going green this way. Living sustainably can really pay off in multiple ways!

Yes, installing solar panels requires a big investment; one that will take years to amortize. But by starting on the path to passive energy, you’ll be on your way to saving for decades to come.

3. Seal up Your Home

Ready for another idea for how to save on utilities? In cold weather, warm air can escape through drafty windows and doors; in hot weather, the cool air your air conditioning is pumping out can vanish the same way. By weather sealing your home, you can save up to 10% of your energy bill. That means weather stripping and adding insulation (important ways to help maintain your home’s value) can really pay off.

Saving with SoFi

No matter the strategy you choose, stashing your money in a bank with minimal fees and a solid interest rate is an important move.

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’s a good way to save on electricity costs?

One good way to save on electricity costs is to unplug electronics and other devices (your laptop, phone chargers, coffee maker) when not in use. Keeping them plugged in costs money.

What runs up your electrical bill the most?

Heating and cooling are the single biggest portion of your energy bill, accounting for up to 40% of your costs.

How can I save on my gas bill?

Calibrating your thermostat can be a big money saver, as can weather sealing your home.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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.

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.

Most of us have hopes and plans for the future, and they often require a degree of financial success. Whether your aspiration is relatively small and close to home (say, hosting an amazing 30th birthday party for your sweetie at their favorite restaurant) or considerably grander (owning multiple homes and retiring by age 50), it takes planning and discipline to achieve them.

In a nutshell, smart money habits can start you on the path to achieving financial success and realizing your dreams. Adopting small (and repeated) changes in behavior can be one way to start building good financial habits that can last a lifetime.

Read on to learn six of the most important money habits that can help steer you to financial success and realizing your money goals.

Why Good Money Habits Matter

Good money habits can set you up for financial success. They act like guardrails, keeping you moving towards positives (like an impressive retirement fund) and away from potential challenges (say, too much credit card debt). They are, in fact, similar to other wise habits in your life, whether that means eating well, exercising regularly, not staying up too late watching Netflix, or remembering to call your folks often.

Yes, good habits can require some time and energy to establish, and then you likely need to maintain focus to stay on track. Some will become second nature or no-brainers; others may require more ongoing effort. But by sticking with them, good money habits can guide you to help manage your personal finances well, make smart decisions with your funds, and achieve your future goals.

6 Good Money Habits to Adopt

Here’s a closer look at six key money habits that can help you develop financial success.

1. Set Financial Goals

Formulating your financial goals can be an important step. Goals can guide you as you go about building a financial plan for the years ahead.

One person’s goals might be to pay off their student loans and save for a down payment on a house; another might want to sock away enough cash to start their own business down the road; and yet another might want to achieve a lifestyle where they can pay for their child’s college education and take ski vacations every winter.

Putting pen to paper or opening a document on your laptop can be a helpful way to focus and define specific financial goals to work towards. This can give you clarity and boost your motivation vs. simply saving in the abstract.

Once you have goals in mind, you can begin saving toward them and tracking your progress.

2. Budget Well and Track Your Spending

If you are just winging it in terms of your finances, it’s probably wise to prioritize setting up a budget. The word “budget” can cause a knee-jerk reaction because it smacks of deprivation (as in, no more lattes, ever!) but that’s not what it’s about.

Rather, a budget involves understanding how much money you have coming in and where it’s going (typically towards spending and saving). It can help you be more aware of your finances and balance them, too.

Out of the various techniques, the 50/30/20 budget rule is a popular option. It spells out that 50% of your take-home pay goes towards your needs (housing, food, and healthcare, for instance), 30% towards your wants (dining out, those lattes mentioned above, travel), and 20% towards savings.

There are plenty of other different budgeting methods to try and tools you can use to track your spending, which is an important facet of good budgeting. Your bank may even offer a convenient system for this. By tracking your spending, you can see where you may be spending too much (say, your once-a-week takeout habit has crept up to four times a week), be more mindful with money, and optimize your finances. Perhaps you can put more towards debt payments, for example, than you realized.

It can also be wise to get in the habit of checking in with your money regularly; many people find that a couple of times a week is a good frequency.

3. Consolidate Debt

As you work on your budget, you may want to cultivate another money habit to develop financial success. That involves dealing with debt.

This might mean paying off credit card balances in full and making all other necessary debt payments on time, such as mortgage installments and student loan payments. Calendar reminders can help ensure that all payments get made on time, as can automating your payments (more on that below). It may even help to arrange to have all payments due on the same day. Some lenders are willing to move a monthly due date.

If you have student loan debt, you might look into refinancing options. You might, say, be able to lower your monthly payment, though that could extend the term of your loan and cost you more in interest over the life of the loan. However, doing so may be the right move for some people. (Also keep in mind that if you refinance federal loans as private student loans you will lose access to federal benefits and protections.)

Facing and managing your debt is an important step, regardless of the specific solution you decide upon. It’s a habit that allows you to take control of your money. And it can keep your debt-to-income ratio low, which can be an important factor when you want to borrow money at as low a rate as possible.

4. Know When to Consider Balance Transfer vs. Personal Loans

Building on the idea of consolidating debt is the next financial habit. This one involves knowing the warning signs when your debt is getting uncomfortably high and then taking steps to rein it in.

Sometimes, the steps above aren’t enough. If that’s the case, it’s wise to consider your options vs. taking a wait and see approach. Currently, credit card interest rates are over 20% which can be hard for some people to pay off.

So if you see your balance rising to a level you are worried about, consider the following options as you take control of your debt:

•   You might try a balance-transfer credit card, which can give you a reprieve from high interest accruing for a period of time (often 18 months), allowing you to pay down your debt.

•   You might consider taking out a personal loan and using those funds to pay off your credit card debt. The goal here is to have a lower monthly payment on the personal loan than what your credit card bill amounted to.

•   Contact a nonprofit credit counseling service, such as the National Foundation for Credit Counseling, or nfcc.org.
Getting in this habit before debt gets deeper can help you in the long run.

5. Automate Your Finances

It can be a good idea to save money right after getting paid — before the cash sits in checking long enough to spark the urge to spend it. So why not make it simple and save automatically upfront?

A person interested in saving might begin by automating just one kind of transaction. For example, they may opt to have $50 moved from a checking account to a different savings-oriented account each month. If that money remains unspent each month, those monthly automatic savings would total to $600 at the end of the year.

That could be a good way to start an emergency fund without expending much effort. You can also automate payments of, say, your utilities and housing costs or your car loan. Paying bills on time this way can help build your credit.

There are also numerous ways to automate your investments. A workplace plan, like a 401(k), may already be doing this. For someone who’s on their own, mutual funds can make auto-investment really easy. Alternatively, a robo-advisor service can automatically invest contributions on behalf of the investor. (Note: This automation may be challenging for those paid irregularly, such as freelancers and seasonal workers.)

By embracing automation, you can nail an important money habit. You can pay yourself first and stash cash away in savings. And you can avoid such bad money habits as not saving enough, paying bills late, or forgetting to pay them at all.

Recommended: How to Become Financially Independent

6. Investing Early and Often

“I invested too much money for retirement,” said no one, ever. Arguably, there’s no other financial goal that requires more habitual action — spread over decades — than saving and investing for retirement.

It can be tempting to push off planning for retirement until tomorrow. After all, when someone’s in their 20s or 30s, retirement is likely decades and decades away. Psychologically, it’s simple to presume that it’s just not worth thinking about in the now.

But, for many, retirement can be one of life’s biggest and most important expenses. It can secure your comfortable future. Investing early, often, and wisely, can help accomplish that goal.

Adopting this habit ASAP can be a big help; it allows for more time for money to grow via compounding. Compound returns are earnings on both the original amount invested (the principal) and the money earned via investing (the profit). The more months (or years) a person invests, the higher the potential for profits to compound. Note: It is important to note that all investing carries risk as the stock market can fluctuate.

Being consistent about moving money into your portfolio is important, too. Luckily, there are easy and affordable ways to get started investing. First, open an account, like a brokerage or a retirement account. (Investing in a 401(k) also counts as investing.) Then, investors can purchase investments like stocks and funds to achieve their goals. Or investors can use an automated investing service.

The Takeaway

Building good financial habits can be rewarding. There are more technological tools than ever to help with budgeting or expense tracking. From digital apps to automatic investing, building healthy financial habits has never been more accessible.

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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

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.

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

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

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