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While the blockchain technology used in cryptocurrencies is generally thought to be highly secure, crypto scams do occur, with fraudsters convincing people to send them crypto payments, transact in fake crypto products, or share their digital wallet details. According to the FBI’s Internet Crime Complaint Center (IC3) 2024 Internet Crime Report, cryptocurrency-related scams accounted for $9.3 billion in victim losses, which represents a steep 66% increase from the previous year.^[1] As scammers get more sophisticated (integrating AI, for instance), it can be more challenging to recognize crypto fraud.

An important step to take is to educate yourself about and then avoid the scams you might encounter in 2025 if you buy, hold, or sell crypto. Read on for advice.

What Are Crypto Scams?

Crypto scams are schemes in which fraudsters trick people into sending cryptocurrency for fake purposes, buying fraudulent crypto products, or revealing their crypto wallet credentials so that funds can be stolen.

Unfortunately, there has been a major uptick in these crimes over the past year. Scammers are becoming more sophisticated, using AI and other tools to appear legitimate. They also often use the same principles deployed in non-crypto financial scams, such as:

•   Slowly building trust, over weeks or even months

•   Creating a sense of urgency, such as, “This opportunity expires in one hour”

•   Exploiting knowledge gaps (such as telling people there’s a serious error with their technology which they can fix)

These scams take many guises. Some involve phishing, in which fraudsters masquerade as legitimate, trusted businesses, to steal crypto. Others are romance ploys, where someone cultivates a relationship with someone only to convince them to transact in a bogus type of cryptocurrency.

The Most Common Types of Crypto Scams in 2025

To help you stay vigilant against evolving cryptocurrency fraud, here are 10 common scams to know about for 2025 and beyond. Learning how these schemes operate is the first step toward avoiding them.

1. Pig Butchering Scams

Pig butchering is an admittedly unpleasant name for a scam in which perpetrators win the trust of victims over time and convince them to buy fake crypto assets. The scammer, who often appears wealthy and financially savvy, might meet someone on social media, a dating app, or via a text message.

They may share stories about their life and send alleged selfies, but find excuses not to meet in person or have video calls. Eventually, they offer to help their target pursue buying crypto so they too can profit. However, the scammer directs the person to an illegitimate platform that steals their money.

Why is it called “pig butchering”? That turn of phrase refers to the practice on a farm of fattening up pigs before they are slaughtered. Scammers “fatten up” their victims with ongoing attention, securing their trust to more easily cheat them.

2. Rug Pulls

A rug pull scam involves a supposed crypto developer talking about a great new project (a new kind of crypto or NFT, perhaps) that will be a lucrative opportunity. The scammers often create hype on social media, promising high returns or innovative technology to attract investors. Once enough people invest and the token’s value rises, the creators abandon the project or disappear, taking the raised assets with them. This leaves the participants with worthless tokens.

The “rug pull” name comes from the saying about pulling the rug out from under someone. The scammer makes their victim feel as if they will reap a considerable profit, but when the rug gets pulled, they are actually left with nothing.

3. Romance Scams

In a romance scam, the fraudster forms a romantic relationship with the victim. The scheme often starts on a dating app or social media, where the scammer builds a fake persona (often attractive, trustworthy, and emotionally available) to gain the victim’s affection and trust.

In some cases, the scammer will cultivate a relationship over months or even years. Eventually, they will suggest that the victim buy into a profitable crypto opportunity. They might even position it as a way to grow funds for a wedding or purchasing a home together. However, it’s just a way to whisk their “darling’s” money away.

4. Fake Exchanges and Wallets

Scammers are getting so good at their pursuits that it can be almost impossible to tell what’s real and what’s fake. That’s what fuels fake exchange and wallet scams. A victim might receive communication about or see an ad for what seems to be a legitimate and possibly even well-known crypto exchange or digital wallet. There might even be a celebrity endorsement involved (this could be an AI-generated deepfake) and/or claims of major returns on a slick-looking site.

However, these can be fraudulent offerings that look almost identical to real crypto exchanges and wallets. If a crypto buyer, holder, or seller interacts with these fake platforms, they can have their funds stolen.

5. Phishing Attacks

In a phishing attack, scammers reach out to victims, often by email, text message, or social media communication, saying there’s an urgent problem with an account that needs attention. Targets are then lured into clicking fake links and entering their private information (such as private keys or wallet passwords) on cloned platforms, giving attackers access to their funds.

6. Giveaway and Airdrop Scams

In this scheme, scammers trick people into sending cryptocurrency or sharing personal information under the guise of receiving free tokens. Scammers often impersonate well-known companies, influencers, or crypto projects on social media, claiming to host “giveaways” or “airdrops” (a method used by blockchain projects to distribute free cryptocurrency tokens to users’ digital wallets).

To qualify for the freebie, users must typically first send a small amount of crypto to “verify” their wallet. In reality, victims never receive anything in return, and the scammers disappear with the funds.

7. Pump and Dump Schemes

A pump and dump scheme in the crypto world is a fraudulent practice in which scammers create or acquire large amounts of a low-value crypto and promote it to inflate the token price artificially. They then sell this “in-demand” crypto to unwitting individuals.

That’s the “pump” part of the process. Then comes the “dump,” when scammers sell off their tokens at this inflated price. The supply of the token then soars, the price typically plummets, and the buyers are left with worthless holdings.

8. Ponzi and Pyramid Schemes

Ponzi and pyramid schemes in crypto are fraudulent scams that promise high returns with little or no risk. It’s another type of “get rich quick” scheme. In a crypto-based Ponzi scheme (named after 1920s con artist Charles Ponzi^[2]), the victim thinks they are transacting with a legitimate form of cryptocurrency that will have solid returns. However, when they buy coins, they are actually funding returns to those who paid into the offering earlier. The scheme relies on a constant inflow of new money to appear profitable and it collapses when new investments slow down.

Crypto pyramid schemes, on the other hand, depend on recruiting new participants. Members earn money (typically free tokens) primarily by bringing in others rather than from genuine investment. New recruits pay into the system, with a portion of their fees going to the person who recruited them and those above them in the “pyramid.” The scheme collapses when it’s impossible to recruit enough new people to pay everyone, leaving most participants at the bottom with losses.

9. Impersonation and Fake Support Scams

In these cryptocurrency scams, the orchestrators pretend to be allied with well-known companies. Typically, they reach out using authentic-looking emails, text messages, social media messages, or computer pop-ups, or by a phone call. Often, their ruse is to say there is an issue with the victim’s account, and that their money or credentials are at risk. In order to get the problem fixed, the victim needs to buy crypto and send it their way.

In another version of this scam, the fraudsters claim to be working for an established or new business that is now issuing their own crypto coin or token. They might have a legitimate-looking website, press releases, and news articles to back up their claim. This is false, and if you purchase the new offering, you are left with nothing of value.

10. Malware and Remote Access Scams

In this crypto crime, scammers steal people’s coins in one of two ways. In a crypto malware scam, fraudsters trick users into downloading malicious software, often through phishing emails, fake apps, or fraudulent websites. The software then steals private keys or passwords to transfer funds to the attacker’s account.

In a remote access scam, the criminal convinces the victim that there is a problem with their hardware or account access, which can be repaired via remote access. Once the target allows access, the scammer may direct them to log into their crypto exchange, claiming they need to “secure” their funds. This allows the attacker to steal sensitive information or drain their crypto assets.

Examples of Cryptocurrency Scams

Here are two examples of well-known cryptocurrency scams to be aware of and learn from:

•   As reported by CNN^[3], Dennis Jones, an 82-year-old grandfather, was befriended on Facebook by a woman he believed was named Jessie, who gradually encouraged him to buy crypto. Having full trust in Jessie, Jones complied and ultimately invested everything he had. Then one day, Jessie — and all of the money he invested — disappeared, leaving him in ruin.

•   An example of a rug pull unfolded with BitConnect.^[4] Its BitConnect Coin (BCC) promised returns of up to 40% per month. As the government began looking into claims that it was a Ponzi scheme, BitConnect shut down in January 2018, wiping out $2 billion in consumer funds.

How to Protect Yourself from Crypto Scams

Knowing the top crypto scams to watch out for in 2025 is one step towards protecting yourself. But since scammers continually develop new ploys and crypto transactions usually are not reversible, also follow these tips:

•   If you are told you must pay in crypto, you are likely dealing with a scammer.

•   When you hear about “guaranteed” returns on crypto, you are probably dealing with an untrustworthy individual or business, according to the Federal Trade Commission (FTC).

•   Be wary of crypto offers via email, text, phone, or on social media that claim to come from a well-known brand or business. This might be a scammer engaging in impersonation. Rather than immediately engage, look up the company’s official contact details and reach out that way.

•   Don’t let dire warnings that your bank account, crypto account, or computer are at risk rattle you. A sense of urgency is a tool scammers often use. Don’t rush to click on links, reveal sensitive information, or pay in crypto. Slow down, and again contact the supposedly at-risk account via publicly-available information.

•   Dating and crypto don’t mix. Whether you’ve been seeing someone for a week or a year, if they are guiding you toward crypto transactions, it may well be a scam.

•   Be cautious with the promise of free cash or crypto, especially excessively generous offers. This could be a ruse, as described above.

•   If you are transacting in crypto, opt for reputable platforms and verify the URL carefully. Scammers can create fake platforms that are just one letter off.

•   To protect your accounts, use multifactor authentication (MFA) to enhance security. Use unique passwords as well.

•   If you believe you’ve been the victim of crypto fraud, report the scam as quickly as possible to the authorities (including the FTC and the FBI’s Internet Crime Complaint Center), as well as the cryptocurrency exchange company you used to send the money.

The Takeaway

While crypto blockchain technology is generally thought of as transparent and secure, scams related to crypto are unfortunately rising. Being aware of the common ploys and staying alert to emerging ruses is an important step in protecting yourself when buying, holding, and selling crypto.

Soon, SoFi members will be able to buy, sell, and hold cryptocurrencies, such as Bitcoin, Ethereum, and more, and manage them all seamlessly alongside their other finances. This, however, is just the first of an expanding list of crypto services SoFi aims to provide, giving members more control and more ways to manage their money.

FAQ

What is the most common type of crypto scam?

According to the FBI, one of the most common types of crypto scams is what is known as pig butchering. In this scenario, the scammer wins the confidence of a person and convinces them to transact with what winds up being fake crypto.

How can you tell if a crypto website or offer is fake?

Some ways to identify a fake crypto website or offer are as follows: a URL that is slightly different from the expected name and spelling; unrealistic promises (such as guaranteed growth); lack of contact details or full list of team members’ names; pressure to act quickly; low-quality websites; and issues with withdrawing funds.

What is a pig butchering scam and how does it work?

A pig butchering scam is a type of long-term fraud where scammers develop a relationship with a victim over weeks or months before persuading them to get involved in a fake online cryptocurrency scheme. The term describes the process of “fattening up” a victim with false affection and trust before “slaughtering” their finances.

Can you recover money lost in a crypto scam?

Getting money back from a crypto scam is difficult because crypto transactions are usually irreversible. That is why it is especially important to be aware of common and emerging crypto scams to protect yourself. If you do lose funds this way, report the crime as quickly as possible to government authorities and the local police. Be highly suspicious of “recovery companies” that contact you, as these are likely another scam to get more money from you.

Are crypto airdrops and giveaways usually legitimate?

Crypto airdrops and giveaways can be a legitimate promotional method. However, they are also used by scammers, so it’s important to do your due diligence when considering an offer. Signs that you may be dealing with a scam include the lack of an official announcement, promises of unrealistically generous rewards, URLs that are similar to a legitimate address, requests for private keys, grammatical errors, and low-quality graphics.

Photo credit: iStock/chekyfoto

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About 96% of Americans have a bank account, according to the FDIC’s latest data. and many people have both a checking and a savings account. Sometimes, though, there may be advantages to what is considered a hybrid account, offering the best of both worlds (or at least some of the benefits of each).

For instance, you might enjoy the ease of access that you get with a checking account, thanks to a debit card. And you might also earn a higher interest rate, the way you might with some savings accounts vs. checking.

Financial institutions may offer different versions of hybrid accounts. Read on to learn about some of the most common features so you can decide if a hybrid bank account is right for you.

Defining the Hybrid Account

There are a variety of bank accounts available to consumers. And the type of accounts people are drawn to will depend on their financial goals, situation, and how they choose to organize their finances.

A hybrid account can merge the features of both checking and savings accounts. Here’s a bit more about hybrid accounts:

•   A hybrid account is one that combines the perks of a checking account with features of an interest-bearing savings account. Instead of linking your checking and savings account, they’re basically functioning as one cohesive account.

•   A hybrid account allows access to your money on a day-to-day basis, like a checking account would. That can mean that you may get a debit card to use with it.

•   On the flip side, it allows your money to grow the way it might in a savings account.

Of course, every financial institution is different, and each might have a different approach to crafting a hybrid bank account. But the main gist of a hybrid account is that it’s a bank account that bears some resemblance to a day-to-day checking account and a long-term savings account.

Recommended: Ways to Manage Your Money

Different Types of Accounts

To understand what can make a hybrid account a useful tool, it’s helpful to first understand the features and pros and cons related to traditional checking and savings accounts and then compare.

Checking Accounts

Checking accounts usually allow you to deposit money, write checks, or use a debit card to pay for goods and services. There are typically no withdrawal limits, and you can often link a checking account to other accounts and credit cards. It might be the account you use to pay recurring bills each month, like a car loan or student loan payment.

Banks, especially online banks, may pay you interest on the money that sits in your checking account. However, regular checking account interest rates are typically low, with an average rate of 0.08% as of October 2025.

These rates don’t always catch up with the national inflation rate, which is currently about 2.92%. That means your money is actually depreciating in value while it sits in the account. In the long term, this may not make checking accounts a particularly good place to park a lot of cash.

Checking accounts may also charge fees for the services they offer, such as monthly maintenance fees.

Savings Accounts

Savings accounts are another type of deposit account that you can open with your financial institution of choice. They usually earn some interest, with the current standard savings account earning about 0.40%.

However, high-yield savings accounts are an alternative to traditional accounts; they may sometimes offer interest rates of 4% or more. Higher-interest savings accounts can help you beat inflation so your money doesn’t lose value by growing at a slower rate than inflation. You may find these accounts offered at online banks vs. traditional ones.

Savings accounts are generally appealing because they are a separate place to store money you don’t necessarily want to use on day-to-day expenses. For example, it could be a good place to keep your emergency fund or even to save for a vacation or a move across the country. (Using an emergency fund calculator can help you figure out how much to save.)

However, there are some downsides to savings accounts, too. A few to note, which may or may not apply to only the high-interest variety:

•   They sometimes don’t allow consumers to use them for direct payments.

•   There may be restrictions on the number of savings account transactions you initiate every month.

•   There may be restrictions such as a balance cap that sets a limit on the amount of money on which you can earn a high rate.

•   There could be a minimum opening deposit and ongoing balance requirements to earn the higher interest rate. Or, if you fail to meet the amount, you might be assessed a minimum balance fee, which could offset the extra interest you’re earning.

If you’re considering this as an option, you may want to look closely at the fine print when choosing your savings account.

Hybrid Accounts: The Details

Hybrid bank accounts will often take benefits from checking and savings accounts and combine them into one account. A hybrid account may allow you to use checks or a debit card for day-to-day transactions, while still offering the interest rates typically associated with a savings account. Hybrid bank accounts are often more likely to be offered by online vs. traditional banks.

Traditional brick-and-mortar banks must pay for their storefront locations, the people who staff them, and ATMs. They may do so by charging more and/or higher fees and paying lower interest rates, while online banks can often afford to drop fees and pay higher rates.

You may hear the term money market account (or MMA) used by some financial institutions when describing their hybrid accounts. Keep in mind that this is different from a money market fund, which is a type of investment.

Whichever kind of account you choose, see what kinds of tools and resources (such as budgeting apps) are offered that can enhance your money management, and also check in with your money on a regular basis.

The Takeaway

A hybrid bank account typically combines the features and advantages of both a checking account and a savings account. For instance, you might have the convenience of debit card usage and check-writing privileges (typical of checking accounts) along with the higher interest rates usually offered by savings accounts.

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 is a hybrid account in banking?

Hybrid bank accounts combine the features and benefits of checking and savings accounts into a single account. For instance, it may offer checks and/or a debit card, which are usually features of a checking account, along with the higher interest rates typically delivered by a savings account.

What are the four main types of bank accounts?

Usually, the four main types of bank accounts are considered to be checking, savings, and money market accounts (which are a kind of hybrid account), as well as certificates of deposit.

What bank account can you not withdraw from?

The type of bank deposit you typically don’t withdraw from is a certificate of deposit (CD), which is a term account. If you do pull your money out before the end of the term, you usually pay an early withdrawal penalty. Some CDs allow for early withdrawal, but they likely pay a lower interest rate.

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.

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/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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

SOBNK-Q425-003

The United States is more than a little dog crazy: The percentage of households with a canine stands at 45.5%, meaning almost one out of two have a pooch. Owning a dog can be one of life’s great pleasures, whether you choose a tiny Chihuahua puppy or a mega, full-grown Great Dane as your new best friend.

But amid imagining all the cuddles and sloppy kisses, many prospective dog parents aren’t fully prepared for the expense of owning a pet.

This can be an important consideration, given that dog ownership generally requires a significant upfront and ongoing financial investment. Start-up costs tend to run around $2,127, while ongoing annual expenses average $2,489, according to the American Kennel Club.

If you’re considering bringing home a new pooch, here’s key information to know about budgeting for a dog.

8 Costs of Owning a Dog

It’s easy to fall in love with an adorable dog and feel as if you just must make it yours ASAP. But it’s wise to do a little research first about potential bills before you bring home a new pooch. Read on for eight costs that are likely to crop up.

1. Adoption Costs

The cost to adopt a dog varies depending on the organization, dog’s age, and breed, but fees from shelters can range anywhere from $50 to $500. The adoption fee helps cover some of the cost of holding the dog and getting them ready for adoption. At some pet rescues, adoption fees also cover the cost of veterinary services, like a pet physical exam, deworming, spaying or neutering, microchipping, and common vaccinations.

💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.

Adoption vs Buying

Buying a dog from a breeder costs considerably more than adopting one from a shelter. Depending on the type of breed and the location of the breeder, you can expect to pay anywhere from $775 to $4,750.

The purchase price through a breeder typically includes the dog’s first round of shots and deworming. However, other medical costs — such as spaying or neutering and microchipping — are not typically covered by the breeder’s fee.

Recommended: 9 Cheapest Pets to Own

2. Food and Treats

Once you bring home your furbaby, you’ll also need to factor dog food and treats into your spending budget. The cost of feeding a dog can run anywhere from $200 per year for a small dog to $720 per year for a large dog. If you decide to serve your dog premium brands, freshly made food, or a specialized diet, your food costs could be significantly higher — as much as $3,000, possibly more, per year.

3. Toys

Toys may seem like a silly little add-on, but they can play an important role in puppy development and adult dogs’ mental stimulation. Toys can help dogs fight boredom when they are left at home alone and comfort them if they’re agitated. And with toys to gnaw on, dogs may be less likely to turn to shoes for a midday distraction.

One way to save money on pet costs is to keep toys simple. For example, a basic tennis ball will satisfy many dogs. And you can grab a can of three, fun-to-chase tennis balls for about $4. However, you may want to offer your new companion a range of fun things to play with. If so, you might set aside around $100 a year for doggie toys.

4. Pet Sitters or Walkers

If you work outside the home or plan to travel without Fido, it may be a good idea to factor in the cost of a dog walker or pet sitter. You can expect to pay between $24 and $34 for a 30-minute dog walking service. Hourly pet sitter rates can run anywhere $12 to $20 per hour, while the average cost to board a dog is around $40 per night.

It may be helpful to estimate how much outside care you’ll need for your new dog and add it to your budget.

💡 Quick Tip: Did you know online banking can help you get paid sooner? Feel the magic of payday up to two days earlier when you set up direct deposit with SoFi.^

5. Medical Visits

Dogs need regular medical care, so health expenses are another cost to consider when setting up your budget. Just like humans, dogs need blood drawn to check for diseases, routine vaccinations to prevent disease, and a general physical exam once a year to make sure their health is in working order.

The cost of healthcare for a dog varies widely depending on the type of dog, care provider, and where you live. On average, an annual vet visit can run $50 to $250, but that doesn’t include vaccinations (around $20–$80 per vaccine); medications and supplements ($10-$150 annually), and dental cleanings ($300-$1,500 annually).

6. Pet Insurance

While pet insurance won’t cover routine veterinary visits, it could come in handy if an emergency occurs with the pup. For example, a new dog could eat something that causes it to get sick or develop a bacterial or viral infection.

Many pet insurance plans will cover a portion of medicines, treatments (including surgeries), and medical interventions that aren’t tied to a pre-existing condition. The cost of pet insurance can vary significantly by your pet’s breed, age, and health history. On average, pet insurance for a dog runs around $62 a month.

💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!

7. Incidentals

A lot of smaller expenses can come when you own a dog, such as doggy waste bags and cleaning supplies for pet-related messes. The ASPCA estimates that miscellaneous costs can average around $35 for small dogs, $45 for medium dogs, and $65 for large dogs annually.

8. Emergency Fund

It can be wise to save up an emergency fund for pet-related expenses. Having a financial cushion helps ensure you can make fast decisions about your pet’s care without worrying about how you’ll afford the bill.

You might set up a dedicated savings account to cover unexpected pet-related costs, with a goal saving between $500 and $1,000 to start. Or you could simply add to your general emergency saving fund. Either way, it’s a good idea to keep your emergency funds in a dedicated savings account, such as a high-yield savings account or money market account, so you’re not tempted to dip into it for everyday expenses.

The Takeaway

More than 45% of US households have dogs as pets, which shows how beloved they are. But before you get a pet, it’s important to know the costs involved (which can add up to thousands per year) and budget wisely. Saving in advance can make adopting and then caring for a dog easier. You might look for a high-yield savings account to help your money grow for this purpose.

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 much does it cost to buy a new dog?

The cost to buy a dog can vary widely depending on whether you adopt from a shelter or purchase from a breeder. Adoption is generally the more affordable option, with fees running anywhere from $50 to $500. The price for a puppy from a reputable breeder can run $775 to $4,750, depending on the breed’s popularity and rarity.

What is the monthly cost of owning a dog?

The average monthly cost of owning a dog ranges from approximately $64 to $248, depending on factors like size, breed, and location. These costs include food, toys and accessories, pet insurance, and grooming.

Can pet insurance save me money?

Buying pet insurance can be worth it if your pet is young and healthy or you don’t have enough savings to cover an expensive vet bill. However, it may not be a good deal if your pet is older or has health issues and/or you would be able to manage a hefty vet bill if it came up.

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/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

SOBNK-Q425-031

A health savings account, or HSA, is a tax-advantaged account that can be used to pay for qualified medical expenses including copays and deductibles, provided you have a high-deductible health care plan (HDHP).

By using pretax money to save for these expenses, an HSA may be used to help lower overall medical costs. What’s more, HSAs can also be a savings vehicle for retirement that allows you to put away money for later while lowering your taxable income in the near term. Here’s the full story on these accounts and their pros and cons.

Reasons to Use a Health Savings Account (HSA)

Here are some of the key advantages of contributing to and using an HSA.

HSAs Can Make Health Care More Affordable

An HSA is a tool designed to reduce health care costs for people who have a high-deductible health plan (HDHP). In fact, you must have an HDHP to open an HSA.

If you’re enrolled in an HDHP, it means you likely pay a lower monthly premium but have a high deductible. As a result, you typically end up paying for more of your own health care costs before your insurance plan kicks in to pick up the bill. Combining an HDHP with an HSA may help reduce the higher costs of health care that can come with this type of health insurance plan.

Some numbers to note about qualifying for and using an HSA:

•  For the 2025 calendar year, the Internal Revenue Service (IRS) said an HDHP is defined as having an annual deductible of at least $1,650 for single people and $3,300 for family plans. Annual out-of-pocket expenses cannot exceed $8,300 for single coverage and $16,600 for family coverage.

•  For 2025, the maximum contribution limit is $4,300 for individuals and $8,550 for families. For either year, people 55 or older can make an additional contribution of $1,000 per year, which is known as a catch-up contribution.

•  For 2026, an HDHP is defined as having an annual deductible of at least $1,700 for single people and $3,400 for family plans. Annual out-of-pocket expenses cannot exceed $8,500 for single coverage and $17,000 for family coverage.

•  For 2026, the maximum contribution limit is $4,400 for individuals and $8,750 for families. For either year, people 55 or older can make an additional contribution of $1,000 per year, which is known as a catch-up contribution.

HSA contributions can be made by the qualified individual, their employer, or anyone else who wants to contribute to the account, including friends and relatives.

HSA Contributions Stretch Your Health Care Dollars

Contributions are made with pretax money and can grow tax-free inside the HSA account. Because money in the account is pretax — Uncle Sam never took a bite out of it — qualified medical expenses can essentially be paid for at a slight discount.

HSA Funds Can Be Used for Many Health Care Expenses

The money you contribute to your HSA can be used on an array of health care expenses that aren’t paid by your insurance. Rather than dipping into your checking or savings account, you can use an HSA to pay for qualified medical costs. The IRS list of these expenses includes:

•   Copays, deductibles, and coinsurance

•   Dental care

•   Eye exams, contacts, and eyeglasses

•   Lab fees

•   X-rays

•   Psychiatric care

•   Prescription drugs

HSAs Offer Triple Tax Advantages

Another reason to start a health savings account is that putting money into an HSA lowers taxable income. The money contributed by a qualified individual to the account is pretax money, so it will be excluded from gross income, which is the money on which income taxes are paid.

This is the case even if an employer contributes to an employee’s account on their behalf. So if you are a single tax filer who earns $80,000 a year and max out your HSA contribution, you will only be taxed on $75,700 for calendar year 2025. If you make any contributions with after-tax funds, they are tax-deductible on the current year’s tax return.

There are other considerable tax advantages that come with HSAs. Contributions can earn interest, or returns on investments, and grow tax-free. This tax-free growth is comparable to a traditional or Roth IRA.

Here’s another HSA benefit: Not only are contributions made with pretax money, but withdrawals that are made to pay for qualified medical expenses aren’t subject to tax at all. Compare that to say, Roth accounts where contributions are taxed on their way into the account, or traditional IRAs where withdrawals are taxed.

Recommended: HSA vs HRA: What’s the Difference?

HSA Funds Are Investable

The funds in an HSA can be invested in ways that are similar to other workplace retirement accounts. They can be put into bonds, fixed income securities, active and passive equity, and other options. You could potentially be investing money in this way for decades prior to retirement.

Using an HSA for retirement might also be a good way to prepare for health care expenses as you age, which can be one of the biggest retirement expenses. According to some estimates, a 65-year-old couple in retirement would need $345,000 or more to cover health care costs over the rest of their lives. An HSA could be a good way to stash some cash to put towards those charges.

If you were to become chronically ill or need help with the tasks of daily living as you age, you might need long-term care at home or in a nursing facility. Medicare does not cover long-term care, but long-term care insurance premiums are qualified expenses and can be paid with HSA funds. Saving in an HSA before these potential costs arise may offset overall spending on health care expenses later in life.

The Money in an HSA Is Yours and Stays That Way

Another advantage of HSAs is that contributions roll over from year to year. In comparison, flexible spending account (FSA) funds, which also allow pretax contributions to save for qualified health care expenses, must be spent in the same calendar year they were contributed, or you risk losing the funds. HSAs don’t follow this same use-it-or-lose-it rule. There is no time limit or expiration date saying you must spend the money you contributed by a certain date.

What’s more, your HSA funds follow you even if you change jobs and insurance providers. It can be very reassuring to know those funds won’t vanish.

Disadvantages of Using a Health Savings Account

Here are some potential downsides of HSAs to note.

You May Not Be Qualified to Open and Contribute to an HSA

You may only open and contribute to an HSA if you are enrolled in a high-deductible health plan, or HDHP. The IRS defines this as having a deductible of at least $1,650 for an individual and $3,300 for a family for calendar year 2025; for 2026, the limits are $1,700 and $3,400, respectively.

If You Have Medicare, You Cannot Have an HSA

Once you enroll in Medicare, you can no longer contribute to an HSA, since Medicare is not an HDHP. If you previously opened an HSA, those funds are still yours, but you can’t continue adding to the account.

Not All Expenses Will Be Covered

There are a number of health care expenses that do not qualify for HSA coverage. These include:

•   Cosmetic surgery

•   Teeth whitening

•   Gym memberships

•   OTC drugs

•   Nutritional supplements

HSAs May Charge Fees

If you decide that a health care savings account is right for you, don’t be surprised if you are hit with fees when you open one. Some of these accounts may charge you every month to maintain the account, especially if a professional is advising you on investments. These fees may be as low as $3 or $5 a month or considerably higher.

You may also be assessed a percentage of the account’s value, with that fee rising as your account’s value increases. It’s important to read the fine print on any account agreement to make sure you know the ground rules.

You May Be Penalized for Early Withdrawal

Also note that if you withdraw funds from your account for something other than a covered medical expense before you turn 65, you could be hit with fees. These withdrawals will typically be subject to income taxes and a 20% penalty.

Recommended: High-Yield Savings Calculator

How HSAs and FSAs Differ

HSAs, as described above, are health care savings accounts for individuals who have a high-deductible health plan. Another financial vehicle with a similar-sounding name are FSAs, or flexible spending accounts. An FSA is a fund you can put money into and then use for certain out-of-pocket health care expenses. You don’t pay taxes on these funds. Two big differences versus HSAs to be aware of:

•   To open an FSA, you don’t need to be enrolled in an HDHP. This is only a qualification for HSAs.

•   The money put in an FSA account, if not used up by the end of the year, is typically forfeited. However, there may be a brief grace period during which you can use it or your employer might let you carry over several hundred dollars. With an HSA, however, once you put money in the account, it’s yours, period.

The Takeaway

Health savings accounts, or HSAs, offer a way for people with high-deductible health plans to set funds aside to help with health care expenses. The money contributed is in pretax dollars, and it brings other tax advantages. What’s more, funds in these HSAs can roll over, year after year, and can be used as a retirement vehicle. For those who have high-deductible health plans and qualify, an HSA can be a valuable tool for paying medical expenses and enhancing financial health, today and tomorrow.

An HSA can be part of a plan to manage your money better.

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 are the benefits of using an HSA?

The benefits of using an HSA include being able to pay for qualifying medical expenses with pretax dollars, which can save you on health care spending and lower your taxable income. In addition, the money is investable, and it stays with you; you don’t face a “use it or lose it” end-of-year situation.

What are the disadvantages of an HSA?

One disadvantage of a health savings account, or HSA, is that it’s only available to those with a high-deductible health plan. Also, you can face a penalty if you withdraw funds for non-medical expenses before age 65, and the money in an HSA can only be used on certain expenses.

What if you withdraw money early that you’re saving in an HSA?

If you withdraw funds from an HSA for non-medical expenses before age 65, you typically face a 20% penalty.

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.
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/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

*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.

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.

SOBNK-Q425-013

Ever forgotten a bill and been hit with a costly late fee? Automatic bill pay can take care of your payments for you, saving you from that headache. Once it’s set up, funds are debited from your bank account or charged to your credit card automatically, which can save you time, stress, and (potentially) money. Still, there are some downsides to consider before you turn everything over to automation. Below, we explore what automatic bill payment is, its pros and cons, and how to use it effectively.

What Is Automatic Bill Payment?

Automatic bill payment is a service that allows you to schedule recurring payments to be made automatically, typically from your bank account. Instead of manually paying each bill, the system deducts the amount owed on a preset date (usually the bill’s due date), which ensures your payments are made on time. In some cases, you may have the option to set up automatic bill payment using your credit card.

You can establish automatic bill payment in one of two ways:

•  Through your bank: Many banks offer a service called “bill pay,” which allows you to set up and manage all of your payments from one account dashboard.

•  Directly with the payee: You can set up “autopay” through a company, creditor, or service provider by providing them with your bank account or credit card information and authorizing them to make recurring withdrawals from your account.

However you set up automatic payments, it’s important to remember that, once activated, automatic payments continue until you modify or cancel them.

Advantages of Automatic Bill Payment

Automatic bill payment can simplify your financial life. Here’s a look at some of its biggest advantages.

Convenience and Time Savings

One of the most obvious benefits of autopay is convenience. Instead of remembering specific bill due dates, logging in to different websites, or sending paper checks through the mail, automatic payments allow you to “set it and forget it.” Having all your payments managed in the background saves time, which can free you up to focus on other financial goals, like saving or investing.

Avoiding Late Fees

Missing a due date then scrambling to make the payment isn’t only stressful — it can cost your money. Many lenders and utility providers charge late fees if you make your payment late. The rules and grace periods for late payments vary by company, but credit card issuers will often charge a fee if you’re as little as one day late paying your bill. Automatic payments solve this issue by ensuring bills are paid on time, every time.

Improved Credit Score Management

Payment history is the most important factor in your credit scores, accounting for 35% of your FICO® score. Automating bills like credit cards, mortgage payments, and car or student loans helps establish a consistent on-time payment record, which can have a positive impact on your credit profile over time.

Automatic bill payments can also help you avoid late or missed payments, which can negatively impact your credit. Once a creditor reports a late payment to the credit bureaus, it appears on your credit report and will stay there for seven years from the date you missed the payment.

Disadvantages of Automatic Bill Payment

While autopay offers clear benefits, it’s not without drawbacks. Automation can sometimes create new problems if not managed carefully. Here are some disadvantages to keep in mind.

Potential Overdrafts or Insufficient Funds

Autopay only works if you have enough money in your account. If you forget a payment is coming up and don’t have enough funds to cover it, your bank may temporarily cover the transaction and hit you with an overdraft fee (which average around $27).

If you don’t have overdraft coverage, the bank will decline any payment that exceeds your available balance and may charge a non-sufficient funds, or NSF, fee (often around $18). And since the payment didn’t go through, you may also get hit with a late fee from your provider or creditor.

To minimize this risk, you may want to align your payment dates with your income schedule or keep a small “cushion” balance in your checking account to cover automatic deductions.

Errors/Fraud May Go Overlooked

Because automatic payments happen behind the scenes, it can be easier to miss incorrect or unauthorized charges. Companies can and do make billing errors. If you’re not looking at your monthly statement, you could be overcharged for services or get hit with incorrect fees without realizing it. It’s also possible that a fraudulent transaction could go unnoticed until it’s too late to dispute it.

To avoid this issue, it’s important to monitor your bank and credit card statements to catch mistakes and potential bank fraud early, even after automation.

Forgotten Subscriptions

If you rely solely on automatic payments, you may go months without realizing you’re paying for things you no longer use, such as streaming services, gym memberships, or free trials you meant to cancel. Over time, these forgotten payments can add up to a significant sum, and put a strain on your monthly budget. This is another reason why it’s important to continue reviewing your bank and credit card statements each month.

How to Set Up Automatic Bill Payment

Setting up automatic bill payment is relatively easy, but the process differs depending on whether you do it through a company or with your bank.

To set up autopay directly with the service provider, you typically need to:

1.   Log in to your account online or through the app.

2.   Look for an option like “Payment Settings” or “Billing Preferences.”

3.   Add a payment method.

4.   Select the payment amount (such as minimum amount due, full balance, or a set amount) and payment date.

5.   Review and confirm your settings.

To set up bill pay with your bank, the steps usually include:

1.   Log in to your online or mobile banking account.

2.   Navigate to the “Bill Pay” or “Pay Bills” section.

3.   Add the payee (many banks have a list of common billers you can select from to simplify the process).

4.   Set the payment amount and frequency.

5.   Select the date you want the payment to be processed.

Example of Automatic Bill Payment

As an example of automatic bill pay, let’s say your gym charges $65 a month, but offers a $5 discount if you sign up for autopay. You agree and enter your bank account details in your online gym account. The gym automatically bills on the 15th of each month, so you can’t customize the payment date. Now, $60 is automatically deducted from your account each month — no reminders needed. However, it’s still smart to check your bank activity regularly and cancel autopay promptly if you end your membership.

The Takeaway

Automatic bill pay is a valuable financial tool for anyone seeking convenience, organization, and peace of mind. It can help you save time, avoid fees, maintain a strong credit profile, and reduce stress related to money management.

However, it’s not completely hands-off. Automation generally works best when paired with good financial habits, such as monitoring your online accounts, budgeting carefully, and reviewing statements for errors and unexpected charges.

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

Do automatic payments hurt your credit?

Automatic payments, like manual payments, could hurt your credit if you pay your bills late or experience insufficient funds.

What is the difference between bill pay and ACH?

Bill pay usually refers to sending funds electronically. One common way that funds may be transferred (but not the only way) is via the Automated Clearing House network, which is known as ACH.

What is the safest way to set up automatic payments?

The safest way to set up automatic payments is to do so through your bank or credit card; it’s not recommended that you use your debit card as you’ll have less protection if there’s a problem. Also, check your balance and statements carefully to make sure you have enough money in the bank to cover your autopayments and also scan for any incorrect or fraudulent transactions.

Should I use autopay for utilities?

Whether you should use autopay for utilities depends on your situation and financial habits. If you know you’ll be able to cover the amount every month, it could be a real convenience. However, utility costs can sometimes fluctuate greatly, like the cost of heating a home in winter, which might cause pricing spikes and lead to your overdrafting. You want to be sure you can always afford to cover bills that are on automatic bill payment.

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.
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.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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