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Checking accounts are the foundation of personal finance and the way the majority of Americans conduct their daily finances. In fact, according to a recent survey, more than 91% of people in the U.S. have a checking account, the highest percentage among all types of accounts.

Opening a checking account can make good money sense. Without a checking account, it can be harder to pay bills, deposit your paycheck, and keep tabs on where your money is at all times. Having your money in a safe, secure account gives you peace of mind and more protection than keeping cash in your wallet.

Read on for 11 reasons why opening a checking account can be a game-changer.

Reasons for Opening a Checking Account

1. Depositing Checks with Ease

When you have a checking account, you can manage your finances in a more streamlined way. If you receive a check, you’ve not only got an instant home for it, but it’s often the fastest way to get access to the funds.

Your money should be available within a day or two if you deposit it before the bank’s cutoff time. A bank generally must make the first $225 of a deposit available at the start of the next day after the deposit was made. ​​The remaining money typically will be available the second business day.

Many banks and credit unions offer the convenience to deposit a check through their mobile app, saving you a trip to the bank or the ATM. Once you have the bank’s app, you can simply endorse the check, take a photo of both of its sides with your mobile device, and submit.

2. Streamlining (and Saving on) Payments

Another good reason to open a checking account is that it facilitates payments. You can arrange for timely bill payments and eliminate the need to sit, write out, and mail paper checks to utility and credit card payments, for example. You can sign up for automatic bill payment withdrawals, or send an electronic check (also known as an e-check) directly from your account. Whichever method you choose to pay your bills online, you need a checking account from which the money can be deducted.

By using your checking account to manage payments in this way, you may be able to save money. These actions can help you avoid pricey overdraft and NSF (non-sufficient funds) fees if you wind up in negative balance territory.

3. Accessing Your Money

These days most checking accounts come with a debit card linked to your account. Debit cards can be used to withdraw money from an ATM or swiped or tapped as a payment method virtually anywhere. The convenience and accessibility are major perks. You can get cash anytime and also deposit checks or cash at an ATM.

And, it’s becoming increasingly more common to be able to make a cardless withdrawal at an ATM if you don’t have your debit card. With a cardless transaction, you can use your phone or smartwatch to get your debit card information from the bank’s mobile app, or store your debit card information in a digital (electronic) wallet, option like Apple Pay, Google Pay, or Samsung Pay.

You’ll need to confirm the ATM you’re using can accommodate a cardless transaction. It’s likely you’ll pay a fee if you are using a machine operated by another bank or company, no matter what kind of transaction you are conducting. Another point to consider when using an ATM is whether or not your bank has an ATM withdrawal limit.

4. Your Money Is Safe and Insured

Here’s another reason to have a checking account: Stashing a lot of cash at home, even if it’s in a safe place, puts you at risk of theft and loss. Why tempt fate?

When you keep money at a bank insured by the Federal Deposit Insurance Corporation (FDIC), your cash is protected. The FDIC, an independent agency of the U.S. government, protects $250,000 per depositor, per ownership category, per insured institution in the rare event that a bank fails.

Using an insured credit union also offers the same type of protection. The National Credit Union Association (NCUA), also independent of the federal government, protects deposits at all federal credit unions and the vast majority of state-chartered credit unions. Like the FDIC, NCUA insurance covers $250,000 per depositor, per ownership category, per insured institution.

You can search for a FDIC-insured bank by using the FDIC BankFind Suite tool and find a NCUA credit union at mapping.ncua.gov .

Quick Money Tip: Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. An online checking account is more likely than brick-and-mortar to offer you the best rates.

5. Getting Paid Is Easier

Most employers use direct deposit as a way to pay their employees. This eliminates processing a paper check which can get lost or take more than a day to clear. Direct depositing your paycheck means it’s typically available to you on the morning of payday, and you don’t have to be bothered with depositing it yourself.

Automatic direct deposit isn’t only for employers. You can sign up to have your tax refund or other government payments such as Social Security or unemployment benefits automatically put into your checking account. Have a friend who owes you money for that theater ticket, or are you selling something and don’t want to deal with cash? You can receive payment directly deposited into your checking account through a mobile payment service such as Venmo, Cash App, or Zelle.

6. Creating a Record of Payments

A checking account gives you an automatic record of what money’s going in and what’s coming out. Your monthly bank statement spells it all out in black and white, so you can clearly track deposits, payments, or any other transactions like transferring your money from your checking account to a savings account. Basically, with a checking account, you’ve got proof of all these financial transactions in one place.

Having a record of transactions can be especially helpful if, for instance, a vendor claims you didn’t pay a bill on time or they never received it. You’ll also be able to see if someone has made a fraudulent purchase or if the bank made an error right there by scrolling through the list.

Many financial experts recommend people monitor their checking account often, say, once or twice a week. Not only can it help prevent any errors from slipping through the cracks, but it can also help you stay on top of expenses and avoid breaking your budget. You can get your paper statements mailed to you by the bank, or simply monitor your account online through the bank’s website or mobile app.

7. Building a Relationship with a Bank

Here’s another reason why you should have a checking account: It can help you establish a business relationship with a financial institution that can benefit you down the line. You can have access to a banking team that can answer questions and offer personalized service. For example, if you’re in need of a personal loan or want to apply for a mortgage with that bank, a bank officer can navigate you through the process and you might even get a better rate. Need to establish credit? Your bank may be able to issue you a credit card with their institution, offering a lower interest rate.

8. Earning Benefits and Rewards From Your Bank

Many banks offer some great incentives if you open a checking account with them. These bonuses can include zero or low fees, free overdraft protection, the ability to earn interest, and even receiving a sign-up bonus of a few hundred dollars or more.

One caveat: Many of the offers of cash bonuses come with qualifying requirements, such as needing to make a minimum opening deposit or have a direct deposit of $500 or more within a certain number of days.

9. Few or No Limits on Transactions

Checking accounts typically don’t limit the number of transactions you can make because these accounts are meant for day-to-day financial transactions. With a savings account, there may be more limits on how many transactions you can conduct, depending on the bank.

It can, however, be worthwhile to check the fine print when opening a checking account to see if there are transaction limits, including how much cash you can withdraw per day from an ATM or a daily dollar-amount ceiling on debit card use.

10. Saving You Money

Without a checking account to draw upon, your options for making payments and cashing checks can cost you. If you’ve got to pay a bill, you can get a money order or cashier’s check and mail in your payment or visit the bill payee’s payment location in person with cash. Both of these options mean shelling out extra money along with spending additional time making these stops. A money order can cost from $1 to $5 and a cashier’s check generally clocks in between $10 to $15.

If you have a checking account, you can write a check or set up autopay for those bills, saving you time and money.

A checking account can save you money when receiving funds, too. If you don’t have a checking account, you might either have to visit the bank where the check was issued and see if they will cash it or go to a check-cashing outlet. The latter usually charge a percentage-based fee, around two to 10% of the value of the check , or a flat fee which can be at least $3.

Recommended: Where to Cash a Check Without Paying a Fee

11. More Payment Options

Checking accounts can broaden your payment options. With this type of bank account, you can write checks, use a debit card for purchases and ATM cash withdrawals, make online payments, and electronically transfer money into another account, such as a savings account.

A note about saving: Once you’ve got a checking account, you can see how much money is sitting there and identify whether you can allocate some towards savings. It can be difficult to save money, but once you have a checking account, you can open a linked savings account (often even if it isn’t at the same bank) and start putting money away for the future.

Opening a Checking Account

Opening a checking account may take online minutes, especially in today’s world of online banking.

•   First step is to identify your needs. For instance, do you want to use a large bank with a vast network of branches and ATMs, or are you more interested in the higher interest rates and lower fees you might get at an online vs. traditional bank? Are you living paycheck to paycheck? You may want an account that doesn’t require you to have a minimum balance and doesn’t charge any monthly maintenance fees or for insufficient funds.

•   Shop around to find a financial institution that is a good match.

•   Complete an application, either online or in person at a bricks-and-mortar bank. You’ll usually need to have proof of your address (a lease or utility bill will work), plus valid photo identification such as driver’s license, passport, state or military ID.

Once you’re approved, you’ll receive documents with your new account number along with any other account details. You should then be able to make your first deposit .

Can You Have Two Checking Accounts at the Same Bank?

Yes, you can have two (or more) checking accounts at the same bank. Financial institutions typically allow you to open more than one checking account, which can be very convenient and help you keep finances organized.

There are multiple reasons why someone may want to have two checking accounts with the same bank. Perhaps you want your own individual checking account but also want a joint checking account with your partner. Parents may want to open a second checking account with their child to help teach them about money. Having a business or side hustle to keep earnings separate is another reason for possibly having a second checking account.

The Takeaway

A checking account allows you to keep your money in a safe, insured place and monitor your finances. It also provides convenience in terms of making payments, receiving funds, and having a debit card for purchases and accessing cash. What’s more, checking accounts can help you save money and, in some cases, even earn some. In a nutshell, it can serve as the hub of your financial life.

If you’re thinking of opening an online bank account, a SoFi Checking and Savings Account can be an excellent option. You’ll spend and save in one convenient place, and SoFi doesn’t charge any monthly fees, offers a competitive annual percentage yield (APY), and gives you access to more than 55,000 fee-free ATMs within the Allpoint® Network.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is the purpose of having a checking account?

A checking account gives you a secure, insured place to store and manage your money. It enables you to handle life’s everyday financial transactions, such as accessing cash, depositing money, paying bills, and receiving funds, without needing to buy money orders, get a cashier’s check, or visit a check-cashing outlet.

How much money should be kept in a checking account?

There’s no hard and fast rule, but the general rule of thumb is to aim to have at least one to two months of living expenses in at all times. At the very least, be sure to meet any minimum balance requirements; otherwise you could incur fees.

What do you need to open a checking account?

To open a checking account, you’ll need to fill out an application online or in person at the bank. You’ll likely need a valid photo ID (such as a driver’s license or passport), your Social Security number, proof of address, along with your contact information, date of birth, and any money required by the bank for an opening deposit.

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Photo credit: iStock/Yaroslav Olieinikov

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.

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

SoFi 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.

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

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

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If you’re wondering what those digits across the bottom of a check mean, the first one you see at the lower left is the routing number. Those three sets of numbers have different meanings and uses; they help financial transactions get processed swiftly and efficiently. They move funds from one place to another with precision.

Going from left to right, your checks are typically printed with the routing number, account number, and check number. It can be helpful to understand what a routing number represents in more detail. Those digits are useful when writing checks, signing up for direct deposit, and doing other banking activities.

Read on to learn about this important number and more, including:

•   What is a routing number?

•   Which number is the routing number on a check?

•   How is a routing number different from your bank account number?

•   When do you need to use a routing number?

What Is a Routing Number?

A routing number is a 9-digit identification number that’s been assigned to your bank or credit union by the American Bankers Association (ABA). It’s often referred to as an ABA number or a routing transit number (RTN). According to the ABA, a routing number can only be issued to a federal or state-chartered institution deemed to be eligible for a master account with the Federal Reserve.

The purpose of a routing number is to indicate which financial institution is responsible for processing a payment and to ensure the funds go to the correct place. Each bank has its own unique routing number to distinguish it from all of the other banks. This helps to avoid any confusion, mix-ups, or mistakes. For example, if your bank has a similar name to another one, it’s still distinguishable because of the financial institutions’ different routing numbers.

Routing numbers are only used in the U.S., but some large national and global banks may possess multiple routing numbers based on where the account is held or where you reside. A bank may also use more than one routing number for different transactions, such as one for wire transfers and another for processing checks.

Where to Find a Routing Number on a Check

Many of us, at one time or another, look at the digits on a check and wonder which one is the routing number. As previously mentioned, when you look at the bottom of a check, you’ll find three separate series of numbers. Typically, your routing number in the bottom left corner, your individual bank account number the second cluster of digits, and the check number can be found to the right of the account number. However, there are times when these numbers can appear in a different order, such as on an official bank check.

All of the numbers featured on the bottom of the check are printed with magnetic ink character recognition (MICR), an electric ink that makes the digits more machine-readable and helps banks process checks more quickly. The ink can’t be faked or copied, offering enhanced security for the account holder and the bank.

Routing Number vs. Bank Account Number

Now that you know which is the routing number on a check, consider that the routing and bank account numbers are two distinct things.

•   As noted earlier, the routing number identifies the financial institution responsible for the transaction and makes sure the money deposited or debited goes to the right place.

•   Your bank account number on the other hand, is a series of numbers used to pinpoint a specific savings, checking, or business account. It’s created especially for you and pertains only to your individual funds. If you have a checking and savings account with the same bank, each account will have its own separate number but the routing number for both will remain identical.

While routing numbers contain 9 digits, bank account numbers can have anywhere between 5 and 17 numbers. Generally though, account numbers are within the 8 to 12 digit range.

A routing number is safe to share and is available to the public. Your own bank account number is best to keep private whenever possible and only supplied to trusted sources. The combination of your personal account number with a bank’s routing number, can in some cases give someone direct access to your money.

What Are Routing Numbers Used For?

Routing numbers are necessary because in a financial transaction, these digits help banks identify each other. This is key in the event where you need to transfer money from one account to another. For example, if you send a loved one a check for their birthday, the routing number on the bottom of the check indicates the funds come from your particular bank and account.

You will find some instances when accessing your routing number will be necessary. Here’s some of those situations:

Setting Up Direct Deposit

Getting your earnings directly deposited into your bank account has pretty much made paper paychecks obsolete. In fact, one survey by the American Payroll Association found 93% of people use direct deposit as their method of getting paid.

If your employer gives you the option of receiving your pay via direct deposit, signing up should be pretty seamless. You’ll most likely fill out a form giving your company’s HR or payroll department your bank’s routing number along with your personal account number so they know exactly where to deposit your paycheck. Once you set up a direct deposit, come pay day, your money will automatically show up in your account. (Of course, make sure to use the digits for a current account vs. sending direct deposit to a closed account.)

Direct deposit isn’t only for paychecks. It can also be implemented for receiving Social Security and other government payments, annuities, travel and expense reimbursements, and 401(k) disbursements, among others.

Making a Wire Transfer

A wire transfer is a fast way of sending money electronically from one bank account to another. Some details to note:

•   These accounts can be domestic (between two U.S accounts) or between an international and a U.S. account. Wire transfers can be sent through your bank branch or online bank account. You can also choose to go with a wire service entity such as Western Union.

•   In order to send money via a wire transfer, you’ll need to provide the account you’re using to complete the transfer, the recipient’s bank name and routing number, plus their bank account number. Additionally, you may also need to provide your bank’s routing number and your individual bank account number.

•   Many banks charge a wire transfer fee for sending or even receiving one. An incoming fee may be around $15 and an outgoing one can trigger a charge of $25 on domestic transactions.

•   If it’s not an urgent matter, it will cost less to send money electronically through an Automated Clearing House (ACH) transfer. An ACH transaction uses an electronic network system that represents more than 10,000 financial institutions in the U.S. You may wonder what ACH transaction fees are like? They are typically free for bank clients, which is a nice benefit. The downside of an ACH is it can take a couple of days to process, whereas a wire transfer can be processed the same day .

Recommended: ACH vs. Check: What Are the Differences?

Paying a Bill Online

Making a bill payment online and scheduling automatic payments for your recurring monthly bills can make life a lot easier. In order to make online bill payments, whether you arrange for it to be automatically deducted or log on to the biller, such as a utility or credit card company, those bill payees will need both your financial institution’s routing number along with your individual account digits.

You can also pay businesses or people electronically directly from your bank account through apps such as Venmo and PayPal. When you sign up for these apps, you can choose where you want your payments to come from, or go to, if someone is sending you money. One choice is to link to your bank account, in which case, those apps will need your routing and account numbers.

Recommended: Changing the Due Dates of Your Bills: Is it Possible?

Filing Your Taxes

Getting or expecting a refund this year? Direct deposit for your tax refund is the fastest and most reliable way to get your money. And, it’s also popular. According to the IRS, 80% of taxpayers choose direct deposit as the method in which they get their refund. If you choose this option, you’ll need to enter your bank name, routing number, and the bank account digits where you want to receive your refund.

Make sure you verify you’ve put in the correct routing and bank account numbers on your federal and, if applicable, state return before you sign and submit it. If not, the IRS will send you a paper check instead.

Looking Up a Bank

Nowadays with so many banks offering enticing reasons to open an account, such as a signup bonus , low-interest rates, and low-to-no monthly fees, it’s possible to have a checking account with one bank and a savings account with another. In this case, you’ll have a routing number for each bank. You’ll need to know both if you want to transfer money between accounts, for example.

Thanks to the internet, you may find the other bank’s routing number simply by going on their website. Some may list it on the home page or elsewhere, like the FAQ section. You can also use a search engine to type in the name of the bank and “What is their routing number?” to try to find out the information.

Finding a Routing Number Without a Check

Don’t have a check handy? No problem. There are definitely other ways you can easily get your routing number. Here’s how:

Monthly Bank Statement

Banks and credit unions make a monthly statement available to customers either online or on paper that’s sent through the mail. When you have your statement, you should find the bank’s routing number along with your account number on the top of the first page.

If you can’t locate it, try logging on to the bank’s website and do a search for your routing number or explore your account details to find those digits.

Checking your monthly bank statement frequently is a good way to keep on top of your transactions. Review your statement regularly to check for any bank errors or fraudulent activity such as incorrect debits from an altered check or a continued recurring charge from a long-ago canceled subscription. If you discover any type of errors, contact your bank right away.

Mobile Banking App

Having 24/7 online access to your bank account makes finding your routing number possible from your couch. Many banks have a mobile app these days. While these apps tend to differ in setup and layout depending on your bank, you should be able to find your routing number through the app by looking up your account details.

You can also access your bank statement through the app and as previously mentioned, generally find your routing number that way.

Your Local Bank Branch

If all else fails and you can’t easily find your bank’s routing number, visit your nearby branch in person to get the information. Sometimes the bank will have the routing number posted in the lobby area so you can simply jot it down or take a photo of it with your phone. Asking a teller or bank officer directly if it’s not displayed.

Can’t make it to the bank or have an account at an online vs. traditional bank? Call their customer service number. A representative can typically give you the bank’s routing number over the phone.

Look It up Through the ABA

The American Bankers Association has a routing number lookup tool called the ABA Routing Number Lookup. This mechanism allows you to locate the routing number for your bank or credit union. One thing to know when using the ABA Routing Number Lookup, users are limited to no more than two lookups a day and to 10 lookups a month. You’ll also have to agree to terms for access and use of the ABA’s tool.

The Takeaway

Your bank’s routing number can be found at the bottom of your personal checks on the far left-hand side. If you don’t have a check at your fingertips, you may need to find your bank’s routing number another way. You might call your bank, get it from your bank statement, or find it through the bank’s mobile app.

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

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Is the routing number always first on a check?

Typically, yes, the routing number is the first set of digits at the bottom left-hand area of a check. But in some cases, it can be switched up and appear after the account number, such as on a bank check.

Are routing numbers 8 or 9 digits?

Routing numbers are always 9 digits. Your individual bank account number typically falls between 8 and 12 digits, but it can be anywhere between 5 and 17 numbers, depending on your financial institution.

Which is the account number on a check?

The account number on a personal check is the group of numbers that appears on the bottom, normally sandwiched between the routing number on the left and the check number on the right.

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Photo credit: iStock/MicroStockHub

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.

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

SoFi 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.

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There are times when you may need to get money to someone quickly and meeting in person isn’t possible. Or you may want to surprise someone with a monetary gift and have it show up as a deposit in their bank account.

Fortunately, there are a myriad of ways you can directly deposit money into another person’s account. The method you choose can depend on how fast you need to send the money; whether you want to deposit cash, a check, or a money order, or transfer funds electronically; and how much you’re willing to shell out for fees.

Read on to learn about how to deposit money into someone else’s account and more, including:

•   How to make a direct deposit into someone else’s bank account

•   How much it costs to transfer money into someone else’s bank account

•   Alternatives to making a direct deposit into another person’s account.

How to Deposit Money into Someone Else’s Bank Account

1. Money Transfer App

A mobile money transfer app falls under the category of P2P transfers, aka peer-to-peer payments. There are many money transfer apps out there including Venmo, Apple Cash, Google Pay, PayPal, and Facebook’s Meta Pay. Here’s how they work:

•   These apps allow you to electronically send money instantly (or close to it) to someone else via your mobile device. Using one can be an easy and speedy way to transfer money into someone else’s account. It’s also extremely popular. A 2022 survey by Consumer Reports found nearly two-thirds of Americans use a P2P app to send people money.

•   To use a money transfer app, you first need to download it to your mobile device and then create an account. Once you do this, you’ll enter the payment source you want to use to fund the deposit. The choices include linking to your bank account, debit card, or credit card. After you do this step, you’re ready to send someone funds through the mobile money transfer app.

•   Typically, recipients also need to have an account with the same money transfer app in order for the funds to go directly to them. If you’re sending someone money through a money transfer app, you don’t need to know the payee’s personal or bank account information in order to make the transaction but rather their phone number or email address. This is how the person you’re sending money to will instantly know they’ve received the funds, based on their preference.

•   The recipient can have the money sent directly to their bank account, if they’ve chosen that option, or they may decide to have the money received on a prepaid debit card.

2. Bank-to-Bank Transfers

A bank-to-bank transfer, also referred to as an external transfer, is exactly what it sounds like. By visiting your bank, calling their customer service number, or through your bank’s website or mobile app, you can efficiently transfer money from one bank to another. Here are details on how they typically work:

•   Many banks offer customers an external transfer feature on their websites to click on in order to send money to an account at another financial institution. Your bank may have you verify your identity before completing the transaction. To do an external transfer to another person’s account at a different bank, you’ll need the recipient’s bank account number and their bank’s routing number.

•   One option for a bank-to-bank transfer is using a widespread online service called Zelle, which is used by more than 1,700 financial institutions in the U.S. With Zelle, you can send money to someone, regardless of where they bank. If your bank offers Zelle, all you have to do is log on to your account, enter the recipient’s email address or mobile phone number, and send the desired amount of money.

A payee already enrolled in Zelle will get the money directly deposited into their bank account, typically in minutes. When it arrives, they can then manage the checking account and move the funds if they like. If they’re not signed up, Zelle sends a notification alert anyway, explaining how they can register to receive their money easily and quickly.

•   Keep in mind that some banks charge a fee to do a bank-to-bank transfer and may impose limits on how much money you send at a time and how often you can do an external transfer.

Recommended: What Happens if a Direct Deposit Goes to a Closed Account?

3. Electronic Deposit Using a Website

Money transfer websites allow you to electronically move money into someone else’s bank account. PayPal, MoneyGram, and Western Union permit you to transfer money from your account to another person’s through their websites. (Worth noting: Walmart stores may offer the opportunity to send an electronic payment onsite, by MoneyGram, Western Union, or Ria.)

A perk of using these sites is it enables you to send funds without having to sign in to your bank’s app or website. The funds draw from your checking account, debit card, or credit card.

4. Making a Cash Deposit at a Bank

One of the most straightforward ways to deposit funds into someone else’s bank account is with cash. All you have to do is walk into the bank where the payee has an account and let the teller know you want to deposit cash into their account. You’ll need to provide the recipient’s name and bank account number.

However, whether or not you’re able to deposit cash into another person’s account will depend on the bank. Some large banks — including JPMorgan Chase, Bank of America, and Wells Fargo — have banned cash deposits from non-customers. Why? Handling cash, especially in large amounts, can signal fraud or other types of criminal activity, including money laundering. Before visiting the bank in person with cash in hand, check that the bank will allow you to do so.

5. Using a Money Order

A money order is another form of currency that can be used to deposit funds into someone else’s bank account. Money orders are a guaranteed payment because you prepay so it works a lot like cash.There’s no chance a money order will bounce and it will clear in someone’s account almost immediately. Here’s how it works:

•   You can purchase a money order with cash or a debit card at a bank, credit union, U.S. Post Office, check cashing outlets, some supermarkets, or national retailers, such as Walmart , 7-Eleven, and CVS.

•   On the money order, you’ll fill in the recipient’s legal or business name plus the dollar amount of the money order. Then, you’ll fill in your name, address, and sign the front of the money order on the line where it indicates Purchaser/Signer for Drawer.

•   Every money order comes with a receipt and a tracking number so you have proof you sent the money, in case there’s any dispute with the payee.

•   Generally, you can get a money order for up to $1,000, but the maximum can be lower depending on where you purchase it.

•   Be aware that you’ll likely pay a fee for obtaining a money order. Fees can range from under $1 to $10, depending where you go. Post offices and retailers charge less than if you go to a bank, though if you get the money order at the bank where you have an account, the bank may waive the fee. Cash and debit cards are the norm when buying a money order. While paying with a credit card may be possible, it may cost more.

6. Writing a Personal Check

You can likely deposit a check into someone else’s account. Unlike a cash deposit, which is harder to trace, a check comes from another account, so the bank knows from whom and where it came from.

As you would with a cash deposit, you’ll need to know the person’s account number in order to fulfill the transaction. Since a check can take a few days to clear, if you want the person to receive your money faster, it’s better to stick with some faster options, such as sending the money electronically or depositing cash.

Quick Money Tip: Want a new checking account that offers more access to your money? With 55,000+ ATMs in the Allpoint network, you can get cash when and where you choose.

7. Sending a Wire Transfer

Wire transfers are another way you can move money from one bank account to another. Here’s the scoop:

•   This method of sending payment can be done at banks, credit unions, or through such companies such as Western Union, MoneyGram, or Wise.

•   People tend to send money through a wire transfer when they want a fast deposit, the sum is large, or the funds need to go to a different bank than the sender’s.

•   Wire transfers are also often used for sending money internationally. To send a wire transfer, you’ll need the name of the recipient, their bank account number, and their bank’s routing number.

•   Wire transfer fees can range from $10 to $50, depending on whether you’re shifting money into a U.S. bank account or one in another country. Before you transmit money this way, make sure both your bank account and the payee’s account are both set up for wire transfers.

8. Getting a Cashier’s Check

Another option for directly depositing money into someone else’s account is with a cashier’s check. This type of check is an official bank check you obtain from the bank itself. It’s usually used for larger sums of money and is a guaranteed payment, since it’s paid from the bank’s own funds.

•   The process for obtaining a cashier’s check is easy. If you want to use a cashier’s check to make a deposit in another person’s account, you pay the bank the amount you want to send to the recipient and a teller or cashier will issue an official bank check for that amount. The payee’s name will be on the check in the ‘payable to’ section, so it can be deposited into their account.

•   Using a cashier’s check speeds up the time the receiver gets their deposit. Where a personal check can take a few days to clear, funds from a cashier’s check deposit are typically available in the third party’s account the next business day.

•   One caveat: You’ll most likely have to pay a fee for a cashier’s check, usually around $10 to $15. Some banks, though, may forgo charging the fee for account holders who meet certain balance requirements.

Recommended: Where to Cash a Check Without Paying a Fee

Direct Deposit into Savings vs. Checking

In general, you can make a direct deposit into someone’s savings account, just as you would their checking account. Someone may prefer you put money into their savings vs. their checking account so they’re less apt to spend it right away.

Before you go ahead and transfer funds into their savings, check that it’s okay with them. They may be restricted to a certain number of savings account withdrawals and transfers their bank allows per month. This could put them at risk of incurring extra fees if they exceed the permitted amount when using the money you put there.

Alternatives to Direct Deposit

There are other ways to give someone money without making a direct deposit into their account. Here’s some substitutes to consider:

•   Gift cards. Who doesn’t love a gift card? After all, gift cards are currency, and if it’s a Visa, Mastercard, or American Express gift card, they can be used virtually anywhere these cards are accepted. You can also purchase a specific gift card for a certain store if you know the recipient is a frequent customer. You might give gift cards usable at popular retailers such as Target, Whole Foods, Starbucks, Dunkin’, and Amazon.com.

•   Prepaid debit cards. These types of cards are purchased with a specific amount of money already loaded on it. Many of these cards come with a Mastercard or Visa logo printed on the front and look like credit cards. Similar to a gift card with these logos, you can use these cards at a myriad of places and even towards paying bills. Be aware that many prepaid cards can come with very high fees when activating the card, adding money, or using it at an ATM.

•   Hand them cash or a check in person. There’s nothing like giving cash or a personal check to someone in the flesh. Not only do you ensure they receive it, but if it’s an unexpected gesture, the look of joy and gratitude on their face can be extremely rewarding.

•   Pay it forward. Gift the gift of generosity by paying a loved one’s utility or credit card bill, or if you’re flush, a larger expense. You can make the payment to the bill payer directly as long as you know the person’s account number. You can pay by mailing a check, paying by phone, or through online billpay. If sending a paper check or paying with an electronic check, be sure to put the person’s name and account number for whom you’re paying in the memo section.

The Takeaway

If you want to make a direct deposit into someone else’s bank account, there’s no shortage of ways to go about it. Some of these various choices include sending a wire transfer, making a cash deposit at the bank, or using a mobile money transfer app. You can also go with some creative alternatives such as a prepaid debit card or surprising them by taking care of a bill they may have trouble paying.

If you’d like a bank account that makes transferring funds easy, consider opening and online account with SoFi. With our high yield bank account, you can manage your finances all in one convenient place, including sending money and making mobile deposits. Plus, you’ll earn a competitive annual percentage yield (APY) and pay no account fees, which can help your money grow faster.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Does my name have to match the person I’m sending a direct deposit to?

No. When you deposit funds into someone else’s account, it’s their name and account number you’ll need.

Can you make an anonymous deposit into someone else’s account?

Yes, you can, though it depends on the method you choose. Making a cash deposit is especially easy to do without revealing your identity. Other methods though, such as a personal check or external bank transfer, can make it more difficult to stay anonymous since the source of where and from whom the funds come from will show up in the person’s transaction history. You may be able to pull off a secret deposit with a prepaid gift or debit card or using some mobile money transfer systems such as CashApp, PayPal, and Western Union, all of which may also allow the payer to remain a mystery donor.

Can you deposit money into someone else’s account at an ATM?

Typically, yes, an ATM or debit card permits you to move funds into someone else’s account as long as their bank account is linked to yours. It’s important to know even if the two bank accounts are linked, you’ll need to perform the transaction at one of your bank’s ATMs, not one that is out of the network. There may be some ATMs where you can’t do a money transfer, so check with your bank or on their website to find out which ATMs offer this function.

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Photo credit: iStock/AlexSecret

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.

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

SoFi 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.

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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If you’re feeling financially disorganized, making a few key moves can help you restore order and take charge of your money. You’ll learn to live within a budget, pay down debt, and start saving so you can work toward a successful financial future.

Here’s what you need to do to clean up your finances.

Ways to Clean Up Your Finances

1. Look at the Big Picture

The first step is to look at your entire financial situation. Review your bank statements, credit card statements, bills, and paychecks. It might feel a little overwhelming at first, but seeing your income and debt all at once, and comparing the two, can help you understand exactly what you own and what you owe.

Make the process easier with a money management tool that can help you track your accounts in one place.

2. Set a Practical Budget

Setting a budget can be a great way to organize your spending and saving. One way to do it is by using the 50/30/20 method. This process can help simplify your money by dividing it into three categories.

To start, 50% of your income goes to necessities, such as housing, utilities, groceries, and other essential bills. Next, 30% is for discretionary spending, like entertainment or eating out. The remaining 20% is for your financial goals, such as savings and retirement.

As a final step in the budgeting process, take a look at your savings account. You may want to consider opening a high-yield online bank account where your money could earn more for you.

3. Make Payments On-Time

One surefire way to make sure your bills are paid by the due date is to automate your finances by setting up autopay. Since payment history affects approximately 35% of your FICO® score, consistent on-time payments could potentially benefit your score.

Plus, many financial institutions may offer a discount for setting up automatic payments. You can also go paperless and get notifications delivered straight to your email inbox.

4. Cancel Unused Subscriptions

As you’re evaluating your spending habits and budget, be sure to look for subscription services you can cancel.

Whether it’s an unused Netflix subscription or an underused gym membership, canceling what you don’t use could save you a substantial sum over the course of a year.

5. Make a Plan for Your Debt

If you’re working on paying off multiple loans, you could explore the idea of consolidating your debt with a personal loan. If you have debt built up across multiple credit cards, for example, the different interest rates and due dates can lead to confusion and missed payments.

One possibility to help simplify things is a debt consolidation loan. You could choose a new repayment term, possibly with a lower interest rate, if you qualify.

If you have private student loans to repay, you might also want to consider refinancing your student loans. You may be able to get a lower interest rate that could help you save money. Evaluate the options to see what might work for you and what you can qualify for.

6. Review Your Current Investments

If you’ve had multiple jobs, you may want to consolidate your investment accounts, too. Having several 401(k) accounts from past jobs could be tough to keep track of and might not help you make the most of your money in the long run.

Rolling over your old 401(k) accounts and combining them into one IRA account, for example, could be one option to consider.

You can also check with your current employer to see if you can roll over your previous accounts to your new plan. Be sure to compare the different investment choices of each account to make an informed decision.

7. Commit to Regular Maintenance

Streamlining your finances in the present is just the first step. From now on, commit to doing a regular financial checkup. Review your finances monthly, and adjust your budget and financial strategies as needed.

8. Stay on Top of Your Credit Report

While you’re at it, check your credit report and review it to make sure it’s correct. If you spot any errors, notify the credit bureaus. You can get a free copy of your report from AnnualCreditReport.com.

In addition, you may be able to check your credit score for free through your credit card or bank. You can see how your score changes over time and what may be impacting it the most. Then you’ll know what you need to work on to strengthen your score.

9. Review Insurance Policies

If you have life insurance policies or other benefits with beneficiaries, review those designations at least once a year. With big life changes, you’ll want to make sure your beneficiaries are up to date.

If you get married or remarried and change your name (or your spouse’s name changes), you’ll need to add that information to the policies as well.

10. Update Your Tax Withholding

Take a look at your most recent tax return. Did you end up with a big refund? Or maybe you owed way more than you planned for. Your withholding may be too much or not enough.

Discuss your withholding information with a tax professional to make sure you’re having the correct amount taken out of your paychecks for taxes.

The goal is to free up more of your money month to month as you earn it so you can put it toward savings or paying off debt.

11. Maximize Account Benefits

Finally, as part of your financial cleanup, you should review the benefits and features of your bank accounts and see if a new account might benefit you more.

If you’re thinking about a high-yield savings account, for instance, check out SoFi Checking and Savings. You’ll earn a competitive APY, pay no account fees, and there’s no minimum balance.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

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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.

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.

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Having a roommate can be great; you have companionship and someone to split the bills with. But that sharing of expenses can sometimes get challenging and tense even. Roomies can wind up arguing over who is using up all the toilet paper or sending the electricity bill through the roof.

To help keep the peace and control costs, there are smart tactics you can use. Try some or all of these tips to keep your household as fun and argument-free as ever.

Creating Clear Guidelines on Which Bills to Split

One of the easiest ways to ensure everyone feels satisfied with how the household bills are handled is to be direct and upfront with financial expectations. And this means being straightforward about what those expectations are before anyone moves in.

When negotiating moving into a new home, consider asking how bills are handled now and how it will change when you or someone else moves in. Additional questions to wrangle can include:

•   Whose name is currently on the utilities?

•   Will I be expected to put my name on any utilities?

•   When is money collected to split the bills?

•   Are the bills divided equally, or by room size?

These can be helpful, because everyone can understand what’s expected. It also sets ground rules moving forward.

Deciding How Everyone Wants to Split Bills

As for the best way to split bills, that may depend on the household situation. For example, if the home has two evenly-sized rooms and a shared bathroom, kitchen, and living area, it may be easiest to simply split the bills down the middle as everyone has an equal space. But, if one room is exponentially larger than the other and has its own en suite bath, the bills could be split proportionally to reflect the extra space for one roommate versus the other.

It is a good idea to tackle the grocery issue head on. For instance, address such questions as:

•   Is the house going to split groceries?

•   Is everyone going to enjoy one shared meal together at night?

•   Are the roommates going to split common goods like cleaner and toilet paper?

•   Or is each person going to fend for themselves?

Any way you choose to go about it is fine, as long as it’s all out in the open — before someone accidentally finishes someone else’s ice cream without asking.

Picking Who Is Responsible for Which Bill

Once it’s decided how a bill will be divided, one other idea may be assigning each roommate ownership of bills for things like the electricity, heating, gas, water, trash, cable and internet, and more, depending on the rental agreement. Perhaps you’re able to get a better deal based on a roommate’s existing account with a certain biller. That may be one way to decide and to lower expenses.

Or, another common method is to have the roommates divide up the bills evenly in order to distribute the responsibility. Doing things this way may also ensure everyone pays bills on time. Being late with bills can lead to fellow roommates being surprised with a service being interrupted and their credit being dinged if they are listed on the account that’s unpaid.

You might also look into changing the due date on bills; this can sometimes be accomplished and can ease cash flow.

Creating a Roommate Bills Contract

Once the lease has been negotiated, the bills have all been cleared up, and everyone is in agreement, you may be considering some sort of “roommate contract” spelling out exactly what was decided upon, which everyone reads and signs.

That way, no one can ever claim they were confused about the household budget and how bills are split, when money is owed, and who is responsible for what. It is recommended to share the fully executed contract electronically and then a printed out copy for all to review and retain.

Recommended: How to Rent an Apartment With No Credit

Sharing a Spreadsheet of Expenses

Settling into a new home and arrangement might be a good time to finish up the admin work by creating and sharing a monthly spreadsheet of expenses.

This spreadsheet could be kept in a common gathering area for easy reference and shared online as well. In the spreadsheet, each roommate can keep track of the expenses they are responsible for, as well as who has paid and what is outstanding.

This spreadsheet may also come in handy for adding in shared groceries and necessities like milk, eggs, toilet paper, and paper towels. That way, everyone can keep track of who bought the last batch to avoid an argument later. You’ll also see how much your household is spending on groceries per month and other expenses.

Recommended: Different Types of Budgeting Techniques

Sitting Down Together at the End of Each Month

It is said that one of the quickest ways to ruin a roommate relationship is for one person to get passive-aggressive about the bills. That’s why it’s recommended to avoid leaving little notes around the house about who owes what (or who hasn’t done the dishes in far too long) and instead face those issues head on.

At a good time for everyone, perhaps toward the end of each month, schedule a 10-minute roommate check-in. In this meeting, everyone can share household happenings, announcements, and any updates on household bills.

By sitting down in person, no one can avoid possible uncomfortable questions about money. You all can figure out potential sticky situations together.

As a bonus, roommates can also use this time to go over any other to-dos around the house. You might also discuss ways to economize, such as saving money on water bills.

Keeping Some Personal Purchases Separate

Though some may be tempted to fully invest in a roommate relationship by sharing the financial burden on just about everything, there are some items that are better left in a budget’s personal spending category.

That includes the purchase of any big-ticket items you’d like to take with you if you ever move out. These might include such items as a TV, couch, tables, glasses, or an expensive Crockpot purchased on a whim.

It may also be helpful to distinguish an area in cabinets and the fridge for each individual roommate to place specialty or expensive food items they do not want to share.

If one roommate has a pet they adopted on their own, it is a good idea to keep those bills completely separate.

Recommended: How to Save Money on Pets

Another common recommendation is for everyone to invest in their own renters insurance. This will protect all their items in case of a fire, flood, burglary, or more. This type of insurance could save everyone a lot of money and heartache if disaster strikes.

Using Modern Technology to Split Bills with Roommates

Fortunately, splitting bills with roommates is easier than ever, thanks to the advent of P2P transfers. You might all pay bills via PayPal, Venmo, or Zelle, and then one person transfers the appropriate amount to the payee. Your bank may also have tools you can use to quickly send funds to others.

It can be fast and free to transfer money this way and can make the bill-paying routine quick and simple.

The Takeaway

If you need flexible banking (whether or not you have roommates), consider what SoFi offers. With an online checking and savings account, you can not only access your money at any time from anywhere but also transfer money to pay bills directly online. Plus, you can complete peer-to-peer transfers between SoFi Checking and Savings members and non-members.

More perks: No account fees and a competitive annual percentage yield (APY) to help your money grow faster.

SoFi Checking and Savings: The smart, simple way to manage your money.

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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.

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 .

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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