SoFi

Opinions about America’s financial institutions may vary, but regardless of your viewpoint, it’s important to understand how these organizations are governed. At both federal and state levels, laws are set and enforced to protect consumers against unfair and unscrupulous treatment in the banking and finance sectors. In addition, guidelines are in place to combat fraud and monopolistic behavior, helping to ensure the smooth running of the free-market economy.

Granted, catastrophic historic events — such as the 2008 global financial crisis — occur despite the oversight of robust financial regulatory agencies. Because of this, laws and regulations are constantly being examined and updated to finesse the banking and finance legal framework.

Read on to understand more about finance watchdogs, their roles, and how regulations work to protect the public and the economy from fraud and illicit practices. It’s wise as well as reassuring to know more about the guardrails that are in place.

What Is Financial Regulation?

Financial regulation is a set of laws, rules, and policies set by governing institutions. These are designed to keep your money safer. Specifically, they aim to maintain confidence and stability in the financial system by eliminating fraud and monopolistic behavior.

In the United States, governing bodies try to balance the need for oversight with a free-market economy, which can be a challenging endeavor.

Why Financial Regulations Are Important

Without regulations, consumers have no protections. They might be subject to fraud, sold bad mortgages, and charged high interest rates and fees on credit cards. Large companies could create monopolies or duopolies, which allow them to control prices.

Laws and policies prevent companies from gaining too much market control and stifling competition, which threatens the free market economy. Regulations also prevent financial institutions from taking risks that put consumer funds in jeopardy.

Here’s a brief history lesson that shows how lack of regulation can negatively impact daily life: The 2008 financial crisis was precipitated by deregulation and the repeal of the Glass-Steagall Act of 1933. This allowed financial institutions to engage in risky hedge fund trading. To fund their investments, the banks created interest-only loans for subprime borrowers, which contributed to more home purchases (including to buyers who would not have otherwise qualified) and quickly rising prices. This created a housing bubble, and millions of people were left bankrupt and couldn’t sell their homes when home prices then plummeted.

But too much regulation can also be a threat to an economy. In a free-market economy, prices are largely determined by supply and demand. Competition among suppliers tends to keep prices at bay as they each try to grab market share.

If regulations become too onerous and costly, companies may use up capital to comply with federal rules. That means they aren’t using those funds to create innovative products. In some cases, specific industries or groups manage to influence regulators and persuade them to introduce or eliminate laws that benefit them and not their competitors.

Types of Financial Regulations

Different agencies focus on the safety and soundness of products and services, transparency and disclosure, standards, competition, and rates and prices for different entities. Here’s a closer look at some of the most important regulations to be aware of:

•   Stock Exchange Regulations Laws and rules for stock exchanges ensure that the pricing, execution, and settlement of trades is fair and efficient.

•   Listed Company Regulations Listed companies (public companies) are required to prepare quarterly financial statements and submit them to the Securities and Exchange Commission (SEC) and to their shareholders. Investors use this information to inform their trades.

•   Asset Management Regulation Financial advisors and asset managers must follow strict rules set by financial services regulatory bodies so that clients are treated fairly and not defrauded. Any company that provides investment advice is considered an investment advisor, and the SEC oversees investment advisors with more $110 million in assets under management (AUM).

•   Financial Services Regulation Banking and financial institutions must follow specific guidelines to ensure a functioning banking system. These rules are enforced by The Federal Reserve Board (the Fed) and the Federal Deposit Insurance Corporation (FDIC).

Recommended: What Is a Fiduciary Financial Advisor?

Types of Financial Institutions

There are a wide variety of financial institutions in America, some of which you may be familiar with. Here’s the rundown:

•   Central banks, like the U.S. Federal Reserve, watch over the country’s monetary policy.

•   Retail banks are probably what most people are familiar with. These are banks where the general public can have checking and savings accounts, loans, and other financial services.

•   Commercial banks are similar to retail banks (above) but they serve the business community. Large banks may act as both commercial and retail banks.

•   Credit unions are similar to banks but they are nonprofits, and members are part owners of them. They offer the same kind of services as banks but may tailor themselves to specific communities.

•   Community development financial institutions (CDFIs) are financial institutions that work to build financial knowledge, services, and wealth in communities that are less advantaged.

•   Savings and loan associations are organizations that use savings to create housing loans.

•   Brokerages manage securities trading (say, stocks and exchange-traded funds, or ETFs), which are regulated though not insured.

•   Insurance companies help both businesses and individuals protect themselves from property loss and may provide services such as loans.

•   Investment companies function by issuing securities to both businesses and individuals who seek to raise capital.

•   Mortgage companies offer home loans and may also manage commercial real estate.

What Is a Financial Regulator?

A financial regulator is an organized governmental or formal body that has the jurisdiction to oversee other entities, such as stock markets, banks, and asset managers. Their mandate is to ensure fairness, protect the public and institutions from fraud, and to facilitate a well-functioning financial sector.

Examples of financial regulators are the Fed, the Securities and Exchange Commission (the SEC), and the Financial Industry Regulatory Authority (FINRA).

How Are Financial Institutions Regulated?

Banks and financial institutions are regulated by the Fed, the Office of the Comptroller of the Currency (OCC) and the FDIC, while asset management companies and stock exchanges answer to the SEC and FINRA. (Also worth noting: Individual stock brokers, investment bankers, and other professionals likely need FINRA securities licenses.) State agencies may enforce regulations on financial institutions, notably insurance providers.

Each of these organizations requires documentation from financial institutions and companies that show compliance with laws. For example, listed companies have to submit quarterly financial statements to the SEC. If they fail to do so, they may be charged with “Failing to Comply” and may lose the ability to trade their shares on the stock market and be forced to pay penalties.

Recommended: FINRA vs. SEC: How are they Different?

The Most Common Financial Regulatory Bodies

The following is a list of the more recognized regulatory agencies and a brief description of what each one does.

The Federal Reserve Board (FRB)

The Fed is the central bank of the United States. As such, it ensures the U.S. economy functions effectively. The Fed is in charge of monetary policy and has the power to increase or decrease interest rates or to instruct banks on the quantity of reserves they must maintain. The Fed also monitors financial systems and their impacts, facilitates efficient settlement of U.S dollar transactions, and upholds laws that protect consumers.

The Federal Deposit Insurance Corporation (FDIC)

The FDIC was created by Congress to support the U.S. financial system. The FDIC insures deposits and monitors financial institutions and their compliance with consumer protection laws. The FDIC also manages bank failures.

The Consumer Financial Protection Bureau (CFPB)

The is a relatively new agency that implements and enforces Federal consumer financial law. CFPB regulations protect consumers by making sure financial products and services are “fair, transparent, and competitive.”

The National Credit Union Association (NCUA)

The NCUA was created by Congress in 1970 . The association insures consumer accounts with credit unions with up to $250,000 of federal share insurance. Enforcement tools of the association include letters of understanding and agreement, administrative orders, and consent orders.

The Securities Exchange Commission (SEC)

.
The SEC strives to maintain the public’s trust in the capital markets by insisting on fair practices. Various acts have been passed over time including the Securities Act of 1933, the Sarbanes-Oxley Act of 2002, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

The Commodity Futures Trading Commission (CFTC)

The CFTC was created in 1974 to oversee commodity trading in the agricultural sector. Commodity trading has been subject to government regulation since the 1920s. The CFTC supervises and monitors commodity traders and market activity. The commission investigates and prosecutes wrongdoers and educates customers about their rights and how to avoid fraud.

Recommended: What Are the Difference Between FDIC and NCUA Insurance?

How Financial Regulators Help Banking in the Way We Know Today

The banking and financial systems operate well under current regulation, but what about digital banking? Digital banking is a recent innovation, and existing banking laws and regulations generally apply to digital start-ups and fintechs. However, there are some regulatory frameworks specifically for digital banking.

An example of protection for digital banking consumers is Electronic Know Your Customer (e-KYC), which is used for digital onboarding and checks that a customer is who they say they are to avoid fraud and money laundering. E-signature is a way for customers to validate transactions remotely.

Another instance is the Electronic Fund Transfer Act (Regulation E) which aims to make applicable electronic transactions compliant with regulations as well as have “readily understandable” consumer disclosures.

Recommended: Online Banking vs Traditional Banking: What’s Your Best Option?

The Takeaway

Financial services regulatory bodies like the Fed, the FDIC, and the SEC oversee the banking and finance sectors in the United States. State agencies also play a role. Though many consumers are not aware of the details, these regulatory bodies have jurisdiction over stock markets, commercial and retail banks, investment banks, and asset managers. Their mandate is to ensure fairness for consumers, ensure entities comply with fraud protection rules, and to protect the financial sector and free-market economy.

Which is all good, of course. But if you are looking for a great bank for your personal accounts, see what SoFi Checking and Savings offers. When you open a bank account with direct deposit, you’ll earn a competitive APY, pay no account fees, and have access to the Allpoint network of 55,000+ fee-free ATMs.

See how smart and convenient banking can be with SoFi.

FAQ

Who regulates financial institutions in the United States?

In the United States, financial institutions are regulated by the Fed, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the SEC, FINRA, the CFPB, the NCUA, and the CFTC. State agencies also enforce regulations on financial institutions, especially insurance providers.

What are regulators in finance?

Finance and banking regulators are state- and government-appointed bodies that protect the safety and fair treatment of consumers. They also ensure smooth operations of the finance and banking sectors, the backbone of the economy.

Who regulates investment banks?

U.S investment banks are regulated by the SEC. For regulatory purposes, investment banks were declared separate for commercial banks following the passing of the Glass Steagall Act of 1933.

---

Photo credit: iStock/assalve

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

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©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.

SOBK0622033

Read more

Large trees, even landmark ones, sometimes have to be removed when they’re dead or dying. How much it costs to cut down a tree varies depending on where you live, the tree’s health and condition, height and diameter, accessibility, and other factors. But a typical homeowner can expect to pay $750 per tree on average, or $10–$14 a foot.

Ultimately, it’s better to spend the money upfront than risk a tree falling and causing injury or damage. Keep reading to find out what tree removal costs, all it entails, and the complications that may drive up your price.

Average Tree Removal Cost

Removing a tree can range from $385 to $1,070, according to LawnStarter.com , a site that matches consumers with landscapers. Small trees up to 30 feet or so cost $400–$500 on average. Medium trees, up to 60 feet, cost $500–$900. And large trees can cost $1,000–$2,000. Fallen trees are significantly cheaper to remove: just $85 to $300.

If you have multiple trees to remove, the cost can really add up. While many people throw it on a credit card, more and more homeowners are turning to fixed-rate personal loans to cover unexpected bills. SoFi personal loans are unsecured, meaning there’s no collateral required, and getting approved for a personal loan takes just one minute.

Cost of Tree Removal by Type

The type of tree you have can give you an indication of how much it’ll cost to cut down. That’s because of each variety’s predictable height and the hardness of its wood. Cost figures below are based on typical mature tree height.

Type	Average Cost
Small fruit tree	$450
Palm	$725
Oak	$775
Pine	$925
Maple	$1,150

Recommended: Typical Landscaping Costs

Factors That Affect Tree Removal Cost

The cost of tree removal typically includes cutting down the tree and cutting it into pieces. How complicated this is — how big, how old, how many limbs — affects the price. The cost of hauling away all these pieces may or may not be included in your cost.

To find the right contractor, you may want to call multiple tree removal services and compare quotes on the project. Make sure to ask what exactly their price includes and what extra services or fees may come up. By the way, tree trimming and pruning is a separate service from tree removal.

Some factors that can affect your tree removal quote are:

The Tree

Obviously, the tree itself is a major factor. Informing the arborist of the type and age of your tree, as noted above, will give them a good idea of its height and diameter and the number of branches.

The accessibility of the tree is also extremely important. A big tree on a small lot surrounded by buildings and power lines is a much more complex undertaking than a big tree in an open field.

Debris Removal

Homeowners have a few options when it comes to debris removal: hauling, chipping, or splitting. With hauling, the removal company should take the felled tree off-site. That cost may include hauling away only the bulk of the tree. If you need additional limbs and debris removed from your yard, you may have to pay more. You may also have to pay extra for tree trunk removal, depending on how big it is, though the company should cut it into smaller pieces.

Some companies can run debris through a chipper, so you can use it as mulch in your garden. It can actually be cheaper to have limbs chipped instead of hauling them away. Or, if you have a fireplace or wood stove, the company can split the logs so you can use them as firewood.

Stump Removal

Stump removal and stump grinding are not typically included in the tree removal price either. That means you may be left with the stump of the tree in your yard, unless you pay extra or negotiate the stump’s inclusion in the quote. Stump removal costs $60–$350, or around $2–$3 per inch of diameter.

Recommended: Top Home Improvements That Increase Your Home’s Value

How to Determine If a Tree Should Be Removed

The biggest danger unhealthy trees pose is falling — onto people, homes, cars, or power lines. But even a healthy tree may need to be removed if it’s growing too close to a house or electrical wires. If you’re considering putting your home on the market, removing a threatening tree can give potential buyers (and their home inspectors) one less thing to worry about.

According to the Arbor Day Foundation, these are the telltale signs you might have to remove a tree:

•   Dead or dying branches

•   Signs of infection (discolored leaves or bark; visible pests or fungus)

•   Root defects

•   Rotted or hollow trunk

•   Trunk that’s leaning or appears unstable

Generally, the first step is to hire an arborist to give you an opinion on your tree’s health. Some conditions may be unsightly but not necessarily damaging to the tree. And many cities require an arborist’s evaluation before you’re allowed to remove a tree.

How Much Does DIY Tree Removal Cost?

DIY tree removal is an option in some cases, but it can be difficult and even dangerous. If you don’t have all the needed skills and tools, then you shouldn’t try to remove a tree yourself. Cutting down even a small fruit tree may cost a homeowner $425, while a pro might charge $150–$385.

If you do try to do it yourself, consider the costs below:

Safety glasses	$13
Work gloves	$14
Felling wedges	$24/pack of 6
Hard hat	$28
Hearing protection	$25
Chainsaw chaps	$71
Steel toe work boots	$100
Chainsaw	$150
Total	$425

The Takeaway

Homeowners can expect to pay $750 per tree on average, or $10–$14 a foot. Your price will vary depending on the size and condition of the tree, its accessibility, and what you want to do with the debris and stump. The first step is to hire an arborist to evaluate your tree and make an informed recommendation about how to manage any risk. Whatever you do, attempting DIY tree removal is usually a bad idea.

SoFi offers personal loans with no origination or prepayment fees, and competitive fixed interest rates. If you are facing a major landscaping expense and cash is tight, you can check personal loan interest rates now to see what you qualify for.

SoFi’s Personal Loan was named NerdWallet’s 2022 winner for Best Online Personal Loan overall.

---

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

SOPL0722010

Read more

Bridesmaids can spend from $1,200 to $1,800 for the honor of participating in a friend’s wedding. Groomsmen tend to spend considerably less: around $450. If those numbers seem high, consider the combined costs of a dress or tux, “bach” party, gifts, and travel and accommodations.

Just one wedding can take a bite out of your budget, not to mention the familiar scenario of attending several weddings in one year. We’ll help you understand the expenses that go into being a part of the big day so you can prepare and budget well in advance.

How Much Does It Cost To Be a Bridesmaid?

The average bridesmaid can spend $1,200 to $1,800 to be a part of the bridal party. Of course, prices vary based on location, number of events, dress code, even the age of the happy couple (with 20-somethings being more budget conscious).

Before you agree to participate as a bridesmaid or maid of honor, it’s important to consider what costs you may be responsible for. And remember, there’s no point feeling guilty about spending money.

Recommended: Tips to Improve Your Money Mindset

The Dress

Etiquette dictates that bridesmaids cover the cost of their dress, shoes, and any accessories the bride wants you to wear. The cost of a bridesmaid dress ranges from around $150 on the lower end to $350+.

You’ll likely also be responsible for any alterations, which run from $30 for a simple hem to $140 for bodice and sleeve adjustments. While there are ways you can save — such as renting a dress — that decision is often not up to the bridesmaid.

Hair and Makeup

Traditionally, if the bride requests everyone in the party have their hair and makeup done in a certain style, she should cover the cost. If a bridesmaid wishes to have her hair and makeup done and the bride doesn’t offer, the bridesmaid should cover the cost. On average, professionally styled hair for bridesmaids costs about $75; tack on another $50 for makeup.

Bachelorette Party

Wedding website The Knot reports that people are spending more on “bach” parties. Half of the parties last two days or more, and a quarter involve plane travel. It’s no wonder that 50% of attendees spend $300 or more (standard for events in major cities), and 40% spend $1,000 or more. (If you think that’s out there, wait till you’re invited to the gender reveal party.)

When the bride opts for a one-night-only event, however, the median cost drops to $150.

Wedding Travel and Accommodations

The wedding party can expect to spend over half their budget on travel and hotels. The exact cost of travel will vary greatly depending on distance and length of stay — with members of the bridal party possibly needing to arrive early or stay late.

When the wedding is local, travel costs can be close to nothing. If so, count your blessings, because the average travel cost to a domestic wedding is $640; $1,595 for international destinations.

Recommended: Guide to Saving Money on Hotels for Your Next Vacation

Gifts

Members of the wedding party traditionally give both engagement and wedding gifts. If there is a bridal shower, bridesmaids usually give a gift at that celebration as well.

All those presents can quickly add up. A bridal shower gift ranges between $25 and $75, and the average wedding gift is about $100. All in, wedding party guests typically give gifts totalling $344. A group gift may allow you to spend less while giving something nicer than you could afford on your own.

What Does the Maid of Honor Pay For?

The maid of honor is there to assist with any tasks she can take off the bride’s to-do list. Financially, she can expect to pay about the same as the bridesmaids.

The exception is if the maid of honor is hosting the bridal shower. In that case, she may be expected to cover the costs. A simple shower hosted in someone’s home can cost as little as $10 per head, while an event held at a higher-end restaurant may cost up to $150 per head. The final check for a bridal shower can be anywhere from $500 to $2,500.

Recommended: How to Save for Your Dream Wedding

What Do Groomsmen Pay for?

The average cost of being a groomsman is around $450. Here are some of the costs groomsmen can anticipate.

Formalwear or Tuxedo Rental

Generally, groomsmen need to buy a new suit or rent a tuxedo for the event. On average, the combined cost of renting a tux and accessories (like cufflinks, a tie, and shoes) comes to about $200.

Bachelor Party

Groomsmen normally take part in planning the bachelor party and most likely cover their own costs and the groom’s. A typical bachelor party runs $50 to $200 per person. For destination parties, factor in airfare, accommodations, and additional meals and activities.

Wedding Gift

Members of the wedding party don’t need to spend more on a gift than other guests do. The average wedding gift is around $100.

The Takeaway

It’s not unusual for a bridesmaid to spend $1,200–$1,800, including the dress, alterations, hair and makeup, bachelorette party, and gifts. By comparison, groomsmen get off easy, paying about $450 for a rental tux, bachelor party, and wedding gift. Typically, attire and accessories account for 27% of a bridesmaid’s budget, travel and accommodations 60%, and gifts 13%. But the numbers will vary based on location and other factors.

If you haven’t saved up the money for a friend’s wedding in advance, there are better options than throwing it all on a credit card. Personal loans are designed to help cover life’s big events. SoFi Personal Loans offer a low fixed interest rate and no fees required. The application process is fast and can be completed entirely online.

SoFi’s Personal Loan was named NerdWallet’s 2022 winner for Best Online Personal Loan overall.

---

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

SOPL0822003

Read more

A bathroom remodel is one of the most challenging projects you can take on in your home. Bathroom remodel costs range from modest cosmetic updates ($3k) to full gut renos ($30k), with the national average coming in at $11k.

Your bathroom budget will greatly depend on the purpose of your remodel. Whatever you have in mind, these 10 steps can help you plan appropriately, anticipate problems, and ensure you end up with a room you love.

Why Homeowners Remodel Bathrooms

There are several potential reasons behind a homeowner’s decision to remodel a bathroom. For some people, it might be a combination of reasons.

Updating the Look

Happy with the layout of your current bathroom and feel it just needs a refresh? Focus your attention on material selection, and perhaps add new cabinetry or plumbing fixtures. You can find lots of ingenious ideas online for how to make a small bathroom look bigger.

You’ll still want to pay attention to the age of your home and the remodels done by previous homeowners. After all, laying new tile over a foundation rife with mold or making do with an outdated electrical system is inviting big problems down the road.

It’s best to tackle essential updates first. If your budget doesn’t allow for a full reno, you might want to hold off until you have the money to do the job right.

Recommended: 32 Inexpensive Ways to Refresh Your Home

Resale Value

If you’re updating your bathroom in preparation for selling your home, think about what potential buyers might look for. While it’s impossible to anticipate what one random buyer might want in a new home, you can research your local real estate market to learn what appeals to the majority of homeowners.

You also can find out the resale value of bathroom remodels by using SoFi’s Home Project Value Estimator.

Better Functionality and More Storage

Perhaps you’ve always hated how the door hits the vanity as it swings open. Or you’re tired of stacking toilet paper on the toilet tank and seeing makeup on the counter. Maybe you never use the bathtub and long for a large shower stall, or wish for two sinks instead of one to expedite the family’s morning rush. Or it’s possible your bathroom is a dark, moist cave, crying out for natural light and better ventilation.

This level of bathroom remodel will likely have you gutting the entire space, possibly rearranging the fixtures and rerouting plumbing. Not only will your bathroom be brand new in that case, it could be higher end, too.

Here are the 10 steps to take while planning your perfect bathroom remodel.

1. Determine What Your Bathroom Remodel Should Achieve

When embarking on any project that requires a good chunk of time and cash, you want to determine what the overall goal is for your bathroom remodel. Is it to expand the existing space? To add a shower or a tub? To improve your home’s value? Or to update a vintage bathroom to one that is more modern in design and functionality?

All of these answers will factor into your design and budget. Other considerations to make when planning a bathroom remodel include:

•   How many people will use the room?

•   How much time do you spend in the bathroom in the morning, afternoon, and evening?

•   What’s your routine — how does your current space hinder it, and how could a new space improve it?

•   Do you just want something that’s easy to clean? Or do you want to improve the look for resale?

2. Research and Budget

Before you get too far with planning, it’s good to know how much bathroom you can afford. Even if you have a ballpark figure in mind, you’ll want to understand how much a full bathroom remodel is going to cost in the end.

A bathroom remodel typically costs between $3,000 and $30,000, with $11,000 the national average. Before proceeding with your dream plans, first think about whether you’re after a basic update, a mid- to upper-range remodel, or a deluxe spa getaway. Factor in a cushion of 20% for unforeseen costs.

To keep costs down, avoid moving the existing plumbing and wiring. Some homeowners focus on just a shower remodel, which can run from $1,100 to $5,500. To get a sense of how much it would cost to update your home use our Home Improvement Cost Calculator.

Recommended: How to Pay for Emergency Home Repairs

3. Hire a Designer Who Loves Bathroom Remodels

Given the complexity of rerouting plumbing, laying tile and flooring, and installing vanities and toilets, you may need to hire a few different professionals to get the job done:

•   Interior designer, to reimagine the space and source materials

•   Architect, to handle structural changes

•   Plumber

•   Electrician

•   Tile installer

•   General contractor, to manage them all

What exactly will all these folks be doing, besides spending your money? We’ll walk you through it.

First, a professional interior designer will think of things a homeowner will not. For instance: which way the cabinet doors open, if there’s room for a washer/dryer, how a skylight could brighten the space, or ways to rearrange the room in a creative way that maximizes both functionality and efficiency.

On the other hand, if you know what you want and where to find the products you need — and you have at least some DIY experience — then you might take on the design process yourself.

A general contractor will hire and supervise the various subcontractors, and keep the project on schedule and on budget. If you’re very comfortable tackling the demolition, construction, and installation, you may not need a general contractor. Just remember that once you start exposing layers of old work, a straightforward update can devolve into something more complex.

For major structural changes, you’ll want to hire an architect, and consider bringing in an experienced plumber and electrician, too. In some places, it’s required by law.

While you’re keeping an eye on the budget, don’t forget about your valuable time. Even with DIY experience, a bathroom remodel can take homeowners several times as long as a professional to complete — and your results may not be up to your high standards.

Don’t hesitate to bring in hired help as needed. To keep your budget on track, you can still agree to take on simpler tasks like demo and painting.

4. Refine Your Bathroom Remodel Plan

If your dream bathroom doesn’t seem as though it could ever fit in the space you have, think about what’s on the other side of the bathroom walls. Can you steal square footage from an adjacent closet, adjoining bedroom, or underused hallway? Is it possible to punch out an exterior wall to add square footage?

Other options to consider: whether you want the toilet out in the open or housed in its own private water closet, and what kind of special storage you need — for hair tools, makeup, and other everyday essentials?

Choosing the style of bathroom you want can also be complicated. You may love the look of the industrial-style bathroom in your favorite restaurant, but will it look right in your Craftsman bungalow? Designers recommend that you look to the rest of your house for inspiration or consult resources like Pinterest for ideas.

5. Approve Your Bathroom Remodel Design

Next you’ll consult with your interior designer and/or architect to review preliminary floor plans and sketches. These will show how the room’s components — shower, vanity, any cabinetry — fit in the space.

At this point, you’ll focus on the big picture: where the major elements go and the functionality of the space. Don’t worry about the finishing touches like colors and materials. These drawings and scope of work will be used to interview contractors and solicit estimates.

Once the measurements are nailed down, you’ll know how many square feet of tile you’ll have to order or how big of a marble slab you’ll want for the countertop. You or your designer can use this information to start shopping around for the best price on materials.

6. Choose Your Bathroom Materials, Finishes, and Colors

Now it’s time to research materials, so you’ll have a basic knowledge of what you need and how much it will cost. Marble may look great, but it’s not stain-resistant and so is a pain to maintain.

Maybe you want to look at easy-to-clean options. Or perhaps you didn’t know that wood can indeed work for countertops in bathrooms if properly treated. Or you weren’t aware of the vast stone possibilities that could work with your design.

7. Work on Design Development and Construction Documents

At this stage, you should be actively reviewing the floor plan, elevations, tile layout, and any other relevant drawings associated with your project. More planning on the front end of the project means fewer mistakes will arise later in the process.

You’ll also want to be kept up to speed on everything that goes into your project: what materials will be used and how they will be laid out. If something in construction drawings isn’t specified — such as general tile layout or how you want trim pieces in your shower niche to look — chances are your tile installer will make a decision on the spot, especially if you’re not around on the install day.

This stage will also involve pulling permits. If you’re working with a knowledgeable contractor, they will likely take this on. Many are skilled at navigating the process with contacts they’ve made at the local planning office. If you’re doing much of the work yourself, you’ll need to brush up on what permits you’ll need, and where and how to submit drawings for approval.

8. Get Estimates From Contractors

It’s a common process to get three separate estimates from licensed contractors for each home remodel project in which you bring in professional help. If you’re already working with a designer, he or she may know skilled contractors or can help you interview professionals to make sure they’re right for the job.

It helps to know about what goes into a contractor’s bid. Don’t let the highest bid scare you, and don’t immediately jump on the lowest bid.

9. Plan for Installation and Prepare for Bathroom Demo

In an ideal world, you will have every last detail planned and every material picked out and ordered before construction starts. The last thing you want is to get halfway through your remodel and have to tell your construction crew to take a two-week break while you wait for that back-ordered marble to arrive from Italy.

You’ll want to nail down the nuts and bolts of how construction will flow and where supplies will be stored. You’ll need a dry space inside for most materials, so you’ll need to decide where you’re going to keep displaced furniture and household items while construction is underway. Can you make space in your garage or on the side of your house?

Other questions to consider:

•   Are you prepared for the disruption?

•   What time will the workers be there, and will someone be on-site to answer questions and oversee the construction?

•   Will it affect your work schedule or any trips planned?

•   Where will you shower during construction?

•   Do you have an alternate place to stay should the inconvenience of not having a bathroom become too much?

•   Who in your family will be available should a construction question come up?

•   Think about how long the crew will be there and if the materials will arrive in time.

Any last-minute decisions need to take top priority to ensure a smooth-running bathroom remodel that stays on budget and on time.

10. Make a Post-Completion Punch List

The National Kitchen & Bath Association recommends that you keep all receipts, contracts, warranties, and product information for every major purchase so that you understand how to care for and maintain the materials.

Nevertheless, it’s highly likely that something with your bathroom remodel will go wrong. Maybe you overlooked something, materials arrived broken or scratched or not at all, there’s a dent in the wall, or the caulk was too messy.

Now is the time to make a list of these things, either in an informal email or more formal document with your contractor. Get it into the hands of the person responsible for correcting the mistakes and include a date by which the fixes and finish work should be completed.

It’s normal for a contractor to return several times to address any post-project concerns, so try not to worry. Everyone makes little mistakes in a big, complicated project like a bathroom remodel. Just hold off making your final payment until the problems are fixed.

The Takeaway

Bathroom remodel costs can vary widely from $3k to $30k, with the average about $11k for a full bathroom. Most of your money will be going to labor (typically $50–$70/hour) rather than materials. To keep costs down, take the time to plan meticulously and get multiple bids from contractors.

Need a way to finance your new bathroom remodel? Check out SoFi unsecured Personal Loans. Compared to a home equity line of credit (HELOC), which may only cover a handful of projects, a SoFi Personal Loan of up to $100,000 allows you to use the money for whatever your dream bathroom demands.

Get prequalified online for a SoFi personal loan with no fees required and no obligation.

---

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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 .

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.

SOPL0422005

Read more

Technically, once a check clears it can’t be reversed, meaning the payer cannot get the funds back. The only exception to this is if the check payer can prove that identity theft or fraud has occurred, in which case they may get their money back.

When discussing the ins and outs of check clearing, it can be helpful to understand how checking accounts work, typical clearance times, and exceptions to the rule. Read on to learn more about how checks get cleared.

How Long Does It Typically Take for a Check To Go Through?

Usually it takes between two and five business days for a check to clear, but some banks will process it more quickly. The first $225 is made available in one’s account the next business day after a check is deposited, and then the rest of the check will be made available in the next four days.

The time it takes for a check to clear can depend on several factors, including the relationship the account holder has with the bank, the amount of money already in their account, and the amount that the check is for. A larger check may take longer to clear than a smaller one. If it’s a government check or a check from a certified fund, the bank is required to make the funds available within one day.

Note that check clearance rules apply to paper checks only. If you pay bills electronically by ACH, a different set of guidelines will apply.

Recommended: How to Get a Checkbook

How to Know if your Check Cleared

In order to know for certain that a check has cleared, call the bank where the check was deposited and ask them. Banks do not inform payees if a check for less than $5,000 bounces. However, if a check for more than $5,000 bounces, banks are required to inform payees.

Financial software like SoFi can help you track checks and alert you when they clear. You may also benefit from other handy tools including a budget planner app, debt payoff planner, and credit monitoring.

Recommended: What is The Difference Between Transunion and Equifax

How Check Clearance Works

When a check gets deposited, there are a few steps involved in processing and clearing it. First, the bank makes a request to take the funds out of the check payer’s account. Typically, the bank actually deposits funds into the payee’s account first, as long as the check is not flagged as risky or there’s another reason that it might not clear.

In the event that the funds aren’t available in the payer’s account, the check “bounces.” In that case, the funds are then withdraw from the payee’s account.

Recommended: How to Sign Over a Check

How Long can a Bank Hold a Check?

The length of time that a bank will hold a check depends on a few factors, including the amount of the check, the bank the check is coming from, the relationship of the payee to the bank, and more. If both the payer and the payee use the same bank, the clearing time will be shorter. Usually it takes two business days for a check to clear. Sometimes it’s faster, or it may take up to seven days.

The time that it takes for a check to bounce varies depending on the bank’s size and technology. Larger banks with more technological capabilities will know more quickly that a check has bounced. It will take longer for a smaller bank to process bounced checks. Generally after 30 days, one can assume that a check has cleared.

Factors That Affect Hold Times

In certain cases, a “risky” check may take up to seven business days to clear. The following reasons can cause this to happen:

•   Insufficient funds in the account

•   Checks larger than $5,525

•   Accounts younger than 30 days

•   Repeated overdrafts associated with the account

•   Checks from international banks

Clearance Times for Large Checks

If a check is larger than $5,525, it may take up to nine business days for it to clear because the bank will want to ensure the check will clear before processing it. However, $225 of the funds may be made available within one day after the deposit. If a check is very large, it may be a good idea to inform the bank ahead of time that the transfer will be occurring to speed up the clearing time.

Personal Checks vs Government-Issued Checks

While it takes between two and five business days for personal checks to clear, banks are required by law to make funds available from government checks and U.S. Treasury checks within one business day.

Certified checks and cashier’s checks are both types of personal checks. A certified check is a check where the money is taken out of a checking account, ensuring that the funds are available in the payer’s account. Generally a certified check is required for making larger transfers. With a cashier’s check, the money is taken out of the bank’s account, also ensuring that the funds are available.

Cases of Fraud

If a check bounces, fraud protection does not cover it, so the account holder is responsible for repaying the funds even if they have already withdrawn them from their account.

Once a check is cleared, the payer can’t reverse it and get their money back. However, if they can prove to the bank that the check was fraudulent or a case of identity theft, they can potentially get their money returned to their account.

Recommended: What Credit Score is Needed to Buy a Car

The Takeaway

Once a check has cleared, it cannot be reversed unless fraud or identity theft is suspected. However, many banks will make the first $225 of a check deposit available for immediate use.

Looking to pay off debt or make a budget? SoFi’s is a great money tracker tool to check out. You can connect all your banking and investment accounts to easily see your financial information in one place, set goals and make financial plans.

Start managing your money today.

FAQ

How can a check clear and then bounce?

If a bank doesn’t see any red flags that a check might bounce, they may go ahead and transfer funds into the payee’s account. However, it may turn out during their processing that funds weren’t available from the payer, so then the check bounces.

Can a bank reverse a check deposit?

Technically, a cleared check cannot be reversed. But if a check bounces, the bank can remove funds they had deposited into the payee’s account.

Can you dispute a cleared check?

If identity theft has occurred or if a check is fraudulent, then a cleared check can be disputed. If the bank finds the evidence to be believable, the funds may be returned to the account.

---

Photo credit: iStock/sturti

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

SORL0522045

Read more