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A credit union is a nonprofit financial institution that offers products and services similar to banks, such as deposit accounts and loans. However, it may have certain requirements for membership, such as living in a certain geographic area or working in a specific profession.

If you are trying to figure out the kind of financial institution that suits you best, it may be valuable to consider credit unions vs. banks.

What Is a Credit Union?

Credit unions are financial institutions like banks, and they offer products you’d expect such as checking and savings accounts, loans, debit cards, checks, money orders, and more. They can provide apps and online access, just as banks do.

Credit unions may charge fewer fees, often with no minimum or a very low minimum deposit to open an account. In this way, they may be closer to online banks vs. traditional banks.

One difference between a credit union and a bank is that credit unions are run as coops, meaning each member has a stake in the business. Just like buying stock in a company, you own a small piece of the credit union when you join.

Here are some more features of credit unions:

•   These organizations are typically smaller than big banks and specific to certain locations, while offering similar services.

•   As nonprofits, credit unions are usually designed to serve their members, generally paying higher overall interest rates on deposits and with lower fees and penalties.

Typically, credit unions serve people only within their geographic area, and you need to be a member. Some credit unions have specific requirements for membership, but most make it easy to meet the qualifications, such as:

•   Where you work or your industry

•   Where you live

•   Where you attend school or worship

•   Which organizations you are a member of

Pros and Cons of Banks

Here are some of the upsides and downsides of keeping your money at a bank.

Pros of Banks

Consider these benefits:

•   One of the biggest overall benefits of choosing a bank, especially a major one, might be that they generally offer a larger array of financial products, including checking accounts and savings accounts, loans, and more. They can be your one-stop shopping for many financial needs.

•   Banks may have extensive networks of brick-and-mortar branches, possibly both nationally and internationally.

•   They usually have large ATM networks as well.

•   Banks are likely to be insured by FDIC (Federal Deposit Insurance Corporation), adding a layer of security in the very rare event of a bank failure.

•   Bigger banks can be quicker to adopt new technology, such as launching mobile check deposit.

Cons of Banks

In terms of the downsides:

•   Traditional banks may not offer as high interest rates as online banks or credit unions do.

•   Similarly, traditional banks vs. online banks and credit unions often charge higher fees.

•   A big bank may not provide as specialized, personalized services as credit unions do. Credit unions may provide ATM fee reimbursement and other perks.

Pros and Cons of Credit Unions

Now, take a look at the upsides and downsides of credit unions.

Pros of Credit Unions

On the plus side, credit unions can offer the following:

•   Credit unions typically offer many of the same services as banks, satisfying a range of client needs.

•   They may offer higher interest rates on deposit accounts than traditional banks because profits go back to the members.

•   The fees are often lower than at traditional banks, both on deposit accounts and other financial products. For instance, credit union vs. bank mortgages may have less costly fees.

•   Most credit unions are insured by the National Credit Union Administration, or NCUA vs. FDIC, which helps protect funds in the very rare event of a financial institution failing.

•   Credit unions are typically known for personalized service and may offer financial literacy classes and more to support their members.

Cons of Credit Unions

Now, some of the minuses:

•   Membership is required. It’s possible that a person may not qualify to become a member/shareholder.

•   Credit unions are typically local or regional; there may not be many options in a given area. Shared branch credit unions may, however, offer greater reach.

•   They may not offer the kind of 24/7 accessibility and extensive customer service options as major banks.

•   While many services are offered, they may not have all the bells and whistles that a bank offers, such as money transfer service (such as Zelle) or a next-gen app.

Recommended: Do Credit Unions Help You Build Your Credit Score?

Credit Union vs. Bank

Here’s a comparison of how credit unions vs. banks stack up.

Business Model and Pricing

Banks are for-profit enterprises while credit unions are not. Some banks may charge higher fees and interest rates to borrow money. They may have higher minimum deposit requirements as well and lower annual percentage yields (APYs) on deposit accounts.

Recommended: APY Calculator

Membership Requirements

Banks are open to all who can apply for and be approved for services. Credit unions, however, have requirements to join and become a shareholder. They might cater to members of the military or employees in a certain industry. Or they might simply charge a small fee. But there will be some requirement to be met.

Services

Banks are known for having a full array of services: various kinds of accounts, loans, and other financial products. Credit unions usually have diverse offerings but may not offer quite the breadth as they tend to be smaller institutions.

Customer Care

Credit unions may have the edge here; they are known for personalized attention and coaching to help members gain financial literacy and reach their money goals. A large bank may not be able to take such interest in each client.

Accessibility

Banks may offer many physical branches, 24/7 customer service, and a national and even international network of locations and ATMs. Credit unions are likely smaller and local, with more limited access.

Technology Tools

Larger banks tend to be more advanced in terms of technological innovation than credit unions. They may have state-of-the-art websites, apps, and services like money transfer services.

Here’s how these bank vs. credit union differences look in chart form:

Finding the Right Credit Union

If you think a credit union may be the right fit for you but are unsure where to start, you could ask your coworkers or neighbors if they use one and if they like it. Since a credit union is a local financial institution, word-of-mouth can make for valuable research.

You could also search in your geographic area, making sure to check the eligibility requirements, and nationally, if you’re able to use a different local branch as part of the network. Then, joining is just like opening up any other bank account if you meet the membership credentials. Additionally, a credit union account may allow you to do most tasks online or over the phone.

Recommended: Passive Income Ideas

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The Takeaway

A credit union is a nonprofit financial institution that offers many of the same products and services as a bank, with each account holder being a shareholder and often enjoying highly personalized service. However, credit unions may have membership requirements and may lack a major bank’s ATM network, accessibility, and tech features. Credit unions often have lower fees and higher interest rates than traditional banks, making them more similar to online banks in this realm.

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

FAQ

Is it better to have a credit union or a bank?

Whether it’s better to have a credit union or a bank depends upon a person’s individual needs. If you need a financial institution with a national or global network of branches and ATMs, a bank might suit you best. If you are looking for personalized, local service, lower fees, and financial literacy training, a credit union might offer those features.

What is a disadvantage of a credit union?

One potential disadvantage of a credit union is that you need to qualify as a shareholder. This might mean that you need to live or work in a certain geographic area or work in a specific profession. Not everyone may qualify.

What are the biggest risks to credit unions?

The biggest risks to credit unions are similar to the biggest risks to banks. These include cyberthreats (hacking, for instance), uncertain interest rates, and the potential loss of deposits, although the latter is a very rare occurrence.

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

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

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

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

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

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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

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

SOBNK-Q125-036

A money order can be a safe and reliable way to send money, but what happens when the recipient doesn’t receive or cash it? It’s possible to track a money order to make sure it is delivered to the intended person, but doing so may come at a cost. While the process for tracking varies by issuer, it’s usually helpful to have the receipt and money order details before filing a request.

If you are handling money orders and want to verify that they arrive at their destination and are cashed, read on.

What Is Money Order Tracking?

Money orders are a way of transferring money. They are prepaid with cash or a debit card vs., say, pulling money from your checking account when they are cashed.

They differ from personal checks and cashier’s checks in one important way: There is no sign in your bank transaction history if and when the money order has cleared. This can raise the question “How do I track a money order?”

Figuring out how to trace a money order is fairly straightforward if you’ve kept your receipt. When you purchase a money order, the issuer should provide a receipt with a tracking or serial number that can verify if it has been cashed or deposited. Senders can submit details from the receipt through the issuer’s website or automated phone line to track the money order.

Without a receipt, however, money order tracking becomes more difficult. You’ll likely need to file a request with the money order issuer. Doing so will probably incur fees and may take several weeks to complete but can hopefully help reduce your financial stress.

Recommended: Ways to Manage Your Money

What Do You Need in Order to Track a Money Order?

Depending on the issuer you used, extra information could be needed beyond the tracking or serial number on the receipt. Additional information will probably be necessary if you’ve misplaced the receipt. Here are more specifics:

•   Tracing a postal money order can be done online or by phone. The following details, which are listed on the USPS money order receipt, are required.

◦   The dollar amount

◦   The post office number

◦   The money order’s serial number, which is typically a 10 or 11-digit code.

However, if you don’t have a copy of the receipt, you’ll have to fill out and submit PS Form 6401 to initiate a money order inquiry.

•   Tracking money orders from other issuers, such as MoneyGram and Western Union, can usually be done online or by automated call center. This is provided that you have the serial number and exact payment total.

   If you’ve lost the receipt, you’ll need to supply more details about you and the recipient, such as:

•   Your name, phone number, and address

•   The exact money order amount

•   The purchase location address

•   The date and time of purchase

•   The payee’s (or recipient’s) name, if included on the money order.

Recommended: How to Cash a Postal Money Order

Tips to Track a Money Order

Before picking up the phone or filling out any paperwork, consider these tips for tracking money orders.

Contact the Recipient

Before you get to work tracking a money order, consider that you might be able to save time and potential cost by reaching out to the intended recipient. This individual or business is referred to as the payee on the money order.

You can ask if the money order was received. It’s possible that the money order arrived and has yet to be cashed or deposited. Contacting the recipient directly could be simpler than submitting a request with the money order issuer.

Make Sure You Keep the Issuer Receipt

Another route involves using the details from the receipt. Money orders can be purchased at banks, post offices, check-cashing businesses, and retail stores like supermarkets and pharmacies. When you buy a money order, you may receive receipts from both the issuer and location you purchased it. For example, a money order bought at a pharmacy could be issued by MoneyGram or Western Union. Note that the issuer receipt is the one with the information (i.e., serial number and dollar amount) you’ll need to track your money order.

You might have to pay an extra fee and complete additional forms to track a money order without a receipt and the serial or tracking number.

Check the Status Before Submitting a Request

There are multiple ways to check the status of a money order. If you have your serial or tracking number and the money order amount, you should be able to verify online or by automated phone line whether it has been cashed or deposited. This could be free, or there may be fees (up to $15 or more), depending on the vendor.

There are also likely fees and significant waiting times when submitting a request for a copy of the paid money order. The situation is similar if you choose to investigate a money order you believe to be missing or stolen. Checking the money order status beforehand can quickly determine if it’s been cashed and guide your next steps.

Recommended: How to Deposit a Check

Reasons Why Someone Tracks a Money Order

Money orders are considered a safe form of payment, but there are reasons why you might want to track one. Accounting for your money, after all, can be an important aspect of managing your cash effectively and reaching your financial goals.

Recover Lost Payment

A lost money order can be a major inconvenience, especially if you were waiting for the funds to make timely payments. Tracking the money order can help determine if it’s gone missing and recover funds more quickly.

If you are expecting a money order that doesn’t arrive, it’s wise to contact the issuer and complete any required documents quickly.

Protect Against Fraud

Tracking a money order can help protect senders in cases of theft or fraud. In such an event, requesting a photocopy of a cashed money order can support a fraud claim and potentially get your money back. The photocopy will indicate who endorsed the money order. If the signer does not match the payee, you could get a refund since their identity wasn’t properly verified.

How Long Does It Take for a Money Order to Send?

A money order can be purchased and prepared quickly — simply add the recipient’s information, put your address, fill out the memo (if desired), and sign. From there, how long it takes to send depends on the delivery method. If handing it over in person isn’t feasible, sending it via USPS First-Class Mail can deliver the money order in one to five business days, though it might take longer in some cases.

Once received, a money order can show as available almost immediately, but in terms of how long it takes to clear fully, that might be from a couple days to up to a couple of weeks.

Recommended: Emergency Fund Calculator

Tips for Protecting Yourself When Tracking a Money Order

Although money orders are generally a secure form of payment, they can potentially be used for money scams and fraud. Consider using these tips to protect yourself.

Fill out the Recipient Information Immediately

As soon as you purchase the money order, enter the recipient name in the payee field to help safeguard yourself from fraud.

Save the Receipt

After filling out the money order, be sure to detach the money order stub and any receipt. Storing the receipt in a safe and accessible place will make it easy to track the money order in real time. It also provides the necessary information to file a request for cancellation and alert law enforcement in case the money order is damaged, lost, or stolen. It’s recommended to hold onto the receipt until the money order has been cashed.

Wait Before Spending Any Funds

If you receive payment by money order, it’s advised to hold off on using any funds until they’ve been verified by the issuer or cleared by your bank. In the event a money order is fraudulent, you could be liable for any amount spent.

Recommended: How to Send and Receive Money From Someone Without a Bank Account

The Takeaway

A money order is usually a secure way to transfer funds to a payee instead of using cash or a check. It can typically be tracked to ensure that it has been received and cashed by the designated payee. Keeping the receipt and other details will streamline the tracking process if you do need to verify the money order’s status. It can take a bit of time and money to trace a money order if it goes missing.

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

FAQ

Does it cost money to track a money order?

Some issuers let you use the serial or tracking number to track the money order for free online. Otherwise, you may have to pay a small fee. Investigating a lost or stolen money order typically carries fees, often around $15.

Where can I track a money order?

You can track a money order online, by phone, or going to the issuer in person.

How do you cash a money order?

You may be able to cash a money order at a bank or retailer that issues money orders. In addition, retailers where you have cashed checks in the past (such as your local supermarket) may cash money orders. Cashing it typically requires signing the order, verifying your identity, and paying a service fee to receive the funds.

Photo credit: iStock/Prostock-Studio

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

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

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

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

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

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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.

SOBNK-Q125-027

On the popular credit score spectrum of 300 to 850, a credit score of 579 or lower is usually classified as poor, and a score between 580 and 669 is considered fair. Only when a score is 670 or higher does it typically count as good. That said, each lender makes its own determination of which credit scores are considered risky.

Here, you’ll learn more about the different credit score requirements and the factors that can build your score so you can work toward better financial habits.

What Is Considered a Bad Credit Score?

The definition of a bad credit score is having a history of late or nonpayment of bills or borrowing too much money. This past behavior can indicate that you are a poor credit risk.

To be more specific, a bad or poor credit score, as noted above, is one that is between 300 (the lowest possible score) and 579 on the popular FICO® Score system. The next highest category, fair, ranges from 580 to 669.

Scores are categorized somewhat differently depending on the credit-scoring model being used. Here’s a closer look at two popular systems, FICO and VantageScore®, so you can see how lower scores are ranked in terms of credit score ranges.

To complicate matters, lenders may choose from multiple scoring models and industry-specific scoring models. This can make it tricky to know which one you’re being evaluated on. And your credit scores vary — so, yes, you have multiple scores.

What’s the nationwide average? As of this writing, Americans had an average FICO Score of 715 and a VantageScore of 705. Both of these scores are in the good range of their respective scales.

It’s also worth noting that you might have a low credit score if you are new to credit. When you first start accessing credit, however, you don’t start at zero (or 300). Rather, once you have several months of credit usage in your history and have managed it fairly well, you are likely to have a score between 500 and 700.

Consequences of a Bad Credit Score

Having a bad credit score can impact you in several ways:

•   Difficulty in obtaining loans and credit: With a score in a lower range, you will likely look like a poor credit risk to lenders. You will therefore probably not have access to a full array of products, such as conventional mortgages and rewards credit cards, which are usually available to those with higher scores.

•   Higher interest rates and fees: For the forms of credit that you do qualify for, you will likely pay a higher interest rate and more in fees. For instance, as of this writing, those with excellent credit scores would pay an average of 17.71% in credit card interest, while those with fair credit would pay an average of 26.76%.

•   Impact on renting and employment: Some employers and landlords may check credit scores to see how responsible a candidate for a job or rental unit has been with their finances in the past. A poor score could indicate that an individual does not manage their money and deadlines well, which could be a negative mark on an application.
To look at it from a different angle, here are some of the things that take your credit history into consideration and can be negatively impacted by a bad score:

•   Credit cards

•   Car loans

•   Home loans

•   Personal loans

•   Private student loans

•   Federal PLUS loans

•   Car insurance premiums (in some states)

•   Homeowners insurance

•   Job or rental applications

How to Build Your Credit Score

If you currently have a credit score that is lower than you’d like, there are steps you can take to help build it and enjoy greater access to credit products with more favorable terms. Here are factors that affect your credit score and how to manage them better:

Pay Bills on Time and in Full

Paying your bills on time and in full is the single biggest contributing factor to your credit card, so take it seriously. If you have been late with any payments, consider getting caught up.

If you tend to forget bills, consider brushing up on how autopay works and set up payments through an app, an online bank account, or the entity billing you. Putting reminders on a paper or electronic calendar can help as well.

Reduce Credit Card Balances

Another important factor when it comes to building your credit is to be aware of your credit utilization ratio. Credit utilization involves credit card and other revolving debts, not installment loans like mortgages or student loans. The ratio expresses how your current balances relate to your overall credit limit. Most financial experts recommend that this should be no more than 30%, but under 10% is better still.

Here’s an example: If you have two credit cards, each with a credit limit of $5,000, you have a total credit limit of $10,000. You would want your combined balances to be no more than $3,000, or ideally no more than $1,000.

The Consumer Financial Protection Bureau (CFPB), says that paying off credit card balances in full each month helps to keep the ratio low and positively impact a credit score.

Closing and Opening Credit Cards Carefully

The average age of your accounts plays a role in your credit score, so you may want to keep some of your oldest cards open, even if you don’t use them often. Remember that closing cards also reduces your available credit, affecting your credit utilization ratio.

Opening credit cards affects your credit score as well. Every time you apply, the credit card company runs a hard inquiry on your credit, and your score takes a slight hit. Applying for a bunch of cards in quick succession can lower your score in this way and make it look like your financial situation has taken a turn for the worse.

Timeline to Build Your Credit Score

You’ve just learned about some key factors that can help you build your credit quickly. Here’s a little intel about how changes to your score happen: Three major credit reporting agencies — Equifax®, Experian®, and TransUnion® — compile the information on your history of borrowing, and then a company like FICO or VantageScore translates that data into a number.

It’s important to keep in mind that the data contributing to your credit score updates regularly, but you likely won’t see tremendous movement in just one month. You might start to see an uptick in 30 to 45 days, but it can take several months or even years for your good credit habits to pay off. For instance, if you have a credit score of 560, it’s unlikely to surge to a 760 in just a month or two.

There are some other strategies you might consider if you are eager to build your score:

•   Millions of Americans have no credit score because they don’t have enough of a history to calculate one. If this is your situation, you have a couple of options. You may want to consider taking out a secured credit card that will allow you to access a modest line of credit by putting down a deposit.

•   You can also ask a friend or family member to add you as an authorized user to their credit card account. An authorized user can use the account but does not have any liability for the debt. A positive payment history on the card you are added to can help build your score.

Recommended: Secured vs Unsecured Personal Loans

Maintaining a Good Credit Score

As you build your score into a range you’re happy with, you’ll want to maintain it to stay in good standing. Some tips:

•   Regularly check your credit report to look for errors. Report any that you find.

•   Avoid excessive credit applications. Each hard inquiry typically lowers your score by several points for a few months. Think twice before biting when various credit card offers come your way.

•   Use credit responsibly. Keep an eye on your credit utilization ratio and bill payment due dates. If your credit card balances are rising, prioritize paying them down with, say, the debt snowball or avalanche method. Or you might consider a personal loan known as a debt consolidation loan, that may offer a lower interest rate (and therefore more affordable payments) and the convenience of just paying one bill per month.

Recommended: What Credit Score Is Needed for a Personal Loan?

The Takeaway

A bad credit score is defined differently by individual lenders and credit bureaus. But a score below 580 on the FICO scale can be deemed bad and make it difficult to qualify for a conventional mortgage and other important financial products. Those forms of credit that you do qualify for will likely cost you money through higher interest rates. But with time and dedication, you can build your bad credit score and maintain a higher number.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is 600 a bad credit score?

A credit score of 600 falls into the category that’s considered fair credit, which is less than good. As such, it could be considered bad by some lenders, though it is above the poor classification (300 to 579). A 600 credit score can make it harder to get approved for loans and credit cards, and, if you are approved, you will probably have to pay higher interest rates.

Is under 700 a bad credit score?

A 700 credit score usually falls in the good category, which typically runs from 670 to 739. A fair score is typically from 580 to 669, and a poor score ranges from 300 to 579.

Can you get approved with a 500 credit score?

Depending on what you are applying for, it is possible to get approved with a 500 credit score. For instance, you might qualify for certain government-backed mortgages, and you might get approved for, say, a personal loan, but likely at a higher interest rate than if you had a score in a higher range.

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.

SOPL-Q125-024

Sometimes, a financial account like a checking account will sit dormant, or unused, for an extended period, and an inactivity fee will be charged. Usually, a bank, credit union, or other financial institution will start to assess an inactivity fee after six months of no activity in the account. However, some banks may wait up to a year before applying inactivity fees to the account.

To better understand and steer clear of this annoying fee, read on. Below, we’ll explore how inactivity fees work, including how much they cost and how to avoid or reverse these fees.

What Is an Inactive Account Fee?

Banks or other financial institutions apply inactivity fees or dormancy fees when financial accounts just sit, without money going in (deposits) or out (withdrawals). Perhaps the account holder isn’t conducting any kind of activity at all; not even checking the balance for a stretch of time.

Financial institutions can apply these inactivity fees to all sorts of accounts, like brokerage or trading accounts, checking accounts, and savings accounts. These fees are a way for banks to recoup some of the costs they incur when maintaining dormant accounts and can trigger the account holder to reactivate the account.

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

How Do Inactive Account Fees Work?

Here’s a look at the sequence of events that can lead to inactivity fees:

1.    No transactions occur within the account. Let’s say you opened a high-yield savings account to fund your next vacation. But life got in the way, and you forgot about it for six months, leaving it inactive. Keep in mind, the definition of inactivity may vary by the financial institution. So, while some banks may only require you to conduct a balance verification to keep the account active, others may require, say, a bank deposit or a withdrawal, to keep the account active.

2.    The account is flagged for inactivity. Since money isn’t flowing in or out of the account, the financial institution flags the account. After this happens, some financial institutions may send a notification to the account holder before they begin charging a fee. The notice allows the account holder to take action before fees begin racking up. But other banks may not send a notification before they begin charging you inactivity fees. That means you are responsible for keeping tabs on your accounts so you can ensure they are active and up-to-date.

3.    The financial institutions begin charging inactivity fees to the account. Usually, the financial institutions will begin charging an inactivity fee between several months to a year after the last transaction took place within the account.

If these fees go unnoticed for a few years, the account will be deemed a dormant bank account. Every state has a different timeline for determining when accounts are dormant. For example, California, Connecticut, and Illinois considered accounts dormant after three years of inactivity. On the other hand, an account requires five years of inactivity in Delaware, Georgia, and Wisconsin to move to the dormant category.

Once the account is considered dormant, the financial institution will reach out to let you know that if you don’t attend to the account, it must be closed and transferred to the state — a process called escheatment. But, even if your account funds end up with the state, the situation isn’t hopeless. There are several ways to find a lost bank account and hopefully retrieve any unclaimed money.

How Much Do Inactive Account Fees Cost?

 
Inactive account fees can range between $10 to $20 per month, depending on the bank.

 
Remember, not all banks charge inactivity fees. However, if your account does have inactivity or dormancy fees, guidelines must be outlined in the terms and conditions of the account. Check the fine print or contact your financial institution to learn the details of these and other monthly maintenance fees.

Why Do Banks Have Inactive Account Fees?

One of the primary reasons banks why charge inactivity fees is that states govern accounts considered inactive and abandoned. Usually, an account that has had no activity for three to five years is considered abandoned in the eyes of the government.

Depending on the state’s laws, the financial institution may have to turn over the funds to the Office of the State treasurer if the account is deemed abandoned. At this point, the Office of The State Treasure is tasked with finding the rightful owner of the unclaimed asset.

Since banks do not want to hand over funds, they may charge an inactivity fee as a way to keep the account active. Thus, the financial institution won’t have to give the account to the state, keeping the money right where it is.

Additionally, inactive accounts cost financial institutions money. So, to encourage the account holder to start using the account, they charge inactivity fees. While some financial institutions send inactivity notices, others may not. Therefore, if your account has been inactive for a long time, you may only notice the fee once your bank account is depleted. At this point, the financial institution may choose to close the account.

Recommended: Can You Reopen a Closed Bank Account?

Can You Reverse an Inactive Account Fee?

It never hurts to call your bank and request a reversal of inactivity fees. However, if the financial institution is unwilling or unable to reverse the fees, you may want to compare different account options to find a type of deposit account that better suits your needs.

Make sure to compare all fees and any interest rates that might be earned to identify the right account for your needs.

Tips to Avoid Inactive Account Fees

Inactive account fees are a nuisance. Fortunately, there are several ways you can avoid them entirely. Here’s how:

•   Set up recurring deposits or withdrawals. Establishing a direct deposit into your account or regular transfer out of your account can help keep it active and avoid inactive account fees.

•   Review accounts regularly. Checking your financial accounts and spending habits regularly can help you keep tabs on your money and also decide if keeping a specific account open is worth it.

•   Keep contact information up-to-date. If your account becomes inactive, some banks may attempt to contact you before charging you an inactive account fee. If you have the wrong information on file, you may never receive a heads-up about the additional fee.

•   Move money to another account. If you don’t want to maintain an account, it’s best to move the money to an account you actively manage. Then close the account once the money has been transferred. That way, you’ll dodge fees and streamline your financial life.

The Takeaway

When you don’t use an account, your financial institution could begin assessing an inactivity fee. You can avoid these charges by keeping watch of your bank accounts and setting up automatic deposits or withdrawals. If you discover you’re not using your account, you can empty and close it, so you don’t have to worry about extra fees.

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

FAQ

Can a bank shut your account down if you have an inactive account fee?

Yes. If there has been no activity on your account for a while (the timeframe varies by financial institution), your bank generally has the right to close your account. Plus, it’s not required that they notify you of the closure.

Are inactivity fees the same as dormancy fees?

Yes, inactive and dormancy fees are the same. They both refer to fees that are applied to an account when it’s inactive for an extended time.

Besides inactivity fees, what other fees do banks often charge?

ATM fees, maintenance fees, overdraft fees, and paper statement fees are just a few fees banks levy on their bank accounts. Before you open an account, make sure you understand the type of fees that accompany your account, so there are no surprises down the road.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

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

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

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

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

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

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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

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

SOBNK-Q125-015

P2P payments, aka peer-to-peer transfers, are a popular tech-powered way to send money to and receive money from other people. With a money transfer app or perhaps one from your financial institution, you can send a friend your half of the dinner bill, gas money, or other payments, quickly and easily from your mobile device. Chances are, you can also buy items (say, on Instagram or a website) using one of these apps.

To move money via P2P, all you need to do is to download a transfer app, like Venmo or PayPal, and connect your bank account, debit card, or credit card to it. Or your financial institution may offer app options you can enable. Either way, once you are set up, you are just a few clicks away from being able to send money.

What Is a P2P Payment?

With a P2P payment, you can send money to a friend with just a few clicks on your mobile device. This replaces the need to get cash at an ATM or write out a personal check, options that aren’t always quick or convenient.

For traditional P2P apps, both parties need to have an account with the transfer service in order to make the transaction. For example, if you want to use Venmo to repay a friend for the salad they bought you at lunchtime, that person would also need to have a Venmo account to receive that payment.

Typically, a P2P account is attached to your online bank account. Some P2P platforms, however, allow customers to link their P2P accounts to a debit card or even a credit card, though it may involve additional fees.

Recommended: How to Transfer Money From One Bank to Another

Understanding How P2P Transfers Work

Here’s a closer look at what goes on when you use a P2P payment app.

Overview of the P2P Transfer Process

Say that you want to send money P2P to your sister for your mother’s birthday present. Depending on the type of P2P service you use, you’ll follow some variation of these basic steps.

•   Creating a P2P account. You will need to download a P2P app and then sign up for an account. In order to send money to your sister, you’ll both need to have an account with the same money transfer service.

•   Linking your bank account to your P2P account. Some P2P services have the ability to hold funds, but they generally must be linked to a primary bank account (such as your checking account), credit card, or debit card in order to be fully operational. This is how the account will pull any funds needed to make a payment.

To link your checking account, you may need your checking and routing number (which appear at the bottom of a check). Some P2P transfer services may only need your bank log-in information. Others may allow you to set up extra verification measures.

•   Searching for a user to transfer funds to. To send money to your sister, you’ll need to find her on the P2P platform. You can typically search by username, email address, or a phone number. In most cases you will be able to add her account as a contact or “friend” in your account.

•   Initiating a transfer. The next step in how a P2P payment works is getting the money moving. Your sister can request a payment from you, or you can initiate the payment yourself. This requires choosing the option to send funds, entering a dollar amount, and then clicking submit. If you’ve enabled additional security measures on your account, you may need to enter a PIN that gets texted to you as well.

You may be prompted to choose whether you are making a purchase or sending money to a friend or family member. This can impact whether fees get assessed and what kind of protection you receive for the transaction.

You may have the option to add a description or “memo” to your transaction. Some P2P services may require this information so that they can charge a fee for business-related transactions. Others offer the option to act as a personal ledger should you need it in the future.

•   Waiting for the transfer to complete. Now the funds are in motion via a P2P bank transfer. When money is sent from one customer to another, it moves in the form of an electronic package safeguarded with multiple layers of data encryption. This makes it hard for hackers to access the data (like your bank account number) within the transfer while it is in motion. Similarly, data encryption keeps your money and account information safe. Once the data set reaches its destination, it is decoded and deposited as currency.

•   Transferring the funds into the payee’s bank account. When a P2P transfer is completed, the funds may be deposited directly into your sister’s bank account. Or they may go into an account created for her by the P2P service. Funds received into P2P user accounts can then be transferred into a person’s bank accounts at little to no cost. (You are likely to pay a fee if you want the funds transferred ASAP versus in a couple of days.)

Your sister will likely receive some combination of email, text, and/or in-app notifications that the funds have arrived. If she decides to leave the money in her P2P account, she can use that account balance the next time she needs to pay someone or purchase something from a business that accepts P2P transactions.

How Long Do P2P Transfers Take?

The general rule of thumb for P2P transfer services is to allow one to three business days for a transfer to complete (although some seem instantaneous; timing varies). That’s because standard bank transfers use the ACH (or Automated Clearing House) system, which can take a day or two to complete.

When it comes time to move funds from the app to, say, a checking account, some apps may not charge a fee; others may assess a charge of 0.5% to 1.75% of the overall transfer amount.

Are P2P Money Transfers Safe?

You may wonder if mobile payment apps are safe. Any time your bank account, credit, or debit card information is online, there is a chance that someone can get a hold of it, and P2Ps are no different. While all major money transfer companies encrypt your financial information, no P2P system can say it’s totally impervious to hacks and scams.

There are also additional measures you can take to make sure that your account remains secure. For example, you may be able to set up two-factor authentication, which might involve typing in a unique pin number that is texted to your phone for each transaction. Or you might elect to receive notifications each time there’s a transaction posted on your account, enabling you to spot financial fraud right away if it were to happen.

You may also want to take care when you type in a recipient’s email address, phone number, or name. A typo could lead to the money going to the wrong person.

How Do Peer-to-Peer Transfer Companies Make Money?

P2P transactions are largely offered for free to consumers, which may beg the question of how the companies that offer these services stay in business. Here are two major ways that P2P money transfer apps may generate income.

Account Fees

Typically, you can make P2P payments from a linked bank account or straight from the P2P account for free. If you want an instant transfer or you are transferring money using a credit card or from depositing checks into your P2P account, there may be a fee involved.

Business Fees

P2P platforms aren’t just for consumers — they are used by businesses as well. Compared to the free transactions that standard user profiles offer, business profiles are generally subject to a seller transaction fee for each customer purchase made with a P2P money transfer app. Venmo, for instance, charges a fee of 1.9%, plus 10 cents for each transaction.

What Are the Benefits of P2P Money Transfers?

There are three main benefits to using online money transfer services.

•   They’re fast. Depending on the service, P2P money transfers can happen very quickly. They can take anywhere from just a few seconds to a couple of business days.

•   They’re cheap. When exchanging money between friends and family, P2P money transfers are often free. There may be a small fee, however, if you want an instant bank transfer, are using a credit card instead of a bank account, are making a transfer above a certain dollar amount, are conducting a high volume of transfers, or are using the service for a business transaction.

•   They’re easy. P2P transfers eliminate the need to make trips to the ATM or a local bank branch to get cash. They also eliminate the need to get out your checkbook, write a check, and then mail it to someone. For a P2P transfer, all you likely need is a mobile device, the app, and cell service or wifi.

Alternatives to P2P Money Transfers

What if a P2P money transfer isn’t available or doesn’t suit your needs? Try these options instead to move money.

Sending a Check

You can go old-school and write a paper check. You fill out the necessary details and hand or mail the check to the person you are paying. Typically, no fee is involved, although you may have to pay for a new checkbook when you run low and order more checks.

Money Orders

Money orders are in some ways similar to a check, but you don’t write them from a bank account. Instead, you purchase them (essentially pre-paying for the amount you are sending) at the post office, businesses like Western Union or Moneygram, or from certain retailers.

Typically, you will pay a small fee. For example, the United States Post Office will issue domestic money orders up to and including $1,000. Those that are for amounts up to $500 will be assessed a $2.35 fee; for ones that are $500.01 to $1,000, $3.40 will be charged. Once you have a money order, you can either give it to the recipient in person or mail it. You can also typically track a money order to see when it’s cashed.

Using Online Bill Payment Services

Many financial institutions offer ways for their customers to pay bills electronically. A key feature of mobile banking, this service can be a simple way to send funds from your checking account, regardless of where you are or what time it is. You may be able to set up recurring payments as well for bills you receive regularly.

Wire Transfers

Wire transfers are another way to send funds electronically using a network of financial institutions and transfer agencies that operate globally. Typically, you will access a wire transfer via your bank, its website, or its app. You’ll need to have your payee’s banking details and will likely pay a fee to wire money.

For instance, domestic wire transfers can charge a fee of anywhere from $0 to $50 (depending on whether they are incoming or outgoing), and they can often be processed in a few hours or within a day. International wire transfers can cost more (with both the sender and recipient possibly paying fees, typically $35 to $50 for the sender) and can take longer, typically two days. Certain banks may offer free wire transfers, perhaps only for certain types of accounts (such as premium ones), so if this is an important feature for you, it can be worthwhile to do your research.

Recommended: What Is an E-Check (Electronic Check)?

The Takeaway

Peer-to-peer (or P2P) payment apps facilitate mobile money transactions. You can use them in place of cash or writing a check when you want to give friends or family money, whether it’s to cover your portion of a dinner bill or split the cost of a vacation rental. Some businesses also accept this form of payment.

All you need to make a P2P transfer is a mobile device, an internet connection, and your P2P app, which you must link to your credit card or bank account.

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

FAQ

How much time does a P2P transfer take?

P2P accounts can take just a few seconds or a few days to move funds. Then, if the person who has money in the P2P app wants to transfer their cash to a bank account, that can also take between hours and a couple of days. Often, you may be charged a fee if you want the money moved ASAP.

Is P2P digital money?

P2P, or peer-to-peer-payments, are a digital way of moving funds from one person to another. Once the transfer is complete, the recipient has money they can use to pay for purchases or transfer into a bank account.

What’s an example of a P2P payment?

An example of a P2P payment would be to use a P2P app such as PayPal or Venmo to send funds to a friend you owe money. Or you might send a payment to a service provider or retailer using P2P apps as well.

Do banks use P2P?

Many banks offer their own version of P2P apps. For example, you might be able to almost instantly send funds from your account to a friend, a retailer, or a service provider by using a bank’s app.

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

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

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

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

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

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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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