Extra Income Sources for Retirees

11 Ways of Earning Money in Retirement

Many retirees are looking for ways to earn money, whether by doing online or seasonal work, tapping their entrepreneurial streak, or perhaps downsizing in order to raise cash. Here’s why: The average Social Security retirement benefit as of February 2024 is $1,772.51, which probably isn’t enough income to support a comfortable life for most people in the United States, especially older people who can often require more health care services.

Read on for some ideas for discovering extra income sources for retirees, plus tips on how seniors can maximize their money.

Key Points

•   Many retirees seek additional income through online jobs, seasonal work, or by starting their own businesses.

•   Virtual assistant roles and bookkeeping are viable online job options for retirees seeking flexible work from home.

•   Seasonal opportunities during holidays, tax season, or tourist seasons offer potential income without year-round commitment.

•   Starting a business post-retirement can utilize one’s professional skills or passions in consulting or service-oriented roles.

•   Downsizing personal belongings and reducing fixed costs can also provide financial relief and additional income in retirement.

Online Jobs for Seniors

For people who want to earn money from the comfort of home, there are many online jobs that require varying degrees of experience. Often you can work when you like, in your sweats if you prefer. This is, after all, supposed to be your time. Here, some work-from-home jobs for retirees:

1. Virtual Assistant

Virtual assistants tackle jobs that companies don’t have the money or inclination to hire full-time employees for. This might include anything from handling social media to managing customer emails or handling the CEO’s schedule. Often, they work for small companies, but they may be called in to help large ones as well. Some virtual assistants make very good money; six figures, even. The key is to create a niche, an area where you already have expertise to set you apart from the competition.

2. Bookkeeper

Bookkeeping can be a fairly easy skill to learn; it isn’t accounting, and bookkeepers don’t handle all the tasks of an accountant. A bookkeeper might create new accounts, handle payroll, and pay and issue invoices, usually with the help of bookkeeping software. They probably won’t be responsible for closing out the books, reporting taxes, or other tasks that have the legal liabilities of an accountant. One bookkeeper might be able to handle several clients.

3. Teacher

Even if you haven’t taught before, if you have knowledge to share and have always been good at explaining things to others, online teaching might be for you. You could teach English to non-English speakers, or tutor in any subject in which you have depth of knowledge. Earnings can range from several dollars an hour to more than $25 (or multiples of that) depending on your expertise. An online search can lead you to many options.

4. Customer Service

You’d be surprised how many jobs there are for customer service representatives who want to work from home. You might be hired to help customers via phone, social media, or chat. You could be working with products or services, from selling kitchenware to answering questions about healthcare services. Or if you have management experience, you might manage a team of home-based customer service representatives. This is a job that requires patience and a love of working with people.

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Seasonal Jobs for Retirees

5. Retail, Tax Season, Tourism

You may not want to work all year round. Perhaps just bringing in a little extra money now and again would suit you fine. If so, holidays, tourist season, and tax season may provide all the work you want. For example, US retailers expect to hire many 100,000s of workers for most Christmas seasons, mostly working as sales associates in brick-and-mortar stores. For instance, Walmart alone has hired 40,000 employees during the ramp-up to a recent holiday season.

While Christmas retail may provide the most seasonal jobs, tax season isn’t too far behind and also provides hundreds of thousands of jobs for tax preparers. Many of them must first take a short course and work from the first of the year through Tax Day.

But there are other opportunities, too. All summer and fall people need yard work and gardening help. If you live in a tourist town, attractions need staff, too. Picking up seasonal work means enjoying the leisure of retirement in between picking up extra cash.

Start Your Own Business

The skills you gained during your working years could provide the foundation for your own pursuit, or you could try something different. How many hours you devote to it is your call; flexibility can be a benefit of a side hustle or entrepreneurial business. Some ideas:

6. Consulting

More and more companies are turning to contract work rather than hiring full-time employees. If you have a solid skill set, want to set your own hours, and choose your clients, you can use your connections to begin a consulting company. You may need a website or LinkedIn to promote your services, or you may have a strong enough network you can just reach out to connections and let them know you’re in business!

7. Service Work

Maybe you love cooking and can create a business providing meals for a handful of families every week. Perhaps you love kids and want to work as a nanny. Perhaps you are good at simple carpentry and can do odd jobs. Many families find they lack the time to take care of jobs, kids, homes, and hobbies and would love a reliable person to take on some of their tasks.

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Downsize in Retirement

Life can get fuller and more complicated as the years pass — buying stuff, accumulating debt, having multiple income streams, gaining complexity. Retirement can be the right time to figure out what brings you joy and start shedding that extra stuff which may have become a burden to manage.

8. Sell Stuff

By retirement age, many people have collected a lot of possessions. Instead of just unloading it for free, you might offer it on a site like eBay or Etsy, or one of the dozens of other possible places to sell your things.

If you donate it, make sure to track what you give away and keep receipts for a possible tax deduction.

Recommended: Guide to Reselling

9. Unload Debt

Debt is expensive. Whether it’s a credit card, a personal loan, or even a mortgage, it’s wise to find ways to reduce the cost of that debt. That might mean it’s time to refinance your mortgage and perhaps roll other debts into it to cut the interest rate and boost your tax deductions.

It might mean making extra payments on principal or using the extra income you bring in to whittle away at high-interest loans. It might mean seeing if you can get a better rate by using a personal loan for your car. Talk to a financial advisor to find the best ways to reduce the burden of debt.

10. Reduce Fixed Costs

Use a spending tracker or budget tracker to find ways to reduce your fixed monthly expenses like food, housing, transportation, and healthcare. Could you get by with only one car instead of two? Or maybe it’s time to sell your home and move into a smaller one that gives you more money at the end of the month.

Various tools let you check home values to see how much you could get for your current home. You could also eliminate a couple of streaming services or follow store sales to stock up on favorite items at a lower cost.

11. Ask for Discounts

Take advantage of seniors’ discounts everywhere you go. Many mobile phone services have senior discounts; grocery stores have senior discount days; movie theaters, hotels, airlines, all offer discounts to seniors.

Beyond age-related savings, know that you can also sometimes renegotiate bills for things like insurance and internet service. Don’t be shy: Many companies expect it and build it into their customer retention plans so you’re not asking for “special favors.” You might also try negotiating medical bills as well.

Revisit Your Financial Plan

Financial planning has to evolve as the markets evolve. You should ensure you have a retirement plan and that you regularly evaluate your financial portfolio. You may be able to move money around in a way that provides you extra cash each month.

Continuing to Save Money in Retirement

A couple of other moves can help you manage your finances in retirement.

•   You might hold off on taking Social Security until you are at full retirement age, so you get the highest possible benefit.

•   If you are part of a married couple and want to begin drawing your Social Security benefit, research your options. You may want to have the higher earner hold off and the lower earner claim benefits.

•   Invest carefully. Seniors can still invest (perhaps not as much as in the past); be sure to work with a vetted, respected financial professional since scams and fraud can target elders.

The Takeaway

Many retirees are looking for ways to bring in more cash, and there are plenty of ways to do so, from starting a side hustle to selling unwanted items to taking on seasonal work. You might also benefit from taking a fresh look at your budget and reallocating some funds.

Another important facet of thriving during retirement can be to find the right banking partner. SoFi can be that ally.

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FAQ

How can you make extra money after 60?

There are a variety of ways to make extra money after 60, from starting a side hustle to doing seasonal work. Options range from retail to consulting to teaching and beyond.

What is the best side hustle for retirees?

The best side hustle will depend on your skills, interest, and available time and equipment. For instance, if you have a chunk of free time and a car at your disposal, you might drive a rideshare like Uber. If you have deep knowledge on a certain topic, you might teach online.

How to make $1,000 a month in retirement?

A person’s ability to make $1,000 a month in retirement will depend upon how they want to go about earning. Do you have a passive income stream (say, a rental property) you can tap? Can you command top dollar consulting or teaching online? Or can you work for several hours a day at a side hustle or seasonal job? The particulars of your situation (your skill set, available time, and location) will all matter.


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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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A Guide to U.S. Treasury Ladders

Purchasing U.S. Treasury securities are often considered to be a dependable and less-risky way to increase income and grow wealth over time. Building a Treasury ladder can be a smart move for investors looking for a way to maximize profits while controlling interest rate risk. Investing in a Treasury ladder allows investors to spread out the risk and return associated with holding fixed-income securities by buying a sequence of securities with varying maturities.

In this article we delve into the complexities of U.S. Treasury ladders, going over their advantages, construction techniques, and things to think about for investors trying to assemble a reliable and well-rounded portfolio.

Key Points

•   Treasury ladders involve purchasing U.S. Treasury securities with staggered maturities to manage income and interest rate risks.

•   This strategy allows for spreading out investment risks and returns across different maturity dates.

•   Treasury ladders can be constructed using Treasury Bills, Notes, and Bonds, depending on investment goals and time horizons.

•   The approach helps maintain liquidity and provides a steady income stream by ensuring parts of the investment mature regularly.

•   Treasury ladders are considered a conservative investment strategy, suitable for investors seeking stability and lower risk.

What Is a Treasury Bill Ladder?

An investing strategy known as a “Treasury Bill ladder” involves buying a sequence of Treasury Bills with varying maturities. The United States government issues Treasury Bills, sometimes known as T-bills, which are short-term debt securities with maturities varying from a few days to a year. Investors can spread out the maturity dates of their investments by building a Treasury Bill ladder, which preserves liquidity and generates a consistent income stream.

With this approach, investors can benefit from fluctuating interest rates and make sure that a part of their portfolio is always maturing, giving them flexibility in terms of withdrawal or reinvestment. Treasury Bills are also regarded as some of the least-risky investment options.

What Is a Treasury Bond Ladder?

A Treasury Bond ladder is similar to a Treasury Bill ladder in that it emphasizes longer-term investing and both involve staggering maturities. The United States government issues Treasury Bonds, which are long-term debt instruments with maturities ranging from 10 to 30 years.

A Treasury Bond ladder works similarly to a Treasury Bill ladder in that it distributes the risk and returns of investing in fixed-income securities by buying bonds with different maturities. Still, there are some significant distinctions between the two approaches. Because they are investments with a longer maturity period than Treasury Bills, Treasury Bonds usually provide greater yields.

Treasury Bond ladders are often favored by investors seeking higher income potential and are willing to accept the associated interest rate risk. Changes in interest rates may have an effect on the market value of Treasury Bonds. Notwithstanding these differences, Treasury Bill and Treasury Bond ladders are equally useful instruments for addressing the varied inclinations and goals of investors while controlling interest rate risk, producing income, and preserving portfolio diversification.

How Can You Build a Treasury Ladder?

Several important factors must be taken into account while building a Treasury ladder in order to minimize risk and maximize returns.

The first stage is to decide on the ladder’s ideal configuration, which includes the number of rungs and the assets’ staggered maturities. The term “rungs” refers to the individual assets that make up the ladder; based on the investor’s investment horizon and preferences, these securities may include Treasury Bonds, Treasury Notes, or Treasury Bills. By ensuring that a part of the portfolio matures on a regular basis, staggered maturities offer liquidity and flexibility for withdrawal or reinvestment.

To maximize the performance of a Treasury ladder, investors should also take the yield curve and current interest rates into account. Longer-dated securities often provide greater yields in order to offset the duration and interest rate risk. Nonetheless, investors may decide to add assets with shorter maturities to increase liquidity or to capitalize on future changes in interest rates.

When choosing the Treasury securities to include in the ladder, investors should consider their time horizon, investing goals, and risk tolerance. While Treasury Notes and Bonds offer higher returns and are appropriate for longer-term investment objectives, Treasury Bills are best suited for investors with short-term liquidity needs or a conservative risk profile.

After the ladder is put in place, investors should keep a close eye on it, rebalance the portfolio as needed to preserve the intended asset allocation, and modify the ladder’s maturity structure in response to shifting market conditions.

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What’s an Example of a T-Bill Ladder?

Buying T-Bills with varying maturities over a predetermined time frame, like a year, is an example of a T-Bill ladder.

An investor could, for example, build a three-rung T-Bill ladder, where each rung represents a T-Bill with a different maturity date. T-Bills that mature in three months, six months, and nine months, respectively, might be found on the first rung, second rung, and third rung.

By reinvesting the proceeds from each maturing T-Bill into new ones with longer maturities, the investor can preserve the ladder’s structure and create a steady flow of income. By delaying the maturity dates of their investments, this technique helps investors spread out their exposure to reinvestment risk while capturing changing interest rates over time.

An investor would receive interest income of $50 from the first T-Bill after three months, $100 from the second T-Bill after six months, and $150 from the third T-Bill after nine months, for instance, if they initially purchase $10,000 worth of T-Bills with staggered maturities of three, six, and nine months, and each T-Bill offers an annualized yield of 2%.

In order to preserve the ladder’s structure and gradually produce a consistent income stream, the investor may reinvest the principal and interest into further T-Bills upon maturity.

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How Do You Buy Treasury Bonds and Bills?

Purchasing Treasury Bills and Bonds is a simple process that may be carried out via a number of methods.

One popular way is via a brokerage account, where investors can buy Treasury securities through a broker-dealer. Or investors can buy directly from the U.S. Department of the Treasury. Treasury securities are easily accessible through a number of online brokerage platforms, enabling investors to buy and sell them with a few clicks.

Banks and other financial organizations that take part in Treasury auctions are another source for investors to purchase Treasury securities. Investors can place bids for the required quantity and yield at regular auctions held by the U.S. Department of the Treasury for Treasury securities, such as Treasury Bills, notes, and bonds.

Additionally, investors may purchase Treasury securities indirectly by investing in a diverse portfolio of Treasury securities through exchange-traded funds (ETFs) or mutual funds with a Treasury concentration. Investors can easily obtain exposure to Treasury securities through these products without having to buy individual bonds or bills.

Is it Worth it to Build a Treasury Ladder?

Creating a Treasury ladder may have certain advantages for investors:

•   Possible protection against inflation: Treasury Inflation-Protected Securities (TIPS) within the ladder may help safeguard against the erosive effects of inflation by adjusting the principal value in line with changes in the Consumer Price Index (CPI).

•   Revenue and cash flow: Treasury securities offer a steady income stream in the form of interest payments, which can be especially attractive to retirees or those looking for consistent cash flow. In order to provide liquidity for reinvestment or other financial needs, staggered maturities create a steady stream of maturing securities.

•   Diversification: Treasury ladders distribute assets across several Treasury security types and maturities, providing diversification and lowering total portfolio risk.

•   Security and less risk: Because they pay principal and interest on time by the U.S. government, U.S. Treasury securities are among the least risky investments available.

Are There Risks Associated with Treasury Bill and Bond Ladders?

Bond and Treasury bill ladders are typically regarded as low-risk investment techniques, but investors should be aware of certain potential risks.

Interest rate risk is one of the main risks connected to Treasury securities. Treasury securities’ market value can change inversely with changes in interest rates. This implies that the market value of current Treasury securities may decrease if interest rates rise, possibly resulting in a loss if the investor sells before maturity. On the other hand, investors who retain Treasury securities until maturity may benefit if interest rates decline and the market value of the securities rises.

Reinvestment risk is another thing to think about. Investors must reinvest the revenues from maturing assets into new securities because Treasury ladders feature staggered maturities. Investors may end up investing at lower rates if interest rates have dropped since the first investment, which might affect the ladder’s overall yield. On the other hand, investors might be able to reinvest at higher rates if interest rates have increased, which would raise the ladder’s total yield.

Even though Treasury securities are among the least risky investments available since they are backed by the full faith and credit of the United States government, there is always a small but constant risk of default. The purchase power of the principal and interest payments of Treasury inflation-protected securities (TIPS) can be impacted by changes in inflation, so investors should be aware that TIPS involve an inflation risk.

Can You Set Up a Ladder Using ETFs?

ETFs that specialize in Treasury securities allow investors to indirectly build up a Treasury ladder. Treasury-focused ETFs offer investors exposure to a variety of Treasury Bills, notes, and bonds by holding a diversified portfolio of Treasury securities with different maturities.

Without having to buy individual assets, investors can obtain a comparable result to a Treasury ladder by investing in these ETFs.

When building a Treasury ladder, investors can benefit from a number of ETF features. They offer diversification over a wide array of Treasury securities, helping reduce credit risk as well as interest rate risk. Also, a wider range of investors can invest in ETFs since they usually have lower investment minimums than buying individual Treasury securities. ETFs also trade on stock exchanges, giving investors flexibility and liquidity to purchase and sell shares at any time during the trading day.

That’s not to say that ETFs don’t, generally, have some downsides, though. ETFs may experience tracking errors, for instance, and have associated trading costs. There may be other types of risk, too – just some things to keep in mind.

Treasury-focused ETFs frequently provide extra characteristics, such as improved yield strategies or inflation protection, to meet the unique requirements and preferences of investors. To make sure that ETFs match their investment goals and risk tolerance, investors should carefully consider the expense ratios and liquidity of the funds before making an investment.

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The Takeaway

Building a Treasury ladder may be a tool for investors looking for a way to maximize profits while controlling interest rate risk. And, as noted, investing in a Treasury ladder allows investors to spread out the risk and return associated with holding fixed-income securities.

Overall, the combination of potential inflation protection, minimized interest-rate risk, reliable income, diversification benefits, and lower relative risk make building a Treasury ladder a compelling investment strategy for many investors, particularly those with a conservative risk tolerance or seeking stable returns over time.

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FAQ

Is laddering Treasury bills a good idea?

A T-Bill ladder distributes investments over a range of maturity dates, which helps investors diversify their holdings. It can aid in reducing interest rate risk.

Are Treasury ladders taxable?

Yes, you pay federal taxes on Treasury Bills at your marginal income tax rate, but state and local income taxes do not apply to them.

Is it better to buy a CD or a Treasury bill?

Depending on the length of term you desire, you can choose between Treasuries and a CD. Treasuries are a preferable option because rates are close enough for both one- to six-month and ten-year maturities. Right now, CDs are paying more for durations of one to five years, and the difference is significant enough to give them the advantage.


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Catch-Up Contributions, Explained

Catch-up contributions allow individuals 50 and older to contribute additional money to their workplace retirement savings plans like 401(k)s and 403(b)s, as well as to individual retirement accounts (IRAs).

Catch-up contributions are designed to help those approaching retirement age save more money for their retirement as they draw closer to that time.

Learn how catch-up contributions work, the eligibility requirements, and how you might be able to take advantage of these contributions to help reach your retirement savings goals.

Key Points

•   Catch-up contributions allow individuals 50 and older to contribute additional money to their workplace retirement savings plans and individual retirement accounts (IRAs).

•   Catch-up contributions were created to help older individuals “catch up” on their retirement savings if they haven’t been able to save enough earlier in their careers.

•   The catch-up contribution limits for 2023 and 2024 vary depending on the retirement savings plan, such as 401(k), 403(b), and IRAs.

•   To be eligible for catch-up contributions, individuals need to be age 50 or older, and certain retirement plans may have additional allowances based on years of service.

•   Catch-up contributions can provide benefits such as increased retirement savings, potential tax benefits, and additional financial security as retirement approaches.

What Is a Catch-Up Contribution?

A catch-up contribution is an additional contribution individuals 50 and older can make to a retirement savings plan beyond the standard allowable limits. In addition to 401(k)s, 403(b)s, and IRAs, catch-up contributions can also be made to Thrift Savings Accounts, 457 plans, and SIMPLE IRAs.

Catch-up contributions were created as a provision of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. They were originally planned to end in 2010. However, catch-up contributions became permanent with the Pension Protection Act of 2006.

The idea behind catch-up contributions is to help older individuals who may not have been able to save for retirement earlier in their careers, or those who experienced financial setbacks, to “catch up.” The additional contributions could increase their retirement savings and improve their financial readiness for their golden years.

While employer-sponsored retirement plans are not required to allow plan participants to make catch-up contributions, most do. In fact, nearly all workplace retirement plans offer catch-up contributions, according to a 2023 report by Vanguard.

💡 Quick Tip: Want to lower your taxable income? Start saving for retirement with an IRA account. The money you save each year in a Traditional IRA is tax deductible (and you don’t owe any taxes until you withdraw the funds, usually in retirement).

Boost your retirement contributions with a 1% match.

SoFi IRAs now get a 1% match on every dollar you deposit, up to the annual contribution limits. Open an account today and get started.


Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included.

Catch-Up Contribution Limits: 2023-2024

Each year, the IRS evaluates and modifies contribution limits for retirement plans, primarily taking the effects of inflation into account. The standard annual contribution limit for a 401(k) in 2023 is $22,500, and $23,000 for 2024. For a traditional or Roth IRA, the standard contribution limit is $6,500 in 2023, and for 2024 the limit is $7,000.

Catch-up contributions can be made on top of those amounts. Here are the catch-up contribution limits for 2023 and 2024 for some retirement savings plans.

Plan 2023 Catch-Up Limit 2024 Catch-Up Limit
IRA (traditional or Roth) $1,000 $1,000
401(k) $7,500 $7,500
403(b) $7,500 $7,500
SIMPLE IRA $3,500 $3,500
457 $7,500 $7,500
Thrift Savings Account $7,500 $7,500

This means that you can make an additional $7,500 in catch-up contributions to your 401(k) for a grand total of up to $30,000 in 2023 and $30,500 in 2024. And with traditional and Roth IRA catch-up contributions of $1,000 for both years, you can contribute up to $7,500 in 2023 and $8,000 in 2024 to your IRA.

Catch-Up Contribution Requirements

In order to take advantage of catch-up contributions, individuals need to be age 50 or older — or turn 50 by the end of the calendar year. If eligible, they can make catch-up contributions each year after that if they choose to — up to the annual contribution limit.

Certain retirement plans may have other allowances for catch-up eligibility. For instance, with a 403(b), in addition to the catch-up contributions for participants based on age, employees with at least 15 years of service may be able to make additional contributions, depending on the rules of their employer’s plan.

To maximize the advantages of catch-up contributions, it’s a good idea to become familiar with the rules of your plan as part of your retirement planning strategy.

Benefits of Catch-Up Contributions

There are a number of benefits to making catch-up contributions to eligible retirement plans.

•   Increased retirement savings: By helping to make up for earlier periods of lower contributions to your retirement savings plan, catch-up contributions allow you to increase your savings and potentially grow your nest egg in the years closest to retirement.

•   Possible tax benefits: Making catch-up contributions may help lower your taxable income for the year you make them. That’s because contributions to 401(k)s and traditional IRAs are made with pre-tax dollars, giving you a right-now deduction. And contributions beyond the standard limits could lower your taxable income for the year even more. (Of course, you will pay tax on the money when you withdraw it in retirement, but you may be in a lower tax bracket by then.)

•   Additional security: Making catch-up contributions may give you an extra financial cushion as you approach retirement age. And those contributions may add up in a way that could surprise you. For instance, if you contribute an additional $7,500 to your retirement account from age 50 to 65, assuming an annualized rate of return of 7%, you could end up with more than $200,000 extra in your account.

💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

How to Make Catch-Up Contributions

To make catch-up contributions to an employer-sponsored plan, contact your plan’s administrator or log into your account online. The process is typically incorporated into a retirement savings plan’s structure, and you should be able to easily indicate the amount you want to contribute as a catch-up.

To make IRA catch-up contributions, contact your IRA custodian (typically the institution where you opened the IRA) to start the process. In general, you have until the due date for your taxes (for example, April 15, 2024 for your 2023 taxes) to make catch-up contributions.

Finally, keep tabs on all your retirement plan contributions, including catch-ups, to make sure you aren’t exceeding the annual limits.

The Takeaway

For those 50 and up, catch-up contributions can be an important way to help build retirement savings. They can be an especially useful tool for individuals who weren’t able to save as much for retirement when they were younger. By contributing additional money to their 401(k) or IRA now, they can work toward a goal of a comfortable and secure retirement.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help grow your nest egg with a SoFi IRA.

FAQ

Do you get employer match on catch-up contributions?

It depends on whether your plan allows employer matching for catch-up contributions. Not all plans do. Even if your employer does match catch-up contributions, they might set a limit on the total amount they will match overall. Check with your plan administrator to find out what the rules are.

Are catch-up contributions worth it?

Catch-up contributions can be beneficial to older workers by helping them potentially build a bigger retirement nest egg. These contributions may be especially helpful for those who haven’t been able to save as much for retirement earlier in their lifetime. Making catch-up contributions might also provide them with tax benefits by lowering their taxable income so that they could possibly save even more money.

How are catch-up contributions taxed?

For retirement savings plans like 401(k)s and traditional IRAs, catch-up contributions are typically tax deductible, lowering an individual’s taxable income in the year they contribute. However, catch-up contributions to Roth IRAs are made with after-tax dollars. That means you pay taxes on the money you contribute now, but your withdrawals are generally tax-free in retirement.


Photo credit: iStock/mapodile
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.

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.

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SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
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Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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What Is a Senior Checking Account?

What Is a Senior Citizen Checking Account?

A senior citizen checking account is a type of bank account specifically designed for individuals who are typically aged 55 or older. These accounts often offer benefits such as higher interest rates, lower fees, and additional perks tailored to the needs of seniors, such as discounts on travel or entertainment.

Is it worth getting a senior checking account vs. a regular checking account? Sometimes — but not always. Here’s what you need to know.

How Does a Senior Checking Account Work?

A senior checking account works in the same way as a regular checking account. The only difference is that it may offer benefits and features customized for adults above a certain age, which might be 50, 55, or 62, depending on the bank or credit union. Senior checking accounts are more commonly offered by smaller regional banks or credit unions than by large national banks.

Like a standard checking account, senior checking accounts offer a place to safely store your money and manage day-to-day spending. They typically come with paper checks plus a debit card you can use for purchases or cash withdrawals. Checking accounts may also offer features like overdraft protection and direct deposit.

Recommended: 7 Tips for Managing a Checking Account

What Is the Difference Between a Senior Checking Account and a Normal Checking Account?

Overall, a senior checking account serves the same purpose as a regular checking account. However, a senior checking account may have certain age requirements and can come with unique benefits and senior discounts designed to appeal to older adults. Some of these benefits may include:

•   Free checks

•   No monthly service charges or low minimum balance requirement to waive monthly service fees

•   24/7 access to customer service by phone

•   Interest on checking account balances

•   A certain number of out-of-network ATM fees waived

•   Discounts on safe deposit boxes

•   Free services such as notary, cashier’s checks, money orders, and wire transfers

•   Special interest rates on certificates of deposit (CDs) or loans

•   Rewards points for using your debit card

These types of perks make it easier for senior citizens to manage their financial life.

Pros of a Senior Checking Account

A senior checking account generally offers all the benefits of traditional checking, plus some extras. Here’s a look at some of the advantages of opening a senior checking account.

•   Unique perks: Eligible account holders can often enjoy special perks like free checks, waived monthly service charges and transaction fees, and discounted banking services.

•   Earn interest: It’s not guaranteed everywhere, but some senior checking accounts allow account holders to earn interest on their deposits.

•   Security: Like regular checking accounts, funds stored in a senior checking account (up to a certain amount) are safe and secure, thanks to Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insurance,

•   Accessibility: As with any checking account, it’s easy to access your money from a senior checking account when you need it. You can usually make withdrawals in a variety of different ways, including at a branch with a teller, using a debit card at an ATM, writing a check, and making an online bank transfer.

•   Debit card: Typically, senior checking accounts come with debit cards which make it easy to pay for purchases without having cash on hand.

•   Direct deposits: Instead of waiting for paper checks in the mail, checking account holders can set up convenient direct deposits.

Cons of a Senior Checking Account

There are also disadvantages associated with senior checking accounts. Here are some to mull over.

•   Age requirements: Senior checking accounts often have age requirements. Depending on the bank or credit union, you may need to be 50-plus, 55-plus, or 62-plus.

•   Minimal interest: Some senior checking accounts offer interest. However, annual percentage yields (APYs) are generally low. You can likely get a significantly better return on your money by storing it in a high-yield savings account.

•   Minimum balance: Some senior checking accounts may require you to keep a minimum balance to avoid monthly maintenance fees or earn interest.

•   May not be better than a regular account: Many of the promoted perks of a senior checking account may also be available with a standard checking account.

•   Fees: While senior checking accounts tend to charge fewer or lower fees, they can come with account management fees, overdraft fees, and other fees

•   May get better perks with a regular checking account: If you keep a large balance in your checking account, you may be better off with a premium checking account, which could offer more perks and services than a senior checking account.

Things to Consider When Looking for a Senior Citizen Checking Account

Before opening a senior checking account, here are a few helpful things to keep in mind.

•   Convenience: Does the bank or credit union have enough branches and ATMs? Is their website easy to use? Do the bank’s customer service options fit your preferences?

•   Special services and features: Compare a few different senior citizen checking account options. What perks do they offer? Do these services and features matter to you? A free safety deposit box and a special rate on a CD won’t be useful if you don’t plan to use those products.

•   Minimum balance requirements: Does the account have a minimum balance requirement? Will this threshold be easy to meet? If not, you might end up paying a monthly maintenance charge.

•   Fees: Senior citizen checking accounts tend to have fewer fees than typical checking accounts. Still, it’s worth comparing the different fees each account charges. Consider overdraft fees, ATM fees, nonsufficient funds fees, as well as fees for services you may use, such as money orders or wire transfers.

Is a Senior Checking Account Worth It Over a Normal Checking Account?

It depends. Since there are numerous banking choices these days, including traditional banks and credit unions and online-only institutions, it generally pays to shop around and compare benefits and perks of different checking accounts.

As you shop around, keep an eye out for minimum balance requirements and monthly (and any other) fees. If a senior checking account will actually save you money, it could be worth it. If you could do better with a regular checking account, then you may want to skip the senior account.

How Can I Apply for a Senior Citizen Checking Account?

The process of opening a checking account for senior citizens is generally the same as opening a regular checking account. Here’s a look at the steps that are typically involved.

1.    Complete the application. You can generally do this either online or in person at a branch and will need all your basic information (including a government-issued photo ID, proof of address, and Social Security number).

2.    Designate beneficiaries. Once your application is approved, you can choose a beneficiary for your account.

3.    Deposit funds. If an opening deposit is required, you can typically do this by transferring funds from another account (either at the same or a different bank) or using a check, cash, or a debit card.

If you plan to close your other checking account, you’ll want to wait until all outstanding payments and deposits going in or coming out of that account have cleared. Also be sure to change any online bill payments and direct deposits from your prior checking account to your new checking account.

Recommended: How To Switch Banks in 3 Easy Steps

The Takeaway

Senior checking accounts generally come with benefits tailored to older adults, such as lower fees, higher interest rates, and additional perks like free checks or discounts on services.

If you’re over a certain age, prefer traditional banking services, and value these benefits, a senior checking account could be worth it. However, if you’re looking to switch your bank account, it’s wise to compare the features and fees of different accounts to determine which one offers the best value. Depending on your needs and goals, you might find that a checking account with no age requirements is a better fit.

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.

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

FAQ

What is senior banking?

Senior banking refers to banking services and accounts specifically designed for older individuals, typically aged 55 or older. These accounts often come with features and benefits tailored to the needs of seniors, such as lower fees, higher interest rates, and additional perks like free checks or discounts on services. Senior banking may also include financial planning and retirement services to help seniors manage their finances more effectively.

What is the age restriction for senior checking accounts?

Depending on the bank or credit union, the age restriction for a senior checking account may be age 50, 55, or 62.

What is the age limit for a senior citizen bank account?

The age limit for a senior bank account can vary depending on the financial institution. In general, senior bank accounts are available to individuals who are aged 55 or older. However, some banks may offer senior accounts to individuals as young as 50, while others may set the age limit at 62 or older. It’s best to check with the specific bank or credit union to determine the age requirements for their senior banking products.


Photo credit: iStock/Deagreez

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.


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


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

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Having a Savings Accounts on Social Security Disability

Are You Allowed to Have a Savings Account While on Social Security Disability?

If someone is applying for disability benefits, they may be relieved to learn that, yes, you can have a savings account while on Social Security disability. While there are certain financial factors that can disqualify someone from Social Security eligibility, having a savings account is not one of those factors.

But of course, there are some subtleties to be aware of with any benefits matter, so it’s important to take a closer look. Among the points to learn are the difference between SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income), who is eligible for Social Security disability benefits, and what the guidelines are for having a savings account while receiving benefits.

What Is Social Security?

There’s a reason the Social Security program is so well known: It has been providing financial support to Americans for many decades. Social Security benefits are designed to help maintain the basic well-being and protection of the American people. These benefits have been around since the 1930’s in response to the economic crisis caused by the Great Depression.

Today, one in five Americans currently receive some form of Social Security benefits — one third of those are disabled, dependents, or survivors of deceased workers. More than 10 million Americans are either disabled workers or their dependents.

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

Can I Get Social Security Disability Insurance or Supplemental Security Income with a Savings Account?

You may be thinking you can’t have that kind of asset if you want to qualify for Social Security Disability funds. However, it is indeed possible to receive Social Security Disability Insurance (SSDI) or supplemental security income if you have a checking or a savings account.

Even better, it doesn’t matter how much money is held in that account. There are other program requirements that must be met to qualify for SSDI, but how much money someone has or doesn’t have in the bank isn’t one of them.

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!


Eligibility for SSDI

In order to be eligible for SSDI benefits, the individual must have worked in a job or jobs that were covered by Social Security and have a current medical condition that meets Social Security’s definition of disability. Generally, this program can benefit those who are unable to work for a year or more due to a disability.

It provides monthly benefits until the individual is able to work again on a regular basis. If someone reaches full retirement age while receiving SSDI benefits, those benefits will automatically convert to retirement benefits maintaining the same amount of financial support.

Eligibility for SSI

If you receive Supplemental Security Income (SSI), however, there is a limit on how much you can have in savings. SSI is a federal support program that receives funding from the type of taxes known as general tax revenue, not Social Security taxes.

This program provides financial support to help recipients cover basic needs such as clothing, shelter, and food. It provides aid to those who are aged (65 or older), blind, and disabled people who have little or no income (or limited resources). To qualify, participants must be a U.S. citizen or national, or qualify as one of certain categories of noncitizens.

What You Have to Tell SS about Your Assets if You Want Benefits

There are certain assets (in this case, they’re known as resources) that must be disclosed in order to qualify for benefits through the SSI program. Typically, to receive benefits, one can’t own more than $2,000 as an individual or $3,000 as a couple in what the SSA deems “countable resources.” However, there aren’t any such limits in place for the SSDI program.

The value of someone’s resources (aka their financial assets) can help determine if they are eligible for Social Security benefits. If a recipient has more resources than allowed by the limit at the beginning of the month (when resources are counted), they won’t receive benefits for that month. They can be eligible again the next month if they use up or sell enough resources to fall below the limit.

Eligible resources can include:

•   Cash

•   Bank accounts (checking account, regular savings account, growth savings account; whatever you have)

•   Stocks, mutual funds, and U.S. savings bonds

•   Land

•   Life insurance

•   Personal property

•   Vehicles

•   Anything that can be changed to cash (and can be used for food and shelter)

•   Deemed resources

The term “deemed resources” refers to the resources of a spouse, parent, parent’s spouse, sponsor of a noncitizen, or sponsor’s spouse of the Social Security benefits applicant.

A certain amount of these deemed resources are subtracted from the overall limit. For example, if a child under 18 lives with only one parent, $2,000 worth of deemed resources won’t count towards the limit. If they live with two parents, that amount rises to $3,000.

Recommended: What are the Different Types of Savings Accounts?

How Much Can I Have in My Savings Account and Receive SSI or SSDI?

For the SSI program, the total resource limit (which includes what’s in a checking account) can not be more than $2,000 for an individual or $3,000 for a couple. Again, there are no asset limits when it comes to the SSDI program. If someone is applying for the SSDI program, they can surpass that $3,000 limit, and it won’t matter as it doesn’t apply to them.

SSA Exceptions and Programs

Not every asset someone owns will count towards the SSI resource limit (remember, there is no such limit for the SSDI program). For the SSI program, there are some exceptions regarding what counts as a resource. The following assets aren’t taken into consideration:

•   The home the applicant lives in and the land they live on

•   One vehicle—regardless of value—if the applicant or a member of their household use it for transportation

•   Household goods and personal effects

•   Life insurance policies (with a combined face value of $1,500 or less)

•   Burial spaces for them or their immediate family

•   Burial funds for them and their spouse (each valued at $1,500 or less)

•   Property they or their spouse use in a trade or business or to do their job

•   If blind or disabled, any money they set aside under a Plan to Achieve Self-Support

•   Up to $100,000 of funds in an Achieving a Better Life Experience account established through a State ABLE program

The Takeaway

When applying for Social Security benefits, having a savings account may or may not impact your eligibility. It depends on which program you are applying for. It is possible to have a savings account while receiving SSDI benefits. It’s also possible to have a savings account while receiving SSI, but there are limits regarding how much the value of the applicant’s assets (including what’s in their savings accounts) can be worth to qualify for support.

If you happen to be in the market for a savings account, take a look at your options.

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.

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

FAQ

How much money can I have in a savings account while on Social Security?

Personal assets aren’t taken into account, including savings, when applying for the SSDI program. For SSI, however, countable resources (including savings accounts) are capped at $2,000 for individuals and $3,000 for couples.

Does Social Security look at your bank account?

That depends. If someone is applying for Supplemental Social Security Income (SSI) benefits, their personal assets are taken into consideration when it comes to eligibility. With Social Security Disability Insurance (SSDI), applicant assets aren’t taken into consideration.

What happens if you have more than $2,000 in the bank on SSI?

If you have more than $2,000 in the bank and are on SSI as an individual (more than $3,000 if you are part of a couple), you will not receive benefits for that month. Your finances will be evaluated the following month to see if your assets have fallen and you therefore qualify.

Does Social Security check your bank account every month?

Money in the bank doesn’t affect Social Security disability benefits. However, there is a $2,000 to $3,000 limit (varies by household) for the SSI program.


Photo credit: iStock/MicroStockHub

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


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

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

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

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

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

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


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

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

This article is not intended to be legal advice. Please consult an attorney for advice.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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