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Twice a year, most Americans adjust their clocks — one hour forward in the spring, one hour back in the fall. This routine, known as Daylight Saving Time (DST), was originally designed to maximize daylight hours and reduce energy use. But as our modern lives evolve, so do questions about whether this time-shifting tradition still makes sense.

While DST comes with a number of benefits, it also comes with hidden costs — from disrupted sleep and reduced productivity to increased health risks and economic losses. So, does Daylight Saving Time actually save or cost the U.S. money? Let’s dive into the history, the original goals, and what the numbers really say.

What Is Daylight Savings Time?

Daylight Saving Time (DST), commonly referred to simply as “daylight savings,” is the practice of moving the clocks forward one hour ahead of local standard time in the spring to achieve longer evening daylight in summer. In effect, an hour of daylight is shifted from the morning to the evening each spring.

In the U.S., DST begins on the second Sunday of March and ends on the first Sunday of November, when we move the clocks back one hour, and always starts and ends at 2 a.m. People often rely on the phrases “spring forward” and “fall back” to remember which way to reset the clock.

The idea behind daylight savings is simple: by syncing the time people are active with daylight, we might use less artificial lighting — and, in theory, save energy and live more economically and efficiently.

A Brief History

The concept of DST dates back to the early 20th century. Though Benjamin Franklin is credited as the first to suggest shifting time to conserve energy, the modern practice wasn’t implemented until World War I, when it was temporarily adopted as a wartime measure to help conserve fuel and power and extend the work day. During World War II, DST was reintroduced and referred to as “War Time.”

After World War II, DST was repealed again, allowing states to establish their own standard time. For the next two decades, there were no set rules for DST, which led to significant confusion in the transportation and broadcast industries.

In 1966, the U.S. passed the Uniform Time Act, standardizing the start and end dates of DST, while allowing states to opt out by passing a state law. Currently, all states except Hawaii and most of Arizona observe DST. American territories, including Guam, American Samoa, Puerto Rico, and the Virgin Islands, do not follow DST.

Who Benefits From Daylight Savings Time?

Many people and industries benefit from Daylight Savings Time. Here’s a look at some of the advantages of moving the clocks ahead by an hour each spring.

•   Encourages activity: Proponents of DST note that longer evenings motivate people to get off the house and engage in outdoor recreation like walking, running, baseball, tennis, soccer, golf, etc. For parents, the extra hour of daylight can mean more outdoor activity for their children. As a result, changing the clocks each spring may help counteract our modern sedentary lifestyle.

•   Reduces lighting needs: An extra hour of daylight helps to reduce the need to use electricity for lighting, which can reduce energy costs. However, people today tend to use computers, screens, and air conditioning units whether it is light or dark out. As a result, many economists say the amount of energy saved from DST is minimal.

•   Improves public safety: Daylight Saving Time’s longer daylight hours can help reduce the risk of pedestrians and cyclists being hit by cars. Indeed, studies have found that DST reduces pedestrian fatalities by as much as 13% during dawn and dusk hours. An extra hour of sunshine can also deter criminals, who generally prefer to commit crimes at night. Research has found that robberies drop about 7% overall and 27% in the evening hours after the spring time change.

•   Stimulates the economy: More hours of daylight in the warm months may incentivize people to shop, dine, drive, play golf, and spend money in other ways after work, giving the economy a boost. Chambers of commerce generally support DST, saying it causes consumer spending to increase and has a positive effect on their local economies.

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How Much Does Daylight Savings Cost Americans?

Despite the potential benefits, there’s growing evidence that DST also carries real and measurable downsides — from health consequences to lost productivity.

•   Health impacts: Moving the clock forward, even by just an hour, can have a negative effect on the body’s natural circadian rhythm, which can harm our health. One study found that the risk of a heart attack increases 10% the Monday and Tuesday following the Sunday we “spring forward.” Research also indicates that there is a higher incidence of strokes and suicides, along with a general decreased quality of life, on the days and weeks following the spring time shift.

•   Productivity loss: The Monday following the day we move the clocks one hour ahead is often referred to as “sleepy Monday,” since it’s one of the most sleep-deprived days of the year. Economists have found that the spring time change can actually kick off an entire week or lower worker productivity — including an increase in “cyberloafing” (i.e., wasting time on the internet while at work) — due to fatigue. Some also point out that the 10 minutes or so people spend simply changing clocks, watches and other devices forward (and then later reversing the process) also leads to lost productivity and earnings. In other words, we could be doing something better with that time.

•   Increased accidents: While longer daylight may help pedestrians, studies show a 6% increase in fatal car crashes during the five weeks after the spring shift — possibly due to drowsy driving or people rushing because they are running late.

•   The financial toll: A 2024 report by Chmura Economics & Analytics estimates that the total economic cost of DST is around $672.02 million per year, largely due to the health implications and increased traffic/workplace accidents attributed to the spring time shift.

   This total cost includes:

◦   $374.75 million from increased heart attacks

◦   $251.53 million from increases in strokes

◦   $18.35 million from additional workplace injuries

◦   $27.39 million from increases in traffic accidents

What Would Happen if Daylight Savings Time Was Removed?

Many Americans are in favor of getting rid of twice-annual clock changes. In fact, more than 30 states have introduced bills to replace daylight saving time with one stable time, and the issue has also been the subject of legislation in the U.S. Congress. As of this writing, however, daylight saving time is not ending across the U.S.

But what would happen if it did?

Whether the U.S. opted for permanent DST or permanent standard time, we would no longer need to worry about remembering to change the time on our watches and clocks, losing an hour of sleep, and feeling tired after we “spring forward.” This could help keep sleeping patterns more consistent year-round, potentially improving people’s health, productivity, and quality of life.

Many businesses would likely also benefit: Without the biannual adjustment, employees would maintain regular sleep schedules, and companies could avoid the drop in efficiency and focus that occurs after each time shift.
Getting rid of DST would also eliminate the temporary increase in auto and workplace accidents after we spring forward, along with confusion around timing caused by the fact that not all U.S. states, and not all countries, implement DST.

But there are also some downsides to getting rid of DST. If we opt for year-round standard time, we would lose that extra hour of evening sunlight in summer. Though the days are naturally longer in the spring/summer, losing that additional hour could lead to less outdoor recreation and physical activity. It could also reduce foot traffic for businesses like restaurants and retail shops during summer evenings.

If we opt for year-round DST, it wouldn’t get dark quite so early during the winter months, but mornings would be darker. This could make it harder to wake up for work, and also raise safety concerns for children walking to school and commuters traveling in the early hours.

The Takeaway

So, does Daylight Saving Time cost the U.S. money? The answer is: yes. Studies have estimated the annual cost could actually exceed $672 million per year.

While DST offers seasonal perks for retail, recreation, and crime prevention, its broader impacts on health, productivity, and safety are substantial. The original energy-saving rationale no longer holds much weight in the modern world — and research increasingly shows the economic and human costs of DST may outweigh its benefits.

While DST in the U.S. isn’t going away (yet), the debate continues — with each spring and fall reigniting questions about whether DST truly serves American citizens and the modern economy.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 daylight saving time save money?

Daylight Saving Time was initially implemented to save energy, but its effectiveness in modern society is debated. Some studies suggest it can reduce electricity usage slightly by shifting peak demand, while others find no significant savings or even increased costs due to higher air conditioning use. The overall financial impact is minimal and varies by region.

How does daylight saving time boost the economy?

Daylight Saving Time can boost the economy by extending evening daylight, which encourages outdoor activities and shopping. This can lead to increased consumer spending, particularly in retail and entertainment sectors. Sports and leisure industries also benefit from more daylight hours, as people are more likely to engage in outdoor activities after work.

What are the downsides to daylight savings?

Daylight Saving Time has several downsides, including disrupted sleep patterns and increased risk of accidents and health issues (including heart attacks and strokes) in the days following the time change. It can also affect productivity and mood, especially for those with sleep disorders. Moreover, the energy savings are often negligible, and the transition can cause confusion and scheduling issues.

Photo credit: iStock/baona

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 12/23/25. 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/.

SOBNK-Q225-056

Contactless payment allows you to make a transaction simply by tapping or waving a contactless card or payment-enabled mobile device over a payment terminal. It’s simple, convenient, and growing in popularity: In a 2024 survey by the retail news outlet Chain Store Age, nearly half (46%) of U.S. respondents said they’ve used a form of contactless payment in the last seven days.

While contactless payments have a number of benefits, there are also a few drawbacks to this payment method. Read on for key things to know about contactless payments, including how they work, how to know if you can make a contactless payment, and the pros and cons of using tap-and-go technology.

How Do Contactless Payments Work?

Contactless payment, often called “tap to pay,” uses near-field communication (NFC) to let you pay by tapping or waving a card, phone, or smartwatch near a payment terminal. Both the payment device and the payment terminal have NFC chips that communicate wirelessly when close together. Instead of sending your actual card number, however, the system uses tokenization — replacing your number with a secure, random token. The token is transmitted to the payment processor, which contacts your bank to approve the transaction. If authorized, the payment is completed in seconds.

What Transactions Are Eligible for Contactless Payment?

For contactless credit card payment to work, both the terminal and card have to have the technology.

Many credit cards and debit cards have built-in chips, but the chip that permits you to insert instead of swipe is not the same as a contactless card. To determine if your card is able to make contactless payments, look for the universal contactless symbol — a circle with a wave (or WiFi symbol turned on its side) inside — somewhere on the card. Contactless payments are also supported by devices using Apple Pay, Google Pay, or Samsung Wallet.

To determine if a payment terminal is contactless payment enabled, check for the universal contactless payments symbol with a hand next to it on the merchant’s electronic payment terminal, device, or card reader.

Pros of Contactless Payment

Contactless payment comes with a number of advantages:

•   Ease of use. With contactless payment, users just have to tap their chosen payment method on the terminal. There’s no swiping or inserting for the transaction to go through.

•   Speed. Since there’s no swiping or inserting, contactless payments tend to be faster.

•   Leave the wallet at home. If you’ve uploaded your credit and debit card information to your mobile device, you can pay for things without carrying your physical wallet around.

•   Security. Contactless payment with chips is more secure than traditional magnetic-strip credit cards. Contactless payments are encrypted. This system makes it much harder for credit card scammers to steal people’s credit card information.

•   Hygiene. Contactless payment minimizes contact with shared surfaces, reducing the potential for germ transmission.

Overall, contactless payment may make for faster transactions, and might not even require you to pull out your wallet.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Cons of Contactless Payment

However, just like mobile banking has pros and cons, contactless payments do have some drawbacks, including:

•   Glitches in technology. A card and point-of-sale system might not line up from time to time, resulting in glitches.

•   It’s not available everywhere. While contactless payment is being adopted more and more, not every store has it. If there’s no symbol, customers will have to insert or even swipe to pay.

•   Potential security concerns. Contactless payments do not require a PIN or signature to authorize. As a result, lost or stolen contactless cards can be used to make fraudulent transactions.

•   Limited transactions. It largely depends on bank policies, but because tap to pay doesn’t require authentication, there may be limits on withdrawals and purchase amounts. For more details on transaction limits, contact your bank or credit card company.

Recommended: Guide to Keeping Your Bank Account Safe Online

The Takeaway

While contactless payment isn’t foolproof, it can make purchasing transactions faster, easier, and more convenient. It’s also becoming commonplace as a payment method, and it’s more secure than cards with magnetic stripes. You can weigh the pros and cons of contactless payment to determine if it’s right for you.

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

FAQ

What are the pros and cons of using contactless payments?

In terms of pros, contactless payments are fast, convenient, and reduce physical contact, making them hygienic. They also offer enhanced security features like tokenization and encryption.
As for cons, contactless payments can lead to overspending due to the ease of use, and not all merchants accept them. Also, since contactless payments do not require a PIN or signature to authorize, a lost or stolen contactless card or device could potentially be used to make fraudulent transactions. Some users also experience technical issues or limited transaction amounts.

What is the purpose of contactless payment?

The purpose of contactless payment is to provide a quick, convenient, and secure way to make transactions without the need for physical cash or card swiping. Being able to tap a card or device on a reader streamlines the payment process, reduces wait times, and minimizes physical contact. Contactless payments also enhance the user experience and can improve transaction efficiency for businesses.

Why is contactless payment safer?

Contactless payments are safer because they use advanced security features like tokenization to protect your financial data. Tokenization replaces your card number with a unique digital token, making it difficult for hackers to use stolen information. Contactless payment also eliminates some of the opportunities for thieves to steal – or “skim” — your credit card information, since your card never comes into contact with the payment terminal.

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 12/23/25. 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.

SOBNK-Q225-068

Buying new furniture can be an exciting way to personalize and update your home, whether your taste runs towards a sleek, modern look, a funky boho vibe, or anything in between. But furniture can be expensive, so you’ll likely want to shop at the right time to get the best possible deal.

When precisely that is will vary based on what you are hunting for. Indoor furniture may be on sale in the late winter and summer, but outdoor pieces may be marked down at the end of summer and in the fall.

To help you save a bundle on your new furnishings, no matter what you may be looking for, read on for smart intel and advice.

When Is the Best Time to Buy Furniture?

The best time of year to buy furniture depends on which kind of furniture you’re talking about. Here are some rules of thumb to keep in mind as you redesign your living space.

Indoor Furniture

Like many other manufactured goods, sales on indoor furniture are generally dependent on the release of new pieces: When a showroom needs to make room for next season’s stock, they typically put the older stuff on sale. New furniture designs tend to be released in spring and fall, which means the best sales generally happen at the end of the winter and during the summer.

So for indoor furnishings like beds and couches, shopping at your local furniture stores in January/February and July/August and paying special attention to any seasonal or holiday sales like Black Friday may offer decent savings on the cost.

Outdoor Furniture

Outdoor furniture, on the other hand, tends to be released in the late winter and spring between February and April. That may seem like the best time of year to buy furniture for outdoor spaces, since there’s plenty of new stock and plenty of time before the long, sunny days of summer.

However, furniture shops also generally want to have that stock off their floor by August, which means there are usually some great outdoor furniture sales to shop over the summer and particularly in August and towards early fall.

Recommended: Savings Calculator

Custom Furniture

Having a piece (or three) hand-built to your specifications can bring your interior design dreams to life. However, on-demand, custom-built furniture typically costs more and is less likely to go on sale the way ready-made furniture does.

That said, buying custom furniture can be better for your budget in the long run if it means you won’t be itching to change your furniture again in a couple of years — or if it means your furnishings are of higher quality and, hopefully, have a long lifespan. Plus, buying custom designs from a small business, or even an individual crafter, can feel more rewarding than purchasing something from a big box store.

Recommended: Tips to Managing Your Money Better

Furniture Shopping on Holiday Weekends

As is true of many major purchases, holiday weekends and annual sales can offer excellent opportunities to buy furniture on the (relatively) cheap. Some holidays that routinely bring furniture sales include:

•   Presidents Day

•   Memorial Day

•   Fourth of July

•   Labor Day

•   Black Friday and other winter holiday sales events.

Many retailers offer regular sales in addition to these events, so it’s always a good idea to watch for promotions. Signing up for the store’s email newsletter can help keep you apprised of their ongoing sales events, and many dealers also offer clearance stock year-round that could be worth perusing.

Recommended: 25+ Tips for Buying Furniture on a Budget

General Furniture Buying Tips

No matter what time of year you shop for your furnishings, the following tips can help you find a good deal and get the most for the money you do spend.

You can also benefit from them if you’re budgeting to buy a house and putting in offers; you want to get the best possible price if you’ll be filling a home with new furniture.

Being Patient

Furniture — especially furniture you want to keep around for a decade or longer — is a big purchase. It’s worth waiting to find the right piece rather than dropping a bunch of money on one that’s only okay.

If you’re furnishing your new home for the first time and need something fast, consider visiting a local thrift shop or surfing Facebook Marketplace. You might be able to find an inexpensive, pre-owned piece that’s only temporary, but still workable — and won’t eat too much into your budget.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Shopping Around

With so many design aesthetics and price points to choose from, furniture shopping is not a time for brand loyalty. You likely shop around for the best deals on groceries or when looking to switch bank accounts, so apply the same principle here. Shopping around at different retailers can not only help you find the best deals, but also give you more ideas and inspiration when it comes to creating a cohesive look for your home.

Recommended: Passive Income Ideas to Build Wealth

Consider Shopping Online

Online shopping for furniture can open a whole new world of color and design options. But some discount furniture retailers don’t offer physical storefronts, which can make virtual shopping a little tricky. Choosing certain pieces of furniture, like couches and armchairs, for example, may be easier if you try them before you buy them.

Many online furniture retailers do offer return policies. That can help make your purchase less stressful, since you know you won’t be stuck with the product if it doesn’t work out. And at online stores that do have brick-and-mortar locations, you could visit in person, try out certain models, and then order online later, which may give you a better opportunity to compare the pieces you’re considering side-by-side.

Asking About the Warranty

Since furniture does tend to be a major expense, you want to make sure it’s built to last and has some guarantee to go with that. Many furniture sellers do offer warranties, and the fine print will specify what’s covered and how long you have to get your money back if something goes wrong. In short, it’s worth getting familiar with these details.

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

The Takeaway

Shopping for furniture during certain times of the year can help you save money on a potentially expensive project like furnishing your home. When budgeting to buy a house, keep in mind that furniture is one of the costs of homeownership you’ll want to save up for in advance, on top of the down payment and closing costs.

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

FAQ

What is the cheapest month to buy furniture?

The cheapest month to buy furniture is often January, following the holiday season. Retailers tend to clear out old inventory to make room for new arrivals, offering significant discounts. If you’re looking for outdoor furniture, consider shopping in late August to find the best deals. That’s when stores are typically looking to get rid of summer inventory to make space for incoming merchandise.

What month are most furniture sales?

Most furniture sales occur in January and July. January sees post-holiday clearance sales, while July benefits from mid-year sales and Independence Day promotions. These months can be ideal for finding deals on a wide range of furniture items, from sofas to dining tables.

What time of year is it cheapest to buy a sofa?

The cheapest time to buy a sofa is typically in January, during post-holiday sales, and July, with mid-year clearance events. Retailers often offer significant discounts to clear old stock and make room for new models. Black Friday and Cyber Monday in November are also good times to find deals.

What month is the best time to buy bedroom furniture?

The best time to buy bedroom furniture tends to be January and July. January features post-holiday clearance sales, and July has mid-year sales and promotions. These months often offer substantial discounts on items like beds, dressers, and nightstands. Also consider shopping during Black Friday and Cyber Monday to find deals on bedroom furniture.

Photo credit: iStock/fizkes

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 12/23/25. 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.

SOBNK-Q225-064

A budget can be a great tool for managing your money and making it work harder for you. But typically a budget involves distinguishing between fixed expenses (those that stay constant, month after month) and variable expenses, which change over time.

Understanding where your money is going in these two ways can be helpful as you work to track and optimize how you earn, spend, and save.

What’s important to know is that each kind of expense can be lowered in many cases, and fixed vs. variable expenses don’t necessarily translate as needs vs. wants.

Here, we take a closer look at these two ways you spend money, plus offer tips on how to trim both types of expenses and free up funds for saving and future goals.

What Is a Fixed Expense?

Fixed expenses are those costs that you pay in the same amount each month — items like your rent or mortgage payment, insurance premiums (which can be an often-forgotten budget expense), and your gym membership. With fixed expenses, you know the amounts you will owe ahead of time, and they don’t change (or perhaps only annually).

Fixed expenses tend to make up a large percentage of a monthly budget since housing costs, typically the largest part of a household budget, are generally fixed expenses. This means that fixed expenses present a great opportunity for saving large amounts of money on a recurring basis if you can find ways to reduce their costs. However, cutting costs on fixed expenses may require bigger life changes, like moving to a different apartment — or even a different city, where the cost of living is lower.

Keep in mind, though, that not all fixed expenses are necessities — or big budget line items. For example, an online TV streaming service subscription, which is withdrawn in the same amount every month, is a fixed expense. It’s also a “want” as opposed to a “need.” Subscription services can seem affordable until they start accumulating and perhaps become unaffordable.

Examples of Fixed Expenses

Here are some examples of fixed expenses:

•   Mortgage payments or rent

•   Car payments

•   Student loan payments

•   Membership and subscription fees

•   Insurance premiums

•   Childcare or tuition payments

•   Internet or mobile phone fees

What Is a Variable Expense?

Variable expenses, on the other hand, are those whose amounts can vary each month, depending on factors like your personal choices and behaviors as well as external circumstances like the weather.

For example, in areas with cold winters, electricity or gas bills are likely to increase during the winter months because it takes more energy to keep a house comfortably warm. Grocery costs are also variable expenses since the amount you spend on groceries can vary considerably depending on what kind of items you purchase and how much you eat.

You’ll notice, though, that both of these examples of variable costs are still necessary expenses — basic utility costs and food. The amount of money you spend on other nonessential line items, like fashion or restaurant meals, is also a variable expense.

In either case, variable simply means that it’s an expense that fluctuates on a month-to-month basis, as opposed to a fixed-cost bill you expect to see in the same amount each month.

Examples of Variable Expenses

Here are some common variable expenses:

•   Utilities

•   Food

•   Dining out

•   Entertainment

•   Personal care

•   Travel

•   Medical care

•   Gas

•   Property and car maintenance

•   Gifts

Fixed vs Variable Expenses

To review the difference between variable vs. fixed expenses:

•   Fixed expenses are those that cost the same amount each month, like rent or mortgage payments, insurance premiums, and subscription services.

•   Variable expenses are those that fluctuate on a month-to-month basis, like groceries, utilities, restaurant meals, and movie tickets.

•   Both fixed and variable expenses can be either wants or needs — you can have fixed expense wants, like a gym membership, and variable expense needs, like groceries.

When budgeting, whether you are calculating expenses for one person or a family, it’s possible to make cuts on both fixed and variable expenses.

Ways to Save on Fixed Expenses

Just because an expense is fixed doesn’t mean it can’t be downsized. These strategies can help you trim back some of recurring expenses.

Review Where Your Money Is Going

Take a look at your fixed expenses with a critical eye. Did your landlord raise your rent a significant sum? It might be time to look for more affordable options or get a roommate.

Has the number of subscription services you pay for crept up over time? You might save on streaming services by dropping a platform or two.

Refinance Your Loans

Interest rates rise and fall. If they are dropping, you might be able to save money by refinancing your loans, such as your mortgage. Check rates, and see if any offers are available that would reduce your monthly spend.

One option can be to get a lower payment over a longer period. You will likely pay more interest over the life of the loan, but it could help you out if you are living paycheck to paycheck right now.

Consolidate Your Debt

If you have a significant amount of high-interest debt, such as credit card debt, you might consider paying it off with a personal loan that offers a lower interest rate. This could save you money in interest and help lower your fixed expenses.

Bundle Your Insurance

Many insurance companies offer a lower premium if you sign up for both automotive and homeowners insurance with them. Check available offers to potentially reduce your costs.

Ways to Save on Variable Expenses

As you delve into variable vs. fixed expenses, here are some possible ways to minimize the ones that vary.

Scrutinize How You Spend

When you track your spending, you may find ways to cut back. For instance, you could look for ways to do your grocery shopping on a budget by planning meals in advance and shopping with a list. You might be able to challenge yourself to go for one month without, say, takeout food and the next without movies and then put the savings towards paying down debt.

Hit “Pause” on Impulse Purchases

If you feel the urge to buy something that isn’t in your spending plan, try the 30-day rule. Mark down the item and where you saw it and the price in your calendar for 30 days in the future. When that date arrives, if you still feel you must have it, you can find a way to buy it. But there is a very good chance that sense of urgency will have passed.

Try Different Budget Methods

If you find you need more help reining in your variable expenses, you might benefit from trying different budgeting tactics. “If it works with your income, the 50/30/20 budget is one simple method for people starting to organize their finances,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “This budget allocates 50% of your income for essentials, like rent and bills; 30% to personal day-to-day spending; and 20% for savings or financial goals.”

Other people prefer the envelope budget method or using a line-item budget to dig into where their money is going. You might also benefit from apps and digital tools to help you track where your money is going. Many banks offer these to their customers.

Recommended: 50/30/20 Rule Calculator

Check in With Your Money Regularly

The exact cadence is up to you, but it can be helpful to review your money on a regular basis. Some people like to check in on their account balances a few times a week; others prefer to review their accounts in-depth monthly. Find a system that works for you so you can see if your spending is on-target or going overboard.

Benefits of Saving Money on Fixed Expenses

If you’re trying to find ways to stash some cash, finding places in your budget to make cuts is a big key. And while you can make cuts on both fixed and variable expenses, lowering your fixed expenses can pack a hefty punch, since these tend to be big line items — and since the savings automatically replicate themselves each month when that bill comes due again.

Think about it this way: if you quit your morning latte habit (a variable expense), you might save a grand total of $150 over the course of a month — not too shabby, considering it’s just coffee. Even small savings can add up over time when they’re consistent and effort-free — it’s like automatic savings.

But if you recruit a roommate or move to a less trendy neighborhood, you might slash your rent (a fixed expense) in half. Those are big savings, and savings you don’t have to think about once you’ve made the adjustment: They just rack up each month. The savings you reap can help you pay down debt or save more, which can help you build wealth.

Saving Money on Variable Expenses

Of course, as valuable as it is to make cuts to fixed expenses, saving money on variable expenses is still useful — and depending on your habits, it could be fairly easy to make significant slashes.

As mentioned above, by adjusting your grocery shopping behaviors and aiming at fresh, bulk ingredients over-packaged convenience foods, you might decrease your monthly food bill. You could even get really serious and spend a few hours each weekend scoping out the weekly flyer for sales.

If you have a spendy habit like eating out regularly or shopping for clothes frequently, it can also be possible to find places to make major cuts in your variable expenses. You can also find frugal alternatives for your favorite spendy activities, whether that means DIYing your biweekly manicure to learning to whip up that gourmet pizza at home. (Or maybe you’ll find a way to save enough on fixed expenses that you won’t have to worry as much about these habits.)

The Takeaway

Fixed expenses are those costs that are in the same amount each month, whereas variable expenses can vary. Both can be trimmed if you’re trying to save money in your budget, but cutting from fixed expenses can yield bigger savings for less ongoing effort.

Great budgeting starts with a great money management platform — and SoFi can help you with that, thanks to our dashboard and smart features.

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

FAQ

What are examples of variable expenses?

Variable expenses are changeable costs that include such items as groceries, utilities, entertainment, dining out, and credit card debt. They differ month by month.

What are examples of fixed expenses?

Fixed expenses are constant month after month. These can include such things as rent, car payments, student loan payments, and subscription services.

Are utilities fixed or variable?

Utilities may be an essential expense but they typically vary from month to month, making them a variable expense. For instance, if you live in a cold climate, your heating bill will likely rise in the winter. Or you might run the dishwasher more over the holiday season, increasing your bill.

Photo credit: iStock/LaylaBird

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 12/23/25. 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 Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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A cash deposit of more than $10,000 into your bank account requires special handling. Your bank must report the deposit to the federal government. That’s because the IRS requires banks and businesses to file Form 8300 and a Currency Transaction Report, if they receive cash payments over $10,000. Depositing more than $10,000 will not result in immediate questioning from authorities, however. The report is done simply to help prevent fraud and money laundering. You have nothing to lose sleep over so long as you are not doing anything illegal.

Are Financial Institutions Required to Report Large Deposits?

Banks and credit unions are required to report when a customer deposits cash over $10k. Maximum deposit limits vary by bank, but in this case, anything above $10,000 (even a penny more) is the amount to know.
The Bank Secrecy Act and the Patriot Act dictate that financial institutions create a paper trail of financial activity that could be suspicious. The reasoning is that law enforcement authorities can better control money laundering activities and tax evasion by having a record of these larger deposits. Other malicious activities like terrorism, drug trading, and broad financial crimes might be prevented.

Do You Have to Report Large Deposits?

You might have to report large deposits to your bank account if you own a business. (Performing a small direct deposit typically does not need to be reported.) The IRS rules also apply to financial activities performed by a business or individual involved in the business. You must complete IRS Form 8300 to report any transaction or even a series of related transactions that total $10,000.

About that “series of related transactions” part: Transactions are considered related when they take place within 24 hours of each other or if the person or business simply suspects they are related.

What Is IRS Form 8300?

IRS Form 8300 is used to help regulators prevent financial crime. The form is separate from other banking guidelines like funds availability rules. It is sent to the IRS and the Financial Crimes Enforcement Network (FinCEN). The form is used to report cash payments over $10,000 received in a trade or business.

On IRS Form 8300 , you must identify the individual from whom the cash was received and the person on whose behalf the transaction was conducted. In addition, you need to include a description of the transaction and method of payment. Additional disclosure of information may spell out the business that received the cash and whether multiple parties were involved.

What Happens When Deposits Are Reported?

A paper trail of potentially suspicious deposits is created after Form 8300 is transmitted to the IRS. Depositing cash at an ATM or with a bank teller, so long as it is below the $10K threshold, will usually not be reported. Law enforcement agencies can use the paper trail for future investigations if conditions warrant it.

To understand this in a bit more detail, know that first, when a cash deposit of more than $10,000 is reported, you are identified through your Social Security number (SSN) and other personal information.

What Is the Bank Secrecy Act?

The Bank Secrecy Act of 1970, mentioned above, may sound somewhat intimidating. What it actually does is require that banks keep records of each customer who deposits more than $10,000 in cash at one time in a single account. The paper trail is sent to various law enforcement groups to track where the money moves to. The Bank Secrecy Act includes civil and criminal penalties for entities not complying with the requirements.

Moreover, the 2001 Patriot Act made the Bank Secrecy Act broader; it can now better detect activity related to terrorism. Again, this is nothing to be concerned about as long as you aren’t engaged in any illegal activities like bank fraud.

Reporting the Deposit

There are several steps involved in reporting a cash deposit over $10,000, whether the deposit is made to a standard or premium checking account or a savings account. There is likely nothing to be concerned about if you are just going about your daily business and not involved in illegal activity.

Banks Must Verify ID and Other Important Information

The Currency Transaction Report is used to verify a depositor’s information. The SSN, name, and address are provided to the FinCEN.

Banks Will Review All Cash Transactions

Financial institutions go through all their channels when a suspicious deposit over $10,000 is made. A series of several smaller amounts that add up to a deposit of more than $10,000 is also treated as a large deposit. Cash put into an account at a teller window or through an ATM can be linked and considered a structured deposit (more on that below). These are much more serious potential events than everyday banking activities, such as making a small cash deposit or ATM withdrawal.

Banks Will Determine If You Are Structuring Deposits

Structuring a deposit is when an individual splits up several deposits so that a single deposit of more than $10,000 cash does not happen. Someone might do this to avoid the bank having to file a Currency Transaction Report to FinCEN and resulting in a paper trail. This suspicious activity raises red flags as it suggests someone is intentionally trying to fly under the regulators’ radar. If a bank determines someone is structuring, then that activity might face additional scrutiny.

All Information Will Go Into a Currency Transaction Report

The personal information and deposit details mentioned earlier go into a Currency Transaction Report within 15 days of the transaction being considered. Reports are kept on file at the bank for five years, too. Once again, however, most people need not be too concerned with this, provided your banking is legal. Rather, it may be better to focus on account basics, like savings account withdrawal fees, not the ramifications of pernicious illegal activity, as long as they are following all the laws.

Penalties for Non-Compliance

You may wonder what happens if an individual tries to skirt the protocols described above. Here are details:

•   Civil penalties for not filing Form 8300 include fines of $250 per return. If this is considered to be intentional disregard, the fine can be the greater of $25,000 or the amount of cash received in the transaction up to $100,000.

•   Criminal penalties for not filing Form 8300 or filing a fraudulent form include a monetary fine of up to $100,000 for individuals and $500,000 for businesses. Prison sentences of up to five years are also a possible penalty for non-compliance.

Are There Any Exemptions to Consider?

A bank can file for an exemption if one of its business customers routinely deposits over $10k. It’s important to know that some businesses cannot get an exemption. For example, law firms, pawn dealers, accounting firms, and trade unions are some corporation types for which the IRS will not grant an exemption.

The Takeaway

You don’t have anything to worry about if you deposit more than $10,000 in cash to your checking account or your savings account, assuming you are doing nothing wrong. A large deposit is simply reported by a bank to regulators to track possible suspicious activity. Businesses must also file IRS Form 8300 within a specific time frame after a $10,000 cash payment.

Structuring deposits (breaking up funds into smaller amounts for deposit, so as to avoid filing a form 8300) is another no-no. Since there are significant penalties for attempting to skirt the law, it’s wise to not attempt such moves.

No matter how much you are (lawfully) depositing, it’s wise to make sure you have the bank account best suited to your needs and financial situation. For instance, you could look for an online high-yield savings account and/or an account that has no or low account fees. Explore the options to see what may be right.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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 money can I deposit in the bank without being reported?

A deposit over $10,000 is the amount to consider; amounts under that threshold may not have to be reported. There’s a catch, though: If a customer makes several small cash payments or deposits within a 12-month window, filing Form 8300 might have to be done should the payments or deposits exceed $10,000. These are known as “structured” deposits and can raise red flags if not reported.

How often can you deposit $10,000?

You can deposit more than $10,000 whenever you’d like, but just be aware that the receiving financial institution is required to report those funds to the IRS. If you are a business owner and depositing over $10k in cash is a frequent practice, the bank can file an exemption after the first large deposit to avoid filling out future reports to the IRS.

How do you explain a large deposit?

Depositing over $10k only results in an IRS form being filed by the bank. You often won’t have to do anything to explain it unless you are suspected of fraud or money laundering. The money is deposited like any other amount would be.

Photo credit: iStock/TARIK KIZILKAYA

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.

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 12/23/25. 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.
This article is not intended to be legal advice. Please consult an attorney for advice.

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

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