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A senior citizen checking account is a type of bank account specifically designed for individuals who are typically 55 years of age or older. These accounts often offer benefits such as higher interest rates, lower fees, and additional perks tailored to the needs of seniors, including 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 now offered by both smaller regional banks or credit unions and 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 such as 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:

•   Complimentary 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

•   Complimentary 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 such as complimentary checks, waived monthly service charges and transaction fees, and discounted banking services.

•   Earned 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 straightforward 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, by writing a check, and making an online bank transfer.

•   Debit card: Typically, senior checking accounts come with debit cards with which seniors can pay for purchases without needing cash on hand.

•   Direct deposits: Instead of waiting for paper checks in the mail, senior 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 over 50, 55, or 60 years of age.

•   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 its 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 that 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 you will need all your basic information (including a government-issued photo ID, a proof of address, and your 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 6 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 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 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. Senior checking accounts can be offered by smaller regional banks or credit unions or large national banks.

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 customers as young as 50, while others may set the age limit at 62 or older.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Photo credit: iStock/Deagreez

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. 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.
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SOBNK-Q226-118

If you’re interested in living on a houseboat or just pleasure cruising, you’ll want to know the advantages and disadvantages of owning a houseboat.

Here’s a deep dive into the world of houseboats to help you understand what they are, how they work, and whether buying one is the right choice for you.

What Is a Houseboat?

A houseboat is a vessel built or modified to function primarily as a dwelling rather than just transportation.

When comparing houseboats to traditional boats, you can expect houseboats to have the features of a home, including one or more bathrooms, sleeping quarters, and a kitchen.

Houseboats, among the less common types of homes, are distinguished from other boats by their intended use as a dwelling.

Depending on how large the houseboat is and how much the owner is willing to invest, houseboats can range from barebones to luxurious.

Characteristics of a Houseboat

A houseboat stands out in the fleet of traditional boats.

Expect houseboats to be less seaworthy than boats specifically designed for transportation. The vast majority of houseboats are intended to be confined to lakes, rivers, and small bodies of water, not the open seas.

Houseboat vs. Floating Home

A houseboat and a “floating home” are different. Floating homes are meant to stay in one place, lacking an engine or navigation system. They usually have a floating concrete foundation. They’re generally much bigger than houseboats and cost more.

Even though some houseboats also dock in one place, most can motor to another location when needed or desired.

Houseboat Design

Houseboats may stretch from 20 feet to over 90 feet. A veranda or flybridge may help occupants make the most of outdoor views.

Hull design and materials vary. Here are some styles.

•  Pontoon: Flat-bottomed boat supported by 2-3 floats, or pontoons, for buoyancy, a common houseboat construction

•  Full hull: Conventional boat hull with a large bilge that sits partly in the water and offers more space below deck

•  Planing hull: Similar design to full hull but designed to glide on top of the water at speed

•  Catamaran hull: Parallel twin-hulled design that joins two hulls of equal size with a solid frame and a wide beam that gives it better stability and handling

•  Barge: Large flat-bottomed boat designed to handle heavy loads and operate in rivers and canals

When researching the type of houseboat you want, you’ll want to make an informed choice when weighing livability and seaworthiness.

Pros and Cons of a Houseboat

It takes a special type of person to live on a houseboat. Here are some of the pros and cons of houseboat living to help you decide if you fall into this category.

How to Finance a Houseboat

Used houseboats can start at a few thousand dollars. New houseboats may range from about $250,000 to over $1 million.

Can you get a mortgage loan for a houseboat? Generally not. Because houseboats are mobile and lack a permanent foundation, they don’t qualify for standard home loans or government-backed mortgages. But you may be able to get another kind of loan if you have a credit score in at least the “good” range on the FICO® credit rating scale and meet other lender criteria.

Some banks, credit unions, and online lenders offer boat loans. A marine loan broker can help you find and negotiate a boat loan, but they’re typically compensated through compensation structures tied to the financing relationship (often lender-paid or structured around the loan). The loan might require 10%-20% down. Note: SoFi doesn’t offer boat loans, although it does offer personal loans, which are another financing option. Most personal loans are unsecured, meaning no collateral is needed.

A personal loan is another option. Personal loans of up to $100,000 are offered by a few lenders. Most are unsecured, meaning no collateral is needed.

A marine loan broker can help you find and negotiate financing, but they charge compensation that’s typically built into the deal through interest rate markups and/or various lender and origination fees, often totaling around $1,500. The loan might require 10%-20% down.

If mortgage rates are ebbing, a cash-out refinance can work for some homeowners.

Other homeowners with sufficient home equity can apply for a home equity line of credit (HELOC) or home equity loan and use that money to buy a houseboat. The rate will typically be lower for an equity product using your home as collateral than that for an unsecured personal loan.

What if your bad credit isn’t good? So-called bad credit boat loans are afloat out there. They come with a high interest rate. Note: SoFi doesn’t offer bad credit boat loans.

Just as you would shop around for the best mortgage loan offer, you’ll want to compare a number of houseboat financing options.

Finding a Houseboat to Buy vs. Building One

The cost of building a house depends on size, location, the cost of labor and materials, and your taste, and the same holds true of houseboats.

Clearly, buying a used houseboat is almost always quicker and more convenient than trying to build one from scratch. However, if you have the know-how to build your own houseboat, you’ll have much more freedom when it comes to how you want to design things.

If you’re deciding whether to buy or build a houseboat, you’ll want to consider your budget, time, availability, expertise, facilities, and tools.

Also, consider how you would transport the houseboat from land to water when it’s done.

As for the question of time, most custom houseboat builds take months, if not years, to complete. It’ll be much faster and easier to jump into houseboat living with an existing houseboat.

The Takeaway

Houseboats are a novel option for water lovers, including downsizers, retirees, and free spirits. Living on a houseboat can be cheaper than living in a traditional home, but you’ll want to make sure you understand the advantages and disadvantages of living on a houseboat before committing. If you’re ready to take the plunge, two options for financing your houseboat include a personal loan or a HELOC.

SoFi now offers flexible HELOC options to turn your home equity into cash. Access up to 85% of your home equity, or $350,000, to finance home improvements or consolidate debt. Competitive interest rates and repayment terms up to 20 years could result in lower monthly payments versus other loans. And the online application process is quick and convenient.

Unlock your home’s value with a home equity line of credit.

FAQ

Can you live on a houseboat year-round?

Yes, but you’ll need to compensate for changes in the weather, particularly if the waters where you’re docked tend to freeze during the winter months. This includes ensuring that your houseboat is insulated and heated through the winter.

How long does it take to build a houseboat?

Construction could take 18-24 months or longer to complete. This may vary depending on whether you’re building a custom houseboat on your own or enlisting the help of professionals.

Can you get a loan for a houseboat?

Yes, but usually not a traditional mortgage. Options include a boat loan, a personal loan, a home equity loan, and a home equity line of credit (HELOC).

How does a toilet work on a houseboat?

A marine toilet usually empties into a black-water holding tank until the boat reaches a marina pumping station, or the tank treats the waste, and it’s eventually released in a designated discharge area. Noncruising houseboats usually have a hookup that takes out waste through a sewage line.

Photo credit: iStock/wayra

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q226-143

Time decay, as it relates to options trading, has to do with an option contract’s loss of value as it nears its expiration date. There are numerous variables in the mix when it comes to time decay, but knowing the basics of what the terms means, and how it can affect an investment strategy, can be important for investors.

What Is Time Decay?

Time decay is the loss of an option’s value as it gets closer to expiration. An option’s time value refers to the extent to which time factors into the value — or the premium — of the option. Time decay accelerates, or declines more quickly, as the expiration date gets closer because investors have less time to exercise the contract.

For options traders, understanding time decay can be important whether you’re buying call options or put options. Here are the basics you need to know.

Recommended: Options Trading: A Beginner’s Guide

How Time Decay Works

The rate of change in the time value of an option is known as theta. For traders who buy options with the intention of holding them until expiration, theta usually isn’t of great concern. That’s because traders who hold contracts until the expiry date are hoping that the underlying security moves so far in their favor that the reward in terms of intrinsic value will outweigh any loss in extrinsic value.

But traders who want to close their options position prior to expiration may be more concerned about time decay. Because the security will have less time to move in their favor, the potential profit from intrinsic value is reduced, and the potential loss of extrinsic value becomes greater.

While both intrinsic and extrinsic value are important for options traders of all kinds, the type of options trading strategy a trader is using can influence which factors they put more emphasis on.

Understanding Options Pricing

Time decay isn’t a difficult options trading concept, but it does require a quick refresher about how options are traded and priced.

Four of the main variables that impact the price of an option are:

1.    The underlying price and strike price

2.    Time left until expiration

3.    Implied volatility

4.    Interest rates

The underlying price, strike price, and expiration date of the options contract are the main factors that determine its intrinsic value, while implied volatility and time to expiration are the factors that determine its extrinsic value.

•   Intrinsic value. An option’s intrinsic value refers to the option’s value if exercised immediately, which depends on the price of its underlying security relative to the strike price of the contract. In other words, whether the option is in the money, out of the money, or at the money.

•   Extrinsic value. Extrinsic value refers to how time and implied volatility can impact the option’s value, i.e., its premium. As the expiration date of the options contract approaches, there’s less time for an investor to profit from the option, so time decay or theta, accelerates and the option loses value.

Interest rates can also affect options prices, but this is more of a macro factor that doesn’t have to do with the specific contract itself.

Thus, time value represents the added value an investor has to pay for an option above the intrinsic value. Options are sometimes referred to as depreciating or wasting assets because they tend to lose value over time, since the closer the option is to expiration, the faster its time value erodes.

Recommended: Popular Options Trading Terminology to Know

How to Calculate Time Decay

The rate of an option’s time decay is measured by theta. An option with a theta of -0.05 (theta is expressed as a negative value) would be expected to fall about $0.05 each day until expiration, but this may accelerate during the days and weeks leading up to the expiry date.

Greek values like theta are constantly changing, and can therefore be one of the most difficult factors to take into account when trading options.

Example of Time Decay of Options

Imagine an investor is thinking about buying a call option with a strike price of $40. The current stock price is $35, so the stock has to rise by at least $5 per share for the option to be in the money. The expiration date is two months in the future, and the contract comes with a $5 premium.

Now imagine a similar contract that also has a strike price of $40 but an expiration date that is only one week away and comes with a premium of just $0.50. This contract costs much less than the $5 contract because the stock would need to gain almost 15% in value in one week to reach profitability, which is unlikely.

Thus, the extrinsic value of the second option contract is lower than the first, because of time decay.

How Does Time Decay Impact Options?

Option time decay is pretty straightforward in principle. Things can be more complicated in practice, but in general, options lose value over time. The more time there is between now and the expiry date of the option, the more extrinsic value the option will have. The closer the expiry date is to the current date, the more time decay will have taken effect, reducing the option’s value.

The basic idea is that because there’s less time for a security to move one way or the other, options become less valuable the closer they get to their expiration dates. This isn’t a linear process though. The rate of time decay accelerates over time, with the majority of decay occurring in the final month before expiration.

The Takeaway

If you think about it, the time value of an option is similar to other things that have a value which is time dependent. A fresh loaf of bread, a new car, a newly built home — these items carry inherent value, but you might also pay a premium when they’re at full value.

As time passes, though, consumers may pay less for a loaf of bread that isn’t fresh — or a car or home that’s older — because time has eroded some of the value. Similarly, as an option gets closer to its expiration date, it too loses value owing to the effects of time decay or theta.

SoFi’s options trading platform offers qualified investors the flexibility to pursue income generation, manage risk, and use advanced trading strategies. Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

With SoFi Invest® online options trading, there are no contract fees and no commissions. Plus, SoFi offers educational support — including in-app coaching resources, real-time pricing, and other tools to help you make informed decisions, based on your tolerance for risk.

FAQ

How does time decay work on options?

Time decay, also called theta, is the gradual erosion of an option’s extrinsic value as its expiration date approaches. Decay typically accelerates in the final weeks before expiration.

What happens to an option’s value as it approaches expiration?

As expiration approaches, an option’s extrinsic value declines while its intrinsic value — if any — remains tied to the underlying asset’s price. Options that are out of the money will lose value rapidly in the final days before expiration and may expire worthless.

How does moneyness affect time decay?

At-the-money options tend to experience the most significant time decay, as they carry the highest amount of extrinsic value relative to their price. In- and out-of-the-money options decay differently, with deep out-of-the-money options often losing value quickly as expiration nears.

What time of day do options decay?

Theta decay is generally calculated and applied at the close of each trading session rather than continuously throughout the day. That said, options positions can be more vulnerable to price swings during the open and close, when volatility tends to spike.

Photo credit: iStock/Tatyana Azarova

SOIN-Q126-030

You’re likely familiar with the term pay it forward. It describes an act of kindness and giving, from passing along soccer cleats to the younger player next door to volunteering in a soup kitchen, as a way of giving back. It’s all about putting generosity into action and participating in a cycle of giving that empowers both you and others.

By paying your good fortune (financial, health, or otherwise) forward, you both help others and may inspire people to also give what they can to assist others and lift spirits.

As part of its ActNow campaign, the United Nations lists 17 Sustainable Development Goals, along with small things individuals can do in their daily lives that can improve life for all of us. They note that “a lot” can happen “when millions of people act together for our common future.”

Interested in joining this movement toward positive change? Read on to learn 23 ways to pay it forward, including:

•   Gestures that lift spirits, from running errands to letting people take your place in line

•   Giving back to your community

•   Passing on meaningful possessions instead of tossing them.

Is Paying It Forward the Same as Karma?

The concepts of paying it forward and karma are similar yet different.

Paying it forward involves helping others without expecting anything in return, except the hope, perhaps, that the recipient might keep the cycle going, thus making the world a better place. You may also have heard of this concept called random acts of kindness.

The word karma, on the other hand, comes from the Hindu and Buddhist religious concept that a person’s actions in this and previous states of existence decide their fate when they are reincarnated.

In everyday usage, the idea is that if we send the universe positive energy, also known as good karma, it will come back to us. On the flip side, bad karma is often believed to bring more bad events or bad luck.

Simple Ways to Pay It Forward

If you’d like to test-drive some pay-it-forward ideas, there are plenty of options. Here, you’ll find 23. Doing one can make you want to try another.

1. Letting Someone Go in Front of You in Line

This is a present to a harried parent with a sick child at the pharmacy or a driver merging into a crowded highway toll lane. Kindness is a connection in a busy world and is applicable anywhere, from an airport restroom to Home Depot aisles.

2. Paying for a Stranger’s Coffee or Meal

At Starbucks, numerous customers have kept drive-through pay-it-forward chains going, each covering the tab of the customer in the car behind them. But you could also buy someone a java at any coffee shop or drive-through, or be kind and give the cashier money to pay for a full meal of another patron, just to make their day.

3. Sharing Your Green Thumb

Tend the flowers in a public patch to give beauty to your town. Donate homegrown veggies to a food pantry, or leave extra zucchini, beans, rhubarb, and more by your mailbox for others to take for free. It could really help someone who is struggling to pay for groceries in a given month.

4. Donating Blankets, Pajamas, Socks, and Toiletries to Shelters

Unhoused families might move from shelter to shelter for available beds. Consider donating new blankets, pajamas, socks, and unopened mini shampoos, lotions, and soaps from hotel stays for the gift of personal care.

Recommended: How to Make End-of-Year Donations

5. Leaving a Big Tip for a Server or Waiter

Servers and waitstaff are on their feet, catering to our whims (dressing on the side, holding the onions), and their base salary is generally low. Tips help even the score. Yes, there are guidelines of how much you should tip, but occasionally, it can be nice to go a bit overboard. For a server who goes above and beyond, consider slipping them a generous cash bonus before you leave.

6. Returning Another Person’s Shopping Cart

Here’s an easy way to pay it forward with a random act of kindness: Grab another customer’s cart after they are done with it. This saves them the extra steps and, if you’re on your way in, you won’t have to hunt for a cart.

7. Sending an Email of Gratitude

Amid spam, advertising, and billing statements, a note of gratitude is a grace. Maybe it’s time to thank unheralded people, such as the school reading teacher or your family doctor, for all they do every day.

8. Sharing Your Food With Someone

If you enjoy getting bargain prices, but Costco multipacks are just too big to store, consider sharing a few with a friend or neighbor free of charge.

Recommended: 31 Tips for Cutting Your Grocery Bill

9. Learning the Names of People You See Every Day

Get to know the crossing guard, the train conductor, and the neighbor who walks her poodle by your house every morning (learn the poodle’s name, too). This is a sign of respect and appreciation that says, “I see you and notice you. You’re not anonymous.”

10. Leaving Extra Quarters at the Laundromat

These shiny silver timesavers can be a real boon for the next person lugging in dirty wash and detergent.

11. Asking for Charitable Donations Instead of Gifts for Your Birthday

More and more kids and adults share this kind of gift request on Facebook and in party invitations. Money goes to good causes, from the Breast Cancer Research Foundation to the World Wildlife Fund, rather than material gifts. Need inspiration? Spend a bit of time researching the best charities to support.

12. Helping Someone With a Task

Give a neighbor a hand raking leaves, shoveling snow, or with a work-related task, such as proofreading a resume or printing a document. Offering to help without any payment expected can deepen your bonds.

13. Writing a Recommendation for a Coworker

Leave a golden review on LinkedIn or write a glowing letter someone can take along when leaving a job. This can help them move ahead in their professional pursuits.

Recommended: 22 Money Moves to Make This Month

14. Writing a Message to Someone Who Made a Difference in Your Life

Did your fifth-grade teacher see in you skills other people missed? Did your first boss train you in a way that’s made your work life so much easier? A handwritten note or card sent by snail mail is one of the best pay-it-forward examples. You’ll probably make their day and then some.

15. Giving Away Items Online

Your daughter’s riding boots from all those lessons at the horse barn deserve a good home. So does the dollhouse your brother built her. Instead of tossing them in haste, consider posting them on sites such as Freecycle, Nextdoor, or a local Facebook group, so someone else can nab them. Reducing/reusing/recycling helps the planet, too.

16. Encouraging Someone Who Needs It With a Few Words

We all need some positive encouragement now and then. You can offer it by saying, “You got this” to a parent who is job hunting or, “Good for you” when you pass someone on a steep hill.

Recommended: 5 Ways to Achieve Financial Security

17. Leaving Coupons Next to Corresponding Products in the Grocery Store

That diaper coupon you can’t use because your baby is too big now? Leave the coupon on a package for another shopper. Same with any other coupons that could brighten someone else’s day.

18. Purchasing Extra Food to Leave at Shelters

When you go grocery shopping, you might add some shelf-stable products, such as pasta, sauce, rice, nuts, boxed milk, nut butters, wholesome cereals, and canned fruit, to your cart for others in need. You can then drop them off at a local shelter or other nonprofit.

19. Cleaning Up Your Local Beach or Public Area

Bring trash bags, gloves, and perhaps family members to help collect garbage that clogs our natural areas. You can also help keep plastic out of our bodies of water this way.

20. Running an Errand for a Busy Loved One

Is your sister a full-time nurse raising two kids? Once a week, drop off a heat-and-eat dinner or shuttle kids home from activities.

21. Volunteering Your Time

Whether you make it a regular or a once-in-a-while activity, an easy and rewarding way to pay it forward is to give a couple of hours of your time. Help at a religious institution, the school library, or the local soup kitchen, or pitch in at a town park or garden cleanup. Volunteering can prove to be a fun, free way to spend your leisure time.

22. Donating Blood

Sign up to donate blood or give platelets (the latter takes longer but meets critical needs). You leave on a high, knowing hospitals, patients, and their families are waiting for your vital gift.

23. Giving Up Your Seat to Someone

Do it on the subway, bus, or train. If you’re hailing a taxi and other people are waiting, too, why not let them get the first one? It’s an easy way to be charitable.

The Takeaway

Paying it forward can help improve our world, little by little. You might give money, time, skills, or all of the above. A random act of kindness in your apartment or office building, or even with courteous driving, can turn someone’s bad day around. Looking out for another person, not just for yourself, makes everyone feel better.

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 do I pay it forward at work?

In the office, you might treat co-workers to coffee and fruit as an act of friendship and gratitude. If everyone on your team is now remote, consider making a donation in their names to a nonprofit near company headquarters.

Where did the concept of “pay it forward” begin?

The phrase can be traced back to the 1916 book In the Garden of Delight by Lily Hardy Hammond, in which she wrote: “You don’t pay love back; you pay it forward.” There was a movie with the title “Pay It Forward” in 2000, and in 2007, a Pay It Forward Day was launched in Australia. The idea has since been adopted by many countries as an opportunity to do acts of kindness.

How often should you pay for kindness?

The term “pay for kindness” is a misnomer, as we do not pay for kindness. Rather, we can pay forward to others the thoughtful gestures and generosity we receive, thereby keeping the cycle going.

Photo credit: iStock/Vladimir Vladimirov

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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.

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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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SOBNK-Q226-054

Pet ownership comes with an array of costs, and medical care can be one of the big ones. Does that mean you should get health insurance for your pet? Is pet insurance worth the cost?

Insurance policies for pets are more worthwhile for some pet parents than others. A policy that covers general pet wellness and preventive care may not make economic sense, but a policy that covers accidents and illness may be a good move for pet owners who would have trouble covering a hefty vet bill if their pet is suddenly injured or becomes sick.

But plans vary significantly in what they cover and what they cost. Here are some key facts to consider when shopping for a pet insurance plan.

Average Cost of Pet Healthcare and Emergencies

Between food, daily care, equipment, and toys, the cost of owning a pet can be high. The cost of veterinary care can also stack up pretty fast.

Pet healthcare costs vary widely, depending on the region and what kinds of care your pet may need. But dog owners spend an average of $580 per year on routine vet care, while cat owners shell out an annual average of $433 on routine care, according to the American Veterinary Medical Association.

Heartworm tests can tack on another $35-$75 annually, with monthly preventive medications costing from $6-$18 apiece. This means an annual cost that can range between $107 and $291 for heartworm prevention, while flea and tick prevention can cost from $65-$150 for six months.

Even a healthy pet may need emergency care, ranging from a few hundred dollars to thousands. Wound treatment and repair, for example, can run as high as $1,500 for a dog. Emergency surgery for a large dog can cost up to $5,000.

In fact, emergency room bills for pets can run as high as $8,000 or more when adding in hospitalization costs.

What Is Pet Insurance?

Once a niche product, pet insurance policies have been steadily gaining in popularity. Indeed, many employers now offer pet plans as part of their benefit packages. But what exactly is pet insurance, and how does it work?

Like health insurance for people, pet insurance is intended to ease some of the costs of keeping your pet healthy. You can choose from different levels of coverage, with each plan costing a monthly or annual premium based on how much coverage you choose.

Some plans cover accidents and injuries, some only cover accidents, and others include wellness and preventive care. The more comprehensive the coverage, the higher you can expect the cost to be.

As with health insurance for people, pet policies include exclusions, various levels of coverage, copays, deductibles (a certain amount you must pay out of pocket before coverage kicks in), and payment limits.

Most pet insurance policies exclude preexisting conditions and hereditary or congenital conditions. Most carriers will accept pets around 6-10 weeks old, but some insurers have upper age limits, such as 14 years, and many policies have waiting periods before benefits for injury, illness, and orthopedic care begin.

Pet insurance typically uses a reimbursement model: You pay the full amount due when you take your pet in for care, then submit a claim to the insurance company.

What Pet Insurance Covers

Pet health insurance offers several types of coverage, each with its own list of coverage options and costs. The three most common types of coverage are:

•   Accident and illness: This typically covers treatments and tests for accidents and illnesses.

•   Accident-only: This coverage generally takes care of accidental injuries, such as poisoning or ingestion of a foreign object, vehicle-related injuries, cuts, and other physical injuries. Accident-only coverage is often preferred by owners of older pets that have aged out of comprehensive coverage.

•   Wellness care: Wellness plans tend to cover preventive-care visits, such as checkups and routine vaccinations, and you can buy one as a stand-alone policy or as an add-on to an accident and illness policy.

Before deciding whether you want to buy a pet insurance policy, it’s a good idea to download sample policies from insurers. You can then review each policy for limitations, exceptions, and copayments. You can also reach out to a rep with questions.

What Pet Insurance Doesn’t Cover

Some pet insurance options have breed-specific exclusions, or it could cost extra to cover specific breeds.

As mentioned, just about every pet insurance policy excludes coverage of preexisting conditions.

Many plans also limit the amount you can claim, either annually or over your pet’s lifetime.

Wellness plans likely will not cover any treatments having to do with accidents, common injuries, or any other emergency treatments.

Accident-only plans will likely not cover any cost associated with illness, while accident and illness plans will likely not cover any preventive care or any care related to preexisting conditions.

An accident and illness plan with a wellness add-on provides the most comprehensive coverage. But again, it will likely not cover any care for a preexisting condition and could come with breed restrictions. That’s why it’s essential to read the fine print of every policy option before deciding which one is right for each pet.

How Much Pet Insurance Costs

The cost of pet coverage varies widely, but the average accident and illness premiums cost about $749 a year for a dog and $386 for a cat, according to the North American Pet Health Insurance Association’s latest figures.

Accident-only premiums — covering things such as ingestion of a foreign body, lacerations, motor vehicle accident, ligament tears, and poisoning — average $193 for a dog and $110 for a cat, the association reported.

In a Consumer Reports survey of 3,583 pet owners who have pet insurance, 34% said the policies had saved them money, while 20% said they broke even. Still, two-thirds of respondents said they thought the insurance was worth the cost.

Keep in mind that costs can rise, depending on a number of factors:

•   Your pet’s breed (Purebreds may cost more to insure because they are more susceptible to some hereditary conditions.)

•   Age (Plans tend to cost more as your pet ages.)

•   Your region (The higher cost of vet care in some areas is factored into your premium.)

•   Your coverage (The options you choose will impact your rate.)

Note that once a pet reaches a few years old, many pet insurance providers increase rates at renewal time, often on an annual basis.

Pros and Cons of Pet Insurance

Pet insurance could make pet treatments and services more affordable: As you make annual or monthly premiums, the insurance company bears the brunt of covered expenses.

Pet insurance also may help protect the emergency funds in a

But it’s important to read the details. Many plans limit the amount you can claim, either annually or over your pet’s lifetime. If your pet suffers a major medical problem, you could quickly max out your plan’s limit and find yourself paying the difference.

Depending on the cost of the premium, wellness-only plans and wellness add-ons may not be worth the price since they can end up costing about the same as, or more than, paying out of pocket for routine care.

If pet insurance may be a possibility for your household, here are issues to consider before making a decision.

Research Which Pets Are Covered — and for What

Plans have different enrollment requirements. Typically, though, once a pet is enrolled in a plan, lifetime coverage is available — at least for as long as premiums are kept up. It’s a good idea to check to see if a plan requires a vet visit before enrollment.

Once plans have been identified that would likely accept your pet’s enrollment, find out what each of the policies covers. For plans that go beyond accident coverage, find out specifically what the benefits include. Will the policy, for example, cover ongoing treatment for a condition, or would a policyholder need to pay an add-on fee for continual care?

Investigate the Reliability of Pet Insurance Plans

Once a list of providers has been narrowed down to ones that would accept your pets, it’s a good idea to check the companies’ track records.

This includes the length of time they’ve been in business and how many policies they have in effect.

You may want to see which ones are rated by the Better Business Bureau, review what those ratings are, and read online reviews. Who develops their policies? Are there veterinarians involved?

Compare Deductibles and Payout Limits

Pet policies come with deductibles. Sometimes it’s an annual deductible. Other times, it can be applied per illness or injury.

If that’s the case, then once a deductible is met for that condition, maximum reimbursements may be paid out for that particular injury or illness. If, though, a pet develops multiple conditions, a deductible would need to be met for each one individually.

If the deductible is applied per incident, monthly premiums may be lower. A low annual deductible may sound appealing, but it will have a higher premium than plans with a higher deductible.

Alternatives to Pet Insurance

Again, like humans, unexpected expenses can come up from time to time with a pet.

Another way a pet owner can pay for both expected and unexpected vet bills is to have an emergency fund earmarked for their pet. Stashing a little bit of cash each month into a pet care fund can slowly add up.

Whether you do or don’t spring for pet insurance, you may be able to avoid emergency care by monitoring your pet’s diet and exercise and staying up to date on vaccines and heartworm prevention treatments.

Even knowing the most common ailment associated with your pet can help keep a minor problem from turning into something major.

Finally, you may want to shop around for the lowest price on the veterinary services you need.

The Takeaway

Is pet insurance worth the cost? Pet insurance that covers accidents and illness may be a reasonable hedge against a huge vet bill. The payoff for wellness coverage is less clear. If you do decide to take out pet insurance, be aware of all of the policy’s limits and exclusions.

Life is full of unexpected events. Insurance is meant to ease the burden of paying the full cost of an accident, illness, or loss.

When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.

FAQ

What does pet insurance typically cover?

Pet insurance usually covers accidents and illnesses, and some plans also include wellness and preventive care. Coverage varies widely by policy, and most plans include deductibles, exclusions, and reimbursement limits.

Why do pet insurance costs vary so much?

Pet insurance costs depend on factors such as your pet’s breed, age, and location and the level of coverage you choose. More comprehensive plans with broader protection generally come with higher monthly or annual premiums.

Is pet insurance worth it for most pet owners?

Pet insurance may be worth it for owners who would struggle to cover unexpected veterinary bills, especially for accidents or serious illness. However, wellness-only plans may not provide strong value compared with paying routine care costs out of pocket.

All insurance products shown on SoFi are underwritten and provided by licensed insurance carriers, not SoFi Agency. SoFi Agency does not underwrite or price insurance policies. Insurance products presented may not be available in all states, and your rates and savings will vary based on individual factors. The rates or savings advertised are not necessarily available from all providers or advertisers. Not all carriers or options in the marketplace are shown.
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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