Flipping Furniture as a Side Hustle

Tips for Flipping Furniture as a Side Hustle

Flipping furniture — the process of turning someone’s discarded pieces into beautiful, revitalized treasures — offers many benefits. It’s a unique way to earn extra income, learn new skills, and even send less waste to landfills. But how profitable can flipping furniture be, what tools do you need, and how do you get started? Let’s dive in.

Key Points

•   Furniture flipping provides the opportunity to enhance your restoration skills while generating extra income.

•   Essential tools include sanding materials, paint stripper, rags, stain, sealer, paint, and brushes.

•   Primary sources for furniture include thrift stores, yard sales, online marketplaces, and curbside treasures.

•   Aim for a markup of 200% to 400% on the original purchase price.

•   Consider selling your pieces online and/or at local flea markets.

What Is Furniture Flipping?

Though flipping furniture has recently gained popularity on TikTok, it’s been a profitable side hustle for many people much longer. Flipping furniture means taking an old piece of furniture, restoring it, and selling it for a profit. Restoring furniture generally involves cleaning an old piece, sanding or stripping it, then painting or staining it — and maybe installing more chic hardware, like knobs and handles.

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How Do I Get Started Flipping Furniture for a Profit?

To start flipping furniture for a profit, you’ll need to find old pieces of furniture, research methods for restoring them, buy the necessary tools and materials, and perform the actual work.

Your first few attempts at flipping furniture may not be good enough to sell, but the pieces could make great gifts for friends and family. As with any new skill, mastery takes practice.

Once you’ve gotten the hang of flipping furniture, you can begin to look for places to sell your pieces.

Recommended: Best Time to Purchase Furniture

Where Can I Find Furniture to Flip?

To make money flipping furniture, you need to source old furniture cheaply — or (ideally) for free.

You can find free furniture by driving around neighborhoods on trash day. The saying “one man’s trash is another man’s treasure” applies here: If a neighbor has put out an old dresser or end table for trash pickup, you can carry it or throw it in your truck and take it home to restore. Similarly, watch for neighbors who are moving; many dispose of furniture they don’t want to take to a new place.

If you’re willing to spend a little money, it may be easier to find the right pieces. Here are some places where you may be able to buy furniture on a budget:

•   Thrift stores

•   Garage sales and yard sales

•   Estate sales

•   Facebook Marketplace and Craigslist

It’s always wise to thoroughly clean used furniture before starting the restoration process — and ideally before bringing it into your home or workspace.

What Types of Furniture Can I Flip?

Any furniture that you can get your hands on and improve could theoretically make for a good flip, but in general, some of the best furniture items to flip for a profit include:

•   Coffee tables

•   End tables

•   Dining tables

•   Dining chairs*

•   Nightstands

•   Dressers

•   China cabinets

•   Buffets

•   Baby furniture

*Fabric chairs that require reupholstering may take more work than they’re worth and also present more risk (bed bugs and fleas, namely) than all-wood furniture.

What Do I Need to Look For When Flipping Furniture?

Knowing how to flip furniture for a profit comes down to more than being able to strip paint and install handles. To maximize efficiency and profit, you’ll want to know how to spot the right kinds of furniture.

Here are some things to watch for:

•   Heavier items: If a piece of furniture is heavy, don’t let it scare you off. That’s a good sign that it uses real, solid wood. This kind of wood is more durable and thus attractive to buyers. Particleboard pieces, on the other hand, are cheap and tend to fall apart easily; these are likely not worth your time.

•   Transportation ease: If you spot a great piece of furniture that looks a little bulky, measure it before purchasing. You’ve got to be able to transport it to your workspace and to the end customer or your retail space. If you can’t transport the furniture without renting a vehicle, it may not be profitable to flip it.

•   Craftsmanship: Look for dovetail joints in antique furniture. These are a mark of skill by the original furniture maker — not only do dovetail joints last longer than dowel joints, but they’re also more attractive to look at. Visible nails and staples are a sign of lower quality.

•   Easy flip: Some furniture pieces require less work than others. Think about how much work each piece will need. If some just need a light cleaning (or power washing) and a few screws tightened before you can sell them, these pieces may be more profitable than those requiring hours or even days of labor.

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How Much Do I Need to Start Flipping Furniture?

You don’t need much money to start flipping furniture for profit. If you’re able to source your first few pieces for free, you’ll just need to purchase basic tools and some paint and stain. Many flippers start with as little as $100.

As you begin to profit off your first furniture flips, you can start to invest in higher-quality pieces, better tools, and maybe even booth space at an antique store or flea market.

What Do I Need to Flip Furniture?

To start flipping furniture, you’ll need a few things, including transportation, a workspace, tools and other materials, and a place to sell the furniture.

Good Transportation

When flipping furniture, you’ll need a reliable mode of transportation that can fit multiple pieces to bring back to your workspace. Trucks and SUVs are great options, but if you turn your side hustle into a full-time gig, you may even want a trailer to transport even more furniture to and from your workspace.

You’ll also need blankets to protect furniture in transit and possibly ways to keep it from moving around too much as it’s transported.

Space to Work on Furniture

If you’re flipping furniture as a hobby or an easy way to make extra money on weekends, you don’t need to rent out a dedicated workshop. Depending on the weather, you could work on furniture flipping in your yard. Basements and garages can also be great places to start your flips — but remember that your space should have adequate ventilation.

If you become more serious about flipping furniture, it might make sense to lease a workspace.

Equipment to Restore Furniture

Each furniture flip may require a different set of tools. In general, the following tools and materials should be in your arsenal:

•   Paint

•   Paintbrushes

•   Painters tape

•   Stain

•   Sealer

•   Paint stripper

•   Sanding materials

•   Rags

•   Drop cloth

•   Sewing kit or sewing machine

•   Staple gun

•   Hammer and nails

•   Drill

•   Screwdrivers and screws

•   Wood glue

•   Steel wool

•   Soap

•   Sponges

Recommended: Common Budgeting Mistakes that People Often Make

A Place to Sell the Finished Product

Knowing how to start flipping furniture for a profit requires more than just knowing where to buy furniture and how to restore it. You also need to know how and where to sell it.

When you’re just starting out, you may find success advertising to friends and family on social media or to neighbors on a neighborhood app like Nextdoor. You can also list the furniture on Facebook Marketplace, Craigslist, and OfferUp.

Pro Tip: If you’re selling online, take good photos. Nice staging can go a long way in making your finished product appear more upscale.

If furniture flipping becomes more lucrative for you, it might make sense to rent booth space at antique stores and flea markets to sell your flips.

Recommended: 39 Passive Income Ideas to Build Wealth

Pros and Cons of Furniture Flipping

Furniture flipping can be a great side gig or second job, but it’s not for everybody. Here are the pros and cons of starting a furniture flipping business:

Pros of Furniture FlippingCons of Furniture Flipping
You can earn an extra source of incomeIt requires manual labor
You can learn new skillsSome projects can be time-consuming
There are typically low startup costsSelling online to strangers requires some caution
It can be a fulfilling hobbyYou need the right vehicle for transport
You’ll keep furniture from going to landfillsSome pieces may not sell

How Much Can I Resell Furniture For?

How much you can resell furniture for will depend on the type of piece and how much work you’ve done to it. Consider the time and money you put into the piece and the level of transformation it’s undergone.

Though it can vary by piece, you may be able to mark up an item 200% to 400%. For example, if you spent $100 on a table and materials to restore it, you may be able to charge between $200 and $400 for it.

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Is Furniture Flipping Profitable?

Furniture flipping can be profitable. Just remember to keep expenses low, choose pieces strategically, and mark up the end result enough to justify the time and money you put into the project. Flipping furniture may not generate enough revenue for you to quit your day job, but it can be a fun way to make some extra money.

Skills to Learn to Improve Furniture Flipping

With each project, you can learn a new skill or try a new technique. Over time, you’ll have a roster of skills and techniques that allow you to transform furniture in new and exciting ways.

Here are some skills that are worth learning for flipping furniture:

•   Carpentry

•   Upholstering

•   Stripping paint, sanding, and priming

•   Painting and staining

•   Polishing

•   Tiling

You’ll also need to learn basic finance skills to treat your furniture flipping like a real business:

•   Accounting (including what taxes you may have to collect on items you sell)

•   Sales

•   Customer service

The Takeaway

Furniture flipping can be a lucrative side hustle if you’re willing to put in the effort to source good pieces, learn new skills, and do the actual hard work. While flipping furniture may not pay enough to be a full-time job, it can be a rewarding side hustle that allows you to be creative, try new things, help the environment, and put some extra padding in your checking or savings account.

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FAQ

How much should I pay for furniture I’m planning to flip?

How much you should pay for a piece of furniture to flip depends on how much you think a person might pay for it fully restored. In general, it’s smart to aim for a 200% to 400% markup. If the cost of the furniture is too high for you to reasonably sell it for even more, it’s probably not a good piece to purchase.

Is flipping furniture always legal?

Flipping furniture is a legal way to make money. Remember that you must pay taxes on all income, so it’s important to track your expenses (save your receipts!) and earnings, then report it on your tax return each tax season.

Where can I sell furniture?

You can sell furniture online using sites and apps like Facebook Marketplace, Craigslist, Nextdoor, and OfferUp. If you have enough furniture to sell, it may make sense to rent a booth at an antique store or flea market.


Photo credit: iStock/ljubaphoto

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What to Do After You Graduate From Law School

Life after law school can be an exciting time as you look forward to your new career. There are plenty of opportunities available to those with a JD. Some avenues to consider include practicing law at a firm; specializing as an attorney in a field like patents, contracts, immigration (and many more); working as general counsel in-house at a corporation; or even pursuing a career in government.

The path you choose depends on the type of law you studied, your interests, and your past experiences. According to the Bureau of Labor Statistics (BLS), the median salary for lawyers in 2024 was $151,160 annually.

Once you find your first post-law school gig, you will also likely have to start thinking about repaying any law school student loans.

Key Points

•   Career paths after law school include working at a law firm, clerking for a judge, pursuing an advanced degree, or transitioning into non-legal careers like politics, journalism, or lobbying.

•   Law school graduates often carry significant student loan debt, with an average of $130,000, making repayment strategies a key financial priority.

•   Making interest payments while still in school can help reduce total loan costs and prevent interest from accruing.

•   Budgeting effectively post-graduation can help balance savings, emergency funds, credit card payments, and student loan repayment.

•   Refinancing law school loans may lower interest rates and simplify payments, but it removes access to federal benefits like income-driven repayment and loan forgiveness programs.

Finding Jobs After Law School

After getting a law degree, what to do really depends on why you decided to go to law school in the first place. Did you have dreams of working at a major law firm, becoming a public defender, or going solo with your own practice?

Maybe you’ve decided you no longer want to practice law and would rather apply your new skills to a relevant career or continue to further your education. If you are considering what to do after law school, you can start by examining what workplace environment you find the most exciting and attainable.

Landing at a Law Firm

A law firm is an obvious choice for where to work after getting your JD. But the size, location, and culture of the law firm can greatly impact your experience and job satisfaction. Attorneys working at smaller firms may offer stronger partnership prospects than larger law firms. However, depending on location, the pay could be comparatively lower, and your training may come in the form of on-the-job experience.

While the path to promotion may be longer at a larger firm, they may have more resources and a higher salary. Depending on your preferences and career interests, a major law firm with a big name might be a better fit to help you find your specialty.

Considering a Clerkship

A clerkship is an important career milestone for many attorneys. Usually taking place under the guidance of a certain judge, a clerkship allows law school graduates to see the inner workings of the legal system. Many are considered prestigious resume boosters and offer valuable first-hand experience working under a judge and a leg up on networking from the start.

There are federal and state court clerkships, but federal opportunities like with Supreme Court or circuit court judges can be more difficult to secure because of their prestige. However, state clerkships can also be beneficial, especially if you plan on practicing in the local area.

Getting an Advanced Degree

If you have a desire to specialize in a specific field of law, staying in school to get a post-JD degree is another avenue to consider after getting a law degree.

You might want to pursue this type of degree after having some relevant work experience, which can help you first figure out what particular field of law you want to study. These specialty degrees include Air and Space Law, Sports Law, Global Food Law, Cannabis Law, and more.

Alternative Careers Outside Law

Pivoting after law school to a different career is another option to consider when looking at jobs. If you, like many, have graduated with six-figures worth of student loan debt, you’ll obviously want to find a steady job so you can make regular student loan payments.

Other jobs that may fit with the skill set you curated in law school may include political advisor, journalist, lobbyist, and teacher.

Tackling Law School Debt

Depending on your earning potential and chosen career path, it might make sense for you to aggressively pay off your law school debt in 10 years or less.

Another option is to try to maximize your law school loan forgiveness opportunities.

In order to make your degree count towards your personal and professional goals, figuring out how to approach your debt is a key part of what to do after law school.

Ready to tackle your law school debt?
Refinancing your student loans
could help you pay it off faster.


Making Payments While Still in School

While the government does not require you to make payments on most federal student loans while still in school, you could consider paying the amount of student loan interest that builds up each month to help keep your student loan debt from growing.

Whether you need to pick up a side hustle or prioritize how much you save, making at least interest-only payments on your student loans while still in school can help reduce the amount of interest that will accrue on your student loans. This can ultimately reduce the amount of interest that accrues and help set you up for success after law school.

Sticking to Budget Basics

After your law degree, it can be wise to take stock of your budget and work to balance your goals for savings, emergency funds, credit card payments, and student loans. The average student loan debt from law school currently sits at $130,000, so you’ll want to prioritize making a plan to get these paid off as quickly and efficiently as possible.

Ultimately, you’ll likely want to pick a student loan repayment plan that works for your personal budget, no matter what jobs after law school you are considering. You may decide to pay down debt while also building up a basic emergency fund as part of your financial foundation.

Recommended: How Much Should Be in Your Emergency Fund?

Refinancing Law School Loans

Refinancing your law school loans means that a private lender will issue one new loan that pays off your existing federal and/or private student loans. This new loan comes with new terms, ideally with a lower interest rate or shorter repayment period. Instead of paying multiple student loans, such as from undergraduate and graduate school, there is only one new loan to pay off.

While there are many advantages to student loan refinancing, be aware that refinancing federal loans means that you will not be able to take advantage of benefits like income-driven repayment plans and Public Service Loan Forgiveness. So it may not make sense if you are taking advantage of one of these benefits or plan to in the future.

The Takeaway

Life after law school can mean something different for everyone. Whether you pursue a private practice, family law at a small firm, or corporate law at a large one, there are many career opportunities to pursue as you pay off your student loan debt.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What is the next step after graduating law school?

There are many career opportunities available after graduating law school, including joining a law firm, doing a clerkship with a state or federal judge, getting an advanced degree to specialize in a specific type of law, or switching to a different career in which you can use the skills you learned in law school, such as a teacher, a political advisor, or a lobbyist.

What jobs can you get if you graduate law school?

Jobs you can get after you graduate law school include working at a small or large law firm, becoming a clerk to a state or federal judge, landing a position as in-house counsel at a corporation, or working for the government or a nonprofit. To help decide which path is right for you, consider your interests and career goals.

What field of law pays the most?

Typically, the highest-paid lawyers specialize in such areas as corporate law, tax law, intellectual property law, medical malpractice, and entertainment law.


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

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

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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What Is College Tuition Reimbursement?

If you’re working and want to continue school but aren’t sure how to fund it, your employer may offer assistance. This is called tuition reimbursement, and it’s how many companies help employees pay for continuing their education. Tuition reimbursement programs are growing in popularity as companies work to attract and retain employees.

What is tuition reimbursement? It’s when companies offer programs to help employees pay for a portion of their educational costs. These programs vary by company. Some may only cover course costs if your continuing education is related to your job. Others may require employees to remain with the company for a certain period of time after completing their degree.

If you’re wondering, how does tuition reimbursement work?, read on to learn about the process of tuition reimbursement and find out the requirements involved.

Key Points

•   Tuition reimbursement is an employee benefit where companies cover part or all of an employee’s educational costs, helping them pursue further education while working.

•   Eligibility for tuition reimbursement often includes specific requirements, such as maintaining a minimum GPA and completing relevant coursework, with reimbursement typically occurring after course completion.

•   Employers offer tuition reimbursement to attract and retain talent, as it equips employees with skills that can be beneficial to the company.

•   Receiving tuition reimbursement does not prevent individuals from applying for federal financial aid, but it may affect the amount of aid offered.

•   Tax implications exist for tuition reimbursement, with the first $5,250 being tax-free; amounts above this limit are considered taxable income for employees.

What Is Tuition Reimbursement?

Tuition reimbursement, or tuition assistance, is an arrangement where an employer pays for part or all of an employee’s continuing education whether an undergraduate degree or graduate school.

How does tuition reimbursement work? Your employment contract may lay out the terms of the tuition reimbursement, including how much of your tuition your company will cover, what courses qualify, any minimum GPA requirements, and the minimum time period you must be employed by the company.

Tuition reimbursement is often offered as an employee benefit on top of a salary package, along with other benefits like health insurance, a 401(k), or transportation expenses.

This is different from student loan repayment assistance, when your company provides some amount of money toward student loans you already have.

Not every company offers tuition reimbursement, but many large ones do provide reimbursement or financial support for continuing education. Some companies may stipulate that courses must relate to your current work.

Recommended: What Are College Tuition Payment Plans and How Do They Work?

Why Companies Offer Tuition Reimbursement

Tuition reimbursement is a perk that helps a company attract and retain employees, while also benefiting the company itself, since the courses you take may provide skills or knowledge you can put into practice at work.

Some companies are upping their educational benefits as a way to stay competitive. They may offer a range of benefits to their employees like programs for refinancing student loans and student loan contributions.

Not sure if your employer offers tuition reimbursement? Check with your HR representative to see what options are available.

Tuition Reimbursement Requirements

The specifics of each company’s tuition reimbursement policy are likely laid out in an employment contract, but it’s common for a company to offer a tuition reimbursement only in accordance with certain eligibility requirements.

You’ll probably have to sign up and pay for the courses yourself first, so you’ll want to budget appropriately. In most cases you’ll need to pay for your courses out of pocket and then provide proof of completion and your grades in order to be reimbursed.

Program requirements

Your employer may limit its reimbursement program to certain institutions. For example, they may provide a list of accredited institutions you can choose from. Or they require that you attend a four-year program.

Coursework Requirements

Your company may reimburse you only for classes pertaining to your current job description.

Other times, companies will approve courses focused on moving you into a management role or on gaining skills you can put toward other future roles or assignments. For example, if you work in project management for a large corporation and are interested in learning how to use data visualization, you might be able to take community college courses in data production and visual graphics.

After understanding what courses qualify for tuition reimbursement, you could then look over the other requirements. For example, there may be minimum GPA or attendance requirements.

Timeframe Requirements

Sometimes a company will also require you to continue working with them for a set amount of time, since they’ve invested in your education and don’t want you to take those new skills to a competitor.

Tuition Reimbursement and the FAFSA®

An employer’s tuition reimbursement program doesn’t preclude you from filling out the Free Application for Federal Student Aid (FAFSA®) application. In most scenarios, an employer is unlikely to cover 100% of tuition costs, and you may still qualify for aid in the form of federal loans and grants.

That said, you will be asked to note how much you are reimbursed for, which may have an effect on how much financial aid you’re offered.

Is Tuition Reimbursement Taxable?

While you should always consult with a licensed tax professional regarding the current tax law, and in no way should any of this information be considered tax advice, the IRS’ website currently states that employers can deduct the cost of tuition reimbursement (up to $5,250 per employee annually). It’s a business expense for them. The IRS website also states that the first $5,250 of tuition reimbursement isn’t considered taxable income for employees. However, anything above that counts as part of your taxable wages and salary. Again, talking to a tax professional is always recommended.

The IRS does have some requirements on tax-free educational assistance benefits — which are not necessarily the same requirements your employer has.

Typically, for the IRS to consider tuition assistance as tax-free, it should be used to pay for tuition, fees, textbooks, supplies, or equipment.

And typically, it can’t be used for meals, lodging, transportation, or any equipment you keep after the course. It’s also not applicable to sports, games, or hobbies — unless they’re a degree requirement or you can prove they’re related to your employer’s business.

Again, consult with an accountant or tax attorney to get the complete picture.

What Are Other Options to Lower Education Costs?

The average cost of attending a four-year public college as an in-state student during the 2022-23 school year was $10,950, and that price tag only goes up for private schools and out-of-state students.

Federal Student Aid

For those who do not qualify for employer offered tuition reimbursement, there are other options that could be worth considering. As mentioned above, students can fill out FAFSA annually. This allows them to apply for all types of federal student aid, including scholarships and grants, work-study, and federal student loans.

Private Student Loans

Beyond that, some individuals may consider private student loans.

While one of the basics of student loans is that they offer students the opportunity to finance their education, private student loans don’t have the same borrower protections, like income-driven repayment plans, that are afforded to federal student loans. For this reason, they are most often considered only after all other options.

Recommended: Private Student Loans Guide

Refinancing Existing Student Loans

If you already have student loans, when it comes time to repay, you could consider refinancing to a lower interest rate, if you qualify. One of the advantages of refinancing student loans is that it could help you reduce the amount of money paid in interest over the total life of the loan; refinancing at a lower monthly payment could help with budgeting in the short term. However, lowering monthly payments is frequently the result of extending the loan term, which will result in increased cost over the life of the loan.

It’s important to know that federal student loans come with benefits such as income-driven repayment plans and deferment or forbearance options. Refinancing federal loans makes them ineligible for these programs and protections.

The Takeaway

Employers who offer tuition reimbursement programs will typically cover a portion of tuition costs if the employee meets specific program eligibility requirements. These requirements vary by company, but may include things like maintaining a minimum GPA, doing certain coursework, and stipulations around the length of employment.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

Learn more about refinancing your student loans with SoFi.

FAQ

What does college tuition reimbursement mean?

With college tuition reimbursement, an employer pays for all or some of an employee’s continuing education. The employer typically has specific terms and conditions, such as the amount of tuition the company will cover, what courses qualify, minimum GPA requirements, and the amount of time you must be employed by the company in order to qualify.

Is tuition reimbursement a good idea?

For employees, tuition reimbursement is an employee benefit and is generally a good thing. It provides employees with financial assistance to attend school, which can save them a significant amount of money. It also allows them the opportunity to gain skills to help advance in their career. In return, the employee typically must remain with the company for a certain amount of time and meet certain other specific eligibility criteria, depending on the company.

Do I have to pay back tuition reimbursement?

As long as you meet the terms and conditions of the tuition reimbursement agreement, you should not have to pay back tuition reimbursement. However, if you leave the company voluntarily before the specified timeframe, you may be required to repay the money. Read the terms of the agreement carefully beforehand.


SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers.
Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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

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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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What Is a Reverse Merger?

In a traditional merger, a company may acquire another that is in a similar or complementary business in order to expand its footprint or reduce competition. A “reverse merger” works quite differently, and investors are eyeing the assets of a private company.

The acquiring company in a reverse merger is called a public “shell company,” and it may have few to no assets. The shell company acquires a private operating company. This can allow the private company to bypass an initial public offering, a potentially lengthy, expensive process. In essence, the reverse merger is seen as a faster and cheaper method of “going public” than an IPO.

Key Points

•   A reverse merger involves a private company merging with a public shell to become publicly traded.

•   Benefits include a potentially faster, cheaper, and less risky path to public trading.

•   Risks include due diligence issues, and share value volatility.

•   Reverse mergers can be completed through SPACs, typically quicker than IPOs.

•   SPACs raise capital through IPOs to acquire private companies, facilitating public trading.

Reverse Merger Meaning

As mentioned, the meaning of the term “reverse merger” is when a group of investors takes over a company, rather than a competing or complementary business acquiring or absorbing a competitor. It’s a “reverse” of a traditional merger, in many ways, and appearances.

A reverse merger can also act as a sort of back door in. It can also be a way for companies to eschew the IPO process, or for foreign-based companies to access U.S. capital markets quickly.

Why are Reverse Mergers Important to Investors?

Investors may purchase units or shares in a shell company, hoping their investment will increase once a target company is chosen and acquired. This can be good for values of stocks when companies merge, netting those investors a profit.

In other cases, investors may own stock in a publicly traded company that is not doing well and is using a reverse merger to boost share values for shareholders through the acquisition of a new company.

In either case, shareholders can vote on the acquisition before a deal is done. Once the deal is complete, the name and stock symbol of the company may change to represent that of the formerly private company.


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How Do Reverse Mergers Work?

A shell company may have a primary purpose of acquiring private companies and making them public, bypassing the traditional IPO process. These types of companies can also be called special purpose acquisition companies (SPACs) or “blank check companies,” because they usually don’t have a target when they’re formed.

They may set a funding goal, but the managers of the SPAC will have control over how much money they will use during an acquisition.

A SPAC can be considered a sort of cousin of private equity in that it raises capital to invest in privately traded companies. But unlike private equity firms, which can keep a private company private for however long they wish, the SPAC aims to find a private company to turn public.

During its inception, a SPAC will seek sponsors, who will be allowed to retain equity in the SPAC after its IPO. There’s a lot to consider here, such as the differences and potential advantages for investors when comparing an IPO vs. acquisition via SPAC.

The SPAC may have a time limit to find a company appropriate to acquire. At a certain point during the process, the SPAC may be publicly tradable. It also may be available for investors to buy units of the company at a set price.

Once the SPAC chooses a company, shareholders can vote on the deal. Once the deal is complete, managers get a percentage of the profits from the deal, and shareholders own shares of the newly acquired company.

If the SPAC does not find a company within the specified time period — or if a deal is not voted through — investors will get back their money, minus any fees or expenses incurred during the life of the SPAC. The SPAC is not supposed to last forever. It is a temporary shell created exclusively to find companies to take public through acquisition.

Are Reverse Mergers Risky?

Investing in a SPAC can be risky because investors don’t have the same information they have from a publicly traded company. The lack of transparency and standard analytical tools for considering investments could heighten risk.

The SPAC itself has little to no cash flow or business blueprint, and the compressed time frame can make it tough for investors to make sure due diligence has been done on the private company or companies it plans to acquire.

Once a deal has gone through, the SPAC stock converts to the stock of the formerly private company. That’s why many investors rely on the reputation of the founding sponsors of the SPAC, many of whom may be industry executives with extensive merger and acquisition experience.


💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.

What Are the Pros and Cons of Reverse Mergers for Investors?

For investors, reverse mergers can have advantages and disadvantages. Here’s a rundown.

Pros of Reverse Mergers

One advantage of a reverse merger — being via SPAC or some other method — is that the process is relatively simple. The IPO process is long and complicated, which is one of the chief reasons companies may opt for a reverse merger when going public.

As such, they may also be less risky than an IPO, which can get derailed during the elongated process, and the whole thing may be less susceptible to the overall conditions in the market.

Cons of Reverse Mergers

Conversely, a reverse merger requires that a significant amount of due diligence is done by investors and those leading the merger. There’s always risk involved, and it can be a chore to suss it all out. Further, there’s a chance that a company’s stock won’t see a surge in demand, and that share values could fall.

Finally, there are regulatory issues to be aware of that can be a big hurdle for some companies that are making the transition from private to public. There are different rules, in other words, and it can take some time for staff to get up to speed.

Pros and Cons of Reverse Mergers for Investors

Pros

Cons

Simple Homework to be done
Lower risks than IPO Risk of share values falling
Less susceptibility to market forces Regulation and compliance

An Example of a Reverse Merger

SPACs have become more common in the financial industry over the past five years or so, and were particularly popular in 2020 and 2021. Here are some examples.

Snack company UTZ went public in August 2020 through Collier Creek Holdings. When the deal was announced, investors could buy shares of Collier Creek Holdings, but the shares would be converted to UTZ upon completion of the deal. If the merger was successful, shareholders had the option to hold the stock or sell.

But sometimes, SPAC deals do not reach completion. For example, casual restaurant chain TGI Fridays was poised to enter a $380 million merger in 2020 through acquisition by shell company Allegro Merger — a deal that was called off in April 2020 partially due to the “extraordinary market conditions” at the time.

Allegro Merger’s stock was liquidated, while the owners of TGI Fridays — two investment firms — kept the company.

Investor Considerations About Reverse Mergers

Some SPACs may trade in exchange markets, but others may trade over the counter.

Over-the-counter, or off-exchange, trading is done without exchange supervision, directly between two parties. This can give the two parties more flexibility in deal terms but does not have the transparency of deals done on an exchange.

This can make it challenging for investors to understand the specifics of how a SPAC is operating, including the financials, operations, and management.

Another challenge may be that a shell company is planning a reverse merger with a company in another country. This can make auditing difficult, even when good-faith efforts are put forth.

That said, it’s a good idea for investors to perform due diligence and evaluate the shell company or SPAC as they would analyze a stock. This includes researching the company and reviewing its SEC filings.

Not all companies are required to file reports with the SEC. For these non-reporting companies, investors may need to do more due diligence on their own to determine how sound the company is. Of course, non-reporting companies can be financially sound, but an investor may have to do the legwork and ask for paperwork to help answer questions that would otherwise be answered in SEC filings.

The Takeaway

Understanding reverse mergers can be helpful as SPACs become an increasingly important component of the IPO investing landscape. It can also be good to know how investments in reverse merger companies may or may not align with financial goals. Many investors get a thrill from the “big risk, big reward” potential of SPACs, as well as the relatively affordable per-unit price or stock share that may be available to them.

Due diligence, consideration of the downsides, and a well-balanced portfolio may lessen risk in the uncertain world of reverse mergers. If you’re interested in learning how they could affect your portfolio or investing decisions, it may be a good idea to speak with a financial professional.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

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FAQ

What is an example of a reverse merger?

A SPAC transaction is an example of a reverse merger, which would be when a SPAC — or special purpose acquisition company — is founded and taken public. Shares of the SPAC are sold to investors, and then the SPAC targets and acquires a private company, taking it public.

Why would a company do a reverse merger?

A reverse merger can be a relatively simple way for a company to go public. The traditional path to going public, through the IPO process, is often long, expensive, and risky, and a reverse merger can offer a simpler alternative.

How are reverse mergers and SPACs different?

The term “reverse merger” refers to the action being taken, or a company being taken public through a transaction or acquisition. A SPAC, on the other hand, is a vehicle or business entity used to facilitate that acquisition.


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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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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.

Dollar Cost Averaging (DCA): Dollar cost averaging is an investment strategy that involves regularly investing a fixed amount of money, regardless of market conditions. This approach can help reduce the impact of market volatility and lower the average cost per share over time. However, it does not guarantee a profit or protect against losses in declining markets. Investors should consider their financial goals, risk tolerance, and market conditions when deciding whether to use dollar cost averaging. Past performance is not indicative of future results. You should consult with a financial advisor to determine if this strategy is appropriate for your individual circumstances.

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation Procedures.

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

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How Much of Your Paycheck Should Go to Savings?

Financial experts typically advise people to save at least 10% to 20% of their salary, but recent GOBankingRates research reveals that 34% of Americans aren’t putting a cent of their paycheck into savings. Almost the same percentage saves less than 10% of their earnings.

Whether you are on track with your savings plans or struggling to get started, this guide can help. You’ll learn more about how much of your paycheck you should stash away and toward which goals, plus tactics for prioritizing savings.

Key Points

•   Financial experts recommend saving at least between 10% and 20% of your salary, with 20% being a common figure.

•   The 50/30/20 rule suggests allocating 20% of your take-home income to savings, including retirement, short-term savings, and other goals, such as debt repayment beyond the minimum due.

•   The amount to save from each paycheck depends on factors like goals, current income, and living expenses.

•   Saving for an emergency fund, retirement, and other goals are important savings objectives.

•   Cutting spending, automating savings, and choosing the right savings account can help increase savings.

What Percentage of Your Paycheck Should You Save?

When it comes to what percentage of income to save for future expenses, financial advice can vary depending on where you look. Some experts suggest saving as little as 10% of each paycheck, while others might suggest 30% or more.

For some people who are living paycheck to paycheck, the amount may be lower still. It may be wiser to simply come up with a set amount (say, $25 to $50) to deposit into savings in your bank account.

Rules of Thumb

According to the popular 50/30/20 rule of budgeting, 50% of your take-home income should go to essentials (or needs), 30% to nonessentials (or wants), and 20% to saving for future goals (including debt repayment beyond the minimum).

The right amount for you to save from each paycheck will depend on your income, your fixed expenses, as well as your short- and long-term financial goals.

If, for instance, you are a recent grad living at home for a while and your living expenses are very low, you may be able to save a much higher percentage for the time being.

Or, if you have a sizable credit card balance, you might pump money toward paying that off. In this situation, you might minimize or even pause the amount saved while getting that debt eliminated.

Calculating Percentages From Your Paycheck

To figure out how much to save from each paycheck, you’ll need to consider a few factors. The right amount will depend on your income, your fixed expenses, as well as your short- and long-term financial goals.

•   For example, if the cost of living is high in your state or local area, you may need to spend more than half of your take-home pay on living expenses, making it hard to put 20% of each paycheck into savings.

•   On the other hand, if your goal is to buy a home in two years, you may need to put more than 20% percent of your paycheck into savings in order to have your down payment in that timeline. (Keep reading for tips on how to save more.)

•   If you want to retire early, you may need to put more of your income toward retirement every month than the average worker.

Recommended: 50/30/20 budget calculator

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*Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 3/30/26. Rates variable, subject to change. Terms apply here. SoFi Bank, N.A. Member FDIC.

4 Important Savings Goals to Work Toward

Having a few specific goals in mind can help you determine how much to save from each paycheck as well as motivate you.

Here are some common savings goals that can help you build financial wellness.

1. Emergency Fund

Yes, it can be hard to save money, but one of the most important priorities is to sock away money (even if just a little) regularly into an emergency fund. In SoFi’s April 2024 Banking Survey of 500 U.S. adults, 77% of respondents with a savings account said they use the account to save for emergencies.

Emergency Fund Balances
Source: SoFi’s April 2024 Banking Survey

An emergency fund is a bundle of easily accessible cash that could help you handle a financial curveball, such as a job loss, medical emergency, or big ticket car or home repair. Ideally, an emergency fund will contain enough money to cover your living expenses for three to six months, so you don’t wind up with credit card debt.

•   If you are married with an employed spouse and with no children, for example, you may only need to cover three months’ worth of expenses.

•   If you have kids or you’re single, you may want to have an emergency fund that could cover more than six months’ worth of expenses.

Recommended: Emergency Fund Calculator

2. Paying Off High-Interest Debt

Another important thing you could consider doing with your savings is paying off any high-interest debt (or “bad” debt) you may have. Typically, this is credit card debt, which currently has an average rate of well over 20%.

•   One debt payoff strategy is the debt snowball method. You start by paying off the debt with the smallest balance and put all your extra payments toward that until it’s paid off (while continuing to pay the minimum on your other debts).

You then put extra payments toward the debt with the next highest balance, and so on. This can give you a sense of accomplishment which can help motivate you to continue your aggressive repayment.

•   Another approach is the debt avalanche method, putting all your extra payments toward the debt with the highest interest rate, while paying the minimum on the others.

When that debt is paid off, you then focus on the debt with the next-highest interest rate. This strategy can be the most cost-effective method.

3. Saving for Retirement

Another reason why saving money is important: It can secure your future by providing for your retirement. Exactly how much of your paycheck should go to retirement savings will depend on your age and when you want to retire. Some pointers:

•   If your company offers a 401(k) with matching contributions, it can make sense to put aside at least as much of your paycheck as your company will match (since this is essentially free money).

•   If you don’t have access to a 401(k) or want to contribute beyond that fund, you may want to open a Roth or Traditional IRA. Both types of IRAs have different tax benefits.

•   When you invest in a Roth IRA, the money is taxed at the time of contribution but then in retirement, you can withdraw it tax-free. Contributions made to a traditional IRA might not be taxed at the time they are made but are taxed when they are withdrawn in retirement.

When choosing how much of your paycheck to put into retirement savings, you may want to keep in mind that the IRS sets restrictions on how much you can contribute to your retirement funds each year. IRS retirement guidelines are published and updated regularly.

4. Saving for Other Goals

After establishing plans for debt repayment, an emergency fund, and retirement savings, you may also want to consider working toward your other financial goals, like buying a house, saving for your kids’ future education, or affording a great vacation.

When you’re saving for a big purchase, you can start by determining how much money you’ll need and when you want to have the money. You can then break that dollar amount down into the amount you need to save each year and each month.

Strategies for Increasing Your Savings Rate

If you want to ramp up your savings, here are a couple of strategies that can pay off.

Automating Your Savings

Also known as paying yourself first, automating your savings involves setting up recurring payments or transfers into an account where the money won’t be spent and can earn interest. You might have a portion of your direct-deposit paycheck go straight into savings, or you could have a set amount whisked from checking into savings every pay day.

Read on for ideas about which kind of account is best for your savings.

Adjusting Your Budget

If you need to save more, take a closer look at your budget. Checking in with your budget is an important way to stay in control of your money. You may see patterns that you can address to maximize your savings. For example, did your wifi provider raise costs or have your property taxes increased year over year?

Once you size up your situation, you can take the right next steps, such as reducing costs (see below), finding a budget that works better for you, or using tech tools, such as money trackers, to manage your money more effectively.

Recommended: How to Make Money From Home

Reducing Your Costs to Save More

You can help ramp up your savings by cutting your spending. Here are some ideas:

•   Review your monthly bills and see if there’s anything you can cut. You might have signed up for a couple of subscriptions and then forgotten about them, or you might see that your restaurant spending is surging lately.

•   Learn how to save on food. You might try planning your meals weekly, so nothing goes to waste; joining a warehouse or wholesale club to lower your grocery bill; and using coupons and discount codes to downsize your food costs.

•   Bundle up: If you get your auto and home (or renters) insurance from one provider, you may save on your premiums.

•   Fight off FOMO spending (fear of missing out). Just because your friends are upgrading to a luxury car or a social media influencer is frolicking on the French Riviera, that doesn’t mean you have to too.

•   Pause, for a day or a month, before making pricey impulse buys to make sure you really and truly want or need them. Try a 30-day spending rule to eliminate impulse buys. It involves waiting 30 days to make an unplanned purchase; the urge to buy may vanish in that time period.

•   Pay in cash. Plastic, whether a credit or debit card, can make it easy to overspend. If you take out the cash you need for the week ahead and use only that to pay for purchases, you may be able to rein in your purchasing.

•   Use budgeting tools to help stay on track. Twenty-three percent of people in SoFi’s survey use budgeting tools offered by their bank, and 20% have knowingly used AI to manage their budget or finances.

Where to Put Your Savings

Once you’ve committed to saving money, you’ll have some options about where to keep it.

High-Yield Savings Account

A high-yield savings account pays a significantly higher interest rate than a standard account. As of mid-2025, the average savings account earned 0.38% interest while some high-yield savings accounts were paying 4.00% or more.

These accounts are often found at online banks vs. traditional ones. Just be sure to read the fine print and make sure you are aware of and comfortable with any account fees or minimums that might be involved. These accounts allow for easy access to your money when needed.

Certificate of Deposit (CD)

A certificate of deposit (CD) is an account in which you commit to keeping your money at the bank for a specific term and you know what rate you will earn. Typically, there is a penalty for early withdrawal. The terms for CDs can range from a few months to several years, so you can pick what works best for you. Longer terms will often have higher interest rates.

Investment Options for Long-Term Savings

Longer-term savings goals, meaning five or 10 years or longer (such as your retirement savings) can involve investing, since you’ll likely have more time to ride out the ups and downs of the markets.

For college savings, you may want to consider opening a 529 savings plan.


Test your understanding of what you just read.


The Takeaway

Many financial experts and budgeting methods recommend putting 20% or more of your salary into savings, but that may not fit your needs. Consider your savings goals, your financial situation, and other factors to find the right figure and the right tactics to help you stash the right amount of cash. Also consider where to keep your savings: A higher rate of interest can help your money grow and work harder for you over time.

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.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Is saving 10% of my paycheck enough?

Most financial experts advise saving between 10% and 30% of your salary, with 20% being a common figure. Based on this, 10% is an adequate amount for some, but if you can ramp that up in the future, so much the better.

Is 20% of your salary enough to save?

According to the 50/30/20 budget rule, saving 20% of your salary is a good goal to have; that’s the 20 in the name of the guideline. This amount can then be divided to address different needs, such as saving for the down payment on a house, for your child’s college education, and for retirement. However, for some people, 20% won’t be enough if, say, you have a large family to support.

How much of a $1,000 paycheck should I save?

Typically, financial experts recommend saving between 10% and 30% of your paycheck, with 20% being a good figure to aim for. For $1,000, that would mean between $100 and $300, with $200 being the 20% figure. However, if you are earning a lower salary and money is tight, it would be understandable if you save less until your salary increases.

How much should you save if you don’t have a regular paycheck?

If you don’t have a regular paycheck, it can be especially important during high-earning periods to save at least 20% of your pay. Also aim for at least six to 12 months’ worth of living expenses in your emergency fund. This can be a good cushion during the off-season (if you have a seasonal business) or you lose a steady gig.

How can I save money if I live paycheck to paycheck?

If you’re living paycheck to paycheck, saving is still important. Review your fixed expenses and see what cuts you can make to free up funds for your emergency savings account and other goals. Put in the time to find a budget that works for you, and stash any money windfalls (such as a tax refund or unexpected gift of cash) into your savings. You might also sell your unwanted but still useful items to raise some cash for your savings.



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.

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/.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

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

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

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

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.
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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