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Understanding your personal finances is the first step in taking control of your money and making it work harder for you.

One valuable tool for determining your financial status involves using personal finance ratios. These are akin to formulas that show the relationship between numbers and how your cash is tracking.

For instance, you might look at how your debt is versus your income or how your budget categories are stacking against versus your take-home pay. Calculating and considering these figures can help you manage your money better as well as achieve your short- and long-term goals.

To help you put these important ratios to use, this guide shares eight formulas to help you optimize your money.

Emergency Fund Ratio

An emergency fund is the cash you keep on hand to pay for unexpected expenses, such as a job loss, a large medical bill, or a roof repair.

This fund acts as a safety net so you don’t have to go into debt or raid your long-term savings accounts to take care of the situation.

Formula: Monthly Expenses X 6 = Emergency Fund Ratio

To calculate your target emergency fund, you’ll want to add up your essential monthly expenses, or the minimum amount of money you need to live for one month. That includes your mortgage or rent, insurance, utilities, and groceries.

One common rule of thumb is to then multiply this by three months (as a bare minimum); while others may aim for six months. This gives you a good number to shoot for keeping in your emergency fund.

Liquid Net Worth Ratio

This formula is essentially an extension of your emergency fund. If you were to need funds as a result of an unplanned event or emergency, this metric looks at how many months of expenses would be covered by your liquid assets — funds that can be easily and quickly converted into cash.

Formula: Liquid Assets/Monthly Expenses = Liquidity Ratio

Liquid assets include your checking and savings accounts, as well as cash-like equivalents. For this number, you do not want to include other assets that are not liquid, such as your home, car, or tax-advantaged retirement savings accounts.

Monthly expenses include essential expenses that you accounted for above to determine your emergency fund ratio.

A common goal: maintaining a liquidity ratio of between three and six months.

Personal Cash Flow Ratio

Cash flow is a term often associated with companies. But this can also be a simple yet powerful personal finance ratio because it tells you how much is flowing in vs. flowing out of your accounts each month.

Knowing how much cash flow you have is useful because it tells you exactly how much money you have available to pay down debt or save or invest for your future.

Formula: Monthly (After Tax) Income – Monthly Expenses = Personal Cash Flow Ratio

To calculate this, you’ll want to add up all of your average monthly take-home income, including your paycheck, any side hustles, and income from any investments or savings accounts that are available to you for spending.

Next, you can look at credit card and bank statements, as well as receipts, for the past several months to come up with the average amount you are spending each month. This includes necessities like mortgage or rent and utilities, and also discretionary spending such as eating out and entertainment.

You can then subtract your spending number from your income number and you’ll have your net cash flow. If that number isn’t where you want it to be, you can use these calculations as a starting point to make adjustments.

Generally, the higher your cash flow, the better off you are.

Housing-to-Income Ratio

This ratio is vital to helping you understand how much you can afford to spend on your home, whether you buy or rent. It is also an important metric that mortgage lenders use when they decide whether or not to approve your loan.

Formula: Monthly Housing Costs/Gross Monthly Income = Housing Ratio

It’s important to use total housing costs when you calculate this ratio. This includes: your monthly mortgage payments (or rent payments), property taxes, insurance, and utilities.

You can then compare that total cost to your gross monthly income (income before taxes are deducted). Financial experts often recommend keeping this number to 28% or less. In some high cost-of-living areas, closer to 40% can be common.

The lower this number, the more affordable your housing costs are and the more income you have for other financial goals.

Debt-to-Income Ratio

The debt-to-income ratio is often used to determine a company’s ability to pay its debts. It works for individuals as well. It tells you what percentage of your income is being used to repay debts.

Formula: Monthly Debt Payments/Monthly Gross Income = Debt-to-Income Ratio

To calculate your debt payments, you’ll want to include credit card, student loan, and other consumer debt, as well as your mortgage payments. Your gross income is how much you earn each month before any deductions or taxes are taken out.

The common wisdom is to keep your debt at or below 36% of your gross income, but the lower your debt-to-income ratio, the financially healthier you likely will be.

Many people are surprised when they calculate this number to find just how much of their income is going to repay debt, often at high interest rates. This ratio can help you rethink that situation.

Net Worth Ratio

Personal net worth is a measurement of an individuals’ total wealth. Your net worth ratio gives a little bit broader perspective than your debt-to-income ratio because it takes your total assets into account.

It is calculated as the total value of all your assets minus the total value of all your liabilities.

Formula: Total assets – Total Liabilities = Net Worth Ratio

To find this ratio, you’ll want to add up the current market values of all of your assets including your home, stock and bond holdings, checking and savings accounts, and any other financial accounts.

Next you’ll want to calculate your total liabilities. This includes any debt such as mortgages, credit card balances, car loans, personal loans and 401(k) loans.

You can then subtract your liabilities from your assets. The resulting number is, hopefully, positive, and the higher that positive number, the better for your financial health.

This is a snapshot of your net worth at this moment. You may want to calculate this metric periodically, perhaps quarterly or annually, to track your wealth. Ideally, you should see increases over time.

Savings Ratio

Since saving for the future is such a key part of personal finances, it makes sense there would be a personal finance ratio to help you gauge how you’re doing.

Your savings rate is expressed as what percent of your gross income you are putting away for the future, including retirement and other shorter-term financial goals.

Formula: Savings/Gross Income = Savings Ratio

To calculate this, you’ll want to add up your annual savings in any retirement accounts, including employer-sponsored retirement plans such as 401(k)s, traditional and Roth IRAs and taxable accounts earmarked for retirement. Do not include your emergency fund or college savings accounts.

Compare that savings to your annual gross income (your earnings before taxes and deductions are taken out).

Generally speaking, you want to aim for a saving rate of 10% to 20%. Younger people may want to aim for a 10 percent savings ratio, and then gradually increase their savings rate as their income increases.

50/30/20 Budget Ratio

The 50/30/20 formula can help you manage your budget no matter what your income. It proves a simple guideline as to how to apportion your income so you can afford to pay your bills, have some fun, and also put money into savings.

Formula: 50% Essential Spending + 30% Discretionary Spending + 20% Savings = Budget Ratio

Essential needs are the largest allocation at 50% of monthly take-home income. These are bills you must pay including mortgage or rent, utilities, health insurance, and groceries. Housing will likely take up a big chunk of this category.

With this formula, you’ll want to keep discretionary spending at no more than 30% of your monthly take-home income. These are most likely the things you do for fun, like dining out, travel, clothing beyond what you need for work, and entertainment.

Saving for future financial goals accounts for the remaining 20% of monthly take-home income. This includes retirement savings, saving for a house, tuition savings, saving to repay debt, etc.

The Takeaway

Personal finance ratios can give you a clear snapshot of your financial health in a variety of areas and help you make better decisions about money management and future planning.

Rather than making a best guess, personal financial ratios give you an edge in your analysis by using simple math. Once you’ve done some of these calculations, you may discover that you want to make some changes, such as watching your spending more closely and/or putting more money into savings each month.

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

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

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

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

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

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

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

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

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

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

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A Master of Business Administration (MBA) is a highly valued degree in the business world and can put you on a path to a successful, and high-paying, career. However, these degrees don’t come cheap. In fact, the average cost of a top MBA in the U.S. in 2022 was a whopping $225,605, including tuition, fees, supplies and living costs.

Is it worth it? The answer depends on myriad factors, including what B-school you go to, your financial situation, what financial aid you qualify for, and your future career goals. Read on for a closer look at the real costs and benefits of getting an MBA.

MBA School Costs

How much an MBA costs will depend on a variety of factors, such as school ranking, tuition structure, enrollment status, cost of living, and fees. MBA costs are also influenced by a student’s ability to qualify for financial aid, scholarships, and employer assistance.

It’s helpful to consider these factors and your chance of acceptance when evaluating MBA programs.


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

MBA School Requirements

To be accepted into an MBA program, students typically need to submit proof of a bachelor’s degree from an accredited institution, a personal statement, letters of recommendation, and a resume. Some schools require the GMAT or GRE and/or set GPA minimums for admission.

It’s worth noting that the acceptance rate at the top 10 business schools in 2022 averaged 22.2%. Working with an MBA application consultant could help fine-tune your writing and communication style to improve your candidacy for competitive programs.

Once enrolled, MBA students generally complete between 30 to 60 credits over two years of full-time study. Some accelerated MBA programs may be completed in as little as one year.

Private and Public MBA Tuition

Excluding scholarships and financial aid, public in-state tuition can be a student’s more cost-effective option for higher education. This rings true for prospective MBA students in certain states. For instance, the total MBA program cost for 2023-24 at the University of Washington’s Foster School of Business is $80,016 for in-state students, compared to $115,692 for out-of-state students.

However, the difference between in-state tuition and out-of-state or private tuition can be marginal at some high ranking public MBA programs. For example, 2023-24 tuition at the University of Michigan is $70,392 for in-state students vs. $75,392 for non-residents.

Total Cost of an MBA

The total cost of an MBA degree means more than just tuition expenses. Many MBA students will have to pay for textbooks, transportation, extracurricular activities, and other living expenses as part of their education. This more comprehensive expense list is used to calculate the cost of attendance.

A student’s enrollment status also impacts MBA cost. Studying part-time can allow students to pay per credit hour and continue working, though dropping below full-time enrollment status may impact eligibility for some scholarships.

To understand the true cost of an MBA, you also need to factor in the opportunity cost of not working, and not earning a salary, for the (typically) two years you are attending school full-time.

Recommended: Is Getting an MBA Worth It?

How Much Does an Online MBA Cost?

Relocating or commuting may not be feasible for all prospective MBA students. Choosing an online MBA program can offer more flexibility and a lower overall cost for some students.

Keep in mind that the cost of online MBA programs can vary greatly. Top ranking online MBA programs — UNC and Carnegie Mellon — cost over $125,000 and $140,000 in total tuition and fees, respectively. There are more affordable options, however. For example, an online MBA at Auburn University’s Harbert College of Business runs $35,100.

Recommended: The 14 Best Jobs for MBA Graduates

Cost-Benefit Analysis of Getting an MBA

At the lower end, tuition costs for business schools may come in around $52,000 a year (for an in-state student at a public university); at the higher end, it’s around $80,000 a year. Top schools like Yale and Duke University can leave students with over $104,000 in debt.

Even considering the increase in salary for those who went to prestigious programs — Yale graduates make a median base salary of $160,110 a year, plus a $30,000 signing bonus — those upfront costs of tuition can be intimidating. And let’s not forget, there are still costs that don’t factor into tuition.

Clubs, for instance, might be a necessary networking tool, and they come with a price tag that’s hard to factor in. And how about a trip to study in India? Traveling abroad pushes your costs up even further.

When weighing costs and benefits, you’ll want to also consider that many MBA programs offer scholarships, based both on merit and need. NYU reports awarding merit-based scholarships to up to 25% of students, while around 50% of MBA students at Stanford receive fellowship funds averaging $44,000 per year.

Keep scholarship availability in mind when researching schools, since aid varies widely. Stanford, for instance, has one of the highest costs of attendance (around $126,465 a year) but students can graduate with far less debt than most top tier MBA programs due to their need-based financial aid.

Ways to Pay for Your MBA

Assuming you don’t have six figures in savings you can tap to pay for business school, you may need to get creative to cover the costs. Beyond scholarships and fellowships, mentioned above, here are some other options to help pay for your MBA.

Employer Sponsorship

Sponsorship through a company is possible but relatively rare, and it can come with strings attached. For instance, you may be contractually obligated to stay with the company sponsoring you for a certain number of years, which may prove limiting if you don’t see a future with that company or in that field.

Many students choose to work summers, or even during the school year. However, some schools advise students not to take on part-time work due to the workload and the importance of extracurricular activities.

Student Loans

Depending on your financial situation, chances are it might be necessary to consider applying for MBA loans, whether private or federal, to pay for your MBA.

The interest rates for Federal Direct Plus Loans for graduate students disbursed between July 1, 2023, and July 1, 2024 is fixed at 8.05%.

Interest rates on private student loans may be fixed or variable and will vary depending on multiple factors, including the applicant’s credit history. These loans, which are available through banks, credit unions, and online lenders, are not need-based and generally require a credit check. Borrowers (or cosigners) with excellent credit tend to qualify for the lowest rates.

Keep in mind that private student loans may not offer the same borrower protections that federal student loans offer, such as Public Service Loan Forgiveness or income-driven repayment plans.


💡 Quick Tip: Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

The Takeaway

In the business world, people with MBAs generally earn much higher salaries than those in comparable roles who don’t have an MBA. The median starting salary offered to 2022 MBA grads was $115,000. However, graduates from top business schools were offered significantly more — an average base salary and signing bonus of $193,159.

When thinking about whether the cost of an MBA is worth it, you’ll want to tally up all the expenses involved in attending a business school program, tap any sources of financial aid you are eligible for, plus do some research into how much graduates from your selected school tend to earn in the business world.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

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SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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.

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.

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If you are hitched or have a significant other, you may wonder if a joint bank account is the right move or if you should keep your finances separate.

When you open a joint checking account, it can make it easier for the two of you to budget, spend, and save, especially if you are splitting household expenses. However, doing so also means you have less privacy financially speaking and you may not be comfortable with this level of transparency.

If you are mulling over this decision, read on to learn the pros and the cons of opening a joint bank account, as well as the steps required to open a joint bank account. In addition, you’ll find out about options to a shared bank account which may suit your needs.

What Is a Joint Bank Account?

A joint bank account is an account that’s shared between two people.

Simply put, a joint bank account is an account that’s shared between two or more people. Each person has full access to the money, whether withdrawing or adding to the funds.

While some couples will open an account and put all of their combined cash into it, other couples may choose to open up a shared bank account in addition to their pre-existing individual accounts.

Shared accounts can be both checking and savings accounts, and which account you choose — if you choose to create one at all — will depend on your specific goals and circumstances.

Sharing a financial account can come with some great benefits, as it generally provides each account holder with a debit card, a checkbook, and the ability for two people to deposit and withdraw funds into the same account. It can also come with some potential drawbacks.

One of the biggest decisions a couple will make is whether they decide to treat their money as a shared asset or as separate entities. As with any discussion about money, every individual or couple will have different goals and experiences, so it’s helpful to take a look at both sides. Considering the pros and cons of joint accounts may help you decide if this kind of account suits you.

💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, transfers from one online bank account with SoFi.

How Does a Joint Account Work?

A joint account functions just like an individual account, except that more than one person has access to it.

Everyone named on a joint account has the power to manage it, which includes everything from deposits to withdrawals.
Any account holder can also close the account at any time. And, all owners of a joint account are jointly liable for any debts incurred in relation to the account.

Two or more people can own a joint account. They don’t have to be a married couple or even live at the same address to combine bank accounts.

You can open a joint account with an aging parent who needs assistance with paying bills and managing their money. You can also open a joint account with a teenage child, friend, roommate, sibling, or business partner.

What Are Some Pros of a Joint Bank Account?

Here are some of the pros of opening a joint account.

•  Ease of paying bills. When you’re sharing expenses, such as rent/mortgage payments, utilities, insurance and streaming services, it can be a lot simpler to write one check (or make one online payment), rather than splitting bills between two bank accounts. A shared account can simplify and streamline your financial life.

•  Transparency. With a joint checking account, there can’t be any secrets about what’s coming in and in and what’s going out, since you both have access to your online account. This can help a newly married couple understand each other’s spending habits and talk more openly about money.

•  A sense of togetherness. Opening a joint bank account signals trust and a sense of being on the same team. Instead of “your money” and “my money,” it’s “our money.”

•  Easier budgeting. When all household and entertainment expenses are coming out of the same account, it can be much easier to keep track of spending and stick to a monthly budget. A joint account can help give a couple a clear financial picture.

•  Banking perks. Your combined resources might allow you to open an account where a certain minimum balance is required to keep it free from fees. Or, you might get a higher interest rate or other rewards by pooling your funds. Also, in a joint bank account, each account holder is insured by the Federal Deposit Insurance Corporation (FDIC), which means the total insurance on the account is higher than it is in an individual account.

•  Fewer legal hoops. Equal access to the account can come in handy during illness or another type of crisis. If one account holder gets sick, for example, the other can access funds and pay medical and other bills. If one partner passes away, the other partner will retain access to the funds in a joint account without having to deal with a complicated legal process.

What Are Some Cons of a Joint Bank Account?

Despite the myriad advantages of opening a joint account, there are some potential downsides to a shared account, which include:

•  Lack of privacy. Since both account holders can see everything that goes in and comes out of the account, your partner will know exactly what you’re earning and how much you are spending each month.

•  Potential for arguments. While a joint account can prevent arguments by making it easier to keep track of bills and spending, there is also the potential for it to lead to disagreements if one partner has a very different spending style than the other.

•  No individual protection. As joint owners of the account, you are both responsible for everything that happens. So if your partner overdraws the account, you will both be on the hook for paying back that debt and covering any fees that are charged as a result. If one account holder lets debts go unpaid, creditors can, in some cases, go after money in the joint account.

•  It can complicate a break-up. If you and your partner end up parting ways, you’ll have the added stress of deciding how to divide up the bank account. Each account owner has the right to withdraw money and close the account without the consent of the other.

•  Reduced benefits eligibility. If you open a joint account with a college student, the joint funds will count towards their assets, possibly reducing their eligibility for financial aid. The same goes for an elderly co-owner who may rely on Medicaid long-term care.

How to Open a Joint Bank Account

If you decide opening a joint account makes sense for your situation, the process is similar to opening an individual account. You can check your bank’s website to find out if you need to go in person, call, or just fill out forms online to start your joint account.

Typically, you have the option to open any kind of account as a joint account, except you’ll select “joint account” when you fill out your application or, after you fill in one person’s information, you can choose to add a co-applicant.

Whether you open your joint account online or in person, you’ll likely both need to provide the bank with personal information, including address, date of birth, and social security numbers, and also provide photo identification. You may also need information for the accounts you plan to use to fund your new account.

Another way to open a joint account is to add one partner to the other partner’s existing account. In this case, you’ll only need personal information for the partner being added.

Before signing on the dotted line, it can be a good idea to make sure you and the co-owner know the terms of the joint account. You will also need to make decisions together about how you want this account set up, managed, and monitored.

Should I Open a Joint Bank Account or Keep Separate Accounts?

As you consider your options, know that it doesn’t have to be all or nothing. You could open a new joint account while keeping your own separate bank accounts. Or you could decide between separate vs. joint accounts, and go all in on one or the other.

Some couples may find that the best solution is to pool some funds in a joint account for specific purposes, from paying for basic living expenses to saving for the down payment on a house or building an emergency fund.

You might keep your own separate accounts as well, where you can spend on what you like without anyone watching (or judging). Or perhaps you want to keep some funds separate so you can pay off your student loans, while your partner doesn’t have any.

In addition to making financial logistics more streamlined, opening a joint account may also help you and your partner practice better communication about money.

Opening a Joint Checking and Savings Account with SoFi

If you decide that a joint account feels right for you, you’ll have a number of options, including opening a SoFi joint account.

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

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

FAQ

What are the disadvantages of a joint account?

Disadvantages of a joint account include complete transparency (meaning you and your partner can see each other’s financial transactions), responsibility for the other person’s cash management, and complications if you decide to separate down the road.

Are joint bank accounts a good idea?

Joint accounts can be a good idea and can help streamline money management, save on fees, and reach financial goals more efficiently. Much depends on the two people involved and how well they can sync their financial lives.

Is it better to have joint or separate bank accounts?

That’s a personal decision. Joint accounts offer benefits like simpler money management, transparency, and saving money on fees. However, others prefer to keep separate accounts and have control over their funds as well as privacy.

Who owns the money in a joint bank account?

Money in a joint bank account belongs to those who hold the account. Each person has the right to add or withdraw funds.

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

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

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

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

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

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

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

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

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

SOBK0923007

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Getting your own place (whether with a roommate or not) versus living on campus or with Mom and Dad is a major rite of passage. But not only does it signal a new level of independence, it can also take a big bite out of your budget.

To get the most for your money, especially in a competitive market, it can be wise to try a variety of techniques, from using little-known apps to searching smarter. These tricks can help you snag a good deal.

Here, you’ll learn some of the top ways to find affordable housing and enjoy your own space.

How to Find a Cheap Place to Live

Check out our 25 strategies for sussing out a space you can not only afford but actually want to live in.

1. Searching Craigslist

Craigslist may be an oldie, but it can still be a goodie for finding affordable housing options. You can filter your search by putting in your maximum price on the left-hand side of the screen. You may also want to check out the “rooms & shares” category to find a place with roommates.

2. Browsing Zillow

Zillow isn’t just for home-buyers; it can also be a great resource for renters. You may want to download the app and also sign-up to get alerts on apartments in your area that are in your price range.

3. Asking Your Friends

Digital listings aren’t the only way to look for a great new place. Your friends can also be a great resource for figuring out where the best apartments are, especially if you know they’re not spending an arm and a leg on their living situation.

4. Asking your Friends to Ask Their Friends

You can expand your word-of-mouth circle exponentially by asking your friends to ask their friends for intel on available and affordable housing. You might also be able to find folks who are actively looking for a roommate or someone to take over their lease.

5. Checking PadMapper

PadMapper ’s tagline — “Making Apartment Hunting Suck Less” — is on point. Searches on this site are quick and easy, and their verification feature can also help you avoid too-good-to-be-true housing scams, which can be a problem on some other sites.

6. Teaming up with a Pal

If you find out that a friend is also on the hunt for new digs, you may want to consider joining forces and finding a place together. You’ll not only be able to split the rent, but also the cost of food, supplies, and furnishings.

7. Hitting the Pavement

Whether it’s by car, bike, or even on foot, you can often learn a lot about the local rental market by touring the neighborhood. You might spot an appealing apartment complex you never noticed before, or see a “For Rent” sign on a multi-family house or single-family house that has a room, mother-in-law suite, or garage for rent.

Recommended: Single Family vs. Multi Family House

8. Keeping an Eye on Apartments.com

Apartments.com is a comprehensive apartment rental resource. In addition to helping you find a rental, you may also be able to use the site to sign your lease and even pay your rent. That can help simplify your money management.

9. Keeping an Ear out at Work

Your coworkers might have insight into where the best local housing rentals are, or even know of someone who is looking for a roommate. You may, however, want to proceed with caution before moving in with a coworker (depending on your roles, living with a colleague could potentially cause awkwardness at work).

10. Using Bungalow

If you’re open to sharing a living space, along with expenses, you may want to check out Bungalow. The platform, which is devoted to helping people find affordable co-living arrangements, can help match you with roommates who have similar living preferences.

11. Moving to a Cheaper City

If you live in an expensive city and your work allows you to relocate or you’re on the hunt for a new job and a change of pace, you might consider moving to one of the more affordable cities in the U.S. A cheaper city may not only have lower rents, but also a lower cost of living in general.

Recommended: Cost of Living Index by State

12. Searching Rentable

Rentable (formerly ABODO) is now available in over 300 cities and makes it easy to search local housing options in your price range. In addition to price, you can apply a wide range of other search filters to help you hone in options that might work well for you.

13. Looking in a Less Trendy Neighborhood

Another way to find affordable housing is to cast a somewhat wider net. Even if you want to stay put in your current locale, even moving a mile or two can make a big difference when it comes to your monthly rent. While you might not be as close to your favorite bars and restaurants, you could end up having more money to actually spend in those places. The cost of living could be lower due to school district divisions or other factors.

14. Hopping on Hotpads

In addition to helping you find rentals in your preferred location, HotPads will also suggest options in other, similar neighborhoods that you may want to consider. This can potentially yield deals you wouldn’t have looked for, or found, on your own.

15. Checking out Local Bulletin Boards

Yes, bulletin boards are still a thing, even in the digital age. Next time you’re at a local coffee shop or other popular hangouts, you may want to poke around and see if there is a corkboard. You never know what you might find being advertised, including an affordable place to live that will help you stay on budget.

16. Poking Around on Reddit

With all the social media options these days, it can be easy to forget about Reddit. But it might be worthwhile to go to the subreddit for your city. You may be able to write a post asking if anyone has tips on where to look for nice, affordable apartments. (You may want to first check the rules in the sidebar to make sure such posts are allowed — every Reddit community has its own guidelines.)

17. Reaching out to Facebook Communities

Your favorite local Facebook community might be able to provide some insight on where to find the best affordable housing. If the group is focused on a shared interest, you might also be able to find a potential (and like-minded) roommate within the community to split expenses with.

18. Looking During the Winter

Moving in cold, miserable weather may not be ideal. However, you might be able to score a more affordable apartment during the winter months, when there is typically less competition for apartments.

19. Trying Trulia

With dozens of search filters, Trulia is another apartment search site that is worth checking out, especially if you’re a pet owner. The site highlights whether or not a rental is pet-friendly right on the listing’s thumbnail.

20. Considering a Job that Comes with Housing

One affordable way to live in the city of your choice is to find a job that offers free or reduced-priced accommodation, such as being a building manager/superintendent, park ranger, hotel worker, groundskeeper, nanny, or live-in caregiver.

Recommended: Ways Employers Can Help Employees Buy New Homes

21. Accessing Apartment List

Here’s another idea for finding an affordable place to live: Apartment List not only lists apartments for rent in all 50 states, but also offers a handy “rent calculator.” You can input where you’re moving, how many bedrooms you need, and your monthly gross income (before taxes), and the site will help you find apartments for rent in your area that will work with your budget.

22. Checking Walk Score (Especially if You Don’t Have a Car)

Walk Score can be a valuable resource for renters who don’t have a car. The platform gives every property listing a “Walk Score” to make it easy for people to evaluate walkability and access to transportation when choosing where to live. If you move to a very walkable location, you may be able to avoid owning a vehicle or have more time to save up for a car.

23. Posting Your Own Classified

Prefer to be in the driver’s seat? Rather than just responding to ads, you might want to consider placing one on a free platform like Craigslist. You can give potential landlords or roommates more information about yourself up front, which could lead to a more fitting (and affordable) living scenario.

24. Considering a Sublet

If you’re looking for a short-term rental, or you’re not averse to potentially having to move again, you may want to consider a sublet. Going this route could help you find a nice place at below market-value rent, since the owner or original renter may be under the gun to find a replacement.

25. Getting out of Town

If you live in or near a major city and you’re committed to a more affordable living situation, you may want to consider heading to a more rural area. Housing can be substantially cheaper in, say, South Dakota than it is in San Diego or at the farther reaches of a commuter zone around the city you’re targeting. The rise of flexible and remote work is making escaping the city more achievable.

Worth noting: If you want to buy your own place, you might qualify for a USDA loan in some rural areas, potentially making homeownership more affordable.)

The Takeaway

Finding a nice, yet affordable place to live isn’t always easy. To increase your odds of success, you may want to use multiple online rental platforms, network with friends and coworkers, be open to different locations, and even walk the streets of your target neighborhoods to scout out opportunities.

As you search for hidden gems, you may also want to start saving money to cover your start-up expenses, which could include the first and last month’s rent plus a security deposit. That way, when a great deal comes your way, you can jump on it. A high-interest, fee-free bank account can be a good option.

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

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Photo credit: iStock/KTStock

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

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

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

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

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

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

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

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

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

SOBK0923001

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You may wonder if anyone balances their bank account manually anymore given how many aspects of personal finances have become electronic.

Today, paychecks are deposited digitally, automatic bill pay whisks money from one account to another, and smartphones enable check deposits anytime, from anywhere.

Nevertheless, tracking withdrawals and deposits via a checkbook ledger and tallying up amounts can have value.

Monitoring your checking account in this way can help you identify errors or fraud. It can reveal charges and fees you may not have known you were being assessed. It can also put you in better touch with your money and your spending. All those things are definitely positives.

This guide will help you learn the step-by-steps for balancing your checkbook as well as its benefits.

What’s The Purpose Of Balancing Your Checking Account?

Back in the not-so-distant past, most people who had a bank account received a paper statement once a month in the mail.

On the first few pages, the statement listed the past month’s transactions — checks that had cleared, deposits that had posted, ATM and other withdrawals — along with the account balance as of the day the statement was printed.

On the back page, there was a reconciliation worksheet. There, account holders could add or subtract anything that was missing on the statement (deposits or withdrawals that hadn’t yet posted) to be sure the balance they thought they had actually matched the one the bank was reporting.

While some considered the process of balancing or monitoring a bank account tedious and frustrating, others diligently did the math every month.

Times have changed. Though financial institutions are legally required to mail those old-school statements to customers who want them, most have been touting the benefits of going paperless for years. Plus, customers now have 24/7 access to their account information using a website or an app.

Many banks also will provide a monthly online statement with the same data as the old paper statement, usually in the same or a similar format. They’ll even send a notification when the statement is ready.

But since this requires taking the time to log on, review the numbers, check for errors, and maybe do some math, many people procrastinate or simply skip regular account reviews. This can be especially true if they have multiple bank accounts.

But monitoring and balancing a bank account still plays an important role in responsible money management.

People – and Institutions – Sometimes Make Mistakes

Even if you are a fastidious record keeper, logging every cash withdrawal, bill payment, and deposit into a paper ledger, spreadsheet, or app, we all make mistakes from time to time.

Maybe an ATM receipt went missing or bill payment was forgotten or recorded incorrectly. By reconciling an account regularly, these little mistakes can be quickly fixed. This will allow you to have an accurate picture of your account, and help avoid overdraft charges and/or bounced checks.

Banks also can make errors. Duplicate charges are rare, but they can occur. Automatic payments may occasionally go awry. And it’s possible for deposits to land in the wrong account.

Even though the mistake might be the bank’s fault (because of human or technical error), it’s up to the account holder to bring it to someone’s attention — either by calling or writing to the financial institution.

In most cases, the Electronic Fund Transfer Act (EFTA) gives an account holder 60 days after receiving the bank statement with evidence of an error to challenge a problem with a direct deposit, ATM use, phone transfer, and other transactions.

But the time frame for reporting other bank errors may vary — rules may differ from bank to bank. Consumer advocates advise making contact as soon as possible upon spotting a mistake.

Reviewing an account regularly can help limit a consumer’s liability.

It also can be a good idea to check on vendor charges. Reviewing debit card, pay-by-phone, and even recurring automatic charges on a bank statement every month can help catch small errors before they become bigger problems.

A bank statement can provide the official documentation needed to dispute the charge with the vendor or financial institution.

Scammers Hope People Aren’t Paying Attention

Every time a person makes an ATM withdrawal, pays for gas with a debit card, or places an order online, there’s a chance someone is out there, waiting to steal their identity and their money.

Scammers sometimes start by making small purchases and, if no one seems to notice, bump up the spending to a more serious level.

Consumers who check their accounts regularly may have a better chance of spotting fraud faster, limiting their own liability and helping the bank deal with potential problems.

Reconciling Regularly Can Help Manage Automatic Payments

Automatic bill payments are convenient and can help an account holder avoid late payments (and late fees).

But the downside is that those bills might not get the same attention as those we have to make some effort to pay ourselves every month by check, phone or online. Ready or not, the money comes out of the bank account as scheduled, and if the account is low on the payment date, it can lead to bounced checks and overdraft fees.

Account holders who check their statements regularly may find they’re more aware of and prepared for the amount and timing of their autopay charges. They also might find they’re ready to dump or reduce the cost of some of the services and subscriptions they’ve been paying for every month or year.

Reviews May Offer Insights into Spending and Saving Behaviors

Reviewing their bank statements may help those who need or want to take more control of their spending to see exactly where their money is going every day, week, or month.

Regularly scheduled reconciliations enable people to see exactly how much they’re spending every week on nonessentials, such as in-app purchases or happy hours. This kind of information can help people budget more effectively and help bring them closer to their savings goals, such as a downpayment on a home.

Identifying Unnecessary Fees Can Save Money

Bank fees can eat away at a bank balance so slowly, an account holder might not even notice. The average monthly fee for a checking account now runs around $12. An out-of-network ATM withdrawal fee currently averages more than $4. Overdraft fees are typically $35 a pop.

Those charges can quickly add up — but if it’s all laid out there in black and white on a statement, it might be harder to ignore how much money is slipping away every month. (It also might provide more motivation to find a way to avoid those fees in the future.)

Recommended: ATM Withdrawal Limits — What You Need To Know

How to Balance Your Checking Account

Of course, account holders can always check on their available balance by using an ATM, or by logging into their account online or with an app. But that’s just a snapshot — and the picture could change in just a few minutes, depending on what transactions hit the account throughout the day.

By reconciling your records with your monthly online or paper statements on a regular basis, account holders can dig into the details of where their money is going, and be confident they aren’t missing any mistakes or paying fees or bills they aren’t aware of.

•   Start by gathering the receipts and records for any spending and deposits for the period chosen. (If you use a check register, grab that. If you write your purchases down in a notebook or use software or a spreadsheet, use those. If you collect ATM receipts, pull that pile together, too.)

•   Match those records with the bank statement. If you missed something the bank has listed and you’re sure it’s accurate (an ATM fee, for example, or a birthday check you deposited and forgot about), add it to your records.

•   Take the statement balance and subtract payments that are in your records but haven’t yet cleared the bank, and add in any deposits that haven’t yet been posted.

•   The amount you come up with should match with the balance you have in your register/notes/spreadsheet. If it doesn’t, you may have to do a closer check to see what you might have missed or if your math is a little off.

•   If you’re confident that the bank made a mistake or you notice anything else askew, contact the bank by phone, email, messaging, or in-person right away to let them know about the inconsistency.

The Takeaway

With so many other tech tools available to help track saving and spending, reconciling a bank statement every month may seem unnecessary or even archaic.

But the process can serve as an important backup and safeguard, especially for those who have multiple accounts, or who have turned over certain financial tasks (deposits, withdrawals, bill-paying, and budgeting) to automation and apps. It can also help you avoid unnecessary fees and spot mistakes or fraud.

It might even point the way toward better budgeting and money management, and help you reach your short- and long-term financial goals sooner.

Looking for Something Different?

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

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

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

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

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

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

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

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

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

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

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