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Even though many financial transactions are digital these days, there are times when you still need some money in hand.

ATMs can be a quick, easy solution when you need a fast cash infusion. But banks typically impose a limit on how much money you can withdraw in one day. Some banks also charge fees in exchange for the convenience of getting money at the nearest ATM.

Read on to learn:

•   How much money you can typically withdraw from an ATM.

•   How you can get around these ATM maximum limits if needed.

•   How to sidestep ATM fees.

Why Do Banks Have ATM Withdrawal Limits?

While ATM withdrawal limits can be frustrating, they exist for two important reasons:

Cash Availability

Banks want to make sure there is enough money available for all ATM users. But ATMs can only hold so much cash, and banks only have so much cash on hand at any one given time.

Let’s say you go to an ATM on, say, the Friday before a long holiday weekend to get some spending money and find that there is no cash left. This doesn’t happen often, but it’s a possibility. Capping the amount of money that can be withdrawn at an ATM helps ensure that customers can’t clean out ATMs or drain the bank’s cash reserves.

Security

ATM withdrawal limits also protect consumers. If someone were to get hold of your debit card and PIN number, the ATM withdrawal max would prevent that fraudster from immediately draining your entire checking or savings account.

Withdraw limits help reduce the speed with which a criminal could steal from your account.

How Much Can I Withdraw From an ATM?

The answer depends on a specific bank’s rules around withdrawals, with some capping at $300 and others going as high as $5,000 a day. A limit of somewhere between $500 and $1,000 is common.

In some cases, a withdrawal limit depends on a specific customer’s banking history or account type. A new customer with a basic checking account may have a lower withdrawal limit than an established customer with a premium checking account. If you have a student or a second chance account, your max ATM withdrawal might be lower than if you had a standard checking account.

Whether you are withdrawing from checking vs. savings can also make a difference.

Savings Account Withdrawal Limits

The amount you can withdraw will depend upon your particular bank or credit union. In some cases, savings accounts have a higher cap on how much you can withdraw at any one time. In others, you will find that you can pull more cash from an ATM using your checking account. One thing to be aware of: You may be limited to how many withdrawal transactions you can make per month from your savings account. Check your financial institution’s policies for specifics.

Checking Account Withdrawal Limits

The maximum ATM withdrawal limits for checking accounts can vary a great deal. For example, consider these figures:

•   Chase: $500 to $3,000

•   Citibank: $1,500 to $2,000

•   PNC: $500

•   Vystar Credit Union: $560 to $5,000

ATM Withdrawal Limits vs Daily Purchase Limits

It can also be helpful to keep in mind that ATM cash withdrawal limits are typically separate from daily purchase limits.

You may, for instance, be able to make $4,000 in debit card purchases in one day, but be limited to taking out $500 at the ATM.

Some banks may set a third limit — the total amount of money you can take out of your account via withdrawals and debit card purchases each day. Just like credit limits on your credit cards, these numbers may vary with the financial institution.

How To Work Around ATM Withdrawal Limits

If you need more cash than an ATM will allow you to withdraw, there are a few workarounds that can help as you wrangle your cash management.

Asking For Cash Back While Shopping

In some stores (like grocery stores), it’s possible to ask for cash back at checkout when making a purchase. While cash back may count towards your debit card’s daily purchase limit, it typically doesn’t count towards a daily ATM withdrawal limit.

The store will likely also have a cash back limit that applies on a per purchase basis. That could mean you’ll need to make multiple purchases to withdraw the full amount of cash needed.

Withdrawing From Savings

If you have both a checking and savings account, here’s another possibility: You can withdraw money from a savings account when using an ATM. This can help avoid the daily checking account withdrawal limit. There may, however, still be some limitations on ATM savings withdrawals, and this may vary with the kind of savings account you have.

Withdrawing at the Window

If you bank at a bricks-and-mortar location and the branch is open when you need more money, head inside. You can withdraw the amount you need by seeing a teller.

Fees to Look Out for When Withdrawing Money From the ATM

Many banking institutions have free ATM networks, but you may incur ATM fees if you use a machine outside of your bank’s network. This may include a fee from your bank, as well as a fee from the ATM provider.

These fees can add up quickly. If you were to use an out-of-network ATM, your bank might charge you as much as $1.50, while the ATM provider might charge you $3. In total, you could pay $4.50 for withdrawing your money.

To avoid ATM fees every time you get cash, you may want to look for a bank that doesn’t charge out-of-network ATM fees and/or refunds fees charged by the machine provider. Some banks reimburse fees charged by an out-of-network provider up to a certain amount each month.

Another option is to choose a bank with in-network ATMs that are convenient to where you live and work. You can also reduce fees by withdrawing more money at one time and making less frequent trips to the ATM.

The Takeaway

ATM withdrawal limits are there for your protection as well as the bank’s, but that doesn’t mean they aren’t inconvenient at times.

If you regularly need cash, you may want to find out your bank’s daily ATM withdrawal limits and plan ahead. Or, you can work around the maximums in place and get cash from other sources. By using a bit of smart strategy, you can make sure you have the cash you need on hand.

Love the convenience of the ATM, but not a fan of fees? You might want to consider opening an online bank account with SoFi. Our Checking and Savings allows you to earn, save, and spend all in one account. When you sign up with direct deposit, you’ll earn an incredible APY. And members can use more than 55,000+ Allpoint network ATMs worldwide without paying any fees.

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

Why do ATMs have withdrawal limits?

ATMs have withdrawal limits to help make sure the terminals don’t run out of cash for customers. ATM withdrawal limits also help protect account holders if their card were stolen or hacked; it minimizes how much they could lose in a specific period of time.

What is the difference between checking and savings account withdrawal limits?

Each bank or credit union has its own policies about withdrawal limits. These may depend on the kind of account, how long and responsibly the account holder has been a client, and other factors. The limits from checking and savings might or might not be the same.

What is the maximum amount I can withdraw from an ATM?

The amount you can withdraw from an ATM may range from $300 to $5,000 a day, depending on the financial institution and your particular account. Somewhere between $500 and $1,000 is typical.

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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.

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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If you have an overdraft at your current bank account, you may wonder if it is still possible to switch to another bank. While you can switch bank accounts with an overdraft, it will cost you. What’s more, you may be limited to second-chance checking accounts or “no-overdraft” accounts that offer limited services and charge a monthly fee.

That’s because checking account reporting companies like ChexSystems and Early Warning Services monitor your banking activity and produce reports about your habits, much like a credit report. When you overdraw an account or have unpaid fees, these agencies will likely add that to your report, indicating to banks and credit unions a certain level of risk associated with taking you on as a customer. And if a bank closes your account because of an overdraft (called an “involuntary closure”), it may portray you as an even larger risk.

In this guide, you’ll learn the answer to “Can I switch bank accounts if I have an overdraft?” and other important insights. What’s ahead:

•   Is it possible to switch your bank account after overdrafting?

•   What happens when you overdraft?

•   How to find a new bank account?

•   What ChexSystems is and how to improve your banking record.

Is It Possible to Switch Your Account After Overdrafting?

Here’s the answer to the question, “Can I switch bank accounts with an overdraft?”: Yes, you can make a change, though your options may be limited. And even when you switch, you are still responsible for paying off your negative balance in your old bank account.

Because of the potential negative impact on your checking account report, it is a good idea to pay off your negative balance with your bank before switching, if at all possible. Doing so may make it easier to find a new checking account.

What Happens When You Overdraft

When you overdraft on your account, your bank may assess certain overdraft fees, depending on the terms and conditions of your account and what you have opted into. You will then be responsible for paying back the overdrawn amount plus the fee.

Agencies like ChexSystems and Early Warning Services will note this on your report. Your banking report is separate from, but similar to, the credit report that is compiled by the big three agencies: Equifax, Experian, and TransUnion. While a credit report tracks how responsibly you use credit (paying bills on time, how much debt you have), your banking report chronicles activity like bounced checks.

If you maintain a negative balance and do not pay the fees, the bank may close the account for you. This situation, when you have an involuntarily closed account on your checking account report, can make it much more challenging to convince a bank to let you open a new account.

Remaining bank account fees can even go to collections. In other words, if you avoid paying off the negative balance now, you may one day have to deal with a debt collector.

Recommended: Does Switching Bank Accounts Affect Credit Score?

How to Find a New Bank Account

If you want to switch bank accounts with an overdraft, perhaps because the current bank’s overdraft policy is not ideal for your situation, you have two options:

•   Pay back the negative balance and any overdraft fees. Doing this will allow you to close the account on your terms. It will also minimize any damage done to your checking account report with ChexSystems and Early Warning Services. Then you can assess what kind of bank account would work better for your needs.

•   Look for a second-chance checking account. If you cannot pay back the fees and negative balance right now, the bank may eventually close the account for you. With unpaid fees and potentially an involuntary closure on your report, you may find yourself limited to second-chance checking accounts, sometimes called “no-overdraft” accounts (more on these, below).

Pay Back the Overdraft

If you are able to resolve any overdrafts before closing your account, you will likely find it easier to open a new checking account. Without major blemishes on your report, the door will be open to better accounts, potentially even accounts that offer cash back rewards or pay interest.

In addition to offering interest and/or cash back, higher-caliber checking accounts often offer overdraft coverage with no fees to keep you from falling back into your overdraft habit.

There are other reasons to repay that overdraft on your bank account. With a stronger checking account report, you can typically find that doors open to a variety of banking products that reward you for your responsible behavior. For instance, you might be eligible for rewards checking accounts with no fees and protection from overdraft as well.

Look for a Second-Chance Checking Accounts

However, if you are unable to pay off the negative balance or if your account was already involuntarily closed, you are not out of options. Some banks and credit unions do not use ChexSystems and Early Warning Services reports, which can make it easier for you to open an account.

You can often find second-chance checking accounts specifically designed for consumers who have been rejected by major banks because of their checking account reports. Such accounts often come with monthly fees that you cannot waive, and they might have additional requirements. Note: These accounts typically do not allow you to overdraft. Some banks will convert these accounts into standard checking accounts after a year or two of good banking behavior.

As an alternative, certain banks and credit unions may offer a prepaid card that operates like a debit card. You can load the card with money to spend. But unlike prepaid gift cards, these cards allow you to receive direct deposits and fund them with checks.

How You May Improve a ChexSystems Report

If you want to potentially improve your ChexSystems report, it’s important to know that negative behavior can linger for a number of years. ChexSystems, Early Warning Services, and any other agencies that report on consumer checking accounts cannot keep information that is older than seven years; some companies remove information after five years.

But you don’t just have to wait for time to pass to improve your checking account report. Here are a few things you can do to clean up your report now:

•   Dispute incorrect information. First and foremost, you can request one free ChexSystems report every 12 months (or any time you are denied an account). Review this report to ensure the information is correct, and dispute any discrepancies with the financial institution and the reporting company. If you have been a victim of bank account fraud, this is especially important; it’s wise to clear up these issues as soon as possible.

•   Pay off unpaid balances. If you have unpaid balances with a bank or credit union that are showing up on the report, you can pay these off, then request that the bank update the information with the reporting company.

•   Take advantage of your no-overdraft account. While you are waiting five to seven years for negative entries to fall off your report, it’s a good idea to avoid any activities that could lead to further bad marks. Utilizing a no-overdraft checking account, though it might carry monthly fees, can be a good way to ensure that you don’t accidentally overdraft again. In the same way you might build credit over time, you can establish a banking history that is mostly free of bad marks.

The Takeaway

Switching bank accounts if you have an overdraft is possible, but it can have long-term effects on your personal finances. If at all doable, restoring balances to $0 and paying overdraft fees before switching accounts is a good idea. It will help you access more flexible banking options at other institutions. However, if you can’t pay the outstanding balance, you might still be able to switch to a second-chance checking account. These accounts are designed for those whose checking account reports contain instances of risky banking activities and can help you build back good banking behavior after overdrafts and the like.

If you are looking for a checking account that offers overdraft coverage with no fees, consider opening a new SoFi Bank Account. When you open Checking and Savings with direct deposit, you’ll enjoy an amazing APY, and access to your paycheck up to two days early. With a minimum monthly direct deposit of $1,000, you also get no-fee overdraft coverage.

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

Can you close a bank account if you owe an overdraft?

You typically cannot close a bank account if you owe an overdraft. The bank, however, can choose to close your account to protect itself against further risk. This is called an involuntary closure and has a negative effect on your checking account report.

Can you close a bank account with a negative balance?

Generally, you can not close a bank account with a negative balance or unpaid fees. You will need to pay this money back to the bank or credit union before you can close the account.

Can you go to jail for a negative bank account?

A negative or overdrawn bank account is not a criminal offense. However, your account could be sent to collections, and unpaid balances will show up on your checking account report, which could make it difficult to open an account in the future.

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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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

Photo credit: iStock/Professor25
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In a competitive market, buyers have been known to waive contingencies, increase earnest money, insert escalation clauses, and pen love letters. Yes, that’s right: personal letters to sellers in an attempt to stand out from the crowd.

The National Association of Realtors® (NAR) isn’t feeling the love for “love letters” because they often contain personal information about the buyer, like their race and culture, that could make sellers and their agents vulnerable to accusations of discrimination.

Oregon was poised to ban homebuyer offer letters until a federal judge permanently blocked the law in March 2022. That month a Rhode Island representative introduced a bill to outlaw the practice in her state, calling it “kind of a very quiet way of redlining, potentially,” before the bill was held for further study.

So the practice goes on, legally, as of now, despite the letters’ tepid sway. A Zillow survey of partner agents showed that love letters were the least successful strategy for winning the deal (all-cash offers made sellers’ hearts beat fastest).

If you’re inclined to write a homebuyer love letter, here are tips.

1. Make a Strong Opening

Remember handwriting? Do your best and write your letter on a nice piece of stationery. You’re trying to humanize yourself in the eyes of the seller, and a handwritten note can go a long way toward doing so.

Address the seller by name if possible, searching for it online, or asking your real estate agent. As you write the letter, convey a friendly tone and a sincere message.

2. Tell the Owner About Yourself

You might choose to tell the sellers something memorable about your family, that you plan to raise kids in the house, or that the yard is perfect for your dogs.

You could also talk about where you’re moving from and why. Maybe you’ve taken a new job, you’re looking for a sense of community, and you fell in love with this neighborhood.

If you mention your family, just realize that familial status is protected against discrimination under federal housing rules. (In this case, sellers or their agents are not to act with bias against, or in favor of, families with children. The point of the Fair Housing Act is to create a level playing field for all people renting or buying a home, getting a mortgage, or seeking housing assistance.)

3. Think Twice About Sending Photos

Photos are part of what makes NAR uneasy, because race, gender, gender identity, sexual orientation, disability, religion, and familial status are protected against housing discrimination under the Fair Housing Act.

Yet many real estate agents allow buyer clients to include photos with their offer letters.

The NAR director of legal affairs advises Realtors to “avoid helping buyer clients to draft or deliver love letters. … Counsel them to focus on the characteristics of the home or other objective information.”

Still, buyer love letters are actually encouraged by some agencies — along with photos and even videos.

4. Share What You Like Best About the Home

Why you want to buy the home is the central theme of your letter. So you may want to tell the sellers somewhere near the top what you like best about their house.

Mention details. For example, maybe you like the large front porch and can picture gathering there with friends and family on summer nights. Or maybe you’ve become enamored of the kitchen, where you’ll perfect your bread-making skills. If, by chance, the property has an ADU, you could describe your plans for it.

You could throw in a bit of flattery, letting the sellers know how much you appreciate how they’ve maintained the home.

5. Find a Connection

One way to develop a relationship with someone is to find common traits or interests. If you notice that you and the sellers share an interest, it can’t hurt to let them know.

Perhaps you’re a gardener, and it’s clear they’ve got the plant bug. Maybe you have a passion for pottery, and the seller has a small ceramics studio. Or maybe you noticed a jersey from your favorite basketball team.

As you hunt for a connection, be careful not to cross any personal boundaries that might make the seller uncomfortable.

6. Explain Your Offer

Once you’ve given a sense of yourself and why you want to live in this house, you can get down to explaining your offer. Be honest and respectful as you give context.

If you’re living in a time of bidding wars and your offer isn’t the highest, there’s no need to dance around it. You could explain that the house is your dream home, but it’s at the top of your price range and that you respectfully ask the seller to consider your offer.

If the sellers are selling and buying at the same time, you could mention your willingness to do a rent-back agreement that would allow them to lease their former house from you for a set period of time.

7. Let Them Know You Are Serious

Selling a home is a lot of work. The last thing sellers want on their hands is a buyer who slows down the process and might not even make it through closing.

Make sure your letter reiterates that you are pre-approved for a mortgage and are flexible about closing dates.

8. Mind the Length

If there’s a lot of interest in a property, sellers might receive many love letters. They may not have the time, or interest, to read long-winded missives, so keep yours short and sweet, perhaps one page.

9. Thank the Owners

The close of your letter should be as strong as the opening. This is your last chance to make an impression, weave in some personal notes, and make any final flattering remarks.

Thank the sellers for considering your offer, and let them know you are looking forward to hearing from them soon.

10. Avoid Negativity

Some things are better left unsaid, like changes you’d like to make. The sellers may have spent a long while making their home perfect in their eyes. So even if you want to open up the floor plan and pull up the carpet, it’s a good idea to keep those thoughts to yourself for now.

You don’t want to make market prices, or this particular one, sound unfair. And it’s smart to avoid pressuring the sellers in any way, as with talk about time constraints.

Finally, don’t contradict anything that might go into a purchase agreement.

The Takeaway

In a seller’s market, a so-called love letter gives buyers a chance to distinguish themselves. Though not all real estate agents are keen on clients sending personal letters, the practice continues.

Home shoppers in an active market will want to get pre-qualified and then pre-approved. Learn the SoFi Mortgage advantages: loans with competitive fixed rates and low down payment options.

Check your rate in minutes.

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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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The annual percentage rate (APR) of your credit card has a big impact on how much it costs you to carry a credit card balance. In some cases — especially if you have a variable interest rate — your APR can change, causing your credit card interest rate to increase or decrease.

Understanding when and how these changes might occur can help you choose the right credit card and control how much you spend on interest. Here’s a look at what can increase your credit card’s APR and some of the factors that could cause it to decrease as well.

What Is Credit Card APR?

A credit card’s APR, or annual percentage rate, is the interest rate you’ll pay on the money you borrow, stated as an annual rate. Your credit card APR will tell you how much a credit card costs you in terms of interest on the balance you carry. However, it won’t tell you anything about other fees and other credit card charges you may incur.

Credit cards will typically have a separate APR for credit card purchase interest charges, balance transfers, and cash advances. The APR you receive when you open a credit card will depend on a benchmark interest rate as well as factors like your creditworthiness, as determined by your credit score.

However, the definition of APR will vary depending on what type of loan product you’re talking about. In contrast to credit cards, the APR on other types of loans is determined by interest rates, the length of the loan, and lender fees.

Recommended: What is a Charge Card

What Can Cause Your Credit Card’s APR to Increase?

If you see your APR spike you may wonder, why did my credit card interest rate go up? Well, there are a number of reasons that credit card APR can increase. Your credit card company can increase your APR on new transactions as long as they give you 45 days’ notice. The company is not allowed to increase your APR during the first year after your account is opened.

Further, there are only certain cases in which your card company can raise rate on existing balances, including when:

•   An introductory rate expires

•   You have a variable rate card and the benchmark interest rate rises

•   You’re 60 days late making your minimum payment

•   You successfully comply with, or fail to meet, the terms of a workout agreement

No matter how the increase occurs, it’s important to realize that your credit card payments increase when your interest rate increases.

Recommended: When Are Credit Card Payments Due

Prime Rate Rises

Your credit card will have either a fixed or variable credit card interest rate. If you have a credit card with a variable rate, that rate is largely based on a benchmark interest rate. The benchmark that many credit card companies use is what’s known as the prime rate. And when the prime rate rises, your APR will rise, too.

What causes the prime rate to rise? An increase could be caused by a change in the federal funds rate, which is the Federal Reserve’s recommendation for what banks should be charging when they make overnight loans to help each other meet federal reserve requirements.

One rule of thumb states that the prime rate is equal to the federal funds rate plus three.

Late Payments

Your credit card interest rate may also increase if you’re 60 or more days behind on paying your credit card minimum. This is what’s known as a penalty APR. Not only may this rate apply to your overdue balance, it may also raise interest payments on future purchases.

End of Introductory APR Offer

Some cards offer 0% APR on purchases or balance transfers for an introductory period. During that time, you won’t pay any interest on balances that you carry from month to month. However, once the introductory period is over, your APR will jump to the regular purchase interest rate, which will apply to any remaining balance on your account.

High Credit Card Balance

If you carry a growing credit card balance from month to month, or you’ve hit your credit limit and are unable to make payments, your card company may decide to raise your APR on new transactions.

Recommended: What is the Average Credit Card Limit

Failure to Meet the Terms of a Workout Agreement

If you had trouble paying off your credit card debt in the past, you may have renegotiated the terms of your agreement, which is known as a workout agreement. When you successfully complete it, your card company may return your APR to what it was prior to the arrangement, which may have temporarily reduced your interest rate. On the other hand, if you fail to comply with the agreement, your card company may also decide to raise rates.

Recommended: Tips for Using a Credit Card Responsibly

Recent Cash Advance

As mentioned above, credit card companies often typically set different APRs for purchases, balance transfers, and cash advances. If you’ve recently taken out a cash advance, you may have triggered the cash advance APR. This APR might be higher than the APR offered to you for regular credit card charges.

What Can Cause Your APR to Decrease?

There aren’t as many triggers that will send your credit card APR back down, but here’s a look at a couple to be aware of.

Prime Rate Falls

Once again, changes in the prime rate have a big impact on your APR. If the prime rate falls, your variable rate may also go down. In fact, taking advantage of tumbling interest rates is one of the biggest advantages of variable rate loans.

Negotiating for a Lower Rate

If you’d rather not sit around waiting for the prime rate to go down (or if it’s on an upward trajectory), one of the best ways to lower your credit card APR is by simply asking. Negotiating for lower rates and fees is one of the important credit card rules to know. (You can also negotiate on other things, such as credit card spending limits.)

You can improve your odds in this negotiation by arming yourself with some key information. First, get familiar with your credit score and make sure that it’s as high as possible. You may boost your score by paying down debts and making sure to correct any errors on your credit report.

Also make sure to highlight your history with the company. Credit cards want to hold on to long-standing customers with a good history of paying their bills on time.

If your credit card company rejects your first attempt at negotiation, don’t be afraid to ask again or to speak to a manager who may have more power to make decisions about your account.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

The Takeaway

Your APR has a huge impact on how much it will cost you to carry credit card debt. As you choose a credit card, it’s important to shop around for the card that offers the lowest interest rate.

Still, your APR may rise at some point — especially if the prime rate increases or a low introductory offer expires. However, that doesn’t mean you’re stuck with the new rate. You may get some relief if the prime rate falls again, and you can always negotiate with your card company to see if they can lower your rate.

The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.¹

Take advantage of this offer by applying for a SoFi credit card today.

FAQ

How can I lower my APR on my credit card?

You can try to lower the APR on your credit card by negotiating with your lender. Increase your odds of success by ensuring you have a history of paying your bills on time and a strong credit score.

How does the prime rate affect my credit card APR?

If you have a variable APR, when the prime rate rises, so too will your APR. When the prime rate falls, your APR falls as well.

Can the APR on a credit card change?

Yes, the APR on a credit card can change for a variety of reasons. This can include a shift in the prime rate, the expiration of a low introductory offer, or being 60 days late on paying your credit card minimum.

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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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

The SoFi Credit Card 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.

¹See Rewards Details at SoFi.com/card/rewards.

¹Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

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SOCC0422011

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Outside of housing and transportation, Americans spend more on food than any other category. According to the Bureau of Labor Statistics, in 2020 the average U.S. household shelled out $7,316 on food, including groceries and eating out.

While food is an essential expense (since we all need to eat), many of us could probably stand to spend less than what we’re currently spending on groceries, restaurants, and morning lattes.

Fortunately, with a little planning and some smart shopping hacks, you may be able to significantly cut the amount of money you spend on food but still eat well.

Here are 30 ways you can save more on your food purchases. Let’s start with the grocery store:

Saving at the Grocery Store

1. Having a Plan

Before you craft your grocery list, it’s wise to plan what meals and snacks you want to prepare for the week or weeks ahead. If you write it all down and then create your shopping list, you’re less likely to forget key items for certain recipes and you’ll know exactly what you need when you enter the store.

2. Scanning Your Fridge

While you’re making your meal plan, check your pantry and refrigerator for items you already have on hand. Not only can you avoid buying something you already have, but you may find some hidden veggies in the fridge you’d forgotten about that could otherwise spoil.

3. Going Semi-Vegetarian

Meat tends to be one of the most expensive ingredients in many meals. But there are plenty of tasty recipes out there that use other sources of protein, such as beans, eggs, and tofu. Also, don’t count out using tasty veggies or grains as the star of a dish.

Planning just one or two meatless meals each week can automatically cut your food spending — and also help you eat a little healthier.

4. Sticking to a Grocery Budget

If you don’t include your groceries in your monthly budget, you may want to consider doing so. It can help you track exactly how much you’re spending and where you can cut back (like those cookies or snacks you may not always need but are in the habit of buying).

5. Using Only Cash

Do you have trouble skipping over tasty treats and passing up deals and discounts when you’re at the grocery store? If so, you may want to consider taking only cash to the store to limit your ability to purchase items not on your grocery list.

6. Outsmarting the Supermarket

Grocery stores use a number of marketing tricks to get shoppers to spend more. These include stocking the most expensive items on the shelves right at your eye level, using end caps to grab your attention, and placing staples like milk, eggs, and bread at the back of the store so you’re forced to pass through several aisles to get to them.

You can avoid falling for these marketing ploys by carrying a list (and sticking to it) and also by keeping your eyes on the upper and lower shelves, as this is where you’ll tend to find the more affordable brands.

7. Going Generic

Brand name products in the supermarket can often cost 35 to 45 percent more than store brands. Yet many store brands offer essentially the same quality as their brand name counterparts, and in some cases are produced at the same facilities (just packaged with a different label).

While not all store brands are built the same, it’s worth trying a few if you’re grocery shopping on a budget. If you find that you can’t tell the difference, you may be able to enjoy some solid savings.

8. Using Store Loyalty Apps

If you shop at a large grocery store chain or mass retailer, you can often get special promotions and additional savings by downloading the store’s app.

Target, Walmart, Wegmans, Whole Foods, and other major stores have apps that offer exclusive coupons to frequent shoppers. Often, taking advantage of these deals is as simply as letting the cashier scan a barcode on your phone as you’re checking out.

9. Pruning Your Produce

Before you put fruits and veggies in the plastic bag, you may want to take a moment to remove any stalks, leaves, or stems that aren’t edible. Since you’re paying by weight, anything that you remove to lower the weight lowers the price.

10. Shopping In Season

Fruits and vegetables tend to be cheaper, and also taste better when they are in season locally. While you may be able to purchase fresh strawberries year-round, they’ll likely be more expensive (and less sweet) in the winter when they’re being harvested and shipped from somewhere far away.

You can check out this seasonality chart to find out when foods are in their prime where you live, and then adjust your menu, planning accordingly.

11. Avoiding Pre-Cut Products

If you just love that bag of grated cheese, you may want to consider comparing it to the price of the non-grated block. There’s a big difference in price, and grating cheese is really not a daunting task. The same goes for pre-cut fruits and vegetables. Sure, they’re handy for snacking, but extra money in your savings account could be nicer.

12. Eating Before You Shop

Yes, this may be a common tip, but it’s a good one. Going grocery shopping while hungry can increase your chance of impulse buying. Shopping after you’ve already had a meal is a great way to keep any hunger pains from adding items to your shopping cart.

13. Keeping an Eye on Unit Price

Comparing price and value can be tough when items don’t come in the same size. When in doubt, you can always turn to unit prices, which are often listed on the shelf tag.

Unit price gives you an apples-to-apples comparison, such as ounce to ounces or liters to liters.

For example, the cheapest bottle of olive oil on the shelf might not be the best value. If you bought a larger one, it might cost a few bucks more, but its overall cost per ounce is lower, saving you more in the long run.

14. Using Rewards Credit Cards

Some credit cards offer extra cash back for groceries and even eating out. If you use one of these cards for your purchase, you could end up saving a pretty nice amount of money each month — sometimes as much as 5% depending on which card you carry.

Saving When Eating Out

15. Dining out for Lunch Instead of Dinner

Cutting down on food expenses doesn’t mean you can’t still enjoy your favorite restaurants. One way to get that experience for a cheaper price is to go for lunch, not dinner.

Lunch menus often offer many of the same entrees (in slightly smaller portions) for a lower price than dinner menus. You can sometimes also find affordable lunch specials or Prix fixe options.

16. Enjoying Membership Discounts

Some organizations, like AARP, offer special member discounts at many restaurants (and even at some grocery and big-box retailers). If you eat out often, the savings could add up quickly.

17. Splitting the Entree

A lot of restaurants serve portions that are far larger than what most people really need (or sometimes even want) to eat. So, instead of getting a doggy bag for your leftovers that may end up sitting forgotten in the refrigerator, consider splitting a big entree with a dining companion. Even if you start with an app or a salad, you’re probably going to see some significant savings.

18. Skipping the Cocktails & Dessert

At the end of every meal, the waiter comes back around and asks the dreaded question, “Will there be anything else?” Unless you’re going out for a special occasion and you want to splurge, you can end up saving a lot of money by skipping the alcohol and dessert, and simply requesting the final bill.

19. Looking for Special Restaurant Discounts

Restaurants sometimes provide online coupons or special deals during events like restaurant week. So, if you’re eager to try a new eatery, you may want to check out their website first for any special deals they may be offering. And keeping up with your city’s restaurant week deals and other special events can really pay off, too.

Saving When Cooking at Home

20. Cooking More Meals at Home

Restaurants typically charge around a 300% markup on the foods they serve. That means spending $30 eating out would only cost you $10 if you made it at home. Just swapping one or two restaurant meals with a home-cooked meal and/or brown-bagging lunch a few days a week, can add up to significant monthly savings.

Also, grabbing a cup of Joe every morning from the local coffee shop adds up. Consider brewing your coffee at home a few times each week to save a few dollars.

Recommended: Examining the Price of Eating at Home vs Eating Out

21. Learning How to Meal Plan

Eating out less is easier said than done. If you don’t plan meals ahead of time, you may find yourself struggling in the kitchen during mealtimes, and thus even more tempted to simply order out. To save both time and money, meal planning could be the way to go.

Meal planning entails thinking ahead and creating a menu for the week, then using your menu to create a shopping list. You don’t have to plan every meal to the letter, but picking a few simple recipes you can whip for dinner can save you from having to get take-out after a long workday.

Recommended: How Much Should I Spend on Food a Month?

22. Prepping in Advance

Bagged salads, pre-made pizzas, and cut-up fruits and vegetables can be enticing on a busy weeknight, but these conveniences come at a high markup.

If you don’t have time to slice and dice raw ingredients in the evenings after work, you may want to consider doing some meal prep for the week on Sundays.

Having your ingredients ready to go also makes it easier to throw meals together, and eating out or ordering take-out becomes less tempting.

Recommended: Does Buying in Bulk Save Money?

23. Reducing Portion Sizes

Many Americans eat more than they actually need. The average person needs about 4 ounces of protein at any given meal, so if you’re consuming more than that, you could save a lot on your overall grocery expense by cutting back.

More Ways to Save

24. Reducing Food Waste

The average household wastes 31.9% of the food it buys, according to a study published in the American Journal of Agricultural Economics . The total annual cost of the wasted food was estimated to be $240 billion or $1,866 per household.

Food waste is often the result of food spoiling before the household can eat it. One way to reduce how much food — and money — gets tossed into the garbage each week is to only buy what you need for the week (by meal planning and making a list). Another way is to make sure you’re storing your fresh foods properly so it lasts.

For example, you can increase the lifespan of lettuce by wrapping it in a paper towel to absorb moisture while it sits in your fridge. Also, placing herbs in a jar of water can help prevent them from wilting quickly, giving you more time to use them.

25. Taking Advantage of Rebate Apps

When you’re searching for easy ways to save money, it’s worth checking out all the many grocery rebate apps that are now available.

Apps, such as Ibotta, Receipt Hog, Checkout 51m and Fetch Rewards, will often give you cashback for things you’d purchase anyway. While rebates don’t give you a discount upfront (like a traditional coupon), you should see savings in the long run.

Some apps send checks once you reach a certain cash-back amount, such as $20.

26. Starting a Kitchen Garden

Fresh herbs at the grocery store can be expensive, and often, recipes call for only a few sprigs or leaves, leaving the rest of a purchase to go to waste.

To avoid having to buy fresh herbs at the store, you may want to consider setting up a window sill garden containing the herbs you reach for most often, such as parsley, mint, thyme, or basil.

Start-up costs are minimal, and these plants tend to be easy to grow — no green thumb required.

27. Hitting the Farmer’s Market Later in the Day

If you love shopping at the local farmer’s market but don’t enjoy the dent it makes in your wallet, you may want to consider showing up near closing time.

At the end of the day, farmers often don’t want to pack up their food and take it home with them. If you walk around and make a reasonable offer on a box of produce they have left, you might score a great deal on fresh (and delicious) fruits and veggies.

28. Watching for Seasonal Deals

After major holidays like Halloween, Christmas and Easter, you can often get good deals on holiday-related items like candy. If you don’t care about themed wrappers, you can save a nice chunk of change.

29. Shopping Online

Buying dry goods and other non-perishables online instead of at the grocery store can end up saving you a lot of money, especially if you buy in bulk sizes and get those items delivered on a regular schedule. For example, Amazon offers up to a 15% discount for consumers who schedule auto-shipments for their products.

30. Consider Subscribing to Meal Kits

If you already don’t like cooking and the cleanup that comes with it, meal kits can be a great option. And if you’re spending money eating out because you just don’t feel like cooking, they can be a great way to stick to your food budget.

The Takeaway

With a little planning and just a few habit shifts, you may be able to slash your food bills without sacrificing quality, taste, or nutrition. The cash you free up can then be put towards savings or another financial goal.

You may find that setting up a monthly food budget — and target spending amounts per week — can also help you spend less on food. Using a money management app can help you stick to your food budget.

SoFi Checking and Savings is a mobile-first checking and savings account that allows users to easily view their weekly grocery and restaurant spending right in the dashboard of the app. There are no fees, and you can earn a competitive APY.

Take control of your spending with the help of 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 has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

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.

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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