Roth IRA vs Traditional IRA
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Roth IRA vs. Traditional IRA: Which IRA is the right choice for you?
Saving for retirement doesn’t have to be complicated. Learn the difference between a traditional IRA and a Roth IRA and decide what’s right for you.
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Traditional vs Roth IRA: an overview.
While both traditional and Roth IRAs can be great ways to save for retirement, there are a few key differences. With a traditional IRA, you contribute pre-tax dollars and get an upfront tax deduction on qualified contributions. However, you’ll pay taxes on withdrawals during retirement. When contributing to a Roth IRA, you pay taxes up front but qualified withdrawals in retirement are tax-free. Traditional IRAs have required minimum distributions (RMDs) starting at age 73, assuming you turn 72 after Dec. 31, 2022. Roth IRAs don’t have RMDs for the original account holder.
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Key differences between traditional and Roth IRAs:
See how Traditional and Roth IRAs compare side-by-side in the table below.
Find the perfect fit for your financial goals.
Traditional IRA |
Roth IRA |
||
|---|---|---|---|
Pay taxes on withdrawals |
Yes | No | |
Contributions |
Made with pre-tax dollars Details on Traditional IRA Contribution Limits |
Made with after-tax dollars Details on Roth IRA Contribution Limits |
|
Potential earnings |
Grow tax-deferred until withdrawal | Grow tax-free | |
Tax deductible |
Yes, if you meet income requirements | No | |
2025 contribution limits |
If you’re under 50: $7,000 If you’re 50 or older: $8,000 |
||
2026 contribution limits |
If you’re under 50: $7,500 If you’re 50 or older: $8,600 |
||
2025 income limits (for full contribution) |
None | If you’re single: $150,000 If you’re married: $236,000 |
|
2026 income limits (for full contribution) |
None | If you’re single: $153,000 If you’re married: $242,000 |
|
Required minimum distributions |
Generally required at age 73 | None | |
Early withdrawal penalties |
If before age 59 ½, may require you to pay taxes on earnings, plus 10% penalty | No penalties on contribution amounts, but earnings are subject to taxes and a 10% penalty for early withdrawal. | |
Tip: Use our IRA contribution calculator to determine
how much you can contribute.
Roth or traditional: Which IRA is right for you?
Take our personalized quiz and find the IRA that perfectly aligns with your retirement goals.
When to choose a traditional IRA:
If you expect to be in a lower tax bracket when you retire compared to your current one, and you qualify for the tax deductions, a traditional IRA might be right for you.
When to choose a Roth IRA:
If you expect to be in a higher tax bracket when you retire compared to your current one, and you meet the income eligibility criteria, a Roth IRA might be a good choice for you.
FAQ
Which is better, a Roth or Traditional IRA?
A Roth IRA may be better if you expect to be in a higher income tax bracket in retirement. That’s because with a Roth, you make contributions with after-tax dollars, the money in the account grows tax-free, and you generally withdraw the funds tax-free in retirement. A traditional IRA may be better for you if you expect to be in a lower tax bracket in retirement because you’ll pay taxes on withdrawals then. You can take deductions on your traditional IRA contributions upfront when you make them.
Am I eligible to open both a Roth IRA and a traditional IRA?
Yes, you’re able to open both a Roth IRA and a traditional IRA as long as you meet the income and contribution limits for both.
Can I roll over funds from one IRA type to another?
Yes, you can move funds from a traditional IRA to a Roth IRA by completing a rollover IRA. While less common, you can also rollover Roth funds to a traditional IRA. Since these may be a taxable events, we recommend that you speak to a tax advisor.
What happens to my IRA when I reach retirement age?
You can typically begin taking withdrawals from a traditional or Roth IRA when you reach age 59 ½. For a traditional IRA, you must begin taking required minimum distributions (RMDs) at age 72, or 73 if you turn 72 after Dec. 31, 2022. For a Roth IRA, there are no RMDs during your lifetime and qualified distributions are tax-free.
What are the benefits of opening a SoFi Invest IRA compared to other institutions?
With a SoFi traditional or Roth IRA, you:
• Don’t have to pay any account fees or have minimum contributions.
• Have access to a diverse range of investment options.
• Can tell us your goals and we’ll build a custom portfolio for you.
Get professional advice at no extra cost.
How can I get help choosing the right IRA with SoFi Invest?
Take the quiz above or talk to one of our Certified Financial Planner™ professionals to get an understanding of what retirement account options may be the best for you.
Article Sources
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1 Internal Revenue Service.
“Retirement Topics – IRA Contribution Limits”
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2 Internal Revenue Service.
“401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500”
Ready to start your IRA journey?
Start saving for retirement today with a traditional or Roth IRA. Not sure if a Roth or traditional IRA is better for you? Our no-cost financial planners can help you decide.
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Roth IRA Contribution Limits
IRA Accounts > Roth IRA > 2025-2026 Roth IRA Contribution & Income Limits
2025-2026 Roth IRA contribution and income limits.
The Roth IRA contribution limit for 2025 is $7,000 or $8,000 if you’re age 50 or older. In 2026, the limit is $7,500 or $8,600 for those age 50 and older. Maximize your retirement savings today.
2025 and 2026 Roth IRA contribution limits.
| 2025 contribution limits* | 2026 contribution limits* | |
|---|---|---|
| Under age 50 | $7,000 | $7,500 |
| Age 50 or older | $8,000 | $8,600 |
*Source: IRS Contribution Limits1, IRS 2026 Updates2
Tip: The annual IRA contribution limit applies to all your IRA accounts combined, including both Traditional and Roth IRAs.
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How to maximize your 2025 and 2026 Roth IRA contributions.
Prioritizing your Roth IRA contributions can be a smart way to boost your retirement savings and enjoy tax-free growth and withdrawals in the future. Here’s how you can make the most of your contributions:
Set up recurring contributions:
Automate your contributions by setting up automatic transfers from your bank.
Start contributing early in the year:
Time your contributions early in the year to maximize tax-free growth before IRA contribution deadlines.
Contribute the maximum Roth IRA amount:
You can contribute up to $7,000 in 2025 and up to $7,500 in 2026.
Take advantage of catch-up contributions:
If you’re 50 or older, you can contribute even more—up to $8,000 in 2025 and up to $8,600 in 2026. -
2025 Roth IRA income limits.
| Filing status | Modified adjusted gross income (MAGI) | Contribution limits |
|---|---|---|
| • Single • Head of household • Married filing separately (if you didn’t live with your spouse in 2025) |
Less than $150,000 | $7,000 (under 50) $8,000 (50 or older) |
| $150,000-$165,000 | Reduced contribution | |
| $165,000 or more | Not eligible to contribute | |
| • Married filing jointly • Qualifying widow(er) |
Less than $236,000 | $7,000 (under 50) $8,000 (50 or older) |
| $236,000-$246,000 | Reduced contribution | |
| $246,000 or more | Not eligible to contribute | |
| Married filing separately (if you lived with your spouse anytime in 2025) | Less than $10,000 | Reduced contribution |
| $10,000 or more | Not eligible to contribute |
Tip: For help determining your Roth IRA contribution limits,
use our simple IRA contribution calculator.
2026 Roth IRA income limits.
| Filing status | Modified adjusted gross income (MAGI) | Contribution limits |
|---|---|---|
| • Single • Head of household • Married filing separately (if you didn’t live with your spouse in 2026) |
Less than $153,000 | $7,500 (under 50) $8,600 (50 or older) |
| $153,000-$168,000 | Reduced contribution | |
| $168,000 or more | Not eligible to contribute | |
| • Married filing jointly • Qualifying widow(er) |
Less than $242,000 | $7,500 (under 50) $8,600 (50 or older) |
| $242,000 to $252,000 | A reduced amount | |
| $252,000 or more | Not eligible to contribute | |
| Married filing separately (if you lived with your spouse anytime in 2026) | Less than $10,000 | Reduced amount |
| $10,000 or more | Not eligible to contribute |
How high earners can manage income restrictions.
If you’re a high-income earner affected by Roth IRA income limits, there are alternative retirement savings options. You can:
• Max out contributions to a traditional IRA, which allows tax-deferred growth.
• Make after-tax contributions to a different retirement account—like a traditional IRA or 401(k)—and complete a backdoor Roth conversion. While more complicated, this legally allows Roth contributions when over the income limits.
Learn more: Roth vs Traditional IRAs
What happens if you exceed Roth IRA contribution and income limits?
You have options if you accidentally contribute too much to a Roth IRA or your income ends up being over the limits for that year. The worst-case scenario is the IRS will give you an excess contribution penalty, which is just 6% of the ineligible amount for each year it remains in the Roth account. You can easily avoid that tax by withdrawing excess contributions before your tax filing deadline, along with any earnings on that money. Just be sure to keep an eye on income limits and contribution caps—they change each year.
FAQ
How do contribution limits affect me?
Roth IRA contribution limits determine how much money, if any, you’re allowed to contribute directly to a Roth IRA each year. If you contribute too much or your income is too high, you could be subject to a tax penalty.
What if my income is above the limit?
If your income is above the limit for contributing directly to a Roth IRA, you can explore doing a backdoor Roth IRA contribution. This involves making an after-tax contribution to a traditional IRA and then converting those funds to a Roth IRA.
Can I contribute to a Roth IRA for my spouse?
Yes, you can contribute to a Roth IRA for your spouse, even if they don’t have any earned income for the year. This is allowed through a spousal Roth IRA contribution. As long as you’ve enough earned income to cover the contribution for both you and your spouse, you can fully fund both of your Roth IRA accounts up to the annual limits.
Can I contribute to a Roth IRA if I already contribute to a 401(k)?
Yes, you can contribute to a Roth IRA even if you already contribute to a 401(k) or other employer-sponsored retirement plan. Roth IRAs have their own separate contribution limits from other retirement accounts. As long as you have enough earned income and meet the Roth IRA income limits, you can max out contributions to both a Roth IRA and your 401(k) in the same year.
When do Roth IRA contributions need to be made for the tax year?
Roth IRA contributions for the year must be made by the tax filing deadline, typically around April 15. For example, contributions for the 2025 tax year must be made by April 15, 2026.
What happens if I contribute too much to my Roth IRA?
If you contribute too much to your Roth IRA, the excess contribution may be subject to a 6% penalty tax each year it remains in the account. To avoid this penalty, you must withdraw the excess contributions and any earnings on them by the tax filing deadline, including extensions, for that year.
Article Sources
-
1 Internal Revenue Service.
“Retirement Topics – IRA Contribution Limits”
-
2 Internal Revenue Service.
“401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500”
Get personalized retirement planning with SoFi.
If you’re ready to start planning for retirement, a Roth IRA with SoFi offers low fees, a variety of investment options, and a user-friendly investment platform. Plus, SoFi members have access to a team of Certified Financial Planner™. Our planners can help you decide the best investment options for your financial situation and goals.
DP Calc Base Template
California Mortgage Calculator
By SoFi Editors | Updated September 15, 2025
Getting a mortgage in California is easier when you’ve done your homework in advance. Put a few basic facts into this California mortgage calculator and you’ll learn the monthly payment amount and total interest cost for your home purchase. You can also use the calculator to try out different scenarios to find the home price, down payment, and interest rate that are the best combo for you.
- Key Points
- • A mortgage loan calculator helps homebuyers quickly estimate the monthly and total costs of borrowing money to buy a home.
- • Generally speaking, monthly mortgage payments should not exceed 28% of gross income.
- • The calculator includes principal, interest, and estimated property tax.
- • Extending the loan term can reduce monthly payments, making home buying more affordable.
- • First-time homebuyer programs offer down payment and closing cost assistance.
California Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you’ve negotiated with the seller. This price may differ from the initial listing price and your first offer.
• Down payment: The down payment is the amount you plan to pay upfront. It’s often expressed as a percentage of the total home price. Buyers put down anywhere from 3% to 20%. Down payment assistance programs help some buyers pull together the necessary funds.
• Loan term: The loan term is the length of time you have to repay the home loan. Common terms are 15 or 30 years. A shorter term can reduce total interest paid but increases monthly payments. A longer term offers lower monthly payments but results in more interest overall.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates vary based on borrower qualifications, market trends, and loan type.
• Annual property tax: The annual property tax is levied by local governments on land and buildings within their jurisdiction, and is expressed as a percentage of a property’s assessed value. In California, property taxes are capped by state law and the effective tax rate is 0.7%.
• Monthly payment: The monthly payment represents what you would pay toward the loan’s principal and interest each month, plus a sum that goes toward your property taxes. It does not include home insurance, private mortgage insurance (PMI), or homeowners association (HOA) fees.
• Total interest paid: The total interest paid represents the amount of interest you will pay over the life of your home loan. A larger down payment, lower interest rate, or shorter loan term can reduce this amount.
• Total loan cost: The total loan cost represents the all-in amount you will pay for the loan, including both the principal borrowed and the accumulated interest.
How to Use the California Mortgage Calculator
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price of the property.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment lowers your loan amount and also reduces your monthly payment and total interest paid.
Step 3: Choose a Loan Term
Select the length of time to repay the mortgage, anywhere from 10 to 30 years. A longer term lowers monthly payments but increases total interest.
Step 4: Enter an Interest Rate
Input your estimated interest rate to the second or third decimal point. Lower rates reduce monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the percentage of your property’s market value for annual property tax. California’s effective property tax rate averages .7%. For the specific percentage in your area, search online for the property’s town, county, or ZIP code and “effective property tax rate.”
Recommended: Average Monthly Expenses for One Person
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator estimates monthly payments based on loan amount, interest rate, and term. Using it can help you determine affordability before house hunting — it will be particularly helpful if you’re buying your first home, because having a mortgage may be entirely new to you.
Comparing rates and terms aids in choosing the type of mortgage loan you will pursue — for example, whether you will have a fixed or variable interest rate. The calculator shows how a down payment impacts your loan.
If you’re unsure of how much home you can afford, another helpful tool is a home affordability calculator.
Deciding How Much House You Can Afford
In California, the median home sale price in mid-2025 was just over $830,000, well above the national median of around $443,000, according to Redfin. Lenders suggest a mortgage payment shouldn’t exceed 28% of gross monthly income. To afford a $830,000 home with a 20% down payment, you’d need an annual income of $192,000 if you took out a 30-year mortgage at 7.00%. This assumes you pay the average California property taxes and have home insurance costs of $2,500. Your monthly mortgage payment, including taxes and insurance, would be $4,417.
Another way to get a handle on how much house you can afford is to go through the mortgage preapproval process with a lender. You’ll emerge with a clear picture of your borrowing capacity.
Components of a Mortgage Payment
The main components of a mortgage payment are the principal and the interest. This mortgage calculator also factors in property tax, because property taxes are often included as part of your monthly loan payment. (It’s in your lender’s interest to make sure you keep up on your tax bills, after all.) Your monthly payment could also include private mortgage insurance (PMI, necessary if your down payment is below 20%) or homeowners association (HOA) fees, depending on your specific situation.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is your best bet if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Recommended: Down Payment Calculator
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in California
California’s high cost of living impacts affordability, with higher home prices and expenses in many areas. As a whole, the state has a cost of living that is 42% above the U.S. national average. Properties in coastal areas might require a jumbo loan. For more affordable living, consider Stockton, Bakersfield, Chico, or another of the Golden State’s best affordable places in the U.S. A California mortgage calculator can estimate homebuying expenses.
There is a significant variation within California in terms of cost, as this cost-of-living index data shows. In the chart below, 100 equals the average cost of living in the U.S.
| California Cities’ Cost-of-Living Stats | |
|---|---|
| Bakersfield | 111.7 |
| Los Angeles-Long Beach | 149.4 |
| Oakland | 137.7 |
| Orange County | 156.3 |
| Redding | 110.5 |
| San Diego | 145.3 |
| San Francisco | 166.8 |
| San Jose | 180.7 |
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Homebuyers in California are looking to do whatever they can to lower their mortgage payment. Here are some things you can do after purchasing a home to lower the payment:
• Drop private mortgage insurance (PMI) once you reach 20% home equity. (Reach out to your lender to do this.)
• Consider a mortgage recast. Make a lump-sum payment toward the principal that you owe and ask the lender to do a recast.
• Consider appealing your property taxes if you feel they are too high. Use caution, however: Inviting closer scrutiny of a property’s worth can sometimes result in a tax increase.
• Request that a lender modify your loan if you are facing financial hardship.
• Extend your loan term to lower monthly payments.
• Shop for cheaper homeowners insurance.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
People who qualify as a first-time homebuyer in California may be able to utilize programs that aid with down payments or closing costs, making homeownership accessible to those with limited savings. Best of all, you could qualify as a newbie buyer if you haven’t owned a primary residence in the past three years. The California Housing Finance Agency provides below-market-interest-rate loans and down payment help for eligible low- and middle-income buyers.
Consult a guide to first-time homebuying programs in California for advice.
The Takeaway
Using a California mortgage calculator is a good first step in understanding the financial implications of homeownership. It helps you estimate monthly payments and total interest, and provides a clear picture of the overall cost of borrowing. Whether you’re a first-time homebuyer or considering refinancing, a mortgage calculator is an invaluable tool for planning and budgeting.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How does my credit score affect my mortgage loan interest rate?
Higher scores generally mean lower mortgage rates, as lenders see less risk.
What is the difference between principal and interest in a mortgage payment?
Principal repays the loan; interest is the lender’s fee. An amortization schedule details how much of each payment goes to each.
What is a recommended down payment for a mortgage?
A 20% down payment avoids PMI and secures better rates, but many buyers, especially first-timers, put down less. Explore assistance programs if needed.
Should I choose a 30-year or 15-year mortgage term?
A 30-year term has lower monthly payments but higher overall interest. A 15-year term has higher monthly payments but saves on interest. Choose the shortest affordable term; 30-year is most popular.
Learn more about mortgages:
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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When will I begin earning the 0.70% APY Boost?
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Bank Referral Program:
The following terms and conditions govern your participation in the SoFi Bank Referral Program (“Bank Referral Program”) during the Promotion Period (as defined below).
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Terms and Conditions:
To receive the referral bonus, a referrer must complete the following required activities: (i) share their unique referral link during the Promotion Period; (ii) have an existing SoFi Checking and Savings account at the time the referred member opens their SoFi Checking and Savings account; and (iii) be a SoFi Plus member at the time the referred member opens and funds their SoFi Checking and Savings account with the referrer’s unique referral link. To enroll in SoFi Plus, see the SoFi Plus Terms and Conditions for additional details.
To receive the referral bonus, a referred member must complete the following required activities: (i) apply and successfully open a SoFi Checking and Savings account and (ii) make deposits totaling $50 or more that settle within 21 calendar days of clicking the referral link. Deposits must be made via an ACH transfer from a linked bank account, direct deposit, via “Instant Transfer” from a debit card (if available), from cash deposits, mobile check deposits (if available), or wires. Peer-to-peer (P2P) transfers are excluded (P2P transfers are defined as ACH-based P2P or debit-card based P2P transfers from Venmo, PayPal, Apple Cash, Square Cash, Zelle, etc).
Once the referrer and the referred member have completed all required activities, SoFi will: (i) credit the referrer a one-time cash bonus of $100 into their SoFi Checking account ; and (ii) credit the referred member a one-time cash bonus of $25 into their SoFi Checking account. Please note that, if the referrer is not a SoFi Plus member at the time the referred member opens and funds their SoFi Checking and Savings account, the referrer will only receive a bonus of $75.
Bonus payments will be credited to the referrer and the referred member’s respective SoFi Checking accounts within seven (7) business days following confirmation by SoFi that all required activities have been completed by the referrer and referred member.
This is a limited-time offer from SoFi with limited availability, and is subject to expire at any time.
Referrers will not earn a referral bonus if the referred member has previously opened a SoFi Checking and Savings account or does not use the unique referral link provided by the referrer to open a SoFi Checking and Savings account during the Promotion Period.
Employees of Social Finance, LLC and its affiliates are not eligible to receive referral bonuses under the Bank Referral Program. In no event will any referrer or referred member be entitled to receive more than $10,000 in cumulative referral or welcome bonuses under all available SoFi referral programs within any calendar year.
Bonuses are considered miscellaneous income, and will be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi is required to do this reporting in compliance with the applicable federal and state reporting requirements. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult with your tax advisor to determine applicable tax consequences.
This offer cannot be combined with the SoFi Checking and Savings “account $20 open offer.” In the case of joint accounts, only the first account holder that opens the new Checking and Savings account is eligible for this offer. SoFi reserves the right to disqualify any participant from the referral program at its sole discretion, including but not limited to cases of actual or suspected fraud, abuse, gaming of the program, or conduct inconsistent with the spirit or intent of these terms. SoFi further reserves the right to verify eligibility, withhold or revoke any bonus, or modify, suspend, or terminate this offer or the referral program at any time without notice.
Interest Rates:
SoFi members can earn the following annual percentage yields (APY):
With Eligible Direct Deposit:
Savings (including Vaults): 3.60% APY.
Checking: 0.50% APY.
No minimum Direct Deposit amount is required to earn the 3.60% APY on savings.
Without Eligible Direct Deposit:
Savings (including Vaults): 1.00% APY.
Checking: 0.50% APY.
Other Rates Details:
Rates are variable and are subject to change at any time.
Rates are current as of 11/12/25.
No minimum balance is required.
Fees may reduce earnings.
Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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