SoFi Bank review 2024
Moneywise.com doggo / Moneywise.com
Updated: January 09, 2024
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.
About SoFi
Online banks are working harder than ever to create one-stop shopping for financial services. SoFi is no different, integrating various financial services – from personal loans and mortgage refinancing to investment products and savings accounts. This approach positions SoFi as a full-suite financial house, particularly appealing to millennials and Gen Z consumers who favor tech-driven, all-in-one solutions.
SoFi tries to differentiate with its focus on “membership” with customers gaining access to an array of traditional and non-traditional services ranging from checking and savings accounts to career counseling and financial planning services. SoFi's investment arm, SoFi Invest, allows users to trade stocks and ETFs, invest in cryptocurrency, and even partake in automated investing, catering to both seasoned and novice investors.
SoFi's recent acquisition of a national bank charter has bolstered its position and drives an even wider range of products and services while improving its interest rates and lending capabilities. The expansion positions SoFi as a formidable competitor in the world of digital banking, extending way past its student-loan refinancing roots when the company was founded in 2011.
Banking with SoFi
Created by a group of Stanford University business students, SoFi rose to prominence on its unique proposition to customers beset by expensive student loans. As those loans weighed down borrowers, SoFi capitalized by offering attractive refinancing rates.
But since 2019, SoFi has experienced a significant drop in loan origination volume. Eager to avoid the fate of one-note companies, SoFi has worked hard to diversify its portfolio to include traditional banking, mortgages, personal loans, credit cards, and investment products. Student loan financing remains an important component, however, acting as both a revenue generator and a way of gaining and retaining customers for its expanding product set.
Indeed, a visit to SoFi’s main website will find student loan refinancing jostling for position with traditional banking offerings and things like career coaching, insurance products and other services.
SoFi Bank features
Checking and savings accounts
Data as of December 18, 2023
SoFi fast facts
Checking accounts
SoFi’s traditional offerings focus on convenience and value. Their lack of fees and minimum balance requirements appeal to cost-conscious consumers, and SoFi's checking accounts often feature competitive interest rates, allowing customers to earn more on their deposits compared to traditional checking accounts.
SoFi's checking accounts integrate with the company’s comprehensive digital platform, offering easy online access and a user-friendly mobile app. Customers can easily manage their funds, get real-time notifications, mobile check deposits and free bill pay. SoFi also extends benefits like access to a network of fee-free ATMs, making cash withdrawals more convenient.
Savings accounts
SoFi's savings accounts are particularly appealing for those looking to maximize their savings with competitive interest rates and user-friendly online banking experiences.
At the forefront is SoFi's high-yield savings account, a standout product for savers looking to grow their funds beyond the lower rates typically found at local, brick-and-mortar banks. SoFi combines higher-than-average annual percentage yields (APY) with no monthly fees, making it attractive to those who want to save without getting nicked by charges.
One of SoFi’s savings advantages is ease of use and accessibility. With a strong emphasis on digital banking, SoFi allows customers to manage their savings on the go, either online or through a mobile app.
Inside the ‘Vault’
Got a target in mind for your money? SoFi offers account holders “Vaults” within their savings account. These vaults can be designated for specific saving goals, like a vacation fund or emergency savings, which helps customers organize and track their saving objectives more effectively.
SoFi integrates these savings accounts with their broader range of financial products, like personal loans and investment options, providing a comprehensive financial ecosystem for users. This integration can be particularly helpful for individuals looking to streamline their financial management across multiple platforms. And yes, SoFi checking and savings deposits are FDIC-protected up to $250,000.
Pros and cons of SoFi
Pros
-
Competitive interest rates: SoFi Bank offers high-yield savings accounts with competitive interest rates. This means your savings can potentially grow faster compared to traditional savings accounts with lower rates. Unique savings offerings – such as the bank’s “Vaults” feature – help customers lock in on savings goals.
-
No account fees: SoFi’s typically doesn't charge monthly account fees - great for savers who won’t have to worry about fees eating up their money.
-
All-in-one financial platform: SoFi provides a comprehensive range of financial products and services, including loans, investment options, insurance, and more. This integration allows for a seamless financial management experience, making it easier for customers to manage all their financial needs under one roof.
-
Non-traditional offerings: SoFi member perks include access to financial planning, estate planning, travel booking, even networking events and career coaching.
Cons
-
No physical branches: SoFi operates as an online bank. For customers who prefer in-person banking services or need regular access to physical branches, this could be a drawback.
-
No CDs: SoFi doesn’t offer certificates of deposit and opts for pitching its high-yield savings accounts as alternatives. Those rates may not be competitive with other banks’ CDs.
-
Limited ATM network: Although SoFi provides ATM access, its network may not be as extensive as those of larger, traditional banks. This could be inconvenient for those who frequently need cash.
-
Customer service limitations: While SoFi offers customer support, some users have reported challenges with getting timely or effective assistance. SoFi’s predominantly digital nature could be a factor, especially for those who prefer more direct, personal customer service interactions.
How to open a SoFi bank account
If you’re considering switching banks or just starting a new account, it’s important to understand your options and pick a bank that aligns with your financial goals and meets your convenience needs.
If that’s SoFi, start by navigating to SoFi's official website. Select the type of account you wish to open, such as a checking, savings, or investment account.
To create an account, click on the option to create a new account. You will be prompted to provide your email address and create a password.
Complete the application form by entering your personal details, usually your full name, address, Social Security number, and possibly information about your employment and income. To comply with banking regulations, SoFi will require you to verify your identity. This might involve uploading a government-issued ID and possibly additional documentation.
Next, carefully review the terms and conditions, privacy policy, and any other relevant agreements or disclosures. If you agree, accept the terms.
Once your account is live, you can link an external bank account to transfer funds into your new SoFi account. There might be an initial deposit requirement depending on the account type.
For easy account management, consider downloading SoFi's mobile banking app, available on both iOS and Android platforms.
After your account is active, you can set up additional features like direct deposit, automatic bill pay, or overdraft protection, depending on the account type.
Remember, the exact steps may vary slightly depending on the specific type of account you're opening and your personal circumstances. If you need assistance during the process, SoFi usually offers customer support through various channels, including phone, email, or chat.
Other SoFi financial products
As SoFi’s array of offerings extends well past traditional banking, it’s tempting to forget SoFi still offers the service that fueled its rise: student loan refinancing. Competitive rates and no fees position SoFi well in the hotly contested loan refinancing game it helped pioneer.
SoFi’s stable of products also includes personal loans, mortgage loans, credit cards, access to insurance plans, investing and more.
SoFi bank alternatives
Ally Bank
Ally Bank is renowned for its high-yield savings accounts with competitive interest rates and no monthly maintenance fees. It's also known for excellent customer service and a user-friendly online banking experience. Like SoFi, Ally operates primarily online, meaning there are no physical branches for in-person banking needs.
Marcus by Goldman Sachs
Marcus offers high-interest savings accounts with no fees and a simple, easy-to-use online platform. It's backed by the financial expertise of Goldman Sachs, adding a level of credibility and security. Marcus doesn’t provide a checking account option, which can be a limitation for those seeking a full-suite banking experience.
Chime
Chime is a fintech company that offers fee-free checking and savings accounts, and it's known for features like early direct deposit and automatic savings tools. Its savings account interest rates might not be as high as some competitors, and like others, it operates mainly online with limited physical presence.
CIT Bank
CIT stands out with high interest rates on savings accounts and CDs. The absence of account maintenance fees across all its banking products helps, and CIT recently introduced an eChecking account that also earns interest. While the bank does not have its own ATM network, it compensates by offering reimbursements of up to $30 monthly for fees incurred at other banks' ATMs.
Quontic Bank
Quontic stands out for its high-yield savings accounts, competitive mortgage options, and innovative checking accounts. The bank even offers a Bitcoin Rewards checking account, which provides the cryptocurrency as rewards for debit card use. Quontic also wins raves for its customer service. Quontic is a strong choice for those seeking a modern banking experience with a tech-savvy twist.
SoFi Bank FAQs
Latest Articles
Disclaimer
The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.