This SoFi Money Review will walk you through how the account works and its pros and cons. We’ll talk about the best ways to use it so you’ll know if it can help you reach your money goals!
If you’re like most people, you have a checking account and savings account to manage your money. But, what if you could get the ease of access and a high interest rate in a single account?
That’s the goal of SoFi Money.
Checking accounts are great for everyday spending, right? Except they rarely let you earn interest on your cash.
While the best high-yield savings accounts can pay a decent amount of interest, federal regulations limit the number of withdrawals you can make each month. With withdrawal limits, savings accounts are a poor choice for paying bills, buying groceries, or shopping.
SoFi Money is different. They give you the convenience of a checking account and pay a generous 1.80% APY on all of your money. The result is a simplified account to keep your spending on track and conquer your savings goals all at the same time.
Oh, did I mention there are no fees?
Let’s dive into SoFi Money to see if the account meets our high expectations.
SoFi Money At a Glance
- High-interest checking account
- Earn 1.80% APY with no minimum balance
- FDIC-insured up to $1.5 million
- No overdraft fees or services charges
- No foreign transaction fees
- Unlimited ATM fee reimbursement worldwide
- Streamlined mobile app
- Access to a career coach and financial advisor
What is the SoFi Money Account?
SoFi Money is a hybrid account that combines the best parts of checking and savings accounts into one fantastic tool.
If their name sounds familiar to you, I’m not surprised.
SoFi has been around the personal finance arena since 2011. The company began by offering student loans and expanded to include student loan refinancing, personal loans, home loans, and investment accounts.
Although they’ve long been a disruptor inside the student loan space, they also may have changed the landscape of banking when the SoFi Money account was launched.
Before SoFi Money, you needed to separate your spending money from your savings to maximize your interest earnings. If your calculations were wrong, you either missed out on earning interest or worried your checking account balance would dip below zero.
Now there’s no need to spread your money across several accounts. You get to cash in on high interest rates and keep your deposits in one place.
SoFi is registered as an investment advisor with the Securities and Exchange Commission (SEC). However, SoFi Money partners with six banks to make sure your money is safe with FDIC insurance. That means all your deposits are FDIC-insured up to $1.5 million.
When you open a new account, you also gain access to exclusive benefits that are only available to SoFi members. You get a discount on loan interest rates and access to career coaching, financial advisors, and unemployment protection.
SoFi Money Review
Keeping money in different accounts has long been the norm in personal banking, but is scattering your money in different accounts necessary?
Sure, sometimes a special savings account makes sense. If you’re saving for college, for instance, you might be better off stashing that money outside of your checking account.
If your primary goal is to earn interest, SoFi Money provides a good return on your deposits while simplifying your finances at the same time.
How awesome is that return? I’m glad you asked because, when it comes to earning interest, SoFi Money has your back.
The national rate of interest for a checking account is a measly 0.06%. At that rate, a balance of $10,000 will earn an embarrassing $6 in interest for an entire year.
SoFi Money currently offers a nice 1.80% APY interest rate. Now your $10,000 deposit can earn $180 in a year. That’s a giant difference from a traditional bank!
If that weren’t enough, there are zero ATM fees and no limits on how often you can withdraw money. You’ll have easy access to your money like you would in a traditional checking account, too.
Mobile check deposits are as easy as pie and your money is available within one to two business days. You can also transfer money to your SoFi Money account anytime by connecting an existing bank account. Your account comes with a fee-free debit card, online bill pay, no-cost peer-to-peer payments, and direct deposit.
If you love to travel, you’ll appreciate being able to use your debit card in other countries for purchases and ATM withdrawals. As long as they accept Visa or Visa PLUS, you’re good to go without worrying about foreign transaction fees.
Things We Love about SoFi Money
- High-Interest Checking – Earning a rewarding rate on a savings account is common, but SoFi Money delivers high interest rates to checking accounts. There’s no balance requirement to earn the impressive 1.80% APY, so you’ll earn the same rate whether you have $5 or $15,000 in your account.
- No Fees – Sometimes “fee-free” banking comes with fees hidden in the fine print. With SoFi Money, your account is truly free. They don’t charge overdraft fees, service charges, foreign transaction fees, or ATM fees so you can keep more money in your wallet.
- Unlimited ATM Fee Reimbursements – In addition to SoFi Money’s free ATM access, they also offer unlimited reimbursement of fees other banks might charge when making an ATM withdrawal. Each month, SoFi Money will credit your account to compensate you for any ATM fees you paid. Did I mention it’s unlimited?
- Free Paper Checks – There are plenty of places that still require a paper check to pay your bill – daycare, utilities, or when making a local donation. With SoFi Money, you don’t have to worry about shelling out $30 for checks. They’re free.
- Free Online Bill Pay and P2P Transfers – Although you get paper checks at no cost, you might prefer to pay bills online. Every SoFi Money account comes with free online bill pay to make it easier for you to pay electronically. Sending money to anyone with a bank account in the US is free, too, with the peer-to-peer (P2P) payment transfer.
- FDIC-Insured – Your deposits are FDIC-insured up to $1.5 million.
Where SoFi Money Falls Short
The SoFi Money Account offers a lot of perks (Where else can you earn 1.80% APY and get so many advantages?), and there’s no doubt the account can be an asset toward reaching your financial goals. But, few things in life are flawless.
There are two things that SoFi Money could improve: Customer support and cash deposits.
Chat support isn’t offered at all and phone support has limited hours. Their customer support is open Monday through Thursday from 4 a.m. to 9 p.m., and Friday through Sunday from 4 a.m. to 5 p.m.
Not having a physical branch makes depositing cash difficult. Some online lenders allow you to deposit cash at Green Dot locations, but this isn’t a current feature of the account. Hopefully, SoFi Money can partner with a company to allow cash deposits in the future.
Still, the account comes with a considerable number of benefits and the small support window might not bother you.
|Earn an excellent 1.80% APY on any balance||No chat support|
|No overdraft fees or service charges||Phone support has limited availability|
|Unlimited ATM fee reimbursements||Cash deposits aren’t accepted|
|Free checks, peer to peer transfers, and online bill pay|
|FDIC-insured up to $1.5 million|
How to Use the SoFi Money Account
- Everyday Spending – The account is a fantastic option for managing your everyday spending. Set up direct deposit to fund your account and enjoy the freedom to pay bills online, buy groceries, and have dinner out.
- Emergency Fund – The big draw of the SoFi Money account is earning an impressive interest rate. That means your emergency fund can earn 1.80% APY without having to move it to a separate account. Plus, you’ll have quick access to your cash when an emergency comes up.
- Save for a Big Expense – Everyday expenses are simple to manage. Buying new tires for your car or paying insurance premiums requires you to set money aside in advance. SoFi Money makes it easy to stash some money a little at a time without stressing over setting up a separate account.
- Travel Fund – Who doesn’t love a good vacation? If you’re saving for a trip, keep your funds together in a single account to make paying for hotels and travel easier without having to transfer money or coordinate multiple accounts.
SoFi Money Review: The Verdict
The SoFi Money account is an excellent alternative to traditional checking and savings accounts. It pays a considerable amount of interest and you earn the same amount no matter what your balance is.
All your cash can sit in one interest-earning account, which eliminates the hassle of moving money back and forth to cash in on the best rates. There’s no minimum deposit to open an account and it takes mere minutes to set it up.
Between earning a good interest rate on your money and having the convenience of a checking account, it’s easy to see how SoFi Money can simplify your personal finances.
Do you have a SoFi Money account? What is your favorite feature?