SoFi Checking and Savings A Deep Dive Review

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SoFi Bank offers a unique combined checking and savings account. You get the benefit of no monthly fees and a high APY, but unlocking the top rate requires setting up a direct deposit. While only 20% of Americans currently use a high-yield savings account, products like this make it easier to earn more.

This SoFi bank review starts with the essential details.

The average annual percentage yield on traditional savings accounts is just 0.40%. A high-yield option can significantly boost your earnings.

This deep dive will explore all the features of SoFi’s checking and savings accounts.

Key Takeaways

• SoFi offers a combined checking and savings account. It has no monthly fees. You can earn high interest rates.
• You must set up direct deposit to get the best interest rates. This applies to both checking and savings accounts.
• SoFi provides tools to help you save. These include ‘Vaults’ for goals and ‘Roundups’ for spare change.
• SoFi is a digital bank. It has no physical branches. You manage your money through an app.
• SoFi is best for people who use direct deposit. It is also good for those who like managing finances online.

Overall SoFi Bank Review: Pros and Cons

This SoFi bank review shows a strong digital bank with compelling features, but it’s important to weigh both sides. Your experience depends on your banking needs and comfort with an online-only format. This bank review will help you understand the full picture.

Key Advantages

SoFi excels by combining many financial services into a single, user-friendly digital banking platform. Customer reviews frequently praise the convenience of managing everything in one place. You gain access to a powerful mobile banking app that simplifies your finances.

Key benefits you can expect include:

• High APY and Minimal Fees: You can earn a competitive interest rate on your savings and checking account balances with direct deposit. The account has no monthly maintenance fees.
• Helpful Savings Tools: Features like Vaults help you organize your savings for specific goals. Roundups automatically save your spare change from purchases.
• Early Paycheck Access: You can receive your direct deposit paycheck up to two days earlier than with many traditional banks.
• Broad ATM Network: You get fee-free access to your cash at over 55,000 Allpoint ATMs nationwide.

Potential Drawbacks

While the benefits are clear, some user reviews highlight significant issues. A common theme in negative reviews involves problems with account access and transaction processing. Some users report that SoFi Bank has restricted their accounts, preventing them from accessing their funds when needed.

One user on a public forum stated, “They have restricted my account with a $1,200 balance. I cannot access my money, I have a mortgage payment that is late.”

Other complaints found in online banking reviews mention delays in receiving mailed checks and errors in processing loan payoffs. As a digital bank, SoFi lacks physical branches, so you cannot resolve complex issues in person. This SoFi review suggests you should be comfortable with digital-only customer support before opening an account.

SoFi High Yield Savings Account Features

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The SoFi high yield savings account comes packed with modern tools designed to help you earn more and save smarter. These account features are what set SoFi apart from many traditional banks. Let’s explore how you can maximize your earnings and organize your savings.

APY and Earning Requirements

SoFi’s main attraction is its competitive annual percentage yield. You can earn up to 4.60% APY on your savings balance, a rate significantly higher than the national average. However, you must meet specific requirements to unlock these high APYs.

To earn the top-tier annual percentage yield, you need to set up a qualifying direct deposit to either your SoFi checking or savings account. There is no minimum deposit amount required to qualify.

So, what counts as a direct deposit?

• A recurring deposit from your employer, payroll provider, or benefits provider.
• Government payments, such as Social Security.
• The deposit must arrive through the Automated Clearing House (ACH) network.

Note: Certain transactions will not qualify you for the highest rate. These include check deposits, transfers from peer-to-peer services like Venmo or PayPal, and ACH transfers you initiate from an external bank account.

If you do not set up a direct deposit, your savings balance will still earn interest, but at a much lower rate of 1.20% APY. This makes setting up direct deposit crucial for anyone wanting to get the most out of their high yield savings.

Savings Tools: Vaults and Roundups

Beyond offering a high APY on savings, SoFi provides powerful tools to help you organize and automate your financial goals. These features are built directly into the SoFi app.

Vaults Think of Vaults as digital envelopes inside your high-yield savings account. You can create multiple Vaults for different goals, like an ‘Emergency Fund,’ ‘New Car,’ or ‘Vacation.’ You can name each Vault and set a target amount and date. This feature allows you to visually track your progress toward each specific goal instead of having all your money in one large pile. You can also set up recurring transfers from your main balance into your Vaults, making it effortless to save consistently. Moving money into or out of a Vault is simple and can be done right from the app.

Roundups Roundups is another feature that helps you save without thinking about it. When you turn on Roundups, every purchase you make with your SoFi debit card gets rounded up to the nearest dollar. SoFi then automatically transfers that spare change from your checking account into your savings. For example, if you buy a coffee for $3.50, SoFi will round it up to $4.00 and move the extra $0.50 into your savings. It’s a simple way to build your high-yield online savings with minimal effort.

These checking and savings accounts work together to provide a seamless digital banking experience.

SoFi Checking Account Benefits

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While the savings account gets a lot of attention, the SoFi checking account has its own powerful set of benefits. These checking account features work with your savings to create a complete financial hub. You get the convenience of a traditional checking account without many of the common fees.

Interest-Bearing Checking and Early Pay

Most traditional checking accounts do not offer interest. SoFi breaks from this norm by letting you earn money on your checking balance. You can earn a 0.50% annual percentage yield on the money in your checking account. You must have a qualifying direct deposit to earn this rate. While the rate is variable and can change, it allows your everyday spending money to work for you.

Another major benefit is early access to your paycheck. With direct deposit set up, you can get paid up to two days earlier than your scheduled payday.

How does it work? SoFi posts the funds to your account as soon as they receive the payment notification from your employer’s bank. Many traditional banks wait until the official payday to make the funds available.

For this feature to work, your payment must be an “Eligible Direct Deposit.” This is a recurring ACH deposit from an employer, payroll provider, or government agency. Keep in mind that a small number of employers may not code their payments as a direct deposit, which could affect your eligibility.

Fees and ATM Network Access

SoFi is well-known for its transparent and minimal fee structure. You will find there are no account fees for many common banking actions. This can save you a significant amount of money over time compared to other banks.

SoFi does not charge the following fees:

• No monthly fees
• No overdraft fees
• No minimum balance fees
• No foreign transaction fees

You also get fee-free access to your cash. SoFi provides surcharge-free withdrawals at over 55,000 Allpoint ATMs worldwide. You can easily find a participating ATM using the locator in the SoFi app. However, if you use an ATM outside of the Allpoint network, SoFi will not reimburse you for any third-party fees you might incur.

Depositing cash is one area where you need to be aware of a limitation. Since SoFi has no physical branches, you cannot deposit cash directly. Instead, you can deposit cash at participating retail locations using your SoFi debit card. While SoFi does not charge for this service, the retailer will likely charge its own fee.

No-Fee Overdraft Protection

SoFi offers two layers of overdraft protection for your checking account, both without charging you a fee.

If you attempt a transaction that would overdraw your account, SoFi will simply decline it. This standard protection ensures you never accidentally spend more than you have and incur a penalty.

For extra flexibility, you can enroll in Overdraft Coverage. This optional protection provides a buffer for small mistakes.

This coverage is a safety net for debit card purchases. If you qualify and enroll, SoFi will cover an overdraft up to $50. You then have a grace period to deposit funds and bring your balance back to positive. These combined account features for the checking and savings accounts provide a robust and modern banking experience.

How SoFi Bank Compares to Alternatives

SoFi offers a compelling package, but it operates in a competitive market. Understanding how it stacks up against other popular digital banks helps you make an informed decision. This sofi bank review will compare its features against two major players: Ally and Chime.

SoFi vs. Ally: A Head-to-Head Review

Ally Bank is one of the most established online banks and a direct competitor to SoFi. Both offer high-yield savings and low-fee checking accounts. However, their approaches to interest rates and savings tools differ slightly.

Ally Bank also has no monthly maintenance fees, but its interest structure is different.

Ally’s Savings account APY applies to all balance tiers, while its Spending account APY varies based on your daily balance. For example, you might earn 0.10% for balances under $15,000 and 0.25% for balances above that.

For savings tools, Ally offers “Buckets,” which function just like SoFi’s “Vaults” for organizing your money. Ally also provides a unique “Surprise Savings” feature that analyzes your linked checking account and moves small, safe-to-save amounts of money for you automatically.

SoFi vs. Chime: Key Differences

Your choice between SoFi and Chime depends on what you need from a bank. Chime focuses on providing simple, fee-free banking essentials. The SoFi bank platform, in contrast, aims to be an all-in-one financial hub.

The biggest difference noted in many online reviews is the scope of services. SoFi provides integrated access to personal loans, student loan refinancing, home loans, and investing services directly within its app. Chime does not offer any loan or investment products. While both offer a great checking account with no monthly fees, Chime’s value is in its simplicity and slightly larger ATM network.

This chart from our sofi bank review highlights some key distinctions:

Ultimately, if you just need a straightforward account for spending and saving, Chime is a strong contender. If you want a single platform to manage your entire financial life, SoFi’s broader ecosystem is more powerful.

Who Is This Account Best For?

SoFi provides a modern banking solution, but it is not the perfect fit for everyone. Your personal banking habits and financial goals will determine if SoFi is the right choice for you. This section helps you understand who benefits most from the platform and who might need to look elsewhere.

Ideal SoFi Customers

You are the ideal SoFi customer if you are comfortable managing your money entirely through a mobile app. The platform is built for users who want a single, streamlined hub for their finances.

SoFi is “designed for tech-savvy users who want convenience, strong rewards, and no hidden fees.” The app itself is polished and intuitive and genuinely makes managing money easier.

You will likely find SoFi to be a great fit if you:

• Want an all-in-one app. You can manage your checking account, savings, investments, and credit score all in one place. SoFi offers a wide range of financial services.
• Can use direct deposit. Setting up direct deposit is the key to unlocking the highest interest rates on both your checking and savings balances.
• Value automated savings tools. Features like Vaults for goal-setting and Roundups for saving spare change help you build your savings effortlessly.
• Hate bank fees. You want to avoid monthly maintenance fees, overdraft fees, and minimum balance requirements.

Who Should Consider Other Options

SoFi’s digital-first model has some limitations. You should probably consider other banking options if you fall into one of these categories.

First, if you frequently handle cash, SoFi may not be convenient. You cannot deposit cash at an ATM or a branch. You must use a retail location, which often charges a fee for the service.

Second, you may prefer a traditional bank if you value in-person customer service. SoFi does not have physical branches. You must resolve any account issues over the phone or through the app.

Finally, if you cannot set up a direct deposit, you will miss out on SoFi’s main benefits. The interest rates without direct deposit are much lower and are not competitive with other high-yield accounts.

SoFi’s combined checking and savings account is an excellent choice for you. You can unlock a top annual percentage yield and a full suite of tools. The key is setting up direct deposit. The platform’s core value is its integrated online banking experience. You manage all your financial services within a single, powerful app.

Your decision depends on your banking habits. You will get the most from this high yield savings and checking account if you use direct deposit and prefer a branchless bank.

This structure makes SoFi’s checking and savings accounts a modern solution. You can build a strong high-yield online savings with this checking account.

FAQ

How do you deposit cash into a SoFi account?

You cannot deposit cash at an ATM. Instead, you can deposit cash at participating retail locations like Walmart or CVS using your SoFi debit card. The retailer will likely charge you a fee for this service, though SoFi does not charge a fee itself.

Is SoFi a real and safe bank?

Yes, SoFi Bank is a legitimate bank. Your deposits are FDIC-insured up to $250,000 per depositor. This provides the same level of protection for your money that you would receive at a traditional bank.

What happens if you stop your direct deposit?

Your interest rates will decrease if you no longer have a qualifying direct deposit. Your savings APY will drop to the standard rate of 1.20%, and your checking account will no longer earn interest. You will still have no monthly account fees.

Can you use Zelle with SoFi?

SoFi does not have Zelle integrated directly into its app. However, you can still use the service. You can download the Zelle mobile app and enroll your SoFi debit card to send and receive money.