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SoFi Review 2024: Different Accounts Uncovered
Swen Keller
- URL: https://www.sofi.com/
- Year Founded: 2011
- Headquarters: San Francisco, USA
- Monthly/Yearly fees: N/A
- Account types: SoFi checking and savings account
- Physical Card: Yes
- Platform App: Mobile, Web
- No. of Cryptocurrencies: 22
- Fiat Available: USD
- Deposit Methods: Linked personal checking account, linked savings account, Rollover, check, credit card, debit card, cash deposit, direct deposit, ACH transfer, Wire transfer, linked SoFi Money account, initiating an account transfer (ATAT)
SoFi Review: Our Opinion
SoFi stands out for its fee-free banking services and ease of setup. However, its cryptocurrency services are quite restrictive. The Neobank doesn’t allow you to send or withdraw purchased coins to external wallets and it also charges a high markup for crypto transactions.
Also, it doesn’t offer cashback rewards on the SoFi debit card unless you tag the payment as a credit.
In general, SoFi is easy to use and is best for personal loans and refinancing.
What is SoFi?
SoFi is a US-based personal finance and neobank (online bank) that provides financial products such as the SoFi bank debit card, checking and savings account, cryptocurrencies, personal loans, refinancing, etc. via its mobile app and web interface.
A Bit Of SoFi History
SoFi, short for Social Finance Inc., was founded in 2011 and is headquartered in San Francisco, California, the United States.
The company was co-founded by Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady, 4 students who met at Stanford University.
However, the present CEO of SoFi is Anthony Noto, the former Chief Operating Officer of Twitter (now X). He has also worked at Goldman Sachs.
Currently, SoFi hosts over 6 million active users and has more than 73 billion in personal loans with $34+ billion in debt paid off by members of the platform. It has also paid 35+ million in rewards to users.
SoFi offers FDIC-insured checking accounts and savings accounts (up to $250,000) and SIPC-protected investments (up to $500,000).
Other services include personal loans, mortgage loans, private student loans, credit score and insights, SoFi Invest, banking with up to 4.5% APY on savings for direct deposits, and student loan refinancing.
Pros
- Easy to use
- Fee-free banking
- Supports several deposit methods
- Supports cryptocurrency investment
- High APY on direct deposits
Cons
- Does not support the withdrawal of coins to external wallets
- High markup fees for crypto transactions
- Does not offer CDs or a Money Market account
SoFi Review: Unique Features
SoFi Checking and Savings Account
The Checking and Savings account offers a combination of both Checking and Savings accounts.
It gives users the convenience of an online checking account and a savings account with no monthly fees.
The Checking account offers a $250 welcome bonus to new users and fee-free ATM withdrawals while the savings account offers a competitive rewards rate on your earnings.
SoFi offers a high interest rate which is more than 10 times the national average for a checking account.
With the Savings accounts, users can earn up to 4.50% APY with direct deposit or by depositing $5,000 every 30 days. There is no minimum direct deposit required to get 4.50% APY.
A direct deposit is an automated way of transferring money to your account. With direct deposits, you do not need to write a check to deposit cash into your account. Direct deposits are instantly made available. Direct deposits on Sofi are convenient, time-saving, and environmentally friendly.
The direct deposit method is also secure. With an automatic direct deposit, you do not need to keep track of a paper check or move around with cash.
Members without direct deposit earn 1.20% APY.
SoFi Checking and Savings accounts are available to US citizens, 18 years or older with a Social Security Number and a physical US address.
To open a Checking and Savings account, you need to provide the following; Your Name, Date of Birth, Home Address, Social Security Number, Citizenship Status, Phone Number, and Email address.
You may also be required to provide additional documentation like your current Photo ID or driver’s license.
There is no minimum balance requirement for SoFi Checking and Savings accounts.
There are also no account fees and service charges.
SoFi does not charge any fees for account opening, overdraft, regular maintenance, or dormant accounts. It also offers fee-free ATM withdrawals at over 55,000 Allpoint ATMs.
When you sign up for the Checking and Savings account, you receive access to SoFi membership.
SoFi membership gives you access to several benefits including invitations to member events, discounts on SoFi products, access to the new SoFi stadium, the SoFi reward points program, and free access to a certified financial planner and career coaches.
When you sign up for SoFi Checking and Savings, you get both a checking account and a savings account. You cannot sign up for just a Checking or just a savings account.
SoFi Checking and Savings account offers several features including the following:
- No-fee overdraft coverage and 2-day early paycheck for direct deposit members
- Goal-based savings through SoFi Vaults
- Easy and free P2P payments
- Access to SoFi member benefits
- Automated bill pay
- Up to 4.50% APY on balance with direct deposit (no minimum direct deposit required)
- FDIC insurance of $250,000 per account and $500,000 for joint accounts.
The SoFi Checking and Savings account has a bill pay feature that allows you to pay bills directly from your SoFi account. This feature is available at no cost. It allows you to pay utility bills, credit cards, SoFi loans, etc.
Aside from direct deposit, you can deposit checks electronically into your SoFi Checking and Savings account. Checks take about 1-2 business days to appear on your account. How soon the funds will be available for use is dependent on the size of the check, but it usually takes about 1-4 business days.
Qualifying direct deposits include payroll deposits made via the Automated Clearing House (ACH) network, pension payments, government benefits payments, and Social Security payments.
Aside from the early paycheck, direct deposit members enjoy the following benefits
- SoFi’s highest interest rate
- Discounts on personal loans
- No fee overdraft coverage
- Preferred access to IPOs
Once your direct deposit is in place, SoFi will make the funds available as soon as payment is received from your employer.
Since most employers take a few weeks to set up a new direct deposit, you should set up your direct deposit with your employer before payday to prevent delays in receiving your funds. With Sofi Bank direct deposit, you can get paycheck access up to two days early.
How to Buy Crypto with SoFi?
To buy cryptocurrency with SoFi, log into your SoFi account.
Tap on the SoFi Invest tab.
On the page that opens use the Search Bar to find your preferred cryptocurrency and tap on it.
The page of the particular cryptocurrency will open up.
Tap on the Buy button.
That’s it! But before you can buy crypto you need to open a SoFi Active Investing Account and then fund your account via direct deposit.
The funded amount won’t be instantly available so SoFi will make up to $600 show up immediately till your funds arrive.
If you have a SoFi Checking and Savings account you can have up to $50,000 show up instantly.
It’s important to note that you cannot send cryptocurrency out of SoFi after you buy it. You can only sell it for USD and then withdraw it to your bank account.
How is Crypto Stored?
SoFi offers a custodial crypto wallet to store your cryptocurrencies. However, this isn’t like a regular hot wallet where you’re free to make transactions. You can only buy and hold purchased coins, SoFi doesn’t allow you to send your crypto assets to an external wallet.
Cryptocurrencies Available on SoFi
SoFi supports 22 cryptocurrencies. Supported cryptocurrencies include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Bancor, Basic Attention Token, Avalanche, Compound, Dogecoin, Chainlink, Ethereum Classic, Polkadot, Enjin Coin, Tezos, Uniswap, Maker, SushiSwap, etc.
SoFi Review: Fees
Opening a SoFi checking and savings account will cost you zero in fees. There are no account minimum fees and overdraft fees.
SoFi bank debit card ATM withdrawals are also fee-free as long as you use the supported 50,000+ Allpoint ATMs worldwide.
Fee-free Services
First Replacement Card: $0
Additional Replacement Card: $0
Replacement Card Rush Delivery: $0
Stop Payment: $0
Statement & Research – Legal Processing: 0$
There are also no Return Items fees, no dormant account fees, and no inactive account fees. In addition, P2P transfers, Point of Sales transactions (domestic and international), bill pay, and mobile deposit capture are all fee-free.
Cryptocurrency Fees
SoFi charges a 1.25% markup in fees rounded to the nearest penny for each cryptocurrency transaction.
So on a purchase, the SoFi markup is added to the market price of a coin from the exchange, and SoFi sends a market order.
For instance, suppose the market price of Polkadot (DOT) is $100 and you buy $100 worth of DOT, SoFi would markup the DOT price to $101.25, and you would get less than 1 full DOT due to the markup.
Security: Is SoFi Safe?
The SoFi online bank is an FDIC-insured bank. Brokerage products and SoFi Checking and Savings are offered via SoFi Securities LLC, member FINRA/SIPC.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC.
SoFi maintains industry-standard administrative, technical, and physical safeguards to protect users’ information.
SoFi’s system and security controls are reviewed by third parties against SSAE 18, SOC2, and PCI DSS security standards.
The platform also conducts annual rigorous third-party penetration testing.
Users’ accounts and crypto holdings are protected against theft using several security measures including SSL encryption, two-factor authentication, and biometric login.
SoFi also partners with trusted crypto exchanges like Coinbase to complete crypto transactions.
Staking Rewards and Cashbacks
SoFi does not offer staking rewards, however, it has a cashback rewards program for SoFi credit card users.
To participate in the program, users will need to apply for the SoFi credit card and then shop at supported merchants for 2% cashback on all purchases without caps or limits.
The credit card comes without any monthly or yearly fees, but be aware that your credit score might be impacted when you apply for it.
SoFi also offers a 3% unlimited cashback reward when you use your SoFi credit card to book trips through the SoFi Travel program powered by Expedia.
Note that you can also participate in the rewards program using your SoFi bank debit card, but you must swipe your card and run as credit. Making a debit payment won’t give cashback rewards.
Supported Countries
SoFi bank and its products are primarily for US Citizens, permanent residents, and non-permanent resident aliens.
SoFi's Licences
SoFi Securities LLC is licensed by the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.
SoFi Wealth LLC is registered with the Securities Exchange Commission as an Investment adviser.
Opening a SoFi Checking and Savings Account
To open a SoFi checking and savings account go to https://www.sofi.com.
Next, tap on the Get Started button at the upper right corner of the screen.
Enter your first and last name, residential address, and email address, and select a password.
Check the box below if you have read and agree with SoFi’s ESIGN Act Consent, GLBA Privacy Notice, Terms of Use, and Arbitration Agreement.
To proceed with the account opening process, tap on the Complete application button at the center of your dashboard.
Tap on whether you want to open an Individual account or a Joint account depending on your preference.
Input your permanent address which includes street name, apartment number, city, state, and zip code.
Enter your date of birth and Social Security Number.
The next steps include inputting financial information like your employment status, annual income, etc.
After this, you’ll need to enter your phone number and tap on Send Text.
Enter the verification code to verify your account.
Read the Legal Disclaimer, check the box, and click submit to finish the application.
SoFi will review your application and approve it if acceptable to them.
That’s it! You’ve opened a SoFi checking and savings account.
SoFi Physical Cards
SoFi Credit Card
The SoFi Credit card lets you earn 2% unlimited cashback rewards with no annual fee.
Cashback rewards are redeemable into stock investments, cash, or statement credit.
With the SoFi credit card, you can also earn up to a $250 cash bonus when you open a Checking and Savings account and set up direct deposit. With direct deposit, you can access your paycheck up to two days early.
SoFi uses the daily balance method to calculate the balances on which interests are charged.
Since several factors determine the APR rate on your SoFi Credit card, there is no way to lower the APR rate on your card.
There is a daily limit of $1,000 on ATM withdrawals as well as a minimum cash advance amount of $40.
SoFi also charges a cash advance fee of the greater of $10 or 5% per transaction.
SoFi does not charge a foreign transaction fee for the card. There are also no monthly maintenance fees.
You can add your SoFi Credit card to Google Pay, Samsung Pay, and Apple Pay through the mobile application.
You can use the credit card to pay phone bills, utility bills, etc.
SoFi Debit Mastercard Card
The SoFi Bank debit Mastercard is issued by SoFi Bank and can be used anywhere Mastercard is accepted worldwide.
The card is compatible with Apple Pay and Samsung Wallet.
The SoFi debit Mastercard card gives you access to several benefits including Mastercard Airport Concierge at over 450 destinations, additional SoFi member experiences, and an extended warranty.
Cardholders also enjoy enhanced security with credit monitoring alerts for suspicious activity, purchase assurance, and extended warranty.
All SoFi bank debit card purchases or ATM withdrawals made in a foreign currency are converted to USD by Mastercard using the current exchange rate at the time of settlement.
There is a 0.2% foreign conversion fee as well as a 0.9% convenience fee.
SoFi offers fee-free ATM withdrawals at over 55,000 ATMs within the Allpoint network.
There is a daily ATM withdrawal limit of $1,000.
SoFi Mobile App
The SoFi app allows you to pay bills, send money, deposit cash into your account, find ATMs, and do so much more on the go.
The mobile app gives you access to all the features of a big bank without account fees.
You can invest in popular financial products like IPOs, ETFs, and stocks with zero commissions.
You also get up to $1,000 of stock when you fund your SoFi Invest account.
With the mobile app, you can automate your investing with no management fees. You can access SoFi IRAs and other retirement products as well as SoFi Plus
With SoFi Plus, direct deposit users can save more and earn more rewards.
The SoFi mobile app has a user-friendly interface that is suitable for both beginners and advanced traders.
SoFi does not charge any fees to download or access SoFi mobile apps.
The mobile app has several security features including PIN, Touch ID, and Fingerprint Sign In.
SoFi Deposit and Withdrawal Methods
You can deposit funds to your SoFi Checking account and Savings account using the following methods: Linked personal checking account, linked savings account, rollover, check, credit card, debit card, cash deposit, direct deposit, ACH transfer, Wire transfer, linked SoFi Money account, initiating an account transfer (ATAT).
SoFi supports ACH deposits and ATM withdrawals using your SoFi debit card for withdrawals.
Customer Service
SoFi offers customer support via its virtual assistant chat and phone.
Virtual assistant support is available 24/7 while real-human support is available:
- Mon-Thu 5:00 AM – 7:00 PM PT
- Fri-Sun 5:00 AM – 5:00 PM PT
SoFi also has a Help Center and FAQ page with lots of detailed answers to commonly asked questions.
SoFi Compared with its Main 2 Competitors
SoFi’s 2 main competitors are Lightstream and Upstart.
In comparison to SoFi Lightstream offers lower fees on loans from $5,000 to $100,000. It is also a lot faster than SoFi in approving loan applications. That said, it doesn’t offer crypto trading like SoFi.
Upstart is another alternative to SoFi, which is a good choice for borrowers with a fair credit score due to a short credit history. However, unlike SoFi the platform charges up to 8% origination fee on your loan amount. But it is a great choice for building your credit.
What is a NeoBank?
A neobank is a type of direct bank that operates strictly online without the conventional physical branch networks that challenge traditional banks.
How to Choose the Right NeoBank for Your Needs?
To choose the right neobank consider the following:
- Personal loan plans
- Debit or credit card availability
- Ease of use
- Cashback rewards available
- Cryptocurrencies supported
- Deposit and withdrawal methods supported
- Is SPIC and FDIC insurance available and to what account
Conclusion
SoFi Invest offers a personal loan and a Checking and Savings account service at no extra cost. It outshines its competitors for its low fees and high cashback rewards.
However, its crypto services are quite limited and attract high fees.
For those crypto enthusiast feeling limited or constrained by SoFi’ offerings, our thorough Juno Finance evaluation might present a refreshing alternative, showcasing a NeoBank that addresses common concerns and offers enhanced crypto services.
FAQ
Most frequent questions and answers
SoFi does not support external crypto transfers, which means you can’t send purchase assets out of the platform. It also doesn’t offer cashback rewards on debit purchases.
Yes, SoFi offers a Neobank and real bank that provides banking services such as a checking account, saving accounts, debit cards, etc.
You can keep your money in SoFi as it supports FDIC insurance deposits and SPIC of up to $250,000 and $500,000 respectively through the SoFi Insured Deposit Program.
SoFi has a couple of partner banks including SoFi Bank, National Association, EagleBank – Bethesda, MD, East West Bank – Pasadena, CA, Hills Bank, and Trust Company – Hills, IA, MetaBank – Sioux Falls, SD, TriState Capital Bank – Pittsburgh, PA, and Wells Fargo Bank, N.A. – San Francisco, CA.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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