If you’re considering joining an online cash management account, one you may want to consider is SoFi Money offered by SoFi.
What Is SoFi Money?
SoFi Money is a mobile-first cash management account offered by SoFi Securities LLC, a FINRA registered broker dealer. The SoFi Money account is a brokerage account powered by the SoFi app and SoFi Money Debit Card.
With cash accounts, customers’ funds are put into partner banks, where they can benefit from FDIC insurance. SoFi’s account has an above average interest rate and no monthly or overdraft fees. There’s no free ATM network, but SoFi reimburses many third-party ATM fees and doesn’t charge its own.
In total, SoFi has a number of different services they offer, such as Sofi Wealth Management, Student Loan Refinancing, Home Improvement Loans, and more. Be sure to check them out if you’re looking for one of these loan types.
SoFi Money Review
- Get a 0.25% APY with recurring monthly deposits of $500 or higher.
- No monthly fees, no overdraft fees.
- Welcome bonus up to $100 for customers who meet certain criteria.
- Occasional cash back offers.
- Free ATM access via the Allpoint network.
- Great mobile apps that allow you to track spending.
- Includes a debit card that allows customers to make cash withdrawals.
SoFi Money provides a hybrid of checking and savings features with no monthly or other regular fees and no opening minimum balance (subject to change). If you’re looking for loans, here are the credit scores you need for different types of loans.
SoFi Money Benefits
Good Interest Rate – You can earn a 0.25% annual percentage yield with recurring deposits of $500 or more per month (always subject to change). If you don’t meet that requirement, you’d earn 0.01%. Members that opened an account before June 8, 2020 get to earn 0.25% regardless of their deposit activity. If you’re wondering how much that is, it is more than brick-and-mortar banks offer. However, you can find high-yield online savings accounts that have a better rate.
Get Your Paycheck Faster – All you need to do is set up direct deposit to your SoFi Money or Samsung Money by SoFi account. Do note: employers take a few weeks to set up a new direct deposit. Once it’s in your account, you can begin to earn interest on it.
Free ATM access. SoFi is part of the Allpoint ATM network, which provides free access to more than 55,000 ATMs. If you use a third-party ATM, you will not be reimbursed for any fees you incur, unless you opened your account before June 8, 2020, in which case you’ll have all ATM fees reimbursed under SoFi’s previous policy. SoFi also doesn’t charge its own ATM fees (subject to change) or foreign transaction fees.
$100 Welcome Offer – For a limited time, you can earn $100, all you need to do is set up direct deposit and deposit a specific amount of money. The bonus is available to both new customers and existing customers who have not previously had direct deposit.
Federal Insurance Up To $1.5 Million. Since SoFi isn’t a bank, it sweeps funds to one or more of its six partner banks to federally insure your money. Each bank insures up to $250,000.
SoFi Vaults – Vaults help divide cash within a SoFi Money account so that customers can save for different goals. They are not distinct accounts; instead, customers can have up to 20 Vaults within their SoFi Money account.
Automated Savings Roundups. Customers who spend with their SoFi debit card can have their purchases automatically rounded up to the nearest dollar, the difference can be transferred to one of your SoFi Vaults.
Free Physical Checks. Nearly all banks charge you if you need checks, not with SoFi. If you still need the occasional check for rent or other payments, SoFi makes checks available for free. Most online banks don’t offer them.
SoFi Membership – Your SoFi account is a membership. When you start a SoFi Money account, you become a member of SoFi Money business and get that gives you access to exclusive offers that non-members have no access to.
Federal Insurance Up To $1.5 Million. Since SoFi isn’t a bank, it sweeps funds to one or more of its six partner banks to federally insure your money. Each bank insures up to $250,000.
Multiple Ways To Fund Your Account. Customers can deposit checks via mobile, set up direct deposit or transfer funds from an outside account.
No Overdraft Fees. SoFi simply cancels any transaction when you don’t have enough funds to cover it. You can see SoFi’s fees below.
Cash Back Offers. SoFi periodically gives customers the opportunity to earn cashback on different types of spending. (Terms will apply)
SoFi Money Downsides
While SoFi Money has a ton of benefits, there are a few things that it doesn’t have.
No Overdraft Line Of Credit – SoFi does not offer this option, which can be helpful if you occasionally need to go negative to make important payments and are willing to pay the bank back with interest.
SoFi Money Deposit Cash – If you have cash that you want to put in your SoFi Money account, you’ll have to deposit it into a separate bank account first and then transfer it electronically.
SoFi Money Fees
- ATM Fee: In-Network: $0
- ATM Fee: Out-of-Network: $0
- Monthly Fee: $0
- Paper Statement Fee: $0
- Check Cashing Fee: N/A
- NSF Fee: $0
- Foreign Transaction Fee (Debit Card): 0%
- Debit Card Replacement Fee: $0
- Early Account Closure: $0
- Overdraft Item Fee: $0
- Returned Deposit Fee (Domestic): $0
- Overdraft Protection Fee (Per Transfer): $0
- Bank Teller Fee: N/A
- Online Bill Pay Fee: $0
- Stop Payment Fee: $20
- Check Image Service: N/A
- Check Copy: N/A
- Wire Transfer Fee – Domestic (Outgoing): $0
- Wire Transfer Fee – International (Outgoing): $0
- Wire Transfer Fee – International (Incoming): $0
- Returned Deposit Fee (International): $0
- Wire Transfer Fee – Domestic (Incoming): $0
If you want to learn more ways to make better financial decisions, be sure to check this guide out: 6 Ways To Make Good Financial Decisions
Our Final Thoughts
SoFi Money is a great option for anyone that wants online cash management. It has a wide range of great benefits that definitely have value to users. While it doesn’t have direct cash deposits, as long as you have a bank account, you can transfer money.
If you’re depositing $500 or more, the 0.25% APY is a good benefit. With the 0 fees on ATMs, paper statements, overdraft fees, online bill pay fees, and more, we feel this is a very good offer if you’re looking for cash management.
