A checking account helps you cover everyday expenses. These are basic accounts that tend to have low-interest rates, especially when you compare them to savings accounts. However, a SoFi checking account has a respectable 0.50% APY, which is seven times the national checking rate.
SoFi has no account fees or balance minimums. Consumers who open accounts also get to capitalize on everything that SoFi has to cover. This SoFi checking account review will cover the account’s features, perks, and other key details that can guide your decision.
Is SoFi a Good Choice for Banking?
SoFi is a premier online bank with over six million members. The bank has several features for its members, such as free financial planning, lower rates on loans, and personalized career guidance. The bank continues to innovate and offers creative benefits, such as a special lounge in SoFi Stadium for its members.
SoFi checking accounts give you access to these perks and others. It’s important to look at the entire banking experience instead of only looking at the checking account.
Introduction to SoFi Checking Account
SoFi Checking Accounts give consumers high APY relative to other checking accounts. These accounts do not have account maintenance fees or minimum initial deposits to get started. Many banks make their checking accounts expensive with monthly maintenance fees and other expenses.
Many consumers incur overdraft fees, and these can get expensive. Some banks charge overdraft fees the moment you overdraw your balance, but SoFi is more generous. The fintech company has overdraft protection of up to $50, which provides some wiggle room to overdraw your account.
SoFi Checking Account Features
SoFi checking accounts come with several features that help them stand out from other financial institutions. These are some of the advantages you can expect.
APY Rates and Interest
SoFi has great interest rates for its checking account. Consumers can get a 0.50% APY on their cash and earn a risk-free return. The interest rates for SoFi’s savings accounts are even better. The rates for those accounts are currently 4.505 APY.
A high-interest rate is a big deal for checking and savings accounts. Higher interest rates allow you to earn more money without putting in any additional work. You can get more mileage out of assets like stocks and real estate, but those investments have risks. Those risks aren’t present for interest accruing bank accounts.
It’s better to keep money for long-term goals in a savings account. The rates are higher, which allows you to earn more on your money. However, you need some of your money for everyday expenses. It’s better to achieve a respectable 0.50% APY than the 0.07% APY you will find with most checking accounts offered by financial institutions.
Account Fees
SoFi does not have account fees for its checking accounts. You may incur an overdraft fee, but SoFi has overdraft protection of up to $50 to minimize the likelihood of that scenario. Fewer fees make the entire banking experience more affordable and allow you to achieve compound growth through a checking account.
Minimum Account Balance
SoFi does not have a minimum balance requirement. You don’t have to worry about any monthly maintenance fees or making a minimum deposit. You can start an account with any amount of money. Other banks use minimum account balances as barriers to entry that can make the path to a high-yield checking or savings account more difficult to attain.
ATMs Access
SoFi gives its members access to over 55,000 in-network ATMs through its partnerships with Allpoint. These ATMs are located in various public spaces and big-name stores. Walgreens, Target, and CVS are some of the places you can go to find in-network ATMs. SoFi has a reimbursement program for members who have to use out-of-network ATMs to deposit and withdraw cash.
Mobile Banking
Mobile banking allows you to monitor your bank accounts from anywhere in the world. You can transfer money, pay bills, and check on your progress toward financial goals. SoFi has a mobile app and website that make it easier to access your information.
Mobile banking is a standard feature for every bank. SoFi has a good user experience that makes it easy for you to find the accounts and resources you want to access.
Direct Deposit
Direct deposit allows you to receive funds from employers straight to your bank account. If you recently opened a new SoFi bank account, you can set up a direct deposit and receive a bonus that can go as high as $250.
Get Paid Early
With a SoFi checking account, you can get paid up to two days early. Receiving funds sooner can help you cover emergency expenses and other costs without having to rely on personal loans, home equity, and other sources of financing.
Instant Money Transfer
SoFi allows you to easily send money to family, friends, and colleagues. The funds arrive right away, and SoFi does not charge any transfer fees.
Round Ups
Round Ups are a useful feature that allows you to build up your savings with every purchase. This feature lets you round every purchase to the nearest dollar. Then, the remaining cents go into your savings account, which has a higher APY. For instance, if you make a $24.95 purchase, five cents will go into your savings account.
A few cents here and there won’t change your finances, but it can help you get into the habit of saving money. Seeing your savings account grow gradually and accumulate at 4.20% APY can inspire you to contribute more money each month.
Round Ups can get you started, but high contributions to your savings account and investment portfolio each month can make a big difference. Investing can lead to a smooth retirement and put big-ticket purchases within reach. SoFi makes it easy to invest in various assets through its brokerage accounts. You don’t have to open up many accounts and can keep an eye on all of your finances from one dashboard.
Overdrive Protection
Overdraft fees can get expensive and often range from $30-$35. According to the Consumer Financial Protection Bureau, the average consumer’s annual overdraft fees exceed $250. Those fees hut people’s ability to cover emergency expenses and other costs. It’s important for consumers to keep their accounts positive, but the response to a negative balance varies for each bank.
While some banks greedily charge consumers the moment their bank accounts turn negative, SoFi gives its members some breathing room. With a SoFi checking account, you get to enjoy $50 in overdraft protection.
What Do You Need to Open a SoFi Checking Account?
You will have to provide some basic details, such as your legal name, state, ID, Social Security number, and birthdate. Consumers will also have to create accounts by entering their usernames and passwords. The company will also request your address and phone number during this process. These requirements fall in line with other financial institutions.
The Benefits of SoFi Checking Account
A SoFi checking account offers several advantages that are difficult to find in competing banks. These are some of the perks you can expect with a SoFi checking account.
- High APY: Get 0.50% APY on the money you store in your checking account. This interest rate is seven times higher than the national average.
- No account fees: You don’t have to worry about account maintenance fees or minimum balance requirements. SoFi does a good job of keeping fees away from its members.
- Overdraft protection: A SoFi checking account comes with $50 in overdraft protection. This safeguard gives you more room to cover expenses before incurring fees. Many banks do not offer this same amount of flexibility.
- Financial planning: SoFi members get to enjoy free financial planning consultations. These calls can give them a better understanding of their finances and how to achieve their long-term goals.
- Access to loans: SoFi offers personal loans, student loans, mortgages, and other financial products. Opening a checking account with SoFi gives you access to those resources if you need them.
- Get paid early: You can receive your paycheck up to two days early with a SoFi checking account.
- Automatic savings features: You can use Round Ups to turn every purchase into an opportunity to build your savings. Money gets transferred from your checking account to a savings account, where the interest rate is much higher.
How is a SoFi Checking Account Different?
A SoFi checking account is different from the competition because of its low fees and high APY. The bank has many features that help it compete with traditional banks and is rapidly growing. Over six million members use SoFi for their banking experience.
The company also has a vast array of 55,000 in-network ATMs that allow you to avoid fees each time you use them. This large ATM network means there is likely an ATM in your area. Even when you are traveling, you can likely find an ATM that is a part of the network. Not every bank can provide this amount of coverage with traditional branches.
Is a SoFi Checking Account Right for You?
SoFi has attractive interest rates and benefits for members. The company’s growth is a testament to many people enjoying the bank’s services and telling their friends. SoFi is a great bank if you want all of your finances under one umbrella. You can invest in stocks, pay off your loans, put money into your checking account, and check your insurance policies from a single dashboard. The company has additional products and services as well.
People who are on the fence about a SoFi checking account should keep in mind that the fintech company does not have any physical branches. If you enjoy driving to the bank after work, delivering your check, and speaking with a representative in person, SoFi may not be the right bank for you.
However, some people prefer the convenience of saving time instead of stepping foot into a physical bank, waiting in a long line, and speaking with customer service. SoFi has an online customer support team that can answer your questions, and the company’s features, like mobile check deposits, help with making the switch.
If you are okay with using a bank without physical branches, SoFi may be the right bank for you. It’s also possible to use a SoFi Checking Account along with a traditional bank. Some people create bank accounts for high-yielding online accounts and use those accounts as their savings accounts. Then, they use their traditional bank accounts for other financial activities. It is possible to create multiple bank accounts at multiple financial institutions based on your preferences.
How to Open a SoFi Checking Account
You can open a SoFi checking account by visiting the website and entering some of your personal details. SoFi will ask for your name, address, email, phone number, and other details. A SoFi Checking account is free to open and does not come with a minimum initial deposit requirement.
Other SoFi Banking Products
SoFi has several banking products that can help you achieve your financial goals. These are some of the resources you can use.
- SoFi High Yield Savings Account: Get 4.20% APY on the money you store in your account and make unlimited withdrawals each month.
- Student Loans: Get help with obtaining a student loan or refinancing your current student loan. SoFi has competitive rates for its student loans.
- Mortgage Loans: Get the financing you need to buy the house of your dreams. You can also refinance your current mortgage.
- Insurance: Browse through insurance policies on SoFi and discover which policy has the coverage you seek.
- Investing: Grow your portfolio with stocks, ETFs, bonds, and other assets. SoFi makes it easy to invest across several asset classes.
