SoFi Cash Management Account Review – Forbes Advisor

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Social Finance, Inc., better known as SoFi, is a fintech company that got its start in refinancing student loans. Launched in 2011 by Stanford Business School students, SoFi has since expanded to offer several financial products and services, including SoFi Money, a cash management account that offers similar functionality to checking and checking accounts. ‘saving.

This review provides an overview of SoFi Money, its features, and how it compares to other cash management accounts. Account details and annual percentage returns (APY) are accurate as of February 3, 2022.

Account Basics

SoFi Silver

SoFi Money is the fintech cash management account. This interest-bearing cash account combines the interest income of a high-yield savings account with the day-to-day capabilities of a checking account. SoFi Money accounts earn 0.25% APY on all balances as long as your monthly deposits total at least $500. You can find online savings accounts with higher APYs, but they usually come with transaction limitations. Like a checking account, SoFi Money lets you spend freely.

As of February 2, 2022, new SoFi Money accounts pay 1.00% APY on balances up to $50,000 for account holders with eligible direct deposits each month. For balances over $50,000, the account pays 0.05% APY. This is in anticipation of the upcoming SoFi Checking & Savings account, the launch date of which has not been publicly announced. Account holders without direct deposit earn 0.25% APY on all balances.

Another strong point of SoFi Money is that it keeps fees low. The account charges no monthly fees and no fees to cover an overdraft. This account offers free overdraft coverage up to $50, as long as you make qualifying direct deposits of $1,000 per month. There is no minimum balance requirement attached to SoFi Money. Accounts come with a free debit card and free paper checks upon request

Like most cash management accounts, SoFi Money protects customer deposits beyond standard FDIC coverage through the use of a deposit scanning program. Funds held in SoFi Money accounts are eligible for FDIC insurance of up to $1.5 million ($250,000 per partner bank) through the following partner banks:

  • united bank
  • MetaBank
  • HSBC Bank USA
  • EagleBank
  • Eastern West Bank
  • TriState Bank Capital Bank
  • Wells Fargo Bank, North America

Note that you are responsible for tracking your total assets at each partner bank to determine your available FDIC coverage, as is the case with many cash management accounts.

Many features of SoFi Money are similar to other cash management accounts, but you will find additional benefits included with this account. First, account holders can access paycheck funds through direct deposit up to two days earlier, depending on your employer and payroll service provider. Customers can also earn up to 15% cash back from select brands and retailers when they use their SoFi debit card to pay.

To separate savings goals from other funds, customers looking to save money can create what SoFi calls Vaults. SoFi also lets you set up recurring automatic deposits to build up savings. You can also enable rounding on debit card purchases, a feature that automatically rounds your purchases up to the next whole dollar, and deposits that change into an assigned safe.

SoFi Money is available as an individual account or a joint account.

Qualified customers who open a SoFi Money account can earn a $100 welcome bonus by making $1,000 or more in total qualifying direct deposits within a 30-day window by February 28, 2022.

Other SoFi Accounts

In addition to its SoFi Money cash management account, SoFi offers several other products and services, including:

  • Investment and retirement accounts
  • Housing mortgages
  • Mortgage refinancing
  • Personal loans
  • Private student loans
  • Student Loan Refinance
  • Credit card
  • Small Business Financing
  • Auto Loan Refinance

Read our in-depth review of SoFi Automated Investing for more details on investment and retirement accounts through the robo-advisor.

Access on the go

Customers can access their Money account online through SoFi’s website or its popular mobile app. SoFi’s mobile app is available for iOS (4.8 out of 5 stars on the App Store) and Android (4.4 out of 5 stars on Google Play).

SoFi customers can transfer funds to external accounts or withdraw cash at over 55,000 Allpoint ATMs at no additional cost worldwide. SoFi does not offer refunds for third-party ATM fees. You can make cash deposits at participating Green Dot retailers. Cash deposits are subject to usage fees (up to $4.95) which are deducted from your deposit by the retailer at the time of the transaction.

Through the mobile app, SoFi customers can:

  • Access SoFi Money and investment accounts
  • Deposit checks
  • To transfer money
  • Pay other people
  • Pay the bills
  • Block SoFi Debit Card
  • Track finances
  • Create a budget
  • Check your credit score

Money account customers can also receive support via live chat. Hours of operation are Monday through Thursday, 5 a.m. to 7 p.m. PT, and Friday through Sunday, 5 a.m. to 5 p.m. PT. Live phone support is available during the same business hours by calling 855-456-SOFI (7634).

You can also receive support via Twitter by sending a direct message to @SoFiSupport.

Benefits

  • No monthly maintenance fees
  • Large network of ATMs at no extra charge
  • Receive paychecks by direct deposit up to two days in advance
  • Free overdraft cover
  • Pay interest

The inconvenients

  • No physical location
  • Fees for cash deposits
  • Higher interest rate requires qualifying monthly direct deposits

How SoFi stacks up

SoFi Money offers many of the features you’d expect from a cash management account, along with several additional benefits. With low fees and no minimum balance requirements, it’s easy to see why some may find this account appealing. But while its APY is relatively competitive compared to other cash management accounts, you can find online savings accounts and money market accounts that offer higher rates. Remember that you will need to make at least $500 in total deposits each month to earn interest on the account.

SoFi does not have a physical location for in-person service, a relatively common feature among cash management account providers. Consider doing business with a physical financial institution if accessing funds in person is important to you. With SoFi, customers can withdraw cash anytime and almost anywhere, thanks to a partnership with the Allpoint ATM network.

Overall, SoFi Money is a solid account for day-to-day banking needs. Its extra savings features make it a good place to keep your emergency fund or funds for other savings goals.

Frequently Asked Questions (FAQ)

Funds deposited in SoFi Money accounts are FDIC-insured up to a maximum of $1.5 million (up to $250,000 per partner bank, including any existing deposits with those banks) through a cash sweep program. deposits.

What is a SoFi Money account?

SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC. It offers similar functionality to checking accounts and savings accounts. The account has no minimum balance requirements, no monthly fees, and earns interest on all balances for customers who meet the monthly requirements.

How to open a SoFi Money account?

You can open a SoFi Money account online or through the SoFi mobile app. You will be asked to provide some basic personal information to verify your identity during the application process. Once approved, you should receive your SoFi debit card in the mail within five to seven business days.

How much does a SoFi account cost?

There are no monthly management fees for a SoFi Money account and there are few other fees. There are no overdraft fees or minimum balance fees.

Which bank(s) does SoFi partner with?

Bancorp Bank issues the free SoFi Money World Debit Mastercard which comes with all SoFi Money accounts. SoFi partners with one or more program banks through a swipe program to provide FDIC insurance on account balances up to $1.5 million.


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