SoFi Cash Management Account Review – Forbes Advisor

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

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 correct as of November 16, 2021.

Account Basics

SoFi Money

SoFi Money is the cash management account of the fintech company. 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 savings accounts online with higher APYs, but they usually come with transaction limitations. Like a checking account, SoFi Money allows you to spend freely.

Another strong point of SoFi Money is that it keeps fees low. The account does not charge any monthly fees or fees to cover an overdraft. This account offers free overdraft coverage of up to $ 50, provided you make eligible 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 on request

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

• United Bank
• MetaBank
• HSBC Bank United States
• Eaglebank
• East West Bank
• Capital bank TriState Bank
• Wells Fargo Bank, NA

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 perks included with this account. First, account holders can access paycheck funds by direct deposit up to two days in advance, 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, clients looking to save money can create what SoFi calls safes. SoFi also allows you to set up automatic recurring deposits to build up savings. You can also enable rounding on debit card purchases, a feature that automatically rounds your purchases to the next whole dollar and deposits that turn into an assigned safe.

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

Qualified customers who open a SoFi Money account can earn a welcome bonus of $ 100 by making at least $ 1,000 in total eligible direct deposits within a 30 consecutive day window before December 31, 2021.

Other SoFi accounts

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

• Investment and retirement accounts
• Residential mortgages
• Mortgage refinancing
• Personal loans
• Private student loans
• Student loan refinancing
• Credit card
• Small business financing
• Auto loan refinancing

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

Access on the move

Customers can access their Money account online through SoFi’s website or its popular mobile app. The SoFi mobile app is available for iOS (4.8 out of 5 stars on the App Store) and Android (4.3 out of 5 stars on Google Play).

SoFi customers can transfer funds to external accounts or withdraw money from over 55,000 Allpoint ATMs free of charge worldwide. SoFi does not offer reimbursement for third-party ATM fees. You can make cash deposits at participating Green Point retailers. Cash deposits are subject to a usage fee (up to $ 4.95) which is deducted from your deposit by the retailer at the time of the transaction.

Thanks to the mobile application, SoFi customers can:

• Access SoFi Money and investment accounts
• Check deposit
• To transfer money
• Pay other people
• Pay the bills
• Freeze 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 telephone support is available during the same hours of operation by calling 855-456-SOFI (7634).

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

Advantages

• No monthly maintenance fees
• Large network of toll-free ATMs
• Receive pay checks by direct deposit up to two days in advance
• No charge overdraft cover
• Pay interest

The inconvenients

• No physical location
• Fees for cash deposits
• Interest earnings require total monthly deposits of $ 500

How SoFi Stacks Up

SoFi Money offers many features that you would expect from a cash management account, as well as 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 savings accounts online and money market accounts that offer higher rates. Keep in mind 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 banking with a physical financial institution if accessing funds in person is important to you. With SoFi, customers can withdraw money 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 additional savings features make it a good place to keep your emergency fund or funds for other savings purposes.

Frequently Asked Questions (FAQ)