Online banking is the new normal for many people, and SoFi Bank has become one of the popular options. But is SoFi a good bank? That’s the question we’re here to answer. It offers a range of services with a focus on no-fee banking, but it’s not for everyone. Let’s discuss the pros and cons of SoFi and see if it’s the right fit for you.
What Makes SoFi Stand Out?
SoFi, short for Social Finance, has been around since 2011 and started by offering student loan refinancing. Since then, it’s grown into a full-service online bank, offering everything from checking and savings accounts to personal loans, credit cards, and even mortgages. It’s all about providing financial products with as few fees as possible, something that makes it pretty attractive to a lot of customers.
Checking and Savings Accounts
One of the standout features of SoFi Bank is its combination of checking and savings accounts. If you’re tired of dealing with account fees, you’ll be happy to know that SoFi doesn’t charge any monthly maintenance fees, ATM fees, or even overdraft fees. You can start an account with no minimum balance or deposit requirement, which is a huge plus. Plus, if you set up direct deposit, SoFi lets you get paid up to two days early.
What’s even better? SoFi offers an impressive interest rate on its savings account. If you set up direct deposit, you can earn an APY over 4%, which is much higher than the average. For those without direct deposit, you still get a solid rate of 1.20%.
SoFi Credit Card
SoFi’s credit card offering is pretty straightforward. The SoFi Unlimited 2% Cash Back Credit Card gives you 2% cash back on every purchase, with no annual fee. If you use it to book trips through SoFi’s travel portal, you’ll earn 3% cash back. It’s a simple reward structure without a ton of complicated terms, which can be refreshing for those who don’t want to deal with points or rotating categories.
SoFi Invest
For those interested in investing, SoFi offers an easy-to-use platform through SoFi Invest. You can trade stocks and ETFs commission-free, and SoFi even offers up to $1,000 in free stock for new customers who make a qualifying deposit. While the $1,000 bonus might sound tempting, it’s worth noting that the chances of getting the full bonus are pretty slim (just 0.028%). Still, it’s a solid option for beginners who want to dip their toes into investing.
Loans and Mortgages
SoFi also provides personal loans ranging from $5,000 to $100,000, with no fees for origination, prepayment, or late payments. They also offer competitive rates, with the possibility of getting your money on the same day you’re approved.
If you’re looking to buy a home, SoFi offers mortgages with as little as 3% down and flexible terms ranging from 10 to 30 years. For those in the market for a car, SoFi has auto loan refinancing through its Lantern platform, helping you find the best possible deal.
What SoFi Is Lacking
SoFi has a lot going for it, but it’s not without its downsides. Here’s where it might fall short for some people.
No Physical Branches
SoFi is fully online, which works great for digital-first users. But if you prefer walking into a branch to talk to someone face-to-face, this might be a dealbreaker. There’s no physical location to visit, and everything is handled through the app or website.
Cash Deposits Aren’t Easy
Cash deposits can be a pain with SoFi. You’ll need to go through the Green Dot network to add cash to your account, and retailers may charge up to $4.95 per transaction. If you deal with cash often, that’s not convenient or cheap.
Combined Checking and Savings Might Not Be for Everyone
Some people like to keep their checking and savings accounts separate to better manage their money. SoFi combines them into one account, which could feel a little limiting if you’re used to splitting your funds for different purposes.
Limited Small Business Tools
If you’re a freelancer or run a small business, you might find SoFi’s offerings a bit basic. It doesn’t have dedicated small business accounts or tools like invoicing or expense tracking. That makes it less ideal for entrepreneurs who need more than just personal banking features.
Is SoFi Safe?
With SoFi’s banking services being FDIC-insured, you don’t have to worry about your money being at risk. It’s a legitimate, safe option for online banking. However, if you prefer the comfort of a physical branch, SoFi might not be the best choice, as it operates purely online.
Customer Support and Mobile Banking
SoFi is all about convenience, and its mobile app is an extension of that. With a 4.8 rating on the App Store, the app lets you easily manage your accounts, set savings goals, and even round up your purchases to boost savings. It’s got a lot of useful features, and the app is intuitive enough for most users.
If you need help, SoFi’s customer support is available through chat or phone. For general banking questions, support is available seven days a week, with extended hours for specific services like home loans and credit cards. It’s not 24/7, but the customer service is generally well-regarded.
The Verdict – A Great Bank, But Not for Everyone
Honestly, SoFi Bank is pretty great if you’re all about digital banking. I love the no-fee, solid interest rates and how smooth the app runs. It keeps things simple and rewarding. But if you need to deposit cash or talk to a banker face-to-face, it might not fit your needs. For me, it checks a lot of boxes, but I understand it doesn’t work for everyone.