SoFi Savings Review– Fee-Free Savings Account
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Fast Facts
APY:
Up to 4.60%
Fees:
None
ATM access:
Over 55,000 fee-free ATMs
Signup Bonus:
$50 to $300
FDIC Insurance:
Up to $250,000 per member
With stubborn inflation in the US, finding effective ways to preserve and grow your hard-earned money is more critical than ever. As prices for goods and services increase, the purchasing power of your money can erode if it's not actively earning interest. One of the best strategies to combat this devaluation is by placing your funds in a high-yield savings account.
SoFi Savings stands out in this regard, offering competitive rates that significantly outpace the national average, helping to ensure that your money grows rather than loses value over time. In this SoFi Savings review, we'll dive into its features and benefits, exploring how it can be a valuable tool in your financial arsenal amidst the current inflationary pressures.
Jump To
What is SoFi?
Before we give you the lowdown on what SoFi Savings is, it would be prudent to apprise you of SoFi, the parent company.
SoFi is a personal finance company that has become a one-stop shop for many of your financial needs. Initially, SoFi made its mark by offering student loan refinancing, providing borrowers the opportunity to consolidate their student loans at lower interest rates and improve their credit score. Over the years, the company has significantly expanded its portfolio of financial products and services to cater to a wide range of financial needs, including investment products like brokerage accounts.
Here’s a sampling of its offering:
- Student loan refinancing
- Personal loans
- Home loans
- Banking services
In addition, the company also issues credit cards designed to offer rewards and benefits tailored to customers' spending habits.
Right, back to SoFi Savings.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Understanding SoFi Savings
SoFi Savings is a high-yield savings account that offers a competitive annual percentage yield (APY) of up to 4.50%, significantly higher than the national average. When you open a high-yield savings account, you automatically get a checking account, which earns 0.50% APY. It’s important to note that standalone checking or savings accounts are not currently offered.
SoFi Savings offers direct deposit members the added advantages of no-fee overdraft coverage and the option to receive paychecks up to two days early. You’ll also have access to over 55,000 fee-free ATMs worldwide through the Allpoint Network, ensuring you avoid ATM fees.
When you activate your card, you'll receive SoFi 100 reward points, equivalent to $1. Interest on your balance is accrued daily and compounded monthly, with earned interest posted to your account no later than the fifth business day of the following month.
Security is a top priority with SoFi Savings, featuring two-factor authentication to protect account access and rigorous safeguards for personal and financial information. Additionally, there's no foreign exchange fee passed on to SoFi members, with only a 0.2% foreign conversion fee included in the transaction amount.
To take full advantage of SoFi Savings benefits, including higher APY and early paycheck, setting up monthly direct deposit is essential.
SoFi Savings is offered through SoFi Bank NA, member FDIC. As an online bank, SoFi provides convenient access to banking services through its mobile app and website. While SoFi Savings primarily operates digitally, you can still make cash deposits into your account through participating ATMs.
Related: SoFi Checking Accounts Review.
Information required to open a SoFi Savings account
To open a SoFi Savings account, you will need to provide:
- Name
- Home address
- Date of birth
- Citizenship status (US citizen, permanent resident, non-permanent resident)
- Social Security number or Individual Taxpayer Identification Number (ITIN)
- Phone number
- Email address
Additional documentation, such as a driver's license or current photo ID, may be required for identity verification.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
SoFi Savings features
High yield
Earn up to 4.50% APY on savings balances, a rate that is 10 times the national average. This high yield is accessible when you set up direct deposit or deposit at least $5,000 every 30 days.
No fees
Opening a SoFi Savings account is completely free! Plus, you won’t have to worry about pesky overdraft fees or regular maintenance fees. SoFi Savings accounts come with fees, allowing you to maximize your savings without any hidden costs.
Savings tools
- Vaults. Create sub-accounts within your main savings account to save for specific goals like a vacation or a down payment.
- Roundups. Automatically round up debit card purchases to the nearest dollar, with the difference deposited into your savings Vault.
- AutoSave. Set up automatic transfers from your paycheck to your savings to help you achieve your savings goals faster.
Bonus offers
New account holders can earn a cash bonus of $50 to $300 based on the amount of their direct deposits within a designated period. For example, deposits between $1,000 and $4,999.99 earn a $50 bonus, while deposits of $5,000 or more earn a $300 account bonus.
FDIC insurance
SoFi provides FDIC insurance up to $250,000 per member through its network of participating banks, with the option to increase coverage up to $2 million through the SoFi Insured Deposit Program.
Who is SoFi Savings best for?
- Tech-savvy individuals. Those who prefer managing their finances through an easy-to-use SoFi app or online platform will appreciate SoFi’s user-friendly interface.
- High-yield seekers. If you’re looking for a competitive APY, SoFi Savings offers up to 4.50% APY, which is significantly higher than the national average.
- Direct deposit users. People who receive their paychecks via direct deposit will benefit the most, as this enables the high APY, no-fee overdraft coverage, and early paycheck access.
- Goal-oriented savers. If you like to set specific financial goals, SoFi Savings' Vaults feature allows you to create sub-accounts for targeted savings, such as vacations or down payments.
- Frequent ATM users. Those who need regular access to cash will benefit from over 55,000 fee-free ATMs worldwide through the Allpoint Network.
- People seeking no-fee accounts. If you want to avoid fees, SoFi Savings has no account maintenance or overdraft fees, making it easier to save without unexpected costs.
Who shouldn’t use SoFi Savings?
SoFi Savings might not be ideal for:
- Individuals who can’t meet deposit requirements. If you can’t maintain direct deposits or deposit at least $5,000 every 30 days, you won’t get the maximum APY and might find better rates elsewhere.
- Those preferring physical bank branches. If you prefer in-person banking, SoFi might not be suitable since it’s an online-only financial institution with no physical branches.
- People needing separate checking and savings accounts. SoFi doesn’t offer standalone checking or savings accounts; you get both when you sign up, which may not suit everyone’s needs.
- Customers needing consistent high rates without conditions. If you can't meet the criteria for the highest APY, SoFi’s 1.20% APY (without direct deposit) might not be competitive compared to other options like Capital One’s consistent 4.25% APY.
- Those wanting daily interest payments. If you prefer accounts that pay interest daily rather than monthly, SoFi’s interest compounding schedule may not be the best fit.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Pros and cons
Pros
- High APY. Offers up to 4.60% annual percentage yield (APY), significantly higher than the national average, ensuring your money grows effectively.
- No fees. No monthly maintenance fee allows you to maximize your savings without hidden costs.
- Early paycheck access. Direct deposit members can receive their paychecks up to two days early, providing faster access to funds.
- Fee-free ATM access. Access to over 55,000 fee-free ATMs worldwide through the Allpoint Network, offering convenience and cost savings.
- Savings tools. Features like Vaults for goal-based savings, Roundups for automatic savings on purchases, and AutoSave for regular paycheck transfers help you save more effectively. These help you with effective budgeting strategies.
- FDIC insurance. Provides FDIC insurance up to $250,000 per member, with an option to increase coverage up to $2 million through the SoFi Insured Deposit Program, ensuring your funds are protected.
- Seamless integration. Automatically includes both SoFi checking account and savings accounts, simplifying the management of your everyday finances and savings in one place.
- Sign-up bonuses. New account holders can earn a bonus of $50 to $300 based on direct deposit amounts, offering additional financial incentives.
Cons
- Deposit requirements for maximum APY. To earn the highest APY, you must set up direct deposits or deposit at least $5,000 every 30 days, which may not be feasible for everyone.
- No standalone accounts. SoFi does not offer standalone checking or savings accounts, which might not suit individuals who only want one type of account.
- No physical branches. As an online-only institution, SoFi may not be ideal for those who prefer in-person banking services.
- Lower APY without direct deposit. If you don’t meet the direct deposit requirements, the APY drops to 1.20%, which might be less competitive compared to other high-yield savings accounts.
- Foreign exchange conversion fee. While there is no foreign exchange fee, a 0.2% foreign conversion fee is included in the transaction amount, which could add up for frequent international transactions.
SoFi Savings vs. competitors
Here’s how SoFi Savings stands in contrast to two other such offerings by Capital One and Green Dot.
Feature | SoFi Savings | Capital One 360 Performance Savings | Green Dot High-Yield Savings Account |
Maximum APY | Up to 4.50% (with direct deposit or $5,000 monthly deposit) | 4.25% on all balances | 2.00% |
Base APY | 1.20% (without direct deposit) | 4.25% | 2.00% |
Interest Accrual | Daily, compounded monthly | Daily, compounded and credited monthly | Annually, based on average daily balance |
Interest Credit | Monthly, no later than the fifth business day of the following month | Monthly | Annually |
Account Fees | None | None | No fees for savings, but fees on linked debit cards may apply |
Minimum Balance Requirements | None | None | None |
ATM Access | Over 55,000 fee-free ATMs (Allpoint Network) | Must transfer to checking for ATM access | Transfer to a linked debit card for ATM access |
FDIC Insurance | Up to $250,000 (option to increase to $2 million) | Up to $250,000 | Up to $250,000 |
Capital One
The Capital One 360 Performance Savings provides a 4.25% APY on all account balances, with interest accruing daily and being compounded and credited monthly. This account does not have tiered rates, meaning the high-yield rate applies regardless of the balance amount.
In comparison, SoFi Savings offers up to 4.50% APY, provided you have direct deposits or deposit at least $5,000 every 30 days. Without these criteria, SoFi Savings still offers a 1.20% APY, which is three times the national average. The interest for SoFi Savings also accrues daily, compounded monthly, and credited no later than the fifth business day of the following month. While SoFi’s maximum APY is higher, Capital One’s consistent 4.25% APY may be more advantageous if you cannot meet SoFi’s deposit criteria.
With a Capital One 360 Performance Savings account, you can withdraw money online or at a branch. However, direct ATM withdrawals are not possible with this savings account. To access your funds via an ATM, you must first transfer the money to a checking account. In contrast, SoFi Savings offers direct access to your funds at over 55,000 fee-free AllPoint ATMs through the AllPoint Network.
Both Capital One 360 Performance Savings and SoFi Savings accounts come with no monthly or maintenance fees and no minimum balance requirements.
Green Dot
The Green Dot High-Yield Savings Account offers an interest rate and APY of 2.00%, Interest is paid annually based on the average daily available balance of the prior 365 days, up to a maximum average daily balance of $10,000. This account is exclusively available with the Green Dot Cash Back Visa Debit Card, requiring you to purchase and activate the debit card to access the savings account.
There are no fees associated with the High-Yield Savings Account itself, although fees on the primary deposit account (Cash Back Visa Debit Card) may reduce your earnings. Money in the High-Yield Savings Account cannot be spent directly on purchases or cash withdrawals; instead, funds must be transferred to the Cash Back Debit Card account balance for transactions, subject to security limits.
In comparison, SoFi Savings offers an attractive APY of up to 4.50% on balances, provided you meet certain requirements such as direct deposit or depositing at least $5,000 every 30 days. Without direct deposit, the APY is 1.20%. Interest is paid monthly, providing more frequent compounding and interest accrual.
Unlike Green Dot, SoFi Savings is a standalone account and does not require linking to a specific debit card. There are no account fees or minimum deposit requirements with SoFi Savings. Account holders also benefit from direct access to their funds through over 55,000 fee-free ATMs via the Allpoint Network, enhancing convenience for cash withdrawals. Additionally, funds in SoFi Savings accounts are FDIC-insured just like Green Dot.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
FAQs
What is the APY offered by SoFi Savings?
SoFi Savings offers an annual percentage yield (APY) of up to 4.60% on savings balances. Checking balances earn 0.50% APY with direct deposit.
Are there any fees associated with SoFi Savings accounts?
No, SoFi Savings accounts have no account maintenance fees, no overdraft fees, and no hidden costs.
How can I qualify for the maximum APY?
To qualify for the maximum APY of 4.60%, you need to set up qualifying direct deposits or deposit at least $5,000 every 30 days.
Can I access ATMs with a SoFi Savings account?
Yes, SoFi Savings account holders have access to over 55,000 fee-free ATMs worldwide through the Allpoint Network.
Does SoFi Savings offer overdraft protection?
Yes, SoFi Savings offers no-fee overdraft coverage for direct deposit members.
What information do I need to open a SoFi Savings account?
To open a SoFi Savings account, you will need to provide your name, home address, date of birth, citizenship status, Social Security number or Individual Taxpayer Identification Number (ITIN), phone number, and email address. Additional documentation, such as a driver’s license or current photo ID, may be required for identity verification.
The bottom line
SoFi Savings is a solid solution for anyone looking to safeguard their money against inflation while earning a substantial return.
With its impressive APY of up to 4.50%, SoFi Savings not only helps your funds grow but also offers a host of features such as no fees, direct access to thousands of ATMs, and tools for goal-based saving. Its seamless integration of banking and savings accounts, coupled with benefits like early paycheck access and overdraft protection, makes SoFi Savings a standout choice for those seeking convenience and high returns in one package.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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