SoFi Money Review 2021
Star rating: 4.5
Cash management accounts can offer a simplified way to pay bills, save money, and spend wisely. These accounts share some similarities with checking accounts and savings accounts, but they aren't exactly the same.
SoFi Money is a cash management account that earns interest while charging minimal fees. If you're familiar with SoFi Invest or SoFi loans, you may already know a little about the company.
What is SoFi Money, and is it right for you? Read our SoFi Money review to learn more about how this money management tool works.
SoFi Money may be right for:
- Individuals who have loans or investment accounts with SoFi.
- People want an alternative to traditional checking and/or savings accounts.
- Individuals who want to earn a competitive interest rate on balances.
- People who want to minimize banking fees.
- Anyone who also wants access to SoFi member benefits.
Types of Accounts SoFi Offers
SoFi Money offers a variety of different account types, including brokerage accounts and loans. This SoFi Money review focuses solely on the SoFi Money account.
You can open these account types with SoFi Money:
- Individual accounts.
- Joint accounts.
It's important to know that SoFi Money is a cash management account. SoFi is not a bank, so this is not a bank account. Rather, it's a brokerage account powered by the SoFi app and SoFi Money debit card.
The SoFi Money account allows you to perform a variety of money management tasks, including:
- Depositing funds.
- Setting up savings vaults.
- Making purchases with the SoFi debit card.
- Paying bills online.
- Sending and receiving money via person-to-person transfers.
- Earning interest on balances.
- Earning cash back rewards on eligible purchases.
If you're looking for a SoFi checking account or a SoFi savings account, those options technically don't exist. But you can do many of the same things with a SoFi Money account that you could with a traditional checking or savings account.
Key Advantages of SoFi Money Account
When comparing any cash management account, it's important to know what's good about it. Here are some of the top benefits of the SoFi Money account:
- Easily manage spending, bill payments, and savings in one place.
- No monthly fees.
- Enjoy fee-free overdraft coverage.
- Earn interest on balances.
- Access 55,000+ fee-free ATMs.
- Enjoy SoFi member benefits with your account.
- Easy to navigate online and mobile apps.
You might consider SoFi Money if you already have an account with SoFi or plan to open one. For example, you might be thinking about opening a SoFi invest account to start building a portfolio. In that scenario, it might make sense to keep the money you plan to spend or save in a SoFi Money account. The same goes if you already have a student loan or personal loan through SoFi.
SoFi Money isn't a bank account
In terms of shortcomings, it's essential to remember that this isn't a bank account. It's a brokerage account, but your balances are not Securities Investor Protection Corporation (SIPC)-insured. Federal Deposit Insurance Corporation (FDIC) insurance can apply because deposits in SoFi Money accounts are swept daily to "program" banks. There is a catch, however. FDIC insurance protection only kicks in once your deposits reach the program bank, which typically takes two business days.
How SoFi Money Works
When you open a SoFi Money account, you're getting a cash management account. There is no minimum balance requirement to open an account. To earn interest on balances and earn cashback rewards at participating merchants, you'll need to make at least $500 in deposits each month.
You can manage your SoFi Money account online or through the SoFi app. You'll have a SoFi debit card that you can use to make purchases. You can also use your card to make fee-free ATM withdrawals at more than 55,000 ATMs in the Allpoint network.
Account features include:
- Automated bill pay.
- Simple person-to-person payments with no fees.
- Goal-based savings through Vaults.
- Career coaching and financial advising services through SoFi member benefits.
- Debit card lock and unlock.
While preparing this review, MoneyRates found that SoFi Money is fee-friendly. You pay no:
- Monthly fees.
- Account minimum fees.
- Overdraft fees.
- ATM fees in the Allpoint network.
- Debit card replacement fees.
- Account opening fees.
- Inactivity fees.
- Bill payment fees.
- Return item fees.
- Mobile check deposit fees.
- Foreign transaction fees.
The lack of fees is one of the things that sets SoFi Money apart from traditional bank accounts. If you're interested in a SoFi checking or savings account, you get the best of both worlds with SoFi Money, with no hidden fees.
You can earn bonuses with a SoFi Money account when you enroll in direct deposit. When you sign up for direct deposit and your first deposit is credited to your account, SoFi will reward you with $100.
What to Look for When Shopping for Cash Management Accounts
If you're interested in a cash management account as opposed to a traditional bank account, there are a number of online brokerages that offer them. But they aren't all the same so as you compare options, here are some of the most important things to consider.
- Cost: Minimum balance fees, monthly maintenance fees, and overdraft fees can all make a dent in your bank account balance. If you're looking to escape high fees with a cash management account, pay attention to what fees you'll pay to maintain it. SoFi Money is light on fees, which is a plus if you're hoping to save money.
- Account types: Cash management accounts, checking accounts, savings accounts and taxable brokerage accounts all offer something different. When evaluating your financial needs and money goals, consider which types of accounts may be the most suitable. Then, ask yourself what a cash management account might be able to do for you that another account won't.
- Added features and benefits: Some cash management accounts may be better than others when it comes to features or extras. With the SoFi Money account, for example, you can earn interest on balances and get cashback rewards when you shop. Those are nice incentives that not all cash management accounts offer.
- Customer service and support: When you have questions or issues with your cash management account, it helps to know you can reach customer service quickly. When comparing accounts, take note of when and how customer support is available with each.
- Educational resources: Learning the basics of budgeting, spending, and saving can be helpful if you're new to managing money. When looking at cash management account options, consider whether you get any educational tools, such as free money webinars or a blog that features personal finance articles.
- Online and mobile access: Online and mobile apps make it convenient to manage your money, whether you need to schedule a bill payment or transfer funds. With SoFi Money, you get both online and mobile access through a user-friendly platform.
When looking at this SoFi Money review along with other reviews, consider how a cash management account's brand reputation stacks up when compared to other accounts. Cash management accounts are less common than regular bank accounts, so it's important to know what kind of reviews or ratings they've received from people who have actually used them.
SoFi Money Review Bottom Line: How SoFi Money Compares
This SoFi Money review highlights what's good about this cash management option.
In terms of cost, it's hard to beat its no-fee structure. The fact that you have access to online and mobile banking tools as well as an extensive ATM network means it's easy and convenient to manage your money on the go.
Overall, a SoFi Money account is worth considering if you're comfortable with managing your money online and you want to keep fees as low as possible. You may also consider this account if you already have loans or investment accounts with SoFi and want to consolidate money management in one place.
How to Take the Next Steps With SoFi Money
If you're interested in opening a SoFi Money account, reading SoFi reviews is a good place to start. By now, you should understand what SoFi Money is, how it works, and what benefits it offers. Armed with this knowledge, you can decide whether it's the right type of account for your needs.
Steps to open an account with SoFi Money
Opening an account with SoFi Money is easy and the signup process can take less than 60 seconds.
1. You'll need to provide SoFi with some basic information, including your name, address, date of birth, phone number, email, and Social Security number.
2. You'll also need to link an external bank account to make an initial deposit.
3. After that, it takes five to seven days for your SoFi debit card to arrive.
If you're ready to take the next steps, click the link below to open a SoFi Money account now.
If you've read this SoFi Money review but you're not quite sure whether a SoFi Money account or a cash management account is right for you, take time to research other options. Comparing other cash management accounts offered by different online brokerages can help with deciding where and how to invest your money.