SoFi Money Review 2021


SoFi is the brainchild of a few Stanford Business students who initially wanted to tackle the student loan debt issue in this country by making it easier for borrowers to refinance student loans.

Eventually, they expanded the company’s focus to include several financial products and services, including online banking through SoFi Money. Today, SoFi offers a lot of banking services with some great benefits. This SoFi review gives you everything you need to know about those banking options.

Our in-depth and honest review of SoFi Money will look at the product’s checking and savings features, and SoFi Money compares with other online bank accounts to help you determine whether it’s right for you.

In this review:


What Is SoFi Money?

SoFi Money is an online-only cash management account that works like a checking and savings account in one.

It charges no typical account fees, and it lets you earn cash-back rewards and competitive interest rates on your balance.


Here’s what we like about SoFi Money:


Here’s what we don’t like about SoFi Money:

  • No cash deposits.
  • Restricting transaction limitations.
  • No business checking or savings options.
  • No SoFi ATMs or branches.

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Banking With SoFi: How We Rate It

SoFi offers what it calls a “cash management account,” an all-in-one solution for checking and savings that you can access and manage online or through the SoFi app.

Checking: SoFi Money Account

Grade: B

SoFi Money isn’t a traditional checking account. It’s an FDIC-insured cash management account that offers the everyday spending capabilities of a checking account and the interest-bearing benefit of a savings account.

Interest rates fluctuate with the market, but SoFi currently offers 0.25% APY, which is five times the national average of 0.03% APY for checking accounts reported by the FDIC.

To earn that rate, you have to deposit at least $500 per month into your SoFi Money account via transfer or direct deposit.

Unlike most checking accounts, SoFi Money comes with these transaction limits that could make it tough to use as your primary spending account:

  • Withdrawal limits: $1,000 per day total, $150 over-the-counter cash withdrawal.
  • Peer-to-peer transfers: $3,000 per month.
  • Point-of-sale (cash register) transactions: 12 per day.
  • Point-of-sale spend limit: $6,000 per day.

Still, your account gives you access to a debit card and gives you the option to order checks. Individual and joint accounts are available, which is rare among online banking accounts.

To open a SoFi Money account:

  1. Become a SoFi member by creating an account online or through the app with your email address.
  2. Open a Money account through your dashboard. You’ll need to enter your mailing address, phone number, birth date and Social Security number.
  3. You can open an account with no minimum opening deposit and pay no account maintenance fees.
  4. Set up direct deposit or a recurring transfer of at least $500 to earn the highest interest rate in your account balance.

Savings: 0.25% APY

Grade: C

SoFi doesn’t offer a standalone savings account or certificates of deposit (CDs), but the SoFi Money account you use for checking offers perks similar to traditional savings accounts.

You’ll earn 0.02% APY on your balance for any month you add at least $500 through direct deposit or transfer into the account.

The downside to having your checking and savings in one account is that your savings are easily accessible, which can make it easy to dip into that account instead of letting it sit and grow.

With the combined checking and savings features, SoFi Money acts best as a short-term savings account, rather than a primary saving or spending vehicle. Move money into the account for short-term goals, such as:

  • Building an emergency fund.
  • Vacation savings.
  • Buying a car.
  • A home down payment.
  • Large investments.
  • Tax payments.

The checking account features make your money more accessible through SoFi Money than in a traditional savings account (which typically come with withdrawal limits of six per month), so you can build your savings knowing you can get to the money anytime if you need it.

Cash in SoFi Money is FDIC insured up to $1.5 million through a program of partner banks. FDIC insurance depends on the number of partner banks available (but hasn’t strayed from the $1.5 million mark according to any sources we’ve found).

Convenience: Online-Only Banking

Grade: B

SoFi offers online-only banking, so you won’t find a brick-and-mortar SoFi bank branch or even any SoFi ATMs.

Instead, you’ll do all your cash management through the app or website, plus nationwide ATMs.

  • Deposits: Set up direct deposit from your paycheck or recurring transfers from another bank account to automate your savings and build the account balance. You can’t make cash deposits.
  • Mobile check deposit: Still get a paper paycheck (or a birthday check from your aunt)? Deposit it from anywhere using the SoFi app on your smartphone or tablet with a camera.
  • Cash withdrawal: Use any ATM to take out cash when you need it with your SoFi debit card. You’ll pay no fees at Allpoint ATMs nationwide, and SoFi reimburses out-of-network ATM fees.
  • Digital payments: Link your SoFi Money account to PayPal or Venmo to receive payments.
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Mobile Banking: SoFi App Review

Grade: A

As an online-only institution, SoFi’s suite of digital tools is optimized for user ease and stacked with features like easy account transfers, bill pay and even budgeting tools.

SoFi banking happens primarily through the SoFi app, which is free to download for smartphones and tablets. Customers give the app 4.8 out of five stars in the Apple App Store and 4.4 out of five stars on Google Play.

The app lets you sign up for and access all SoFi products, including your cash management account, and free budgeting and money tracking tools.

Through the app, you can:

  • See your Money account balance and transaction history.
  • Deposit money with mobile check deposit.
  • Transfer money to and from linked bank accounts.
  • Freeze and unfreeze your debit card.
  • Chat with customer support.
  • Monitor your TransUnion VantageScore credit score.
  • Connect other financial accounts to track your spending and savings in one place.
  • Access SoFi’s other financial products and services.

Small Business Banking Options

SoFi does not offer small business checking or savings accounts. Instead, consider these alternative banks for small businesses:

  • Wells Fargo Simple Business Checking Account and Business Market Rate Savings Account, loans up to $100,000 and a 1.5% cash-back credit card.
  • Chase Total Business Checking and Business Total Savings, SBA Express line of credit up to $350,000 and Ink Business credit cards.
  • Capital One Spark Business Checking and Savings, and 1.5% or 2% cash-back credit cards.
  • Axos Basic Business Checking or Business Interest Checking, Business Savings, and lines of credit or commercial loans starting at $250,000.
  • Navy Federal Credit Union for business owners who are veterans, active-duty military, employees of qualified government agencies and their immediate family.
  • Azlo for online-only, fee-free business checking.

You can search and compare small business financing offers through Lantern, SoFi’s marketplace for financial products.

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SoFi Money Account Fees

SoFi boasts no fees, and it’s pretty serious about that.

  • No ATM fees.
  • No account maintenance fees or minimum balance fees.
  • No overdraft fees.
  • No foreign transaction fees.
  • No fee for a replacement card.
  • No bill pay fees.
  • SoFi covers any foreign conversion charged.

Fee structures are subject to change and have over the years, but you can take some comfort knowing the lack of fees is one of the most attractive features of online-only banking.

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SoFi Student Loans

Before it got into banking, SoFi’s flagship product was student loan refinancing, and this is still a popular offering from the company.

Refinance your federal or private student loans to get a lower interest rate, lower monthly payment or both. SoFi also offers private student loans for undergrads, graduate students and parents.

You can get pre-qualified for a loan rate by creating a SoFi account online or through the app, then choose a rate and loan term and fill out the full application online. If approved, you’ll complete the whole process, including signing paperwork, online.
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Pro Tip

Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

Other SoFi Products

The biggest benefit to signing up for SoFi banking is becoming a member and gaining access to SoFi’s suite of products and services.

SoFi members (anyone who uses a SoFi product, like Money), get exclusive benefits like member-only events and member rate discounts on SoFi loans.

  • Personal Loans: Apply for a personal loan for things like credit card consolidation or home improvement. Interest rates range from 4.99% to 19.63% fixed APR when you sign up for auto-pay. You can check rates you’d qualify for by creating a SoFi account and entering the amount you want to borrow. Checking your rate with SoFi won’t affect your credit score.
  • Mortgages: Take out a home loan or refinance an existing mortgage through SoFi with as little as 10% down. You’ll save $500 on mortgage processing fees for being a SoFi member. SoFi also facilitates home equity lines of credit through home equity lender SpringEQ.
  • Investing: SoFi Invest is a brokerage account that lets you invest in stocks, ETFs and cryptocurrency right through the app. You can set up automated investing and let SoFi experts choose your portfolio for you, or choose yourself what to invest in. SoFi also offers Roth and Traditional IRAs to help you save for retirement. You can fund your SoFi investment account using a SoFi Money account or external checking or savings account.
  • Insurance: Through SoFi Protect, the company has teamed up with insurance providers to match you with affordable life, auto, homeowners and renters insurance. In most cases, you can apply and sign up online without speaking to an agent or facing a medical exam.
  • Career Services: SoFi members get to work one-on-one with a career coach to pave a path toward career and financial success. Career coaches provide guidance on things like career transitions, networking, building your resume and LinkedIn profile, negotiating, personal branding and your personal questions.
  • Financial Planning Resources: Members can make an appointment with SoFi financial planners for free to get professional financial advice on anything from basic money management to retirement planning. SoFi also provides resources to educate you on debt, lending, money management, investing and more, plus calculators to help you plan for borrowing and repaying debt.

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SoFi Customer Service

SoFi customer support is available through email, Twitter or by phone with limited hours.

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Frequently Asked Questions (FAQs)

Is SoFi App Legit?

Social Finance, Inc. (SoFi for short) is based in San Francisco and has been operating in the personal finance space since 2011. It’s highly respected in the industry and loved by customers for its mobile-first and social approach to managing money.

The company maintains industry-standard security measures to protect users’ personal and financial information, including bank-level encryption and two-factor authentication.

Is SoFi Money FDIC Insured?

The money in your SoFi Money cash management account is FDIC insured up to $1.5 million through a network of partner banks.

Does SoFi Money Have Fees?

You’ll pay almost no fees with any SoFi products. SoFi takes its commitment to no fees seriously. With a SoFi Money account, you’ll pay no ATM fees, monthly maintenance fees, overdraft fees or foreign transaction fees. You won’t even pay to replace a stolen or lost debit card or to pay bills through the app, and SoFi covers any foreign conversion you’re charged.

How Long Does SoFi Take to Deposit Money?

When you sign up for direct deposit into your SoFi Money account, you’ll have access to your money up to two days before your normal payday. SoFi releases the funds into your account as soon as the payer initiates the deposit, rather than waiting for the scheduled payday.

Is SoFi a Bank?

SoFi is not a bank — yet. Like other financial technology companies that provide banking services, the company works with a partner bank network that includes bank partners around the country. These companies hold and insure your funds, while the SoFi app helps you manage them all in one place.

However, SoFi is on its way to obtaining a national bank charter and becoming SoFi Bank, N.A., a member of the Federal Deposit Insurance Corporation (FDIC). In 2020, it received preliminary approval for a bank charter from the U.S. Office of the Comptroller of the Currency. In March 2021, it acquired Golden Pacific Bancorp (GPB), which is expected to expedite its bid for a charter after the sale closes in late 2021.

Does SoFi Money Use Zelle?

SoFi Money is not compatible with Zelle. However, it offers its own peer-to-peer payments option that lets you send money to anyone in your address book. Recipients who also use SoFi Money will get the money instantly, and others will get it in one to two business days.
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Is SoFi Money Right for You?

SoFi Money might not be a perfect replacement for your primary checking or money market accounts, but it could be a good fit for short-term savings and managing money you want to invest through SoFi.

SoFi could be a fit for you if:

  • You’d benefit from access to other products, including loans, investing, career advice and free financial planning.
  • You have short-term savings goals, such as vacation savings, home down payment, buying a car or holiday shopping.
  • You receive a regular paycheck via direct deposit.
  • You prefer to do your banking online or through a mobile app.

SoFi might not be a fit for you if:

  • You prefer in-person service from local bank tellers or loan agents.
  • You have no need for additional products and services like mortgages, debt consolidation, student loan refinancing or financial planning.
  • You’re frequently or primarily paid in cash.
  • You have a high volume of daily transactions, like if you travel or shop a lot.
  • You need small business banking.
  • Your savings goals are mostly long term, like retirement or college savings.

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Our Bank Review Methodology

The Penny Hoarder’s editorial team considers several factors in bank account reviews, including fees, balance requirements, APY, convenience, customer service support and mobile features. To determine how to weigh each factor, The Penny Hoarder surveyed 1,500 people to find out which banking features matter most to you.

Dana Sitar is a contributor to The Penny Hoarder.  Tyler Omoth contributed to this report.


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