SoFi Bank Review | My Personal Experience Using SoFi Bank as My Checking / High-Yield Savings Account

My Personal Experience Using SoFi Bank as My Checking / High-Yield Savings Account | SoFi Bank Review

When I decided to open an account with SoFi Bank, I was looking for a financial institution that offered modern features and convenience. While I’m still a new member and need to get my direct deposit set up (hopefully by Monday), I’ve already formed some impressions based on my experience so far.

Transitioning from USAA

I’ve been with USAA for around 13 years. While it’s been a great bank overall, it hasn’t been particularly progressive in adopting modern banking features. Over the past month, I’d been exploring alternatives and finally decided to give SoFi a try. What drew me in wasn’t just the competitive savings account APY—though that’s a nice perk—but the unique Vaults feature.

Why I Chose SoFi

The Vaults feature is a standout for me. With SoFi, you can set up to 20 “sub-accounts” within your savings account, making it easy to allocate money toward specific goals. Whether it’s an emergency fund, a vacation, or a new car, the Vaults allow you to organize your savings without opening multiple accounts or risking mismanaging your funds.

User-Friendly Interface

SoFi’s platform is highly accessible. The website is intuitive, and the mobile app is well-optimized for both phones and tablets (I’m using iOS). It feels platform-agnostic, allowing for seamless banking regardless of your device.

All-in-One Financial Solution

SoFi goes beyond just banking. It offers a comprehensive suite of financial services, including:

• Credit Card: I recently applied for their credit card. Based on what I’ve heard, approval requires a relatively high credit score.
• Investing: While Fidelity remains my primary investment platform, I’m considering using SoFi’s investment tools as well.
• Loans: SoFi offers personal, student, and even home loans.
• Relay: This is similar to Mint but, in my opinion, better. It consolidates your financial information in one place.
• Insurance Quotes: You can easily obtain quotes for different types of insurance.

When you sign up, you automatically get both a checking and savings account, along with a debit card. You can also order a free checkbook if you occasionally need to write checks.

Rewards and Fees

One of SoFi’s unique features is its rewards system. You can earn points for simple actions like logging in daily (10 points for a week-long streak) or attaching external accounts. These points can be redeemed for various benefits.

The bank’s fee structure is minimal. You get free overdraft protection and access to the Allpoint ATM network, which includes thousands of fee-free ATMs. For cash deposits, SoFi uses the Green Dot service, but this comes with a $4.95 fee at participating locations. This is the only fee I’ve encountered so far.

SoFi Plus Membership

Some features are exclusive to SoFi Plus members. To achieve this status, you need to set up direct deposit with SoFi. Benefits include higher savings APY and additional perks.

High-Yield Savings and Checking Accounts

SoFi’s savings and checking accounts offer competitive APYs compared to traditional banks. Without direct deposit, you earn 1.2% APY on both accounts. With direct deposit, the savings APY increases to 4.3%, while the checking APY remains the same. While it’s not technically a high-yield checking account, it’s still better than most brick-and-mortar banks.

Digital-Only Banking Experience

Having dealt with digital-only banking before (USAA), I’ve found it’s not as daunting as it might seem. Unless you frequently deposit cash or require in-person customer service, the lack of physical branches isn’t a significant drawback.

Final Thoughts

Overall, I’m impressed with SoFi’s offerings. It’s a great solution for those looking to combine a high-yield savings account and checking account in one place. The Vaults feature simplifies goal-based savings, and the rewards system is a nice touch.

That said, I’d recommend keeping a local account open with minimal funds. It’s always good to have a backup in case of network issues or if your debit card gets lost or stolen. For instance, I maintain a credit union account with a small direct deposit to avoid dormant fees.

If you’re comfortable with digital banking and value features like high APYs, goal-oriented savings tools, and an all-in-one financial platform, SoFi is worth considering.

Key Features of SoFi Checking and Savings Account

1. No Monthly Fees

One of the most attractive features of SoFi’s checking and savings account is its lack of monthly maintenance fees. This fee-free structure makes it an appealing option for those looking to save money on banking costs.

2. Competitive Interest Rates

SoFi offers a high annual percentage yield (APY) on savings balances—around 10 times the national average savings rate—for customers who set up regular direct deposits, such as payroll or government benefits. Alternatively, customers who deposit at least $5,000 every 30 days can also qualify for the high APY. Even without regular deposits, SoFi still provides higher-than-average rates on savings balances.

Additionally, SoFi offers a competitive interest rate on checking balances, regardless of deposit amounts.

3. Savings Vaults for Goal Tracking

SoFi’s savings vaults allow users to create sub-accounts for different financial goals. Whether you’re saving for an emergency fund, a vacation, or a home down payment, these vaults help you stay organized and focused on achieving your objectives.

4. Overdraft Protection

With no overdraft fees, SoFi provides a generous overdraft protection program for customers who receive at least $1,000 in direct deposits each month. Features include:

• Free overdraft transfers from savings to cover checking transactions.
• Spotting up to $50 for transactions that would otherwise result in an overdraft, with the next deposit applied to the negative balance.

5. Access to a Large ATM Network

SoFi’s partnership with the Allpoint Network gives customers access to tens of thousands of no-fee ATMs nationwide, making it easy to withdraw cash without additional charges.

6. Early Paychecks

Customers can receive their paychecks up to two days early with SoFi’s direct deposit feature, providing quicker access to funds.

7. Enhanced Federal Insurance

SoFi offers up to $2 million in federal insurance on consumer deposits, significantly higher than the standard $250,000 coverage most banks provide. This feature ensures greater security for your funds.

8. Welcome Bonus

New customers can earn a welcome bonus by opening an account and setting up direct deposit:

• $50 for deposits under $5,000.
• $300 for deposits of $5,000 or more.

Potential Drawbacks of SoFi Checking and Savings Account

1. Cash Deposit Costs

Depositing cash can be expensive with SoFi. Customers must use the Green Dot deposit service at partner retailers, which incurs a $4.95 fee per transaction. This could be a drawback for those who frequently handle cash.

2. No Physical Branches

As an online-only bank, SoFi lacks physical branches. While remote customer service options like phone support and automated chats are available, those who prefer in-person assistance might find this limiting.

Is SoFi Right for You?

Choosing a bank is a highly personal decision based on individual financial habits and needs. Here are some factors to consider:

Why SoFi Might Be a Good Fit:

• High-Interest Rates: Ideal for those who prioritize earning a competitive APY on their savings.
• No Fees: Great for individuals seeking a fee-free banking experience.
• Savings Goals: Perfect for goal-oriented savers who benefit from sub-accounts.
• Enhanced Insurance: Offers peace of mind with higher deposit protection.

Why SoFi Might Not Be Ideal:

• Cash-Heavy Jobs: The cost of cash deposits may deter those who frequently deposit cash, such as tipped workers.
• Preference for In-Person Banking: Customers who value face-to-face interactions might find SoFi’s remote services insufficient.

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