SoFi has long been known as one of the lowest interest rate lenders for student loan refinances, but the so-called not-a-bank recently rolled out an even more exciting financial product.
SoFi Money(TM) is a high-interest (1.60% APY) cash management account with no monthly fee, no ATM fees, and no overdraft fees. The APY is variable and subject to change.
See how SoFi Money compares to our picks for the best free checking accounts.
Quick Summary
- High interest checking account - currently 1.60% APY (variable and subject to change)
- As close to fee free as it comes
- Low withdrawal limits are a bit odd
SoFi Money Details | |
|---|---|
Product Name | SoFi Money |
Min Deposit | $0 |
Min Balance | $0 |
APY | 1.60% APY |
Monthly Fee | $0 |
Availability | Nationwide |
Account Type | Cash Management |
Promotions | None |
Savings and Checking Account Hybrid
SoFi Money isn’t exactly a traditional checking account - it's technically a cash management account. With a 1.60% annual yield, SoFi Money has the interest rate of a savings account (remember, the rate is variable and subject to change). But unlike a savings account, the no-fee account allows users to spend money via a debit card or even through physical checks. The result is a hybrid between savings and checking.
If you’re the type of person who keeps your emergency fund in your checking account, this is the ideal account for you.
Opening a SoFi Money Account
Opening a SoFi Money account takes just a minute at the SoFi website. The account has no minimum, so you can open an account with as little as one penny. You must be at least 18 years old and a permanent resident or citizen of the United States to open an account.
No Account Fees
SoFi Money is as close to fee-free as it comes. You don’t pay monthly fees, overdraft fees, or ATM fees (including ATMs abroad).
If you use an ATM with a Visa®, Plus®, or NYCE® logo, SoFi will reimburse you for third-party ATM fees.
SoFi also doesn’t charge a foreign transaction fee, but it warns that Visa charges a 1% foreign conversion fee which SoFi doesn’t reimburse.
There are a very limited number of miscellaneous fees (such as a replacement debit card fee of $20 after your first card). However, most people won’t run into those issues.
Remember, this is also subject to change - but we'll let you know if we find any fees.
Is There Any Concerning Fine Print?
The only concerning fine print with SoFi Money is its withdrawal limits. You can never take out more than $610 from an ATM in a day and you can only do $250 worth of peer-to-peer transfers in a day. If you’re the type that wants to withdraw a few thousand dollars to buy a used car, you’re going to have to plan ahead.
The other concerning fine print has to do with a lack of print regarding wire transfers. At this time it is not clear whether SoFi Money will allow account holders to do a wire transfer.
Finally, SoFi Money operates as a cash management account. This means it's not subject to FDIC insurance, but is subject to the SIPC rules governing cash. Your money is protected, just differently that it would be at a bank.
Once your money arrives at one of their partner banks, it is FDIC insured up to $1.5 million.
Final Take on SoFi Money
The SoFi Money account is a great deal, but I have questions about its value as a hybrid savings and checking account. If you’re prone to spending every dollar in your checking account, SoFi money is not a good place to keep your savings. It’s better to put savings into a savings account rather than a checking account.
That said, SoFi Money is an excellent checking account. With no fees, ATM reimbursements, no foreign transaction fees, and great yield, it’s a tough account to beat. If you’re looking for a new checking account, go with SoFi Money.
Disclosures: SoFi Money is a cash management account offered by SoFi Securities LLC, member FINRA/SIPC and is not a bank account. Neither SoFi nor its affiliates are a bank.
SoFi Money Review
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Interest Rate - 90
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Fees and Charges - 100
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Customer Service - 80
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Ease of Use - 60
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Tools and Resources - 80
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Products and Services - 80
JJD says
Any concern about the FDIC insurance? I got a little chill when I read the fine print about funds not being insured until they reach a partner bank. I’m also concerned about my funds being spread out over 6 partner banks. If SoFi were to file bankruptcy, would it be a struggle for me to get my funds from all these different banks? The accounts with these banks are also not in my name, they are in SoFi Securities name. Maybe I’m worrying too much?
Robert Farrington says
I think you’re really worrying too much, but on the flip side, if it is a worry to you, then go with a different account that is FDIC insured. You can find high yield savings accounts that earn more than this account today: https://thecollegeinvestor.com/22997/best-high-yield-savings-accounts/
Ryan says
Is this classified as an interest checking or high-yield savings? I’m concerned with withdraw limits per month based on Reg-E if it’s in fact a savings account.
Robert Farrington says
This is classified as a cash management account – similar to what you find at Fidelity or Schwab. As such, you don’t have limits on quantity of withdrawals like you have on a savings account. However, do notice their low daily cash withdrawal level.
Brian says
I’m not sure I understand their withdrawal limits. Here’s their link with the raw numbers:
https://www.sofi.com/money/limits#
I’m not too worried about the ATM limits, but they say there is a $3,000 limit on POS and a $10,000 limit on Bill Pay. Will either of these apply when I’m paying off a credit card via that card’s website?
Robert Farrington says
Yes, credit card payments are sent via BillPay, so you’d be subject to that limit.
Brian says
Even if I’m not using SoFi’s Bill Pay service? So if I’m on my credit card’s website and try to make a payment over $10,000, the payment will be denied by SoFi?
Robert Farrington says
If you’re doing the payment from your credit card side, you’re going to be limited to the lower amount of $3,000 (it’s considered a withdrawal/transfer).
Note: you should always push money, not pull money. It’s better to push money you of your checking account (whether SoFi or another bank) via BillPay than it is to pull money (from a card). The risk works in your favor that you won’t overdraw, etc.
Desmond Louis says
Couldn’t find their ACH limit, how much allowed each time and how many times allowed per certain period (day/mon), and differences if any between Inbound and outbound etc.
Robert Farrington says
Read this: https://www.sofi.com/money/limits
Noris says
Somebody asked: If SoFi were to file bankruptcy, would it be a struggle for me to get my funds from all these different banks?
I would like to know the answer to that question.
Thanks.
Robert Farrington says
No, banks close all the time. It may be a slight inconvenience for a few hours, but we’ve never heard of anyone struggle to get money out of a bank when they close. Note: about 10-20 banks go under every year nationwide.