Brief Look at SoFi Bank
SoFi is a digital bank that was founded in 2011. It is headquartered in San Francisco, California. The bank is regulated by the U.S. SEC and FINRA. The deposits are protected with SIPC and FDIC compensation mechanisms. SoFi offers checking, savings, retirement and investment accounts and also debit and credit cards. The bank offers the services of lending, insurance and financial planning, as a possibility to earn income on deposits. All transactions and payments can be performed in the mobile app; there is no need to visit a bank branch. Account opening in SoFi is absolutely free, but you need to have a U.S. taxpayer identification number.
- Regulation by the U.S. state regulatory authorities and membership in the compensation funds.
- A possibility to open an account and register a card remotely, without visiting the company office.
- Wide selection of lending programs for individuals and representatives of small businesses.
- Higher interest rate on deposits than that offered by the competitors offering banking services in the U.S.
- User-friendly mobile app that you can use to manage funds, make payments and receive detailed statistics on active accounts and cards.
- Free cash withdrawal at over 55,000 ATMs all across the world.
- Cash back not only on debit, but also credit cards.
- SoFi banking services are available only for the U.S. tax residents.
- Multicurrency accounts are not available, only USD.
- The company does not offer zero-interest loans.
TU Expert Verdict
Chief Analytics Officer
SoFi Bank offers personal and business checking, savings, retirement, and investment accounts, plus debit and credit cards tied to the MasterCard network. Clients can use the user-friendly mobile platform for all banking needs, with account opening available remotely for U.S. tax residents. The bank is regulated by the U.S. SEC and FINRA, and deposits are covered by FDIC and SIPC protections. SoFi stands out with fee-free account services, no minimum deposit requirements, cash back of up to 15% on debit cards and 3% on credit cards, and a wide network of over 55,000 ATMs with free withdrawal. Jumbo loans between $500,000 and $3 million are available at rates as low as 4.5%.
A few disadvantages are geographic restrictions to U.S. tax residents, only USD accounts with foreign currency conversion fees, and card support limited to the MasterCard system. SoFi Bank may not be suitable for international users or those needing multi-currency solutions, but it is a strong choice for U.S. residents seeking cost-effective online banking and integrated investment services.
SoFi Bank Summary
Via SoFi Bank's secure website. Your capital is at risk.
| 💼 Main types of accounts: | SoFi Checking and Savings (Individual, Joint), SoFi Money, SoFi Invest, IRA, SoFi at Work |
|---|---|
| 💱 Multi-currency account: | No (only US dollars, conversion at the MasterCard exchange rate) |
| 💵 Deposit terms and conditions: | From $1, from 12 months, 0.90$ annual interest without the direct deposit, 1.50% with the direct deposit |
| 💳 Loan terms and conditions: | No-fee overdraft with the monthly direct deposit from USD 1,000, personal loans from USD 5,000 to USD 100,000 at 1.89% - 22.23% |
| ☂ Deposit insurance: | Yes ($250,000 for individuals, $500,000 for joint accounts) |
| 👛️ Savings options: | Savings accounts, including retirement accounts |
| 📋 Types of payment: | Debit/credit cards, ACH, Western Union, MoneyGram, bank transfer, Apple Pay, Google Pay |
| ➕ Additional features: | Direct Deposit, insurance services, transfer of salary to the card, up to 15% cash back on purchases |
SoFi services are available only to U.S. tax residents, including those living outside the country. The company has no requirements for the account balance. A client can deposit any amount to a checking or savings account. The US Dollar is the account currency. The bank issues debit and credit cards. They work through the MasterCard payment system and can be linked to Google Pay and Apple Pay.
Video Review of SoFi Bank
SoFi Bank Commissions & Fees
SoFi does not charge a fee for opening checking and savings accounts. Debit and credit cards are issued for free. Also, the digital bank does not charge a service fee (monthly or annual). Withdrawal at Allpoint and Star ATMs is free. If an ATM does not belong to a partner, the fee may range from $2.5 to $5 per transaction. For withdrawals from a foreign ATM, a fee of 1% to 3% may be charged.
The rates on personal loans (travel, wedding, home improvement loans) is 6.99% - 22.23%, home mortgage – 4.74%-5.46%. The flexible rate on student loans is 1.89%-11.98%, fixed rate – 3.75%-13.3%. The interest rate on Jumbo loans (large mortgage loans of up to USD 3 million) is 4.13%-4.5% depending on the chosen period of 15 or 30 years.
SoFi clients can practically instantly transfer money using a P2P system directly from the app and for free. The fee for international exchange depends on the currencies and varies from 0.2% to 0.9%.
The table below shows the fees and commissions charged by SoFi and other digital banks.
| Broker | Overdraft fee | ATM Withdrawal Fee | International transfer fee | International exchange fee |
| SoFi Bank | 0% | $0-5 | 0% (P2P payments) | 0.2%-0.9% |
| Chime Bank | No | No | No | 3% (max.$5) |
| Revolut | No | Up to $350 - free - beyond $350 - 2% | 0.3% (min. $0.30, max. $6) | From 0% to 1% |
SoFi aims to minimize the expenses of its customers. The digital bank does not charge commission for providing the mobile app, or a fee for opening and servicing the accounts of all types. SoFi clients can transfer money to each other for free and they don’t have to pay the overdraft fee provided they repay the debt within the stated deadline. Clients can also withdraw money from partner ATMs for free and exchange currencies at a good rate. The minimum rate on personal loans is 6.99%, which is an average level in the U.S. banking services market.
Account Types
Investment Options
SoFi offers several investment solutions. One of them is active investing that allows you to trade stocks and ETFs with no commissions. Investing in fractional shares with as little as $5 is available. If a client wants to earn fully passive income, i.e. he doesn’t want to trade, he can turn on the automated investing option. In this case, a program and not a person will build a portfolio and rebalance it on a quarterly basis. The minimum investment amount for automated investing is USD 1. SoFi also offers three types of IRA: Traditional, Roth and SEP. They are savings accounts that bring passive income once an investor reaches a certain age.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Contacts
| Foundation date | 2011 |
|---|---|
| Official site | https://www.sofi.com/ |
Detailed review of SoFi Bank
SoFi is a U.S. broker and a digital bank that was established in 2011. The bank offers a user-friendly app to its clients for managing personal finance and also bank products and solutions for saving and growing capital. The company is licensed by the U.S. Securities and Exchange Commission (SEC), the state regulatory authority of the U.S., and FINRA (Financial Industry Regulatory Authority). The bank is also a member of FDIC (Federal Deposit Insurance Corporation) and SIPC (Securities Investor Protection Corporation).
SoFi in figures:
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Over 11 years of working with bank products;
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Over 4 million people use the services of the digital bank;
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Over USD 100 million in savings accounts;
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Over USD 55 billion in issued loans;
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SoFi clients repaid over USD 22 billion in loans.
SoFi can manage accounts and money from the mobile apps. The apps are available for Android and iOS smartphones. You can download them for free on Google Play and App Store. Also a web platform is available. It operates on all popular browsers and does not require installation. The apps offer the required features for convenient money management, quick money transfer, viewing information on loans and deposits.
SoFi’s useful features:
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Mortgage calculator. This is an instrument for calculating your monthly payment based on the total value of property, down payment, interest rate and repayment period.
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Personal Loan calculator. The calculator allows you to calculate the total debt on a loan as of now and ways to save on total interest.
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SoFi Member Rewards. The participants of the program can earn points by taking various actions in the app or your personal account. Points can be turned into cash, used to repay the loan interest, invested in fractional shares or cryptocurrency.
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Referral program. With a referral program, an existing client can earn money by attracting new users of banking and investment services offered by SoFi.
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Free Financial Planning Advice. You can receive your advice during a personal conversation with a company’s financial expert, which takes place in the video chat format.
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A discount on various types of planning. Thanks to the partnership with Trust & Will, a top online trust and estate planning platform, SoFi clients get a 25% discount on trust, will or guardianship estate plans.
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Blog. The blog features a guide on smart investing for beginners, advice and long-term strategies, company and economy news.
Advantages:
SoFi Bank is a member of FDIC, which means that client funds in the checking and savings accounts are protected at the state level.
Any adult resident or citizen of the U.S. can open an account, regardless of their previous credit history.
In addition to debit cards, SoFi offers credit cards with a cash back.
There are no requirements for the account and card balance, no-commission overdraft is available.
The company joined the checking and savings accounts into a single account SoFi Checking and Savings, which made it easier to manage and monitor their money.
Mobile apps are protected with a two-factor authentication using a text message.
Opening and servicing of accounts and cards is absolutely free.
The company offers various types of loans, including large mortgage loans for up to USD 3 million.
Clients have access to insurance services, refinancing of previously issued loans, pension and student savings plans.
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