Summary List Placement
SoFi Money® (Member FDIC) is an online cash management account that can act as a hybrid checking/savings account.
SoFi is best for people who can deposit $500 per month into the account to qualify for a higher APY and cash back on debit card purchases.
Although SoFi Money is a hybrid account, its rate is lower than what competing high-yield accounts pay, so you might be better off just using it as a checking account.
There’s no way to deposit cash into this account — if you need to deposit cash, then you may prefer a competitor such as Chime Spending Account.
See Business Insider’s picks for the best high-yield savings accounts »
Table of Contents: Masthead StickyIs SoFi Money right for you?
You might like SoFi Money if you…
You might not like SoFi Money if you…
Are comfortable banking digitally
Want to keep your checking and savings balances in one account
Qualify to earn cash back rewards and a higher APY
Want to earn interest on your checking account balance
Are looking for a cash back debit card
Travel and use ATMs abroad frequently
Aren’t comfortable banking digitally
Want to keep your checking and savings balances in separate accounts
Don’t qualify to earn cash back rewards or a higher APY
Are looking for the highest savings APY
Need to deposit cash
The bottom line: SoFi Money could act as a good checking account if you can deposit $500 per month into your account to qualify for both cash back rewards and the highest APY.
SoFi Money review
It’s affordable to keep your money with SoFi — there’s no minimum opening deposit, and there are no monthly service fees, overdraft fees, or out-of-network ATM fees. You’ll also have free access to Allpoint ATMs when you travel abroad.
Keep in mind that SoFi doesn’t charge a foreign transaction fee when you make a purchase abroad, but MasterCard may charge a 0.20% fee, and SoFi won’t reimburse you.
SoFi doesn’t charge overdraft fees, but it also doesn’t offer overdraft protection. If your purchase would overdraw your account, then SoFi will simply deny the transaction.
If you deposit at least $500 per month into your SoFi Money account, then you qualify to earn cash back rewards when you use your debit card with certain companies. SoFi keeps a list of qualifying companies in its app, and participating businesses can change.
By depositing at least $500 in your account each month, you can also earn the highest APY. Otherwise, your balance will earn just 0.01% for the month.
Even SoFi’s higher APY is low compared to what some competitors pay on their high-yield savings accounts. You may be better off using SoFi Money as a checking account and opening a separate account for savings.
SoFi is a digital personal finance company that offers loans, student loan refinancing, investment accounts, and its SoFi Money account, which is a cash management account that works as a hybrid checking/savings account.
SoFi isn’t a bank, but it’s backed by multiple banks, so your deposits are FDIC insured.
To speak with a customer service agent, call Monday …read more
Source:: Business Insider