SoFi®

SoFi, short for Social Finance Inc., is an online bank that provides a range of financial products and services designed to help you achieve financial dependence. Its offerings include banking, credit card, lending, investing and insurance solutions for the everyday consumer. If you own a small business, SoFi also offers financial products to support your employees and help your company reach its full potential.

About SoFi

Established in 2011 by Stanford Graduate School of Business students, SoFi exists to help you achieve financial independence and meet your money goals. It boasts a roster of over 6.9 million members. To date, those members have paid off over $34 billion collectively in debt. And SoFi has originated more than $73 billion in loans.

Banking Products and Services Offered by SoFi

SoFi offers a variety of financial products to meet the needs of the modern consumer.

SoFi Banking

SoFi Checking Account

SoFi Checking is designed to help you handle everyday transactions with ease. It skips the monthly maintenance fees, pays an APY of 0.50% on all balances and lets you earn up to 15% cashback on debit card purchases. Plus, you get the benefit of receiving your paychecks up to two days sooner with early direct deposit and access to a large ATM network. When you enroll in direct deposit, you will also get a bonus of up to $300.

SoFi High Yield Savings Account

SoFi High Yield Savings pays a competitive APY of 4.60%, so you can grow your money and meet financial goals sooner. Unlike many comparable accounts at traditional banks and credit unions, a minimum daily balance isn’t required to earn the maximum APY. And you won’t have to do any legwork to get started since the account automatically opens to complement the checking account when you sign up to become a SoFi member.

SoFi Credit Cards

There’s a lot to love about the SoFi Unlimited 2% Credit Card. You’ll earn 2% cashback on everyday purchases or 3% on trips booked through SoFi Travel that can be applied to SoFi Invest or SoFi Loans. The card also comes with up to $1,000 in cell phone insurance, and there is no annual fee.

SoFi Loans

Personal Loans

You can borrow between $5,000 and $100,000 to meet your short-term or long-term funding needs with a SoFi personal loan. Rates are fixed, giving you a predictable monthly payment over a set period, and there are no loan origination fees. Some loans are funded as soon as the same business day.

Mortgage Loans

Home loans from SoFi are also available to help you purchase the home of your dreams. Or you can refinance to lower your monthly payment, get a better interest rate, change your loan term or pull equity from your home. Both conventional and government-backed solutions are featured in SoFi’s arsenal of mortgage products.

Auto Loan Refinance

If your auto loan payments are stretching your budget thin, you can also refinance with Lantern by SoFi to potentially make them more affordable. Or you can refinance to get a lower interest rate and pay your loan off sooner.

Private Student Loans

SoFi Private Student Loans are an option for college students with unmet financial need. They’re accessible to students on all levels, including undergraduate, graduate, law school and MBA students. Health professions loans and Parent student loans are also available.

Student Loan Refinancing

SoFi’s Student Loan Refinancing options allow you to consolidate your existing student loans into a single loan product, preferably with a lower interest rate. The idea is to make your student loan debt more manageable and possibly save a bundle in interest over the loan term.

SoFi Invest

SoF Invest is worth considering if you’re interested in investing in stocks, ETFs or IPOs. You can also use this tool to establish an IRA. Both automatic investing and active investing options are available, and you could be eligible for a welcome bonus to give yourself a jumpstart.

SoFi Insurance

SoFi Protect partners with Experian to provide you with an insurance comparison tool at your fingertips. You can use it to find affordable auto, homeowners and renters insurance coverage that fits your needs. Or you can secure affordable term life insurance coverage through Ladder.

SoFi Business Solutions

Small business owners also have options with SoFi, including:

• Business accounts: SoFi also offers business checking and savings accounts to help you manage your company’s finances more effectively.
• Business financing: Access the small business financial marketplace to connect with lenders and view financing opportunities to help move your company forward.

SoFi Membership and Benefits

When you join SoFi, you unlock the door to various perks. Members can access financial and estate planning, exclusive member experiences and a referral program. There are also SoFi member rewards, SoFi Travel, and a host of other benefits.

Advantages of Choosing SoFi Bank

• Several banking, lending and financial products and services
• No monthly maintenance fees
• No minimum balance requirements
• Direct deposit bonus of up to $300
• Overdraft coverage of up to $50
• Impressive APY on High Yield Savings
• Tailored investment solutions
• Extensive ATM network
• Earn cashback rewards at select retailers
• 24/7 online virtual chat support

Disadvantages of SoFi Bank

• Lack of physical branches
• Limited phone support hours

Comparing SoFi Bank to Traditional and Other Online Banks

A quick comparison of SoFi to traditional financial institutions and online banks demonstrates why it stands out amongst the competition.

Interest Rates

SoFi Bank offers competitive rates on its checking and savings accounts, often higher than those found at traditional banks.

User Experience

Members enjoy a streamlined user experience through the website and mobile app. So, you can manage your money 24/7 at home or while on the go.

Customer Service

Although support isn’t available at physical branches, SoFi doesn’t skimp on customer service. Personalized support is available by phone or through the online chat tool.

How to Open an Account with SoFi

Opening an account is relatively straightforward and can be completed online. Here’s an overview of what to expect.

Required Information and Documentation

You’ll need the following handy when you apply for an account:

• Personal identification: driver’s license, state-issued identification card or passport, along with your Social Security number
• Contact information: physical address, email address and phone number
• Funding account: routing and account number to make your initial deposit

Step-by-Step Process

Once you’ve gathered the information you’ll need to open an account, below are the next steps:

• Step 1: Visit the website and select the account type.
• Step 2: Create your login by entering your first and last name, state of residence, email address and preferred password.
• Step 3: Complete and submit the online application for review and approval.
• Step 4: Start using your SoFi bank accounts.

Should You Bank with SoFi?

It depends on your unique needs, personal preferences and what you’re looking for in a bank account. SoFi does offer competitive interest rates and skips the fees on its banking products. Plus, other financial solutions are readily available to help you meet your money goals. And the sign-up bonuses are also quite generous compared to what you’ll find with most traditional banks.

Still, you must consider the accessibility of support when you need it. You can reach out 24/7 for assistance, but the absence of physical branches could be a deal-breaker if you prefer a personal touch. There’s also the inconvenience posed by how cash deposits are accepted. The upside is deposits are insured by up to an additional $2 million, compared to the standard $250,000 in backing with most deposit accounts at traditional banks and credit unions.

These factors should all be considered to determine if SoFi is a good fit for your banking needs.

How to Start Banking with SoFi

Visit the SoFi website and select “Get Started.” You’ll be presented with product options and can select “Banking” to move forward with opening a checking and savings account.

FAQs About SoFi