What SoFi's savings account offers and who it works best for

SoFi's savings account is a high yield savings account — meaning it pays interest on the money you deposit — but whether it is good for you depends on what you need from a savings account and how you bank.

The account has no monthly fees, no minimum balance requirement, and no limit on how many withdrawals you can make per month. The interest rate changes with the market, so what SoFi pays today will not be what it pays in six months. You can open the account online in minutes, and your money is insured by the FDIC up to $250,000 — the same protection you get at any bank.

SoFi works best if you already use SoFi for checking or investing, because then you see all your accounts in one place. It also works well if you want to move money in and out frequently without penalty, or if you prefer to bank entirely on your phone. It works less well if you need a physical branch to visit, or if you want to compare rates across many banks before deciding.

Key Takeaways

  • SoFi charges no monthly fee and has no minimum balance, so you can open it and deposit any amount without penalty.
  • The interest rate SoFi pays changes regularly and is not locked in, so you should check the current rate before opening an account.
  • You can withdraw money as often as you want without fees, which is useful if you need to move money between accounts frequently.
  • SoFi has no physical branches, so if you need to deposit cash or speak to someone in person, you will need to use another bank or ATM network.
  • Your deposits are FDIC insured up to $250,000, meaning your money is protected even if SoFi fails.

How SoFi's interest rate compares to other banks

The interest rate SoFi offers on savings changes based on what the Federal Reserve does with interest rates. When the Fed raises rates, SoFi usually raises its rate within days or weeks. When the Fed lowers rates, SoFi lowers its rate too. This means you cannot count on earning the same amount next month that you earn this month.

To know whether SoFi's current rate is competitive, you need to check what other online banks are paying right now. Banks like Marcus, Ally, and American Express all offer high yield savings accounts, and their rates move up and down the same way SoFi's does. The difference between the highest and lowest rates can be small — sometimes less than 0.1% — but on a large balance, even a small difference adds up over a year.

The best way to compare is to visit each bank's website and look at the rate posted on the savings account page. Write down three or four rates, then decide whether SoFi's is in the middle, at the top, or at the bottom. If it is at the bottom, you might earn more elsewhere. If it is at the top or middle, SoFi is competitive.

Fees and account rules you should know

SoFi charges no monthly maintenance fee, no overdraft fee, and no fee to close the account. There is no minimum balance you have to keep in the account, so you can deposit $1 or $10,000 — either way, you pay nothing.

You can move money out of the account as many times as you want per month without penalty. This is different from some savings accounts, which used to limit you to six withdrawals per month. SoFi removed that limit, so you can treat the account more like a checking account if you need to.

One thing to watch: if you deposit cash, you cannot do it directly into SoFi because SoFi has no branches or ATMs where you can deposit. You would need to deposit the cash at another bank first, then transfer it to SoFi. If you receive cash regularly and need to deposit it often, this could be inconvenient.

How to move money in and out of SoFi

You can transfer money into SoFi from another bank account using ACH transfer, which usually takes one to three business days. You provide your other bank's routing number and account number, and SoFi pulls the money over. This is free and works with almost any U.S. bank.

You can also transfer money out the same way — to your checking account, to another savings account, or to pay a bill. Again, it takes one to three business days and costs nothing.

If you need the money faster, some banks offer next-day transfer, but SoFi does not advertise this as a standard feature. For emergencies where you need cash when ready, you would need to use a debit card or ATM, which SoFi provides, but you may face out-of-network fees if you use an ATM that is not in SoFi's network.

Why someone might choose a different bank instead

If you need to deposit cash regularly, a bank with physical branches or a large ATM network might be easier. If you want to speak to someone on the phone and prefer not to use chat or email, SoFi's customer service is online-only, which some people find frustrating.

If you want a savings account that also offers a checking account with a debit card and bill pay all in one place, SoFi does offer both, but you have to open them separately. Some banks bundle these together more seamlessly.

If you are very sensitive to interest rate changes and want to lock in a rate, a high yield savings account is not the right product — you would need a certificate of deposit (CD), which pays a fixed rate for a set time period. SoFi offers CDs too, but a savings account's rate will always move with the market.

What to check before you open an account

Before opening a SoFi savings account, visit SoFi's website and write down the current interest rate. Then visit two or three other banks' websites and write down their rates. Compare them side by side. If SoFi's rate is competitive, and if you like the idea of having everything in one app, it is worth opening.

Check whether you already have a SoFi checking or investing account. If you do, a SoFi savings account will integrate with those accounts, and you can move money between them when ready without waiting for a transfer. This is a real convenience if you use SoFi for other banking.

Read the account agreement on SoFi's website to confirm there are no surprise fees or rules. The agreement is long, but the fee section is usually near the front. If you see anything unclear, SoFi's chat support can answer questions before you open the account.

Frequently Asked Questions

Can I withdraw my money anytime without penalty?

Yes. SoFi has no withdrawal limits or fees, so you can move money out whenever you need it. The transfer takes one to three business days if you are moving it to another bank, but if you are moving it to another SoFi account you own, it is when ready.

What happens if SoFi goes out of business?

Your money up to $250,000 is protected by FDIC insurance, which is a federal may provide. If SoFi fails, the FDIC will pay you back. This protection is the same at every bank, so your money is as safe at SoFi as it is anywhere else.

Is the interest rate locked in or does it change?

The rate changes. SoFi adjusts it based on what the Federal Reserve does with interest rates. You do not lock in a rate with a savings account — if you want a fixed rate, you would open a CD instead.

Can I deposit cash into SoFi?

Not directly. SoFi has no branches or ATMs where you can deposit cash. You would need to deposit cash at another bank first, then transfer it to SoFi electronically. If you handle cash often, this could be inconvenient.

How long does it take to open an account?

You can open a SoFi savings account online in a few minutes. You will need your Social Security number, a government ID, and a bank account to link for your first deposit. The account is ready to use right away, though your first transfer may take a business day or two to arrive.