SoFi's savings account offers competitive interest rates and no monthly fees, but whether it's right for you depends on what you need from a savings account

SoFi (Social Finance) is an online bank, meaning it has no physical branches — you do everything through an app or website. Their savings account pays interest on the money you deposit, charges no monthly maintenance fee, and requires no minimum balance to open or keep the account. The interest rate changes over time based on what the Federal Reserve does with interest rates across the economy.

The main trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. If you prefer handling money face-to-face or need to deposit cash regularly, a traditional bank with branches might suit you better. If you're comfortable with online banking and want a straightforward savings account without fees, SoFi is worth considering.

Key Takeaways

  • SoFi's savings account has no monthly fees and no minimum balance requirement, which means you won't lose money to account charges.
  • The interest rate SoFi pays on savings changes regularly and is currently competitive, but you should check the current rate before opening because it may have shifted since this was written.
  • You cannot deposit cash at a SoFi branch because SoFi is entirely online — all deposits happen through transfers from another bank account or mobile check deposit.
  • SoFi customers can use ATMs at a network of partner banks and ATM operators, but not every ATM in the country accepts SoFi cards.
  • If you already bank with SoFi for checking or loans, adding a savings account is straightforward because your accounts link automatically.

How the interest rate works and what it means for your money

When you put money in a SoFi savings account, the bank pays you interest — a small percentage of your balance each month. That percentage is called the annual percentage yield, or APY. The higher the APY, the more interest you earn. SoFi's APY changes when the Federal Reserve changes its interest rates, which happens several times a year.

The interest compounds daily, which means you earn interest on your interest. If you deposit $1,000 and earn $5 in interest one month, the next month you earn interest on $1,005. Over time, this compounds into real money — but only if you leave the money untouched. Withdrawing money reduces your balance and the interest you earn.

To know whether SoFi's current rate is competitive, compare it to other online banks' rates on the day you're deciding. Rates shift constantly, so a rate that was excellent three months ago might be average today. Check SoFi's website and at least two other online banks' websites side by side.

Fees and what they cost you

SoFi charges no monthly maintenance fee for the savings account itself. You won't pay for inactivity, for having a low balance, or for closing the account. This is different from many traditional banks, which charge $5 to $15 per month if your balance drops below a certain amount.

You may pay fees in other situations: if you overdraft your checking account (spend more than you have), if you use an ATM outside SoFi's network, or if you wire money. SoFi reimburses out-of-network ATM fees, so you won't pay to withdraw cash at most ATMs — but check SoFi's current ATM network before opening an account to make sure there are machines near you.

How to deposit and withdraw money

Because SoFi has no physical branches, you cannot walk in and deposit cash. Instead, you transfer money from another bank account you own — usually a checking account at another bank. You can also deposit checks by taking a photo with the SoFi app (called mobile check deposit). Both processes take one to three business days.

To withdraw money, you transfer it back to your other bank account, which also takes one to three business days. If you need cash when ready, you can use an ATM. SoFi reimburses out-of-network ATM fees, so you won't pay to withdraw from most ATMs, but the withdrawal itself is when ready while transfers take a few days.

If you receive cash as payment and need to deposit it, you'll have to go to another bank first to deposit it into a checking account, then transfer it to SoFi. This is the main inconvenience of online-only banking.

SoFi savings versus other online banks

SoFi competes with other online banks like Marcus, Ally, and Discover. All of them offer no monthly fees and competitive interest rates. The differences are small: some have slightly higher rates, some have better customer service reputations, some have more features like automatic savings tools.

If you already use SoFi for checking or have a SoFi loan, adding a savings account is convenient because everything links in one app. You can see all your accounts together and move money between them when ready. If you don't already bank with SoFi, the choice between SoFi and another online bank comes down to which rate is highest on the day you open, and which app you prefer to use.

When SoFi savings makes sense for you

A SoFi savings account works well if you want to set money aside and earn interest without paying monthly fees. It's useful for an emergency fund (money you keep for unexpected expenses), a down payment fund, or any goal where you're saving over months or years. The lack of fees means more of your money stays in the account.

It's less useful if you need to deposit cash regularly, prefer talking to a person in a branch, or want to keep all your banking at one institution with physical locations. It's also not the right tool if you need the money in a few days — savings accounts are meant for money you're not spending soon, and transfers take time.

What happens if SoFi changes or closes your account

SoFi can change the interest rate at any time, and it will — rates move with the economy. You'll receive notice before major changes. SoFi can also close your account if you violate their terms (for example, by committing fraud), but they cannot close it without warning and they must return your money.

Your money in a SoFi savings account is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. This means if SoFi fails as a bank, the government guarantees you'll get your money back up to that limit. For most people, this is more than enough protection.

Frequently Asked Questions

Can I use a SoFi savings account without a SoFi checking account?

Yes. You can open just a savings account. You'll need another bank account somewhere to transfer money in and out, but that account can be at any bank. Many people use SoFi savings with a checking account at a different bank.

How long does it take to transfer money into or out of SoFi savings?

Transfers between SoFi and another bank take one to three business days. If you need cash when ready, use an ATM — that's when ready. Transfers are slower because they go through the banking system, not because SoFi is slow.

What's the difference between SoFi savings and a money market account?

A money market account usually pays slightly higher interest but may require a larger minimum balance and limit how many withdrawals you can make per month. SoFi savings has no minimum and no withdrawal limits. For most people, savings is simpler.

Does SoFi offer any tools to help me save automatically?

SoFi offers automatic transfer features where you can move money from checking to savings on a schedule you set. This helps you build savings without thinking about it. Check their app to see current features, as they change over time.

Is my money safe in a SoFi savings account?

Yes. SoFi is FDIC-insured up to $250,000, which means the federal government guarantees your money if the bank fails. Your money is as safe as it would be in any traditional bank's savings account.