Savings

Sofi High Yield Savings Account

SoFi is an online personal finance company that offers various financial services, including student loan refinancing, mortgages, personal loans, investing, and banking. Their high yield savings account is one of their newer offerings that competes with other online banks and fintechs.

The SoFi high yield savings account offers a competitive interest rate with no fees or minimum balance requirements. It’s an FDIC insured account that aims to provide a high yield on savings without any of the traditional costs or barriers of entry. SoFi targets younger professionals and modern savers who want an easy, digital banking experience with strong interest earnings.

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The account can be opened online in minutes and managed via SoFi’s mobile app and website. It’s designed for saving money and earning passive interest. While SoFi doesn’t offer checking accounts or ATM access, the savings account provides a solid foundational banking product for those seeking limited services. Its main value proposition is the rate and ease-of-use.

What Is A High-Yield Savings Account? 

Well, simply put, it’s a savings account with a higher interest rate than your average savings account. That means more money in your pocket without doing much other than depositing and watching it grow. There are savings accounts at certain banks with pitiful APYs. On the other hand, most online banks have high-yield savings accounts with sizable annual percentage yields (APYs) that let you earn more interest.

What Should I Look For In A HYSA?

Now, when it comes to choosing the best high-yield savings account for you, there are plenty to choose from. Some of my personal favorites are in my 2024 free money guide! Download your copy now! 

It’s important to compare interest rates, fees, and account features. It’s like trying to find the perfect pair of jeans – you want something that fits you just right! 

Interest Rates

Compare the rates offered by different banks and choose the one that will give you the biggest bang for your buck.

Fees

No one wants to pay monthly maintenance fees or minimum balance requirements. Look for a savings account with little to no fees to keep more money in your pocket.

Accessibility

Do you prefer a bank with physical branches or are you all about that online banking life? Choose a bank that aligns with your lifestyle and banking preferences.

SoFi HYSA Specs

Interest Rates

Sofi offers a competitive interest rate on its high-yield savings account. The current APY (annual percentage yield) is 2.05%, which is among the higher rates available from online banks and fintech platforms.

This APY compares very favorably to the average interest rate of just 0.06% at traditional brick-and-mortar banks. Sofi’s rate is also competitive with other top online savings accounts like CIT Bank which offers 2.15% APY and Marcus by Goldman Sachs which offers 2.15% APY.

One advantage of Sofi is that interest compounds daily and is credited to your account monthly. This allows your deposits to start earning interest right away instead of waiting until the end of the monthly statement cycle. The daily compounding can help your savings grow faster compared to accounts that compound interest monthly or quarterly.

Fees

Opening and maintaining a Sofi High Yield Savings account is free – there are no monthly service fees or minimum balance requirements. This makes Sofi a great option for those looking to open a high yield savings account without any hidden costs.

The account can be opened with any amount, and there are no fees to maintain a $0 balance. There are also no excess activity fees for transactions like withdrawals, deposits, or transfers. Customers can use their savings account as often as needed without incurring extra charges.

Sofi does not charge fees for standard transactions and services like:
  • Incoming or outgoing ACH transfers
  • Incoming wires
  • ATM withdrawals (if using Sofi’s partner ATMs)
  • Debit card transactions
  • Online bill pay
  • Mobile check deposit

Accessibility

The Sofi High Yield Saving Account is accessible in a few different ways.

Sofi offers convenient access to your funds through several methods. There are no limits on withdrawals or transfers from your Sofi Money account. You can initiate an electronic transfer to an external bank account that will typically post in 1-3 business days. Sofi also provides a debit card that can be used to make purchases anywhere Visa is accepted, as well as withdraw cash from over 55,000 ATMs in the Allpoint network with no fees.

Compared to some competitors, Sofi offers relatively quick and easy access to money in your high yield savings account. For example, Marcus by Goldman Sachs limits you to just 6 free withdrawals or transfers per month from savings accounts. Going beyond this limit incurs a fee of $25 per transaction. Marcus also does not offer any debit card or ATM access for its savings accounts. You would need to first transfer funds to an external bank account before having access via debit card or ATM.

So in terms of accessibility, Sofi provides fast transfers and debit card/ATM access that makes it easy to get money when needed from a high yield savings account. The lack of withdrawal or transfer limits is also appealing compared to some other options.

Available Account Types

Sofi offers individual and joint accounts. Individual accounts can be opened by one person, while joint accounts allow two people to share the account. This can be useful for couples or family members who want to save money together.

Minimum Opening Deposit

To open a Sofi High Yield Saving Account, you’ll need an initial deposit of at least $1. There is no minimum balance required after opening the account.

Linking External Accounts

One convenient feature of Sofi is the ability to link external bank accounts. You can link checking and savings accounts from other banks to your Sofi account. This makes transferring money back and forth very simple. Just link your external accounts during the Sofi account opening process or anytime after.

Transactions

Sofi offers convenient ways to deposit and withdraw money from your High Yield Savings account. There are no monthly withdrawal limits, allowing you to access your funds whenever needed.

  • Deposit and withdrawal limits: There are no limits on the dollar amount you can deposit or withdraw at any time. Sofi does not impose any monthly withdrawal limits.
  • Transaction processing times: Deposits made electronically before 5:00 PM PT on a business day are credited the same day. Withdrawals made electronically are usually processed within 1-3 business days.
  • ATM access: Sofi does not offer ATM access for High Yield Savings accounts. You cannot withdraw cash from ATMs using your Sofi debit card. However, you can easily transfer funds electronically to a checking account at another bank and access cash that way.

Additional Features

Sofi offers a few additional features that help set it apart from other high-yield savings accounts.

Overdraft Protection

Sofi allows you to link your Sofi checking account to your Sofi savings account to provide overdraft protection. If you overdraw your checking account, Sofi will automatically transfer money from your savings account to cover the difference. This can help you avoid expensive overdraft fees from your bank.

Joint Accounts

You can open a joint Sofi savings account with another person. This makes it easy for couples, family members, or friends to share a high-yield savings account. Both account holders will have full access to the account.

Beneficiaries

When opening your Sofi savings account, you have the option to designate beneficiaries. These are individuals who will inherit the money in your account if you pass away. Having beneficiaries set up on your account ensures your savings will go to your desired recipients and avoids the account getting tied up in probate after your death.

Mobile App

Sofi’s mobile app makes it easy and convenient to manage your high yield savings account on the go. The app is available for both iOS and Android devices.

The app provides access to all the key features of your Sofi savings account. You can view your account balance and transaction history, transfer funds between Sofi accounts, deposit checks, and make external transfers. One handy feature is the ability to temporarily disable your debit card right from the app if it goes missing.

The interface is clean, simple, and intuitive. The app uses fingerprint login or facial recognition for quick secure access. All the main tabs are conveniently located at the bottom for easy navigation.

In terms of usability, the Sofi app has received positive reviews from users.

Some key positives highlighted in user reviews include the simple and intuitive interface, fast functionality, fingerprint login, useful notifications and alerts, and great customer support if any issues arise. Users mention the app makes it very simple to transfer money, deposit checks, check balances, and manage their account. One area some users felt could be improved is adding more detailed transaction information.

Overall, the Sofi mobile app offers a seamless experience for managing your high yield savings account on your phone or tablet. The highly rated app provides convenient access to all the key account features you need in an intuitive and user-friendly interface.

Photo by Bankrate

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Security

Sofi High Yield Savings Account offers robust security features to protect your money.

  • FDIC Insurance: Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. This protects against losses if Sofi were to fail.
  • Fraud Protection: Sofi employs advanced fraud monitoring to detect suspicious activity. They use multi-factor authentication and alerts to verify your identity for sensitive account actions.
  • Encryption: Information is encrypted in transit and at rest. This prevents unauthorized parties from accessing your financial data.
  • Passwords: You can enable strong password requirements and two-factor authentication for added security.
  • Activity Monitoring: Sofi immediately notifies you of any password changes, withdrawals, or other critical activity in your account.
  • Security Guarantee: Sofi promises to fully reimburse you for any unauthorized transactions subject to timely reporting.

Overall, Sofi prioritizes state-of-the-art security to keep your money and information safe. The FDIC insurance, fraud monitoring, encryption, and other protections should give you peace of mind.

How Sofi Compares to other HYSA

Ease of Opening an Account

Opening a high yield savings account with Sofi is a smooth and straightforward process that can be completed entirely online. The application process is simple, requiring just basic personal and employment information as well as linking an external bank account. Sofi advertises that new accounts can be opened in as little as 5 minutes.

The account opening process with competitors like Marcus and Ally Bank is similarly easy and fast. All allow opening accounts online without needing to visit a branch. Marcus claims new accounts can be opened in 5-8 minutes, while Ally also touts a quick 5 minute process.

Sofi has the benefit of not requiring a minimum deposit to open an account, while Marcus and Ally Bank both require a relatively low $100 minimum deposit. All three banks allow funding new accounts via electronic transfer from an external bank account.

Overall, Sofi, Marcus and Ally Bank make it quick and convenient to open a high yield savings account completely online. The application process is straightforward with only basic personal information required, no minimum deposit for Sofi, and funding available via external bank transfer. Opening an account can be done in as little as 5 minutes with any of these top providers.

Who Would Benefit Most from Sofi?

SoFi’s high yield savings account is best suited for certain types of customers who can maximize its benefits.

Those Seeking Higher Interest Rates

SoFi offers interest rates that are consistently among the highest available, so they appeal to savers wanting to earn as much as possible on their deposits. SoFi’s lack of fees also helps customers earn higher returns.

Tech-Savvy Customers

SoFi operates primarily online without physical branches. Their digital account management and seamless user experience cater to tech-savvy customers who value digital banking convenience.

Frequent Travelers

Since SoFi offers nationwide ATM access, their accounts provide good access to funds for frequent travelers who need to withdraw money wherever they are.

Not Ideal for Those Wanting Extras

Sofi’s accounts lack some of the extra features that competitors offer, like checking accounts or extensive budgeting tools. So it may not be the best fit for those wanting an all-in-one banking provider.

Prefer Physical Branches? Choose a Bank

Customers who want the option to do in-person banking should look to traditional banks with local branches instead of online-only.

Pros and Cons

  • High APY: SoFi offers a very competitive APY compared to other high yield savings accounts. The APY is currently 4.50%, which is much higher than traditional savings accounts.
  • No fees: There are no monthly fees or minimum balance requirements.
  • Easy online access: You can manage your SoFi savings completely online.
  • FDIC insured: Deposits are insured up to $250,000 per depositor through the FDIC.
  • Limited accessibility: There are no physical branch locations for in-person banking.
  • Limited account options – Beyond the high yield savings account, SoFi does not offer other account types like CDs or money market accounts.
  • Can’t deposit cash: Since there are no physical branches, you cannot make cash deposits into a SoFi savings account.
Disclosure: This post may contain affiliate links, meaning we receive a commission for purchases made through these links, at no cost to you.

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