If you have seen television or digital commercials over the last couple years, there is a good chance you have seen at least one message from SoFi, which is short for Social Finance, Inc.
Though competitors have popped up, SoFi has established itself as a champion in the location-free virtual banking sector. The company offers standard cash management services, active and managed investing, all types of loans, financial training and much more from its web and mobile platforms.
The following is an overview of the primary benefits of banking and investing with SoFi!
Complete Financial Management in One Place
All of your money needs in one place is central to SoFi’s value. You have basic “money” management, checking and debit, savings (create your own “Vaults” to set aside money for various needs), Active or Managed Investing options, and all types of loans (personal, student, mortgage and more). Invest in stocks, ETFs and Crypto. SoFi Protect also offers standard insurance products through a partner network.
No Account Fees
One of my favorite things about SoFi Money is that it doesn’t charge any standard account fees. It can do this because, as a virtual bank, it doesn’t have the expense of branch locations and frontline employees. You pay no monthly fees and there is no charge for those pesky insufficient funds (NSF) occurrences, which is great if you aren’t the best at tracking your spending. It simply returns the item unpaid.
Send and Receive Money from Connections
You can send money to connections easily as well. This feature is very handy if you and a spouse have your own accounts, or if you have other family members that you want to link to. Transfers to connections appear almost immediately in the recipient’s account.
Elite Interest Rates on Cash, Savings and Loan Accounts
Top interest rates is another compelling advantage of SoFi’s low-cost banking structure. Very few banks currently offer interest on basic checking and savings accounts (due to historically low Federal Funds rates). SoFi is among the few. As of today, your Money account generates 0.26% interest. However, when federal interest rates were a bit higher two years ago, that rate was around 2%. Members also receive discounts on all standard loan rates. You can further reduce loan rates when you set up automatic payments.
Top Rewards Program
SoFi recently strengthened its rewards program, and it is now far and away the best one that I have come across. You earn points for various engagement activities, which you can redeem for cash (payable to your Money or loan accounts, or to an external account).
Here are some of the many ways in which you earn points:
- Daily logins and login streaks to the app or website
- Debit card purchases
- Recurring direct deposits
- Program enrollments
- Loan rate inquiries
Conclusions and Recommendations
The breadth of financial products and versatility of its virtual platforms makes SoFi a compelling banking option for many people. Some might want the convenience of an all-in-one financial platform to manage cash, savings, investing and loans. For others, SoFi provides a nice additional banking tool for spending that earns you top-tier cash rewards.
Disclosure: I am a member of SoFi, have used several of its products, and receive a referral bonus if you join SoFi from a link in this post. However, all opinions are honest and my own. I only share the benefits of products and services that I believe in.