SoFi is a mobile bank that facilitates people in many aspects. It was started in 2011 with an aim to help people with money and the purpose was to remain successful. It has helped millions of people in terms of providing loans worth $50 million (approx) and also other services in the same manner. Find a full SoFi Bank Analysis here!
SoFi is best known for taking care of its staff and management and so does its users. It is more like a friendly online bank that helps you whenever you find yourself in turbulence.
It is also a housing lender for those who seek funds to make their homes.
Also, it is registered with SEC with the name SoFi Wealth, LLC and the funds in it are FDIC approved.
A SoFi Bank Analysis quick gist:
- Products for saving, spending, and investing
- Mobile deposits
- Financial and estate planning
- Career counseling
- Loans available
- Free signup
- No monthly fees
- Overdraft protection
- Cash deposits and withdrawals
- Credit score and budgeting assistance
- Access to thousands of fee-free ATMs
Pros and cons
A short overview of what things are better and what you might feel dissatisfactory about SoFi:
Pros
- Access the Allpoint ATM network
- Get up to $100 for meeting specific requirements
- 0.25% APY when you make monthly deposits of at least $500
- Cashback offers
- Debit card to withdraw money using ATMs
- Very few fees
- Access to a mobile app
Cons
- No phone support around the clock
- No branches
- No CDs
Fees
- No overdraft fees
- No inactivity fee
- Third-party ATM fees (varies)
- No minimum balances
- $4.95 for a cash deposit at Green Dot locations
- No setup fee
- No monthly fees
Who can apply for a SoFi account?
In order to open a SoFi account, users need to be eligible for that. Here are a few things that is important to keep in while during account opening.
- The minimum age should be 18 years
- The user needs to be a permanent citizen of the USA
- Social Security Number (SSN) is a must
- Also, the user should have a full physical address too.
Also, you should have internet access to start doing the application process online as there is no physical branch available for that.
How to open a SoFi account
In order to open a SoFi account: Go to the official website of SoFi and then choose from the products. There are numerous products that SoFi offer. Below is the list to choose from.
- Home loans
- Auto loan refinancing
- Private student loans
- Student loan refinancing
- Insurance
- Credit card
- Personal loans
- Invest
- Money
- Credit score & budgeting
After the selection, you need to enter your full name and then your email ID and state. Then, you will be asked to create the password. Also, your SSN is must having while making the account.
Continue to follow the steps that are specified for different products.
SoFi Accounts
Invest (free)
- Trade ETFs, stocks, crypto
- Save for retirement
- Buy fractional shares
- No trading commissions
- Start with as little as $5
- Automate your investing
Credit Card
- Easy to apply
- Credits for Lyft and DoorDash
- Lower APR after 12 monthly on-time payments
- Turn points into crypto
- No annual fee
- 2% unlimited cashback
Insurance/Protect
- Renters’ insurance as low as $5/month
- Homeowners’ coverage from $25/month
- Policies for auto, life, homeowners, renters
- Work with SoFi insurance partners
- Access multiple auto insurance quotes
- Life insurance coverage from $100,000 to $8,000,000
- Free will draft
Personal Loans
- Fixed rates from 5.99% to 18.85%
- No late fees
- No prepayment fees
- No origination fees
- Borrow up to $100k
- Pause payments on unemployment
- Easy to apply
With the help of SoFi, you can do many things due to its vast variety of products: Loan, investing, saving, etc. It helps in buying a home, paying for school/college fees and others with utmost ease. Along with it, it can also help in earning a few interests on the principle amount you have in your SoFi account.
Also, with the help of SoFi credit card you can buy things at comparatively less fee charges. It is significant in taking loan as well. The loan process here is quite easy and requires comparatively less amount to be paid as charges.
How to add funds to a SoFi account
With its online functionality, it has allowed users to get the funds added using a check, or cash, and direct deposit. Here’s the description of each one in detail.
Connecting your bank account
With the help of bank account, you can easily get your direct deposited done. For that, you need to first link your bank account and then follow the process: go to the app, move down to the bottom. Click on the ‘Add money’ and then enter the amount you wish to send.
Further, you can reschedule the frequency of direct deposits as per your ease.
In addition to it, your linked bank account is automatically chosen for the purpose. If in case you do not have bank account; it’s better to first add the bank account and then accordingly continue with the process of direct depositing.
Depositing checks
Cash app lets you deposit money via two ways: Checks and Cash. First in this section, we would be talking about check deposits.
In order to deposit checks, the first criterion is to have $500 in the SoFi’s account. Once you have fulfilled it, the second you need to open the app and tap on the ‘Direct Deposit’ option from there.
Additionally, when the check is about to submit on SoFi, you need to write “For electronic deposit at SoFi Money Only.” Then, write your signature on back side of the check and take a picture of your check.
Take clear photo of your check and also do not throw your physical check once it is submitted; it might be useful for further actions in case your check is being denied.
Depositing cash
SoFi works best for the purpose of depositing cash like check deposits. Obviously, the process would be different as from check deposits. The primary requirement to deposit cash in your SoFi account is that you should have MasterCard associated with SoFi account.
After that, you need a retailer who can deposit the cash on behalf of you. For that, simply open your SoFi application; choose ‘More’ on the homepage. Then, go to “Manage Account” and click on the ‘Deposit Cash’: this will help to find the retails nearby to you.
Saving with SoFi
SoFi is a saving as well as current account that is helpful when it comes to saving money in terms of interests you get from it.
Also, because of it being saving account, it does not charge any fee for the services and provide the interests on the funds you’re having.
Despite it, SoFi keeps organizing programs for the new users in which if you deposit a certain amount into your SoFi bank account, you might earn about $100 as a bonus.
It also helps categorizing the funds from savings and daily expenditure. This is something best for the money management purpose.
Traveling with SoFi
The only app that does not let your travelling stop because of funds, it is SoFi. This online-only bank is so best that it could be used anywhere in the world with its debit card like others. The card is permitted in all ATMs of the world; however, with fee charges, obviously.
Also, before moving outsider or travelling for long, you need to inform SoFi, at first. By doing so, it will help reduce the chance of raising the flags of suspicion by the SoFi.
Even, if you are planning to go outside and don’t have money for that, don’t worry at all as SoFi can be useful in such situation because of its travel loan feature. This kind of facility is rare to find; however, you can get it on the SoFi only.
Member Rewards
To maintain the users’ engagement, it is quite important to keep offering things that lure them. This is what SoFi does for its own benefit. Although, it seems like SoFi is getting benefitted from it, there is no doubt a lot of people are also creating money out of it.
For an instance, SoFi provides points on different usage of your SoFi account. Like on: Spend, Check your credit, Get a paycheck on SoFi and saving money, etc. This is how the SoFi provides points on using one or all of the services. These points can further be converted into money or can be used in other services wherever it is used.
Also, these points can be used for loan and investment purposes, although the impact is little.
Referral Program
Along with other benefits, SoFi can be used to earn a few pennies when used someone’s referral to set up your SoFi account. The referral system is useful in gaining a little bit and the best part is through this system both the parties are going to be benefitted: Either sender or receiver.
Generally, these rewards are obtained in point’s basis which can further be used to change it in cash or for other related benefits: Loan, investment, etc.
The points that an individual gets is worth $10. Also, the maximum reward amount that an individual can get is $10,000. Also, you will receive a form 1099-MISC for bonus/referral income. After receiving the form, you should reach out to the taxes.
Financial Planning
Above all, SoFi takes care of its users and provide them assistance regarding saving, investing money with utmost easy way. It is an additional feature that is rarely found in any financial app.
Through this, a meeting is arranged with a financial expert who will guide you to do fair with your money. It includes: Budget planning, investing, saving money, etc.
Financial planning is something crucial in today’s time at least where everybody is working hard for money either way possible. With the understanding of financial tips, you would achieve rather big than you would have not without this knowledge.
Is my money safe with SoFi?
It’s general and crucial to ask whether your money would be safe with SoFi or not. Before that, it is important to know that SoFi is not insured with FDIC, however, it has SEC protection for the investments which works as a good protector of your fund being theft.
Therefore, we can say that your money is safe and secure with SoFi even after a bad happening.
Who owns SoFi?
Anthony Noto, who is CEO of SoFi, controls the big decisions of SoFi. He’s joined SoFi in 2016 and is one of the Board of Directors who takes crucial decisions for the company.
Along with it, because of higher turnover, SoFi has raised around $4 billion which is owned by the investors: Ron Suber, Silver Lake partners, etc.
Customer Reviews
On a reviewing site called Trustpilot, there is a 3.2 rating out of 5 of SoFi. The rating is further divided into 79% of all reviews. Bad reviews cover 9% and the remaining 12% lies in both means the common rating.
Apart from this, the current rating is difficult to find as per the equal standards.
Major Competitors
Ally
Being an online savings account provider, is also essential for investing purposes. Ally is considered the major competitor of SoFi for a longer time. Due to its like features, it stands equal in the competition field with SoFi.
Along with it, Ally provides the portfolios beneficial for managing the business as well as personals on the SoFi.
Betterment
Betterment is an online option particularly for investing money. It can be used either by phone application or through the official site of Betterment. It has FDIC insurance through its partnered bank. Also, Betterment helps earn up to 0.3 APY on the savings.
Chime
With almost 6 times more members than SoFi, Chime is the biggest competitor that is comparatively big as well. Although Chime is not a digital bank, it is FDIC-approved and provides almost double APY which is 0.5% on it.
Chime is best in the number as well as returns on the purposes of the investment.
At Last!
SoFi can be proved beneficial for you if you are someone who wants to save and invest your money. Also, it has several other features that make it users’ first choice. The App can provide you financial assistance with its team, helps in saving your money, is ideal for both static as well as traveling purposes, etc.
Additionally, you get bonuses relating to saving, investing, and others, which can be converted into real money as well.
SoFi is best regarding loan approval for many purposes: housing loans, education loans, travel loans, etc.
SoFi Bank Analysis: It is the one-stop solution for all your financial-related concerns. Go and get it now either from its site or via downloading its application.