SoFi Checking and Savings Review [2024]: Why This Combo Is My Favorite Banking Solution

SoFi Checking and Savings basics

What is SoFi®?

SoFi®, short for Social Finance, is an online personal finance company that offers a range of products, including checking and savings accounts, credit cards, loans, and investment options.

Founded in 2011, SoFi® has quickly gained popularity among millennials for its user-friendly mobile app and competitive lending and APY rates. This is a part of why I personally like SoFi® and the banking service it offers. SoFi® provides me with a seamless digital banking experience that sets it apart from traditional banks like Wells Fargo and Bank of America and makes it easy to stay on top of my finances.

Who is SoFi® best for?

SoFi Checking and Savings is an excellent choice for anyone who is comfortable with online and mobile banking and wants to earn a high APY on their savings. ¹ It's particularly a great fit for those who receive direct deposits, which are required to earn the higher APY tier.

As someone with a remote day job and a weekend side hustle, I find SoFi® to be a great fit for my needs. With multiple income streams and a variable schedule, I appreciate the flexibility that SoFi®'s online platform provides. I can easily manage my finances from anywhere without having to worry about making it to a physical branch during business hours. While many institutions today offer online banking, I’ve found SoFi®’s online experience one of the most streamlined among the many dozens of bank accounts I personally tried.

The lack of monthly fees and the early paycheck feature also make it an attractive option for those who want to avoid traditional banking fees and have more control over their cash flow. For example, I love being able to access my paycheck a couple of days early. It gives me a little extra breathing room and allows me to put money toward investing or paying bills sooner.

Who should skip?

If you prefer in-person banking or frequently need to deposit cash, SoFi® might not be the best fit for you. As an online-only bank, SoFi® doesn't have any physical branches, which could be a drawback for some.

I have a few friends who are hesitant to make the switch to online banking. They enjoy the face-to-face interaction and the ability to physically hand their money to a teller. For them, the convenience of online banking doesn't outweigh the comfort of a traditional brick-and-mortar bank like Wells Fargo or Chase.

Additionally, if you deal with a lot of cash transactions, such as tips or cash payments, you'll need to find a participating retailer and pay a fee of up to $4.95 for each deposit. In my experience, some retailers limit deposits to $500 per transaction, so to deposit $2,000, I had to pay nearly $20 in fees. This is why I no longer use SoFi® for cash deposits and instead keep an account with my local Chase branch.

Here's a closer look at SoFi®'s top banking benefits

A competitive APY that helps grow your money

SoFi® offers an impressive APY of up to 4.60%⁵ on your savings account balance when you set up direct deposit. That's over 10 times the national average of 0.45% (as of 7/22/24)⁸.

To put this in perspective, if you have $10,000 in your savings account and meet the direct deposit requirement, you could earn $460 in interest over the course of a year. That's a significant chunk of change just for keeping your money in the right place.

Early paycheck access

SoFi®'s early paycheck feature² has been quite useful for me. With direct deposit, I get paid up to two days earlier than with my old bank. This means I have more flexibility when it comes to paying bills, investing, or treating myself to a nice dinner.

For example, let's say your rent is due on the 1st of the month, but your paycheck usually doesn't hit your account until the 2nd. With SoFi®, you could get paid on the 31st instead, giving you a bit of breathing room and helping you avoid any late fees.

No monthly fees or minimum balance requirements

One of the biggest perks of SoFi Checking and Savings is the lack of monthly maintenance fees. You won't pay a dime just to keep your account open, regardless of your balance.³

This is a big deal, especially when compared to traditional banks that often charge $10 or more per month if you don't meet certain balance requirements. Over the course of a year, that could add up to $120 or more in savings.

A large ATM network for easy cash access

While SoFi® doesn't have any physical branches, it does offer access to a large network of over 55,000 ATMs nationwide⁶. This means you can easily withdraw cash when you need it without paying any fees.

I've used SoFi®'s ATM locator tool in the app to find fee-free ATMs near me, whether I'm at home or traveling. It's a convenient way to access my money without worrying about racking up fees.

Vaults to streamline savings

SoFi®'s Vaults feature allows you to set up separate savings buckets within your account for different goals that still earn the same high APY rate. For example, you could create a Vault for your emergency fund, another for a down payment on a house, and a third for a dream vacation.

I currently have Vaults set up for my side hustle taxes and a Europe trip. By automatically routing a portion of my direct deposits into these Vaults, I'm able to save for my goals without even thinking about it.

Drawbacks: Why you may want a different bank

No physical branches for in-person services

As an online-only bank, SoFi® doesn't have any physical branches. This means you won't be able to walk into a local branch to deposit cash, get a cashier's check, or speak with a banker face-to-face.

For some people, this lack of in-person service can be a dealbreaker. If you frequently need to deposit cash or value the ability to talk to someone in person about your account, you may want to consider a bank with local branches instead. You can explore our list of the best brick-and-morter banks or best credit unions.

Some perks require direct deposit

To unlock SoFi®'s best features, like the up to 4.60% APY⁵ and early paycheck access, you'll need to set up direct deposit. If you're self-employed or don't have a steady paycheck, this could be a challenge.

While you can still earn 1.20% (as of 07/01/24) APY on your savings without direct deposit, you won't be able to take advantage of some of SoFi®'s most attractive benefits.

Limited overdraft coverage

SoFi® does offer free overdraft coverage, but it's limited to $50 and only available to members with at least $1,000 in monthly direct deposits.⁴ Some other online banks, like Chime, offer a higher overdraft limit or don't require direct deposit to qualify.

Other SoFi® products

SoFi® offers a variety of other financial products, including:

SoFi® alternatives

If SoFi®'s online-only platform and lack of physical branches don't quite meet your banking needs, these alternatives offer solutions that might be a better fit for you.

U.S. Bank

U.S. Bank could be a great choice if you value the ability to visit a physical branch for your banking needs. With locations in 25 states, U.S. Bank provides the in-person service that SoFi® lacks. I have friends who bank with U.S. Bank and appreciate the peace of mind that comes with being able to talk face-to-face with a banker when they have questions or issues.

While U.S. Bank does have a monthly maintenance fee of $6.95, this can be waived if you meet certain requirements⁹, such as maintaining a minimum balance or having recurring direct deposits. Additionally, their Overdraft Fee Forgiven program is a nice safety net, allowing you to avoid an overdraft fee if you're overdrawn by more than $50.¹⁰ As someone who has accidentally overdrawn my account before, I know firsthand how helpful this kind of forgiveness can be.

Learn more in our U.S. Bank review.

Discover

If you're comfortable with online banking but want to earn rewards on your checking account purchases, Discover's checking account is worth considering. Unlike SoFi®, Discover offers 1.00% cash back on up to $3,000 in debit card purchases each month. As a frequent debit card user, I love the idea of earning cash back on my everyday purchases. It's like getting a little bonus every month just for using my checking account.

Discover also shares some of SoFi®'s most appealing features, such as no monthly fees or minimum balance requirements. This makes it a great option for those who want the convenience of online banking without the costs often associated with traditional bank accounts.

Learn more in our Discover review.

SoFi Checking and Savings FAQ

SoFi Checking and Savings: bottom line

If you're like me and prefer the convenience of online banking, SoFi Checking and Savings can be a great fit for your banking needs. The high-yield savings account and early paycheck access are two of several great perks, and I love not having to worry about monthly fees.

Just keep in mind that to get the most out of SoFi®, you'll want to set up direct deposit. It's the key to unlocking perks like the highest APY tier, overdraft protection, and getting your hands on your hard-earned cash a little earlier.

But if you value face-to-face banking or don't want to go through the direct deposit hoop, SoFi® might not be the perfect match. In that case, I'd suggest checking out our roundups of the best banks, best checking accounts, and best savings accounts to find an option that better suits your needs.

Learn More

High APY of up to 4.60%⁵ with direct deposit

Paycheck access up to 2 days early

No monthly maintenance or overdraft fees³

Streamlined savings and savings goals with Vaults

Access to a large ATM network⁶