A SoFi savings account makes sense if you want higher interest rates than traditional banks offer and don't mind banking entirely online
SoFi (Social Finance) is an online bank, which means there are no physical branches. You manage your account through their app or website. The main draw is the interest rate on savings—SoFi's rate is typically higher than what you'll find at big banks like Chase or Bank of America, though it changes with the Federal Reserve's rate decisions. There's no monthly fee, no minimum balance requirement, and no overdraft fees.
The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. If you need those things regularly, a traditional bank or credit union might fit you better. If you're comfortable with digital-only banking and want your money to earn more interest while sitting in savings, SoFi is worth considering.
Key Takeaways
- SoFi savings accounts charge no monthly fees, have no minimum balance, and currently offer interest rates higher than most traditional banks.
- You cannot deposit cash in person or visit a branch—all banking happens through the app or website.
- Your deposits are insured up to $250,000 by the FDIC, the same protection you get at any bank.
- SoFi also offers checking accounts, investment accounts, and loans, so opening a savings account may lead to cross-selling of other products.
- Interest rates change frequently and are not locked in, so the rate you open with today may be lower in six months.
How SoFi's interest rate compares to other banks
The interest rate on a SoFi savings account varies depending on the Federal Reserve's actions and market conditions. When you open an account, you'll see the current rate displayed. That rate is not may provide to stay the same—it can go up or down, and SoFi can change it at any time with notice.
Traditional banks like Chase, Wells Fargo, and Bank of America typically offer much lower rates on savings accounts, often below 0.01%. Online banks like Ally, Marcus, and Discover generally offer rates similar to or slightly higher than SoFi's. The difference between a 4.5% rate and a 0.01% rate is significant: on $10,000, you'd earn roughly $450 per year at 4.5% versus $1 per year at 0.01%. That gap narrows or widens depending on what the Fed does with interest rates.
Before opening, compare SoFi's current rate to rates at other online banks. Rates change frequently, so the best option today might not be the best option in three months. You can always move money between banks if a competitor's rate becomes better.
What happens when you open an account
Opening a SoFi savings account takes about 10 minutes and happens entirely online. You'll need your Social Security number, a government-issued ID, your address, and a way to fund the account (a bank account to transfer from, or a debit card). SoFi will verify your identity and run a soft credit check, which does not affect your credit score.
Once approved, you can transfer money in from another bank account using ACH (Automated Clearing House), which typically takes one to three business days. You can also set up automatic transfers from your paycheck or another account. Money you deposit is insured by the FDIC up to $250,000, the same protection you get at any bank.
SoFi will likely show you offers for their checking account, investment account, or personal loans during or after signup. You do not have to open any of these to use the savings account, but SoFi's business model relies on cross-selling, so expect to see these offers.
Fees and what they don't charge
SoFi's savings account has no monthly maintenance fee, no minimum balance requirement, and no overdraft fees (because there's no checking account attached unless you open one separately). You can withdraw money as often as you want without penalty.
The only potential cost is if you transfer money out to another bank and that bank charges a fee for incoming transfers—but most banks do not. If you need to move money quickly, SoFi offers same-day transfers to linked accounts for no charge.
SoFi does charge fees on other products: personal loans have origination fees, investment accounts may have advisory fees depending on the service level, and checking accounts have no monthly fee but may charge for certain services. The savings account itself is free to hold and use.
Reasons to open a SoFi savings account
You should open a SoFi savings account if you want to earn more interest on money you're saving and you're comfortable banking online. The rate is competitive, there are no fees, and the FDIC insurance protects your money the same way it does at any bank. If you're currently keeping savings in a traditional bank earning nearly nothing, moving to SoFi could put hundreds of dollars back in your pocket each year.
A SoFi account also makes sense if you already use SoFi for other services—checking, investing, or loans—because you can see all your accounts in one app. Some people find that convenient for tracking their overall finances.
If you're saving for a specific goal and want your money to work harder while you wait, SoFi is a straightforward option. There's no lock-in period, no penalty for withdrawing, and no surprise fees.
Reasons not to open a SoFi savings account
Do not open a SoFi savings account if you need to deposit cash regularly. SoFi has no branches and does not accept cash deposits. If you get paid in cash or prefer to handle money in person, you'll need a traditional bank or credit union alongside SoFi.
You might also skip SoFi if you value in-person customer service. SoFi's support is available by phone, email, and chat, but there's no branch to walk into if you have a complex problem or need immediate help. If you've had bad experiences with online-only banks or prefer talking to someone face-to-face, a traditional bank is a better fit.
Finally, if another online bank is currently offering a significantly higher rate, that bank might be the better choice right now. Rates change constantly, so it's worth checking competitors before you commit. You can always move your money later if rates shift.
How to move money in and out of SoFi
Moving money into a SoFi savings account is straightforward. You link another bank account (checking or savings) to SoFi, and then initiate an ACH transfer. This takes one to three business days and costs nothing. You can also set up automatic recurring transfers if you want to move money on a schedule—for example, $200 every payday.
Moving money out works the same way: you initiate a transfer from SoFi to your linked bank account, and it arrives in one to three business days. SoFi also offers same-day transfers for no extra charge if you need the money faster. There's no limit on how often you can withdraw, and no penalty for doing so.
If you need to close the account, you can do that online. SoFi will ask you to withdraw or transfer out any remaining balance. Once the account is empty, you can close it through the app.
Frequently Asked Questions
Is my money safe in a SoFi savings account?
Yes. SoFi is a bank chartered by the Office of the Comptroller of the Currency, and deposits are insured by the FDIC up to $250,000. This is the same protection you get at any bank. If SoFi fails, the FDIC will reimburse you for your deposits up to the limit.
Can I use a SoFi savings account as my main bank account?
Not as your only account, because SoFi savings accounts do not come with a debit card or checking features. You'll need a checking account (from SoFi or another bank) to pay bills and make everyday purchases. Many people use SoFi checking and savings together, or use SoFi savings alongside a checking account at another bank.
What happens to my interest rate if the Federal Reserve changes rates?
SoFi's rate will change, but not automatically or immediately. When the Fed moves rates, SoFi typically adjusts its savings rate within days or weeks. You'll see the new rate in your app. The rate is not locked in, so it can go up or down depending on market conditions.
Can I transfer money from SoFi to my employer's retirement plan?
No. A SoFi savings account is a regular bank account, not a retirement account. You cannot transfer money directly to a 401(k) or IRA from SoFi savings. You would need to transfer the money to your checking account first, then move it to your retirement plan if your plan allows it.
What if I need to deposit a check?
SoFi has mobile check deposit through the app. You take a photo of the front and back of the check, and SoFi deposits it into your account. The check typically clears in one to two business days. This works for most personal checks, though some restrictions apply for very large amounts.