About four weeks ago, I opened a SoFi bank account. This is after much deliberation, since I contemplated between Axos, Ally and SoFi banks. I needed a bank to put money aside to pay off my car note by August 2027. SoFi was one of the online banks, which seemed like it was going to help me meet this goal.
How did I arrive at this conclusion?
Well, the bank account creation was smooth amongst other things. On opening your first bank account guide, I talked about how traditional banks would always ask for some legal documents to assess your eligibility. SoFi only asked for my legal name, social security number and address to open a bank account for me.
The whole process took less than 10 minutes to create. I kid you not. Hence, why I thought the bank was designed to make banking smooth for the average young working class adults.
Before I begin, let us talk about SoFi, the online bank.
What Is SoFi Bank ?
SoFi is a real online bank. It is one of those which has managed to establish significant advantage over traditional banks. I see it through its high interest savings accounts. Not only its high yield savings, but also the lack of fees on some of its financial transactions.
Additionally, it is one of the biggest online lender too. This is because it makes personal and student loans available for the American working class at a reasonable interest rate. When I was in nursing school, one of my peers got a loan through them.
So, who owns SoFi bank?
As of today, SoFi is an independent public company. I once wanted to buy into its IPO when it first launched in 2021. But, I had a cold feet.
Anyways, a public traded independent company means the ownership is both by the public and some private shareholders. If you buy its shares now, it means you own it too. That is how it works.
How Does Sofi Work ?
SoFi financial services include the following below:
- Branchless banking: checking and savings accounts
- Private student loans
- Student refinancing loans
- SoFi Invest
- Home loans
- Personal Loans
- SoFi protect. This is their insurance matching service. I actually got my auto insurance using this feature. SoFi matched GEICO insurance last week, which is only $155 monthly. That was after progressive insurance hiked up my monthly payment to $368 due to its car device program readjustment.
Speaking of those car devices given to you by insurance, never ever use it. You are more likely to get your rates up than get the savings insurance companies promise. I learned it the hard way, until SoFi insurance matching saved my hide.
Anyways, the above is all SoFi Bank is about. Personally, I think the online bank is structured for the working class on mind. This is because it helped me reduced my auto insurance from $368 to $155 monthly. There are other reasons which make me think SoFi is a good bank.
Here are what else makes me feel SoFi is a good bank for the average working adult.
Features Of SoFi Banking
After my account was created, I found I had been given two kinds of bank accounts. SoFi gave me a savings account and a checking account. I think these two come combined. This is because I did not have to ask for the checking account, since I opened the account for its savings purposes.
Do you know the best part of each account, my dear reader?
I did not even have to put in a deposit. There is no minimum deposit for either account. So, I created the account two weeks ago and I funded it just this past Friday. Before I even funded the account, SoFi already shipped out a debit card to my address.
I did not even ask for it. It was just mailed out to me. I got an email telling me my debit has been shipped and I will receive it on a certain date.
In a way, I kinda like it. This is because it tells me the bank anticipates my needs as a young working class adult. If I have a bank account with it, I am definitely going to need a debit card to access funds. SoFi proactiveness won me over.
When the debit card arrived, it was easy to set. I just had to take a picture of the barcode which came with the card. And, the card was automatically activated for me.
What Else You Get With A SoFi Account?
I mentioned a no minimum balance fee and the two types of bank account you get with SoFi. Also, there are no account, overdraft or monthly fees. This is good, since some banks tend to charge those as a requirement to maintaining a bank account with them.
Here are what else I have found out, since opening account with SoFi.
| Features | Description |
|---|---|
| Overdraft coverage | $50 coverage on debit card purchases, when there is a minimum direct deposit of $1000 monthly. No coverage fee |
| Minimum opening deposit | None. I did not fund my account until a week later. |
| FDIC insured | Up to $250,000 mandatory. If you go with SoFi’s Insured Deposit Program, you get up to $3,000,000 insured. |
| Interest rate | You can earn 3.10%. During promo season, you get additional 0.70% increase for about six months. |
| ATM Access | SoFi gives you access to 55,000 fee-free ATMs access. |
The above are what the features I have seen so far. Oh before I forget, I did set up a little percentage of my paycheck to go into my SoFi account. I noticed it arrives two-days earlier than usual. It comes a Wednesday night or Thursday morning, rather my usual Friday payday.
I supposed you could say the above are the pros of SoFi banking. I know many online and traditional banks do not offer the same features as what I had described above. This is especially the no-fee stance on overdrafts or on accounts.
What Do You Need To Open A SoFi Account?
When I opened my SoFi account, I was expecting to be asked to upload some documents. SoFi did not ask for any, however it still wanted to make sure I met some requirements to open a bank account with them. What were these, my dear reader?
You need to have a social security, a legal name and a legal address to open a bank account with SoFi. Also, you have to be at least 18 years or old. I will include other information you need to provide to apply for SoFi savings and checking account.
- Citizenship status. This includes whether you are a US green card holder, a US citizen or non-permanent resident.
- Date of Birth
- Phone number
- Email address
- Individual taxpayer identification number for non-permanent resident or people with no social security number.
Personally, the SoFi bank account requirements from me were just my SSN, legal name, legal address and date of birth. I guess you could say each proved I was a real person old enough to open an authorized bank account in the US. So, be sure you provide what is asked of you by SoFi depending on your situation.
SoFi Checking And Savings Account
As I previously mentioned above, the SoFi checking and savings account came with my bank account creation. I did not have to choose which one I wanted. The Bank gave me what I did; a savings account to meet the saving goal I mentioned earlier and a checking account to handle daily expenses.
Personally, I think that is what every young working class adult needs anyways. A checking and a saving account to help run our young working lives. I will elaborate more on what the key differences between a checking and a savings account at SoFi.
| SoFi Checking Account | SoFi Savings Account |
|---|---|
| My Checking balance currently earns 0.50% APY. SoFi says this is subjected to change. | The savings interest rate starts at 0.80% APY. Eligible direct deposit brings it up to 3.10% APY. Or, you could get up to 3.10% when you deposit $5000+ per month. Finally, the highest APY is gotten when you are a SoFi Plus member. It gets you 4.50% APY on amount less than or equal to $20,000. |
| It comes with a debit card | It does not come with one. |
| You can transfer, deposit, pay and Zelle money. | You can only transfer and deposit money in SoFi savings account. |
| Built to handle your daily expenses. | Built to encourage savings. In fact, there is a feature called Vault meant to help you set a savings goal and save money to meet it. |
So far, the above has been my experience with SoFi. I kinda reminds me of Chime fintech, but I feel like it is superior to it. This is because of the high interest on savings and lack of fees in certain transactions. Also, it provides real banking services more than Chime. I will be comparing the two too shortly.
SoFi Bank Pros And Cons
In as much as the bank caters to young working class adults, it is not without its cons. Although as of right now, the negatives of SoFi Bank are not an issue for me. I still think I need to talk about it here, so you will know what you are getting yourself into.
What Are the Disadvantages Of Sofi Bank?
Most importantly, there is no physical branch of SoFi. You know what that means, don’t you?
It means you cannot talk to their bankers or cashiers face to face. Everything has to be on the phone. If you are a traditional bank customer, it might be a little irritating for you.
Secondly, your debit card purchase will decline for charges more than $50. This is the most SoFi is willing to cover for you. As an advocate of online banks which simplify banking for young working class adults, I feel like SoFi coverage is way less than Chime SpotMe coverage. Chime will cover you up to $200 on debit card purchases.
Both will not charge you fees for overdraft. Additionally, SoFi does not refund out-of-network ATM fees. I use its in-network ATMs to avoid this. I suggest you use one of its fee-free 50,000 ATMs, if you decide to open an account.
Lastly, one of the disadvantages of SoFi Bank is you will be charged $4.95 when you use Green Dot locations to reload your account. I believe this is the case for all cash deposits. Personally, I just use a debit from my other bank to add funds to my SoFi account. I feel like it is easy.
And, it does not cost a single cent to do it.
As for the pros of banking with SoFi, I believe you already have an idea now. I have been talking about it, since the beginning of this article. The only other thing is you may qualify for a $400 cash bonus for a direct deposit set up.
SoFi Vs Chime Comparison
Earlier, I told you I was going to compare these two. This is because I like Chime financial technology. Since it is my first time using SoFi, I sincerely believe it has a big advantage over Chime. This is despite both having no minimum deposit and fee-free banking.
Why do I feel this way, my dear?
I am for any online bank which eliminates certain transactions for the working class. Above all, any bank which makes life easy for young adults has my heart. I will always push such a bank to my audience.
Having said that, here are what I think about SoFi Bank vs Chime financial technology.
| SoFi Bank | Chime |
|---|---|
| SoFi Plus members earn 4.50% APY on savings. | Chime prime give you 3.75% APY on savings. |
| There is no overdraft fee. | No overdraft fee too. |
| Checking account earns 0.50% interest on balance. | No interest rate on checking balances |
| Offers lending and investment products | Does not offer them. |
| Insures up to $250,000 through FDIC, but also up to $3,000,000 by SoFi Insured Deposit Program. | Insures up to $250,000 by FDIC. |
| All in one banking. This includes investment, loans, insurance and banking services. | Simplified banking services focused on credit building and credit cards. |
That sums up the two online giants. I call them online giants, because they are currently the rage in online banking space today. If you are an avid reader of mine, I kinda have hyped Chime up for a while now.
But, I think SoFi is a real gem for young working class adults.
Having said that, SoFi is legit. I switched to a cheaper car insurance it recommended to me last week. I am currently paying $155, instead of $368 monthly. Its banking services are good so far. I use its debit card for minor expenses. Currently, I am hoping to use its vault savings feature to save and pay off my car note next year. It is my opinion SoFi bank is built with young working class adults on mind.
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