SoFi review 2024: From social finance to major lender

In a nutshell

SoFi, short for Social Finance, was established in 2011 as an alumni-funded student loan lender by graduates of Stanford University. After more than a decade of growth and launching as a publicly traded company, SoFi offers a variety of loans and services supported by their financial technology.

• As an online personal finance company and online bank, SoFi offers products such as student loan refinancing, personal loans and banking services.
• With a mission to help members achieve their financial goals, SoFi leverages mobile-first technology and provides a user-friendly experience that is ideal for the modern tech-savvy consumer.

SoFi overview

While they are newer to the banking space than banks like JP Morgan Chase or Wells Fargo, SoFi offers competitive rates on deposits for both savings and checking accounts. You don’t need to pay any monthly account maintenance fees to keep your accounts active, which means it will cost you nothing to start earning money with SoFi. You can also apply for a variety of loan products and a credit card with SoFi. However, it’s worth noting that SoFi is not the most robust banking solution on the market and they have some disappointing customer reviews.

Want to get to know SoFi quickly? These are some of the main advantages and disadvantages associated with this bank.

Sofi banking products

Checking

Most checking accounts don’t give you the opportunity to earn interest, but with SoFi you can earn a 0.50% APY on deposits. You won’t have to worry about monthly fees, so you can enjoy those earnings in full. There are no minimum balance requirements and your debit card will grant you free access to more than 55,000 in-network ATMs. Overdraft fees also aren’t a concern, you will have overdraft protection up to $50 with no fees (as long as you set up a direct deposit of at least $1,000).

Rewards

SoFi Checking Account

View Offer

Rewards

SoFi Checking Account

APY*

Up to 4.60%

Min. deposit

$0

Monthly fee

$0

Bonus

Up to $300 bonus with qualifying direct deposits

Savings

Once you set up a direct deposit to your SoFi savings account, you can earn an impressive 4.60% APY. Like the checking account, you won’t pay any fees to keep your savings account open and there is no minimum account balance. Enroll in the AutoSave feature to automatically direct a portion of your paychecks to savings so you can meet your financial goals faster.

Welcome bonus

SoFi High Yield Savings

View Offer

Welcome bonus

SoFi High Yield Savings

APY*

4.60%

Min. deposit

$0

Monthly fee

$0

Other banking products

Personal loans

With SoFi personal loans, you can borrow anywhere from $5,000 to $100,000 and can use this loan type to consolidate debt. A unique feature of this personal loan is it comes with unemployment protection. If you lose your job, SoFi will adjust your required monthly payment amount and provide job search support. This loan comes with fixed interest rates, doesn’t charge fees and issues funding as soon as the same day of loan approval.

Big loan amounts

SoFi Personal Loans

View Offer

Big loan amounts

SoFi Personal Loans

APR

8.99% to 25.81%

Min. credit score

690

Loan amount

$5,000 - $100,000

Term

24 to 84 months

Mortgage loans

SoFi mortgage loans only require a downpayment of 3% to 5% and come with a close-on-time guarantee (backed by $5,000). You can choose between 10, 15, 20 and 30-year loan terms and all loans come with a fixed interest rate which makes payments more predictable.

Student loans

SoFi is best known for their student loan and student loan refinancing products. This private student loan offers a six-month grace period to defer payments after graduation and borrowers can potentially qualify for a few different discounts. SoFi student loans can provide support for student or parent borrowers for undergrad and graduate students. This loan is fee-free. If you have existing student loans that you want to consolidate or refinance, you can also do that with SoFi.

Credit card

When you have the SoFi Unlimited 2% Credit Card, you will always enjoy a 2% cash back rate alongside 3% cash back on trips you book with SoFi Travel. This credit card doesn’t charge an annual fee or foreign transaction fees. You also gain access to cardholder benefits like having up to $1,000 of complimentary cell phone insurance coverage.

SoFi Bank’s customer experience

When researching potential banks, it’s always helpful to pay attention to reviews so you can get an idea of what the customer experience is like. Unfortunately, SoFi does not appear to collect more glowing reviews than it does negative ones. With the Better Business Bureau (BBB), SoFi earned an average of 1.73 out of 5 stars as of February 2024. Common complaints include a lack of strong customer support when major issues like faulty charges, mobile deposit refusals, or frozen accounts arise.

Consumer Financial Protection Bureau (CFPB) complaints show a similar pattern of issues with both banking products and other products like loans, as customers seem to have difficulty receiving the support they need.

When it comes to objective reviews, the J.D. Power 2023 U.S. Direct Banking Satisfaction Study gave SoFi a below average ranking for both checking (688/1,000) and savings (685/1,000). The average score for all checking providers included in their study were 715 and 718 for savings providers.

SoFi alternatives

If SoFi isn’t right for you, consider some of these alternatives.

SoFi vs. Ally

If you are set on an online-only bank with modern banking features like low fees and high yields on savings accounts, you may want to consider Ally. Both Ally and SoFi are a part of the Allpoint ATM network, which makes finding one of more than 43,000 fee-free ATM easy. You will also receive a reimbursement of up to $10 per statement cycle for fees charged at other ATMs nationwide.

When it comes to how these banks differ, Ally offers a more robust suite of banking products including CDs and money market accounts. This can make it easier to manage all areas of your financial life in one place. Ally savings deposits come with a slightly lower APY (4.25%) than SoFi (4.60%), but this gap isn’t significant enough to sway consumers who want a more well-rounded banking option. Ally also offers a checking account known as a “Spending Account” that doesn’t charge any monthly maintenance or overdraft fees.

SoFi vs. Chime

While Chime is not a bank — it’s a fintech company — it does offer select banking products including a checking and high-yield savings accounts. Currently, SoFi offers a significantly higher APY on savings deposits (4.60%) than Chime (2.00%). Like SoFi, Chime does not charge monthly fees and has overdraft protections in place that can help you avoid annoying overdraft fees.

While Chime does not offer an unsecured credit card option like SoFi, you can apply for the Secured Chime Credit Builder Visa® Credit Card. This card can help consumers build their credit score over time, which can make it easier to qualify for an unsecured credit card in the future. Another standout feature of Chime is that you can make cash deposits at more than 8,500 Walgreens locations.

SoFi vs. Marcus

If you are on the hunt for a high-yield savings account but don’t need a new checking account, you can consider Marcus by Goldman Sachs. With Marcus, you will earn a 4.40% APY but unlike SoFi you do not need to set up a direct deposit to earn that high amount of interest. There are no fees or minimum deposit requirements and you can set up same-day transfers of up to $100,000 to and from other banks. Marcus is not a one-stop banking solution, but if you are looking for a high-yield savings account to supplement your existing checking and normal savings account, Marcus may be a fit.

Marcus brings Goldman Sachs’ many years of banking experience to the table and provides support that can help you grow your savings. For example, you can download the Marcus app, which will make it easy to review transactions, track interest earnings, and use Marcus’ insight tools and trackers to make more informed money-management choices.

Methodology

By employing this comprehensive review methodology, we aim to empower consumers like you to make informed decisions when choosing a consumer bank that aligns with your financial goals and preferences. We evaluate key factors such as interest rates, fees, minimum balance requirements, access to funds and more to help you make informed decisions. Please note that our reviews are based on publicly available information, and we recommend verifying the latest details directly from the respective financial institutions.

Frequently asked questions (FAQs)

Is Sofi FDIC insured?

SoFi is FDIC-insured, which can help keep your deposits safe. Even better, while most banks only offer $250,000 in FDIC insurance per account holder, SoFi partners with a network of other banks to offer customers extended coverage up to $2 million.

Is Sofi a good or bad bank?

While SoFi has an impressive array of features and products for customers to enjoy, based on a series of negative customer reviews, it appears SoFi still needs to work out some kinks in its services. If you have simple banking needs, you may find that SoFi can get the job done. However, some consumers will want to look for a bank with more experience in the customer service space for some added peace of mind.

Is SoFi a good bank for beginners?

Many people who are new to banking may appreciate the ease and convenience of opening and managing a bank account entirely online. SoFi is an online bank that offers all of the basic banking products you need to manage your financial life. Banking beginners can easily set up a checking and savings account with SoFi and can manage their money easily with online tools provided by the bank.

Who owns SoFi?

SoFi is a publicly traded company that is listed on the Nasdaq stock exchange under the stock ticker SOFI. Originally, SoFi was founded by Mike Cagney, Dan Macklin, James Finnigan and Ian Brady.