Sofi Money Online Bank Account Review

One online bank that seems to be popping up everywhere right now is SoFi.

18:17 11 October 2019

This is because the company has been busy rolling out various features such as multiple options for investing, and a platform that is ran by robo advisors. However, the most interesting of all these is SoFi Money.

What is particularly curious is the bank account’s saving element that offers high yields and boasts features such as only having a small amount of fees and free access to ATMs. Now let’s look at some of these in detail.

SoFi Money Review: Is It the Best Online Bank Account?

Few maintenance fees and no monthly fee

Similar to most other online bank accounts that are currently available, the SoFi Money account does not charge the same amount of fees that those from traditional brick and mortar financial establishments do.

Some of the fees that are not charged include any monthly fees, overdraft fees, returned item fees, minimum balance fees, plus several others. In terms of what fees the company does charge, there is a fee of $100 for legal processing of tax levies, garnishments, and any other court order. Additionally, there is a$20 fee to stop a payment.

The first replacement card is free. Any subsequent replacements are $20 each. In order to get it processed and sent out extra fast, there is a further charge of $25.

Free access to ATMS

As well as there being no fees associated with using ATMS, SoFi also reimburse any third party ATM fees that may be incurred. Best of all there is no limit as to how much the company will reimburse in a month. Impressively, this is true whether the ATM used domestically or internationally. This means cash can be accessed free of charge from anywhere in the world with a SoFi Money Card.

A high annual percentage yield

A SoFi Money account acts as both a savings and a checking account. This means that as well as having instant access to any funds in the account, via paper checks or a debit card, interest is also being earned on the balance that’s in it.

The annual percentage yield that the account pays out is currently at 1.8 percent, which is extremely high in comparison with accounts from traditional brick and mortar financial establishments. It is also high compared to other online banks.

Check ordering and bill paying

Checks books are complimentary with a SoFi Money account. They can be ordered online with just a couple of clicks and is linked to the account. Any order made includes 25 checks and more can be ordered every 7 days.

The account also provides the ability to pay bills and even credit cards by setting up a direct debit.

Peer to peer paying

Peer to peer payments can be made with a SoFi Money account free of charge. To do so an email address or contact number for the recipient must be input, along with the amount to be sent.

To claim the funds the receiver simply has to enter some basic info, along with their account number and bank routing. If this is not done within a specific period of time, the money is returned.

No transaction fees when used overseas

Just like how cash can be withdrawn from an ATM overseas without incurring any fees, transactions made abroad are also not subject to any fees. Whatever the current exchange rate is, is what will be charged. Many accounts from traditional brick and mortar financial establishments charge a conversion fee of around 3 percent on any transactions made overseas.

Although these features and benefits of SoFi Money are no doubt attractive to many individuals, it does not come without its drawbacks. Some of these include:

A poor app experience

Although the SoFi app provides all of the functions, features and information that is expected on a personal banking app, this is only actually a very small part of what is included on it. Because of this these useful aspects get lost amongst numerous tabs for things such as the company’s Relay account aggregator, loans, and investing.

A limited track record

The SoFi Money concept has a very limited track record with it only being made accessible to the general public from February 2019. As well as this, and as previously mentioned, the company has been adding so many new features to it’s offering recently that there is the worry that it is spreading itself too thin.

However, it is worth noting that SoFi does have strong links with certain banks, and so any funds placed into a Money account are FDIC insured. This will help to bring a little peace of mind for those individuals who are unsure about putting their money into what is essentially a startup.

No joint accounts

At present, SoFi Money is testing the functionality of a joint account (it is in the beta testing stage) on their platform. All though this potential is exciting, it offers no joy to those individuals look for that capability right now.

No chance for cash back

Receiving cash back on transactions is now big business and super popular amongst account holders. Although the SoFi Money account offers a highly impressive annual percentage yield of 1.8 percent, it does not currently provide the chance to earn cash back on any purchases made.

Final thoughts

TheSoFi Money account’s high annual percentage yield, along with it’s good incentives to travellers, and a cool looking debit card make SoFi Money a highly attractive proposition.

It features everything a traditional bank account does, including bill paying and check depositing features, as well as paper checks. This means that SoFi Money can easily be used as a main bank account rather than an auxiliary one, which is usually the case when it comes to online accounts.

The only negative experience worth noting is with the mobile app. It is currently lack and is somewhat cluttered with other products. Hopefully these issues will be corrected over time as it gains more popularity.