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Written by Cari Scribner on January 3, 2021
Category: 
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Is SoFi Money Safe And Legitimate?

If we were to store our cash in a safe at our home, we would know it was where we could get our hands on it immediately if needed.

When you put your money in a bank account, you no longer have physical contact with your hard-earned money.

Before you open a banking or investing account, it’s important you know it is a safe and legitimate company.

Rest assured, your cash saved with SoFi Money is safeguarded on many levels. Here's how your money is safe with SoFi.

What Is SoFi?

SoFi is a digital personal finance company with a large array of financial products. Launched in 2011, there are now more than 1,000,000 members taking control over their finances by:

  • Investing
  • Refinancing student loans and mortgages
  • Getting low-interest personal and home loans
  • Establishing IRAs

SoFi offers financial services, including borrowing, investing and saving. Members can take advantage of personal loans, home loans, private student loans and student loan refinancing. They can also create portfolios and automate investments with SoFi Invest.

All of these services are manageable online or with SoFi’s mobile app.

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About SoFi Money

SoFi Money is one of the many services offered within the app. It is a cash management account where you can save, spend and keep track of your money.

There are no fees to open a cash management account to help you spend and save wisely. You might use this account to put away cash until you’re ready to invest, or for another financial goal like a down payment on a home.

SoFi Money doesn’t require you to have a minimum balance. What’s more, you won’t be charged overdraft or fees at more than 50,000 ATMs across the country. You can use your SoFi Money Debit Card in other countries for purchases and ATM withdrawals wherever Mastercard is accepted.

Although SoFi doesn’t ordinarily offer sign-up incentives, right now, there’s a special offer; you can get up to $150 when you set up direct deposit and start spending.

Currently, you can earn 6x the national average (0.25% APY) on your funds with $500 or more in recurring monthly deposits into your SoFi Money account. You earn 0.01% APY if you do not make these deposits.

FDIC Insurance

Your money deposited in SoFi Money falls under the umbrella of SoFi Securities LLC.

This is a registered broker dealer insured by the Federal Deposit Insurance Corporation (FDIC). It's an independent agency created by Congress to maintain stability and public confidence in the country's financial system.

sofi money

The FDIC covers individual bank deposits up to $250,000.

Always remember that you are responsible for monitoring your total assets in SoFi Money to ensure FDIC insurance limits are not exceeded. This could mean some of your funds are uninsured.

Personal Information Security

SoFi takes your personal information seriously, including your account data. They maintain stringent, industry-standard administrative, technical and physical safeguards to protect your information.

They also use two-factor authentication to protect access to your account through the SoFi website or mobile app. Two-factor authentication means they use a device-based security layer in addition to simple password validation.

On their website, you have the option to receive a security code by SMS or to use Google Authenticator. Mobile app users can also use fingerprint recognition.

Conclusion

SoFi Money is a legitimate, safe money management account backed by all the laws in place for traditional banks.

They use the most sophisticated encryption techniques to guard your personal account data. There are plenty of perks for opening a SoFi Money account, including an impressive interest rate when you make regular deposits.

sofi
Article written by Cari Scribner
Cari Scribner is a career journalist with 20 year’s experience writing for newspapers and magazines. Now a freelance writer, she is also a published fiction writer with more than 15 short stories in literary mags. She recently completed a novel that is on the desk for consideration at two publishing houses. She lives with her two small dogs, Miloh and Lucy, in Upstate NY.

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