SoFi Money is a hybrid of traditional checking and savings accounts known as Cash Management Accounts.
They are a financial product offered by an online financial company rather than brick and mortar bank locations. Since they have streamlined the process and don’t have overhead costs, they can offer members a higher interest rate.
Let’s break down the features of a hybrid Cash Management Account like SoFi Money.
Ways the account is similar to a savings account:
Ways the account is similar to a checking account:
There are many reasons you might take advantage of this account. It gives you the opportunity to store money away for any of your longer-term goals. This could include a down payment on a home, a new vehicle, or even a reliable emergency fund.
There are zero fees associated with opening or maintaining a SoFi Money account.
A SoFi Money account will let you rake in high interest, but there’s one important requirement. Your account can’t just sit there idly. You need to make deposits of at least $500 monthly. When you follow this rule, you will earn the SoFi Money interest rate 0f 0.25%, which is 6 times the national average.
If you’re looking for a new debit card in the new year, SoFi recently launched its own MasterCard debit card. When you use it, you can earn exclusive cash back rewards such as gift cards to your favorite local and nationwide shops, eateries and more.
As soon as you open your SoFi Money account, you won’t have to pay any ATM fees at more than 50,000+ ATMs worldwide.
When you spend using your SoFi Money debit card, SoFi will automatically round up every purchase to the nearest dollar and transfer it to one of your vaults. These are separate compartments of your SoFi Money accounts set up with specific goals in mind.
Vaults make it easy to separate your spending from your savings while still earning interest on all your money. You can track your progress and set up recurring monthly deposits, all without paying any account fees or minimum balance fees. You can currently have up to 20 Vaults at a time.
Roundups are a way to help you save automatically every time you spend using your SoFi debit card. If you enable Roundups, each purchase on your SoFi Money debit card will be rounded up to the next whole dollar. That amount will automatically be transferred to the vault of your choice.
As an example, a purchase of $5.50 on your SoFi Money debit card can be rounded up $0.50 and transferred to your vault such as your emergency fund or vacation savings. Keep in mind that purchases in whole dollar amounts, such as $25, will not be eligible for Roundups.
You can change your Roundup settings at any time by going to your SoFi Money account, clicking Vaults, and clicking the Manage Roundups link.
SoFi is a digital personal finance company with a large umbrella of products. Launched in 2011, there are now more than 1,000,000 members taking care of their financial health by refinancing student loans and mortgages, getting low-interest personal and home loans, investing and establishing IRAs.
SoFi offers financial services, including borrowing, investing and saving. Borrowers can take advantage of personal loans, home loans, private student loans and student loan refinancing. You can also invest or automate investments with SoFi Invest. All of these services are manageable online or with SoFi’s mobile app.
As an alternative option to a traditional savings or checking account, SoFi Money really shines.
It is flexible and lets you set up several distinct accounts for their own purposes. Although there are zero fees, you will need to deposit at least $500 a month to qualify for the higher 0.25% APR rate.