Current and SoFi are two of the most modern financial technology companies on earth right now
but which one is the better option for you? Today let's find out alright let's jump right into it.
What is going on everyone I hope you are all having a fantastic day. So I've talked about both
SoFi and current in a number of videos in the past but after so many requests I felt like it was time
that we finally put these two platforms head-to-head. Obviously neither of these
companies is sponsoring today's video I just want to help you make the best decision for you
so regardless of which platform you feel is best there are links down below the like button where
you can sign up and help support my channel. we've got a lot to unpack so let's start off with SoFi.
I have been labeled as a bit of a SoFi fanboy which is probably deserved but I do love this
platform I've used it personally for over two years now and they continued to add new features
that only take it to the next level. So right now they offer their checking and savings accounts
which work in tandem with each other and give you 1.25% APY which is really great, no account fees
across the board, the ability to withdraw cash at over 55,000 free to use ATM's, get your paycheck
up to two days early, overdraft protection of up to $50 when you utilize direct deposit,
up to 15% cash back on your SoFi debit card, and a ton of automated savings features including
round up savings and a vaults feature which I use all the time to breakdown my income and make sure
that I am saving for my different financial goals. A lot of these features are fairly standard with
most modern fintech companies but the biggest differentiator is that 1.25% which currently
beats out much of the competition. Now today we are specifically focusing on the banking side of
things but I will mention that SoFi of course also offers their own investing accounts where
you can buy individual stocks, crypto currencies, ETF's, and other forms of investments, as well as
their SoFi credit card, the SoFi Relay budgeting platform, and a number of lending services from
personal loans to mortgages to auto loans and everything in between. We’ll circle back to some
of the more finite details and features at the end but next let's take a look at Current. Similar to
SoFi, Current offers a spending account which is basically a checking account as well as a savings
accounts that work in unison to give you that one stop Personal finance solution. With your spending
account you're going to get the very popular and sleek current card for those in person and online
purchases but you've also got the ability to get paid up to two days early with direct deposit
and managing your card can be done right from your smartphone where you can set your ATM withdrawal
limits, daily spending limits and access everything you could need from your spending
account. Now on these savings side of things, this is where it starts to get really interesting with
their new and improved savings pods they currently give you 4% APY on up to $6000 in deposits. I
realized that that cap is a bummer but a majority of individuals who will use this platform likely
aren't keeping 10s of thousands of dollars in cash and even if they are, earning 4% on your first
6000 bucks crushes the competition across the board. To give you some perspective on how insane
that is, the national average is 0.06% meaning after five years of having $6000 in your account
you would earn just over $18 in interest while with currents 4% interest rate you would earn
nearly $1300 in interest. Now it's unclear what you will earn beyond that first $6000 but based
on the fact that I couldn't find anything about that online and there was no interest rate prior
to them adding this new feature, I'm gonna go out on a limb and say that you don't earn any interest
beyond your first $6000 which again is definitely a bummer but even at say a 1% interest rate, you
would need to have significantly more money in your bank account just to match what you’ll earn
with 4% on your first six grand. Plus of course if you have less than $6000 in cash then that ones
kind of a no brainer. Now creating those savings pods is super easy and works in a similar way to
the savings vaults that we talked about with SoFi and again this just allows you to ensure
that you're setting money aside, in this case earning as much interest as you possibly can,
end allows you to actively go after your various financial goals and easily visualize how close
you are to reaching each of them. Now outside of the spending and savings accounts, current
doesn't really offer any other financial tools but again today we're specifically talking about the
banking side of things so not really that big of a deal. I know we flew through all those different
features so again if you want an in depth look at either of these platforms I will link to my
full reviews down below the like button. But what are the biggest differentiators and how can you
decide which one is the better choice for you. Well the first difference that I feel is really
important is the applications for each platform. Now I would actually argue that these are fairly
similar to each other in that they have that sleek and modern design but do go more in depth in terms
of the information and insights that they offer into your personal finances. If you compare these
to a platform like chime for example which has a much more simplistic design, then SoFi and current
both have much more complex applications. That's not to say that it's overwhelming
and really that is just a matter of opinion and I have absolutely seen complaints in the comments
of people feeling like the sofa app specifically is cluttered and has too many advertisements for
different products and I can totally see where that is coming from. I have talked before about
how you can customize the menus in SoFi but that is an extra step that you'd have to take
so again all of this is really just a matter of opinion. Personally I like having that more in
depth look into my finances but seeing that both of these platforms are on a very similar level
in terms of the applications, I would give both of them a 10 out of 10 on that front. Now the other
big difference here is obviously the interest that you're going to earn and the better option
is really going to depend on how much cash you were sitting on. Thankfully this is really easy to
figure out. So with current you're going to earn 4% on up to $6000 in deposits which means you'll
earn $240 per year in interest if you have $6000 in this account. With sofi at 1.25% currently,
you would have to have $19,200 in cash sitting in this account in order to earn these same $240 in
interest. So not that this should necessarily be the only deciding factor because if you're
concerned about the return you're getting on your money you'd probably be better off investing it
however based on the numbers, if you have more than $19,200 in cash sitting in your account then
you will earn more in interest with SoFi since there is no limit. But if you have less than that
then even if you go above that $6000 cap with Current, you will still come out ahead in terms
of the interest that you earn. also keep in mind though that interest rates are constantly changing
and at the time of making this video, they are actually on the rise which means we could see
these rates change significantly in the near future. Both platforms offer pretty standard
features in terms of giving you that physical debit card, the ability to get paid up to two
days early, FDIC insurance, and all of the bells and whistles that we've become accustomed to with
these modern platforms. Like I said earlier, both of the platforms are very similar in terms of
monitoring your income expenses and setting money aside in savings but I will say that in terms of
paying your bills, I actually find the current set up a little bit more intuitive and easy to
use. Both platforms allow you to search for your payee and pay them right from your accounts or of
course send a physical check but current has it broken down into more manageable categories so
while both work in the same way, I'd actually give this one to current. If we're taking a deeper dive
into the budgeting side of things, again SoFi does come with that free SoFi Relay platform
which is technically a separate tool but is included with your SoFi money account
so if you're looking to keep a really close eye on your different spending categories and
a breakdown of your income and expenses as well as credit score monitoring then SoFi definitely
wins that one. Other than that, the only big difference that doesn't necessarily apply to
the banking side of things is again the fact that so fi offers a lot of other financial tools
outside of justice banking. Now I have said time and time again that personally I prefer
to have everything under one platform and that's why I use these SoFi invest platform,
I have these SoFi credit card, and I use many of the different tools and features that they offer.
Is that the case for everyone…absolutely not and if you're just looking for a banking platform
then that would really depend on your personal preference and which of these apps and features
you prefer. To be completely honest with you this is probably the most neck and neck versus
video we have ever made because these are two of the most cutting edge fintech platforms that are
currently out there. For me personally because I prefer to have everything under one platform and
I am already invested into the many tools that SoFi offers, I will be
sticking with them as my main banking platform. However I still have my current account, I use
it regularly for that 4% interest on the savings pods and I do believe that it is a fantastic tool
especially for a younger audience like myself. But again that's just my opinion so I'd love
to know what you think of these two platforms down in the comments section and remember there
are links where you can sign up for either one down below the like button. Thank you so much
for your time I really do appreciate it so much take it easy and I'll see you in the next one!