I have used and reviewed hundreds of financial platforms and worked with countless fintech
companies to help make their products better…but despite that SoFi has remained as my #1 platform…Heres
why!
So there's been a few pretty big changes to the core features since we last looked at
this platform but before we get to that I do want to be clear that everything in this
video is my 100% honest opinion.
Yes I have made a ton videos about this platform and yes I do have an affiliate link that helps
me make free content for all of you but SoFi does not get any input on these videos and
my goal is to always help you find the best financial tool regardless of what that is
for you.
But having used this platform for years well before I even started this YouTube channel,
I feel like I know it pretty well so let's take a look at those core features.
As many of you know what was once called SoFi money has now transitioned to a more traditional
checking and savings account model which is what we're going to focus on in this video
and both of those accounts work in tandem and have no account fees including no overdraft
fees, no minimum balance requirements, no monthly fees of any kind, and access to 55,000
free to use ATMs on the all point network.
You also have no fee overdraft coverage of up to $50 if you have direct deposit set up
Meaning if you do overdraft your checking accounts not only are they not going to charge
you a fee but they will literally spot you up to 50 bucks which is pretty nice.
Direct deposit users can also get their paycheck up to two days early Which is definitely nice
but something that is pretty standard nowadays with most of these fintech companies.
We'll take a look at the app itself and some of the automated savings features in a second
but perhaps the best part of this account right now is the 4% APY on your savings account
Which continues to climb higher and higher in recent months.
Obviously those rates are constantly changing so definitely check out their website to see
the current APY but right now the checking account also earns 1.2% which is much lower
but most checking and savings account pay you next to nothing like chase and wels fargo
who offer 0.01% so earning 400X that at 4% is pretty sweet.
I also want to point out here that your money is fully FDIC insured up to $250,000 per individual
or $500,000 for joint account holders which given the recent news in the banking world,
that is really important when choosing your next bank.
And yes so if I does have joint account options allowing you and your spouse to link your
sofa accounts together but still be able to view and manage any external accounts you
may have which will look at in a second and my wife and I use this joint account feature
and we absolutely love it.
Another differentiator worth noting is that SoFi is actually a bank meaning unlike many
of their competitors who simply handle the front end technology but are backed by a banking
partner, SoFi has a national banking charter and is legitimately a bank which is part of
the reason why they're able to offer such a high APY.
Now perhaps the biggest change to the platform since we last looked at it is the built in
budgeting feature which used to be called relay but is now called sofi financial insights.
The overall function is the same but the layout within the app is a bit different so we'll
look at that when I take you inside my SoFi account later but if you're not familiar financial
insights essentially allows you to track your credit score, view and manage your spending
by category or month and really just keep an eye on your overall financial health.
It's not really a dedicated budgeting tool in my opinion but it is a free add-on that
comes with your free checking and savings account that I’ve found to be pretty useful.
With financial insights you're also able to sync any external accounts like I mentioned
earlier including investment accounts, other bank accounts, credit cards or debts that
you have and even manually input assets like your house or your car in order to see everything
under one umbrella and get a really accurate picture of your overall net worth.
They also have a real estate tracking tool that allows you to input your specific property
and they will automatically adjust your homes value based on market conditions.
If we hop inside the insights menu you can see everything I just mentioned and all of
the info is the same as it was with Relay but the layout does look a little bit different.
While we're in the app if we head over to the home screen you'll see banking at the
top and under that drop down you have your separate checking and savings accounts.
Both take you to the same banking menu where you can toggle between your checking and savings
to view account transactions and if we click into savings you'll see all of your SoFi vaults
which is perhaps my favorite feature of this platform other then the 4% APY of course because
who doesnt love free money.
Now I've made an entire dedicated video on vaults and how to use them and set them up
but essentially these are sub-accounts of your main SoFi account allowing you to set
money aside towards specific financial goals and this vaults feature coupled with their
automated transfer tool allows you to literally automate your finances from start to finish.
Again check out this video for a full breakdown of vaults but in my case, my direct deposited
paycheck comes into my SoFi account and at the start of each month, money is automatically
moved into a number of different vaults like my mortgage payoff fund, saving for a car,
and even little things like insurance and different bills.
I'll be honest my wife and I have gotten pretty granular with this feature but you can really
set it up however you'd like and it is a fantastic way to ensure that you are paying yourself
first and setting your hard earned money aside into savings.
All of the money in your vaults is going to earn 4% APY so not only are you saving but
your money is making money as well.
Alright all of this probably sounds great and we've still got even more to cover but
it's important to mention that in order to get the full benefits out of SoFi you really
have to be a direct deposit user.
Having direct deposit set up allows you to be a SoFi plus member which is just a new
name they rolled out a few months ago but that's where a lot of the benefits we just
talked about come from including that staggering 4% APY, the early paychecks feature and some
others as well.
Now don't get me wrong most of the features come with the standard account whether you
have direct deposit setup or not but if you do want to get the most out of this platform
then that is something you want to be aware of.
Also they're constantly running different promotions and signup offers for new users
so I'll link to the most recent offer in the description but right now you can get up to
$250 for free Depending on how much you deposit when you open your account which is basically
a lifetime worth of interest from places like chase and Wells Fargo so if you're looking
to make the switch then getting some free cash might make the change a little bit easier.
You saw the app earlier and if you ask me, the overall layout of the app is alright but
I do agree with many of you who have pointed out that the ads for other SoFi products and
clunky menus can get a little annoying at times.
Thankfully you are able to hide a lot of these annoying ads but it is an extra step you have
to take and it isn't going to have the Super simplistic layout that something like Chime
has.
I find it pretty easy to learn and to use on a daily basis but I realized that that's
really a personal preference.
That being said part of the reason the SoFi app feels a bit more complex is outside of
your checking and savings accounts, they also offer the SoFi Credit Card which is a pretty
great product on its own, various SoFi invest account options where you can invest in individual
stocks, ETF's, and even cryptocurrencies, and endless lending options which I'll be
honest I don't have much experience with but if you need a loan…chances are they've got
you covered and you can get a discounted rate for being a SoFi member.
Personally I love the fact that all of this is under one app and since I myself use all
of the products I just mentioned with the exception of the lending products, being able
to look at all of them from one app is really nice but it does result in things feeling
a bit more complex at times when compared to more simple apps that just have banking.
This is all well and good but the another reason SoFi remains at #1 for me is the insane
additional benefits that they offer to their members including personalized financial advice
with a certified financial planners, career advice and unemployment protection and strategic
partnerships with companies like ladder allowing you to get insurance through SoFi as well.
My point being a lot of platforms offer multiple tools under one app but usually they have
their main product and focus and an assortment of other products that feel like and afterthought.
SoFi on the other hand has a stand out checking and savings account and is a legit bank but
they also have the SoFi credit card which has industry leading cash back and features
which making it one of my favorites on its own, their investing platform which is certainly
no TD Ameritrade but does have all of the asset types and account options that you need
to get started and when it comes to lending they will loan money to you for almost anything.
And in the areas where they know they'd probably fall a bit short, they have strategically
partnered with outside companies who focus on things like insurance to make sure that
their members are getting the best financial tools across the board not just with banking.
But also 4% on your savings account makes the switch pretty easy as well.
Again I'll leave some helpful links below including some other videos where you can
learn more but I'd love to know what you think of this platform down in the comments section
and whether or not SoFi is the best platform for you.
As always take it easy and I'll see you in the next one!