4 Reasons to Open a SoFi® Savings Account Before Interest Rates Drop
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The Federal Reserve is expected to announce an interest rate cut later today, when its September meeting ends. And when the Fed cuts rates, banks tend to trim their savings APYs soon after.
With savings account rates likely to feel the squeeze, it's more important than ever to keep your cash in a high-yield savings account.
Here are three big reasons why the SoFi Checking and Savings (Member FDIC) account stands out.
1. A high APY -- with a big boost for new members
SoFi®'s savings account already pays a competitive annual percentage yield (APY) when you make qualifying direct deposits (like a paycheck).
On top of that, there's a limited-time offer: Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply. That means you can get a total of up to 4.50% APY on your savings now. Rates that high are almost nonexistent these days.
How much could you earn with SoFi Checking and Savings (Member FDIC)? As an example, a $10,000 balance would earn about $415 in a year, including the six-month APY boost (assuming today's rates). Meanwhile, some of the big banks (like Wells Fargo) would pay you just $1.
2. A cash bonus of up to $300
New SoFi® members can earn a bonus of $50 or $300 if they direct-deposit a certain amount within a 25-day window:
- $50 bonus if you direct-deposit $1,000 to $4,999.99
- $300 bonus if you direct-deposit $5,000 or more
Most people who earn a paycheck will get at least a $50 bonus. That's basically free money for no extra effort.
Want to earn a cash bonus and an APY of up to 4.50%? See our full SoFi Checking and Savings (Member FDIC) review to learn more and open an account today.
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SoFi Checking and Savings
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- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
3. A fantastic checking account
Lots of banks offer high-yield savings accounts these days, but not all of them have good checking accounts, too. You probably need a checking account linked to your savings, so don't leave that out of the equation.
The SoFi Checking and Savings (Member FDIC) account is really two separate accounts that you open at once -- and the checking account is top-notch.
SoFi® allows instant transfers between checking and savings through its sleek, simple mobile app. Members have access to over 55,000 no-fee ATMs worldwide. That means it's easy to get your cash fast and without paying a fee.
The checking account also pays 0.50% APY with direct deposit. Most checking accounts pay far less -- or nothing at all.
4. No account fees
SoFi®'s savings and checking accounts have no monthly fees, no matter your balance.
There are also no overdraft fees, ever. Members can sign up for overdraft protection, which uses savings as a backup in case you overdraft your checking account.
SoFi® even provides up to $50 in overdraft coverage for members who direct-deposit at least $1,000 a month. That means SoFi® will spot you up to $50 if you overdraw your checking, then pay itself back from your next deposit.
Don't wait to earn more money
I switched to SoFi® last year, and I love it. I'm earning more interest than ever, and it takes me all of five seconds to transfer money between accounts, see my recent transactions, and more. I even opened a Roth IRA with SoFi®, so I can move money into investments through the same app.
If interest rates drop, it'll be even more important to get the highest APY you can. And with SoFi®'s six-month 0.70% APY boost, you won't feel the sting as much as other savers. So if you're thinking of switching banks, then I suggest you act today.
Our Research Expert
James McClenathen is a full-time Managing Editor and Personal Finance Writer at Motley Fool Money, overseeing the production and quality of editorial content while also writing about credit cards, investing, and everyday money management. He has worked at The Motley Fool since 2012 and brings extensive experience as an editor, reporter, and finance expert. A graduate of the University of Michigan, James has spent more than a decade of his career helping readers make smarter financial decisions.