SoFi vs. Discover® Bank: Which Bank Is Right for You?

Bottom line: SoFi is the best choice for people who want an all-in-one banking relationship, while Discover® Bank can be an excellent way to boost the yield from your savings.

Savings accounts

SoFi offers a high-yield savings account, but it's important to mention that it can only be opened as a combination checking/savings account product called SoFi Checking and Savings. To be clear, they are two separate accounts with different account numbers, but you can't open one without the other.

SoFi's savings account offers a highly competitive APY if you're willing to set up direct deposit or meet certain deposit requirements.

The Discover® Online Savings account is also a solid product, but with a few important differences. For one thing, while its APY is slightly lower than SoFi's, it's still very competitive and there are no special requirements to get it. You can literally deposit $1, open the account, and earn Discover's advertised APY on your money.

Checking accounts

As mentioned above, the SoFi Checking and Savings is a two-in-one product, but the checking account is an impressive product. It offers a competitive APY (for a checking account), the ability to earn a welcome bonus after meeting deposit requirements, and has no fees. Account holders get access to more than 55,000 ATMs, and direct deposit customers can receive their paychecks up to two days early.

Discover has an interesting approach to checking accounts with its Discover® Cashback Debit account. It doesn't pay interest, but offers 1% back on qualifying debit card purchases of up to $3,000 per month -- a rare feature among checking accounts that can be worth far more than the small APYs many online checking accounts pay. Like SoFi, the Discover® Cashback Debit account offers early access to paychecks, access to over 60,000 ATMs, and several other important features.

In addition to the fantastic Discover® Cashback Debit account, Discover offers the Discover® Money Market account that combines some of the features of checking and savings accounts. It has a $2,500 minimum opening deposit requirement, but offers checking and debit card access in an account with an APY comparable to most high-yield savings accounts. SoFi doesn't offer a money market account.

CDs

Discover is the clear winner here. SoFi doesn't offer CDs at all -- at least not yet. On the other hand, Discover offers one of the best varieties of CD terms in the industry, with 12 different maturity terms ranging from three months to 10 years. As we'll see below, Discover® Bank CD rates are highly competitive, especially for shorter-duration CDs like 1-year and 18-month accounts. However, the biggest drawback is that Discover has a $2,500 minimum balance requirement to open a CD.

SoFi Bank offers competitive APYs for its checking and savings accounts, but doesn't offer any CDs at all. Discover has all-around competitive APYs, and with fewer restrictions than SoFi (recall that SoFi's top savings interest rate requires direct deposit). Having said that, here's a side-by-side comparison of the APYs offered by both banks. (Note: N/A means the product isn't offered by the bank.)

It's important to point out that both SoFi and Discover are online banks and don't have physical branches you can access for customer service. But if you're fine with managing your banking over the phone and through channels like live chat, each could still be a good fit.

In SoFi's case, there is phone support available from 5 a.m. to 7 p.m. PT Monday through Thursday and 5 a.m. to 5 p.m. Friday through Sunday. There's also chat support available, or support through X (formerly Twitter) by messaging @SoFiSupport.

Discover takes it a step further, offering 24/7 live phone support. In fact, Discover earned the second highest ranking in the J.D. Power 2023 Direct Banking Satisfaction Study, and holds an A+ rating from the Better Business Bureau.

Both banks have highly rated mobile apps. SoFi's app is designed to be an all-in-one financial management tool, offering checking and savings accounts, personal loans, mortgages, an investment platform, and financial planning features all in the same place. On the other hand, Discover's app is a user-friendly way to manage your bank accounts, and any Discover credit cards or loans you may have.

Here's how these apps rank in both the App Store and Google Play store.

Both of these banks offer excellent products and services. SoFi is likely the better choice if you're looking for an all-in-one banking replacement. It offers an investment platform, several types of loans (including mortgages), and more. Discover, on the other hand, could be the better option if your goal is to get the most yield from your savings, especially if you have money you won't need for a while and can take advantage of its CDs.

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how The Motley Fool Ascent rates bank accounts.