Quote from Savings Beagle on February 8, 2020, 3:02 pm

Update 7/29/2020 - Referral bonus now $50 with this referral link.  Also, see other changes to interest rate, money-saving offers and ATM fee reimbursement in the overview below.

SoFi is an online money management platform that offers its members a variety of financial products and tools aimed at helping to set and achieve financial goals.

A SoFi Money account is one of the money management tools offered on the platform, and one that could very well be a money-maker for you.

SoFi Money, referred to as a mobile-first cash management account, works similarly to a traditional bank’s checking account. You can make deposits, pay bills electronically, perform P2P transfers and write checks.

But what makes SoFi Money stand out from traditional bank checking accounts - and most savings accounts for that matter - is that it offers a significant return on your deposited money…currently 1.60% APY 1.10%APY as of 3/4/2020 0.10% APY as of 3/17/2020 0.20% APY as of 6/10/2020. I'm keeping the historical numbers as reference for how quickly the high yield aspect of this account has disappeared.  The moves at SoFi Money and other high yield savings vehicles are the direct result of the current economic climate and the Federal Reserve Bank's actions of dropping U.S. interest rates to zero.

SoFi Money Interest Policy (summer 2020)

“As of 7/1/2020, accounts with monthly deposits of $500 or more will earn a 0.25% APY (0.25% interest rate). All other accounts will earn a 0.01% APY. Accounts opened prior to June 9, 2020, will continue to earn a 0.25% APY regardless of deposit activity. Interest rates are variable and subject to change at any time.”

One important thing to keep in mind about a SoFi Money account, though, is that it's actually a brokerage account with checking functionality through Wilmington Savings Fund Society, a member of the FDIC.

Initial deposits into a SoFi Money account are not insured like deposits at traditional banks. However, cash balances are swept to one or more program banks where deposits are FDIC insured up to $250,000 per bank.

It's this unique money management model that allows such a high interest rate to be paid.

In addition to a fairly easy to use cash management system that earns 1.60%, a SoFi Money account has no fees, and reimburses *all ATM fees, no matter where in the world you use your SoFi Money **Visa Debit Card to access your money (must be an ATM displaying the Visa®, Plus®, or NYCE® logo).

*SoFi will now reimburse ATM fees at Allpoint Network ATMs only, not all ATMs as was previous SoFi policy. Accounts opened prior to June 9, 2020, will supposedly continue to receive reimbursed ATM fees at ALL ATMs worldwide.

**SoFi recently announced it will be replacing its Visa debit cards with a World Debit Mastercard that will offer a number of benefits not seen on the current Visa debit card.  You can read our post "The SoFi Money Card is Adding Significant Benefits That are Worth a Look" for more details.

SoFi has introduced a number of money-saving offers that can be taken advantage of when the SoFi Money World Debit Mastercard is used to pay.  There is one important account activity change associated with those cash back offers, though.

To be eligible for those cash back offers associated with SoFi Money's debit card, you must set up direct deposit or inflows of $500 per month on your SoFi Money account.

If you use SoFi Money as your main money-management account, this may not be an issue.  If it's a secondary account, the new requirement is definitely a negative when it comes to taking advantage of money-saving offers.

One benefit of SoFi Money is that it can be a money-making financial vehicle, too.

As a marketing tool, SoFi offers referral bonuses that allow both current SoFi customers and individuals opening a new SoFi Money account to make a little cash.

The current bonus structure allows SoFi Money account holders to earn $25 for each referral when that person opens a SoFi Money account and deposits $100 within 14 days of account opening.  And the new SoFi Money customer will also earn $25 when the account opening/deposit criteria are met.

While $25 isn't a huge amount, we have seen larger bonuses offered in the past.  Those increased referral bonuses may return.  In which case it might be good to have an account already open and ready to refer.

If you have friends and family who may be interested in a SoFi Money account, it would be a good way to make a little extra cash.

Below is my referral link if you're interested in more information on SoFi Money and opening your own account.

SOFI MONEY ACCOUNT REFERRAL LINK

Thank you if you use my link.

I likely wouldn't keep significant amounts of money in a SoFi Money account, but it could be a nice option for an emergency fund on which you can earn 1.60%.  And the no ATM fees benefit is definitely worthwhile, especially if you're traveling overseas.

Currently, through February 18, 2020, SoFi Money debit cardholders can save 20% on Lyft rides when the card is used to pay.  I only mention this promo to highlight that similar promotions may be on the horizon and could be taken advantage of with the new Mastercard debit card, in addition to its benefits, for SoFi Money customers.

Just one more reason to consider a SoFi Money account.

If you've had experience with SoFi and its money management platform, let us know your thoughts below.