- I signed up for a SoFi Money account for a cash signup bonus and a good interest rate, but I'm sticking around because the company offers an impressive suite of other products, too.
- SoFi Invest lets you buy stocks, ETFs, cryptocurrencies, and offers a managed portfolio (robo-adviser). Stocks and ETFs trade for free and are available in fractional shares.
- SoFi also offers student loans, home loans, and personal loans with competitive rates.
- The free budgeting and money tracking features, called SoFi Relay, help you stay on track for your financial goals.
- Get a personal loan from SoFi today. Interest rates start at just 5.99% »
SoFi, short for Social Finance, is a unique lending, banking, and investment company focused on people with strong education and income prospects. I first got to know the company as a non-traditional lender that was ideal for people with MBA or medical school loans, for example.
The company quickly grew to offer a suite of financial products, and in 2019 I signed up for a SoFi Money account, SoFi's bank account, for a signup bonus and to give the bank a try. So far, I'm impressed. Here's a look at the major products SoFi has to offer and whether they might make sense for you.
Because this is where I started, let's look at SoFi Money first. SoFi Money is essentially a checking and savings account in one. The account has no recurring fees and reimburses you for all ATM fees charged by other banks. It features an interest rate that's on par with high-yield savings accounts at popular online banks.
One cool feature is called Vaults. Vaults work as sub-savings accounts to put money away for specific goals. Vaults are still a part of SoFi Money and earn the same great interest rate, currently 1.60% as of December 30, 2019.
SoFi Invest is, as the name implies, the investment arm of a SoFi account. With SoFi Invest, you can buy and sell stocks and ETFs with no fees.
Through what it calls Stock Bits, you can purchase fractional shares in your SoFi Invest account. That means you don't need to have the full share price for supported stocks or ETFs. You could buy $100 of Amazon or Apple stock even if the shares are above $100 per share, for example.
For those who don't want to manage their own portfolio, you can buy into SoFi's instant diversification collections or let SoFi investment pros handle things with automated investing.
SoFi Invest also supports cryptocurrencies like Bitcoin, but they are incredibly high risk and probably not a good use of your money.
SoFi uses some non-traditional credit information and will look at your school and degree, for example, in addition to your credit score when approving a loan. The company understands that someone with $200,000 in med school loans might have bad credit but will likely be able to pay back their loans in the future due to a high income, for example.
You can start the application process for some loans in as little as two minutes. Depending on the loan, you can get an idea of your approval odds and interest rate without a hard hit to your credit report.
SoFi Relay is a virtual money dashboard that summarizes account balances and transactions, including accounts outside of SoFi. It helps you manage your budget, credit score, and understand your monthly cash flow.
Relay isn't as fully featured as apps like Mint, but it does a decent job at giving you the basic info you need. If you are already using another SoFi product, it adds other vital money info at your fingertips in the SoFi app or online at SoFi.com.
Does SoFi make sense for you?
SoFi is a viable choice to keep all of your finances under one roof, but it isn't perfect for everyone. You'll get the best experience if you are tech-savvy and have a basic understanding of what you want to do with your money. It's clearly geared toward millennials who have common financial needs and goals, but that isn't a bad thing in any way.
The app and website are easy to use and the financial products hold up well. Expert stock traders and people who want more granular control over their finances might be best off looking to a traditional brokerage. But for people who are okay with a modern experience, SoFi definitely fits the bill.
Learn more about refinancing your student loans or getting a personal loan from SoFi today »
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