Update 2: if you open an account with at least $100 using this link, we’ll both get $50.
Student loan lender Social Finance (SoFi) now offers SoFi Money, a cash management account with:
- High interest (currently 2.25%) without the hassle of moving money between checking and savings
- No minimums, maximums or high-interest hurdles
- No unreasonable fees (not even overdraft)
- Free checks, online payments and bill pay
No Hassles
Managing your cash should be simple, but sometimes it’s not. Simple‘s combination checking and savings account requires you to move money between its “spend” and “goals” accounts. This allows you to see what’s truly available to spend, but there’s a catch. When cash is in the “spend” account, it earns nothing. If you can tolerate frequent transfers between accounts, check out Memory Bank‘s 1.60% checking and 2.45% money market savings accounts. Or, avoid this hassle with SoFi Money and earn 2.25% without having to move money around.
SoFi Money avoid hassles in other areas as well. For example, processes to setup your account, direct deposit, add banks to transfer, add payees and schedule transactions are, well, simple. The mobile app is easy to use, but be aware of SoFi’s mobile check deposit availability. You can get around this by using depositing in another bank with immediate availability, then using an ACH transaction to put the deposit in SoFi.
No Hurdles
Many checking and cash management accounts offer interest up to over 5% but limit your ability to earn that interest. Maximum interest is limited through minimums, maximums and other requirements. But if you don’t meet those requirements each month, the interest is little or nothing. For example, many require a minimum number of debit card transactions and have low maximums for obtaining the high interest rate. This is common with Kasasa accounts offered by many banks. T-Mobile recently introduced a 4% account, but it requires T-Mobile service, monthly deposits of $200 or higher, and only pays 4% up to $3,000.
No Fees
With SoFi Money, there really are no unreasonable fees:
- No domestic or international ATM fees and reimbursement for 3rd party ATM charges.
- No charges for physical checks, bill pay or person to person (P2P) payments.
- No account minimum, inactive or dormant account fees.
- No overdraft fees (usually prevented).
- No foreign transaction fees on debit charges or ATM withdrawals (though the foreign bank may charge).
- Reasonable service charges (additional replacement cards, replacement card rush delivery, stop payment, legal statement research).
SoFi Money: High-interest cash management without the pain
If you want high-interest cash management without the pain of other high-interest account, check out SoFi Money. It’s like getting savings account interest on a free checking account.