SoFi Looking Into Launching 2% Credit Card With 5% Categories And $99 Annual Fee

SoFi sent out a survey about a new credit card they are looking at launching. The proposed card would earn 2% back on all purchases, provided you deposit the cashback into a SoFi Money/Invest/other account. It would also earn 5% cashback in two categories of your choice (up to $4,000).

Key details presented in the survey:

  • $99 annual fee
  • No foreign transaction fees
  • Card will be Mastercard World Elite and come with all Mastercard benefits
  • 2% cashback everywhere when redeemed to SoFi Money, Invest, or loan account. Otherwise 1% back.
  • 5% cashback in two categories of your choice ($4,000 limit per)
  • Cell phone insurance up to $1,000 – that’s more than the standard Mastercard benefit of $600

Below is an image, shared by Reddit user PartySunday (more images here). Readers in the comments here mention getting slightly different versions whereby the annual fee will be $149 or $49, and some of the card details change a bit. In all versions, the 2% cashback everywhere is steady, as well as the other benefits; it’s just the 5% category that has detail changes between the versions.

Without the annual fee, it would be a compelling product as something better than the standard 2% card. I’m not sure that the $99 annual fee will be worth it for most people to get the extra 3% on two categories, no foreign transaction fee, etc. However, assuming the 5% category options are broad, it could still become another 2% option given that it should be easy to offset the annual fee with the 5% categories. Personally, I’d prefer if they just made it fee-free and dropped the 5% category perk to simplify the product.

I find it really interesting to watch as SoFi comes out and becomes a real player in the deposit/investment market, and now looking at the credit card market. I haven’t analyzed their numbers, but they seem to have come out of nowhere in this space as they shifted from being exclusively (?) a lender, and now moving into the bank and card space.

Hat tip again to PartySunday

 

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BubbleheadBee
BubbleheadBee

Mine was slightly different:
-$129 AF
-2x 5% CB categories (max $5k)
-2% standard CB and Sofi loan payback categories
-$1k cellphone insurance
-$15/month Door Dash credit
-No FTFs

Chris
Chris

I’ve taken two surveys for this credit card and both of them had different offerings. One was for 3% cashback for groceries and 2% back for everything else with no fee, so I don’t think any of the benefits are finalized. They are just seeing how people are reacting to the proposed offerings.

Ian
Ian

I agree with Chris. I’m taking the survey right now and the offer is “Get 3% cash back on 2 categories of your choice (up to $6,000 per year) and 2% cash back when you redeem it to save, invest, or pay off loans in your SoFi accounts.” $99 annual fee, 2% unlimited cash back. Other benefits shown include no foreign transaction fee, cell phone insurance coverage up to $1000, and monthly $10 Lyft credit if you purchase five rides per month.

Bob
Bob

Why would anyone pay $99 annual fee to have this card? Don’t people see the exorbitant credit card interest rate? Not that I’ve ever paid late or interest fees, but it’s appalling to see this type of CC when one could easily just hold two cards – one with flat 2% and another with 5% rotating quarters.

XYZA
XYZA

I’m guessing (and hoping) that SoFi did its research and have identified a group of customers who would considering paying $99 for two fixed categories for the 5x. (2x is pretty much irrelevant unless the customer really hates holding 2 cards).
Personally I would also just hold multiple cards as you do and use whichever one that maximizes my cash back, but I’m sure there are people who would pay the fee for 5x at restaurants or gas stations or grocery stores etc all year round.
I would think this card is more similar to Amex Gold than CF…Anyway, excited to see challengers in the market.

wilfra
wilfra

I had to report them to the CFPB to get them to payout a bonus so buyer beware. I’ll never do business with them again.

Jory
Jory

SoFi has been generous with their rewards and referrals for using their products compared to many others in their market! 🙂

P
P

Very nice. They combined a no annual fee credit card that earn 5% in rotating categories with another no annual fee credit card that earns 2% and will charge you $99 annual fee.

EliFL77
EliFL77

Nice Bank but why should I waste my 5/24 on this exactly?

William Charles

Nobody said you should

Jags
Jags

So…if you spend all $4000 of your 5% category it ends up being a 2% everywhere, 2.5% on $4000 of spend.

Hard pass.

john m
john m

I hate fees.

Morris
Morris

The post is a little unclear about the 5% part: is it 5% net or 5% and then an additional 2% on that once you redeem (5.1%)?