Update 3/16/20: Rate reduced further to .10%.
[Update 9/19/19: Rate reduced further to 1.80%.]
SoFi has announced that the interest rate on the SoFi Money account will be reduced from 2.25% APY to 2% APY effective August 1st, 2019. This account was somewhat competitive before, but now it’s not even remotely close to being competitive. I’d recommend having a look at the best high interest rates currently available here.
Hat tip to Brenden F
William Charles — I just noticed, in an email from SoFi dated 6/22 and titled “Hey ___, get $50 in two easy steps”, that to receive the 0.20% APY you actually need either $500 in deposits or 10 debit transcations per month. I don’t see this language in any previous emails from SoFi, and I don’t recall that the APY used to be dependent on any sort of account activity. (I also don’t see this mentioned elsewhere on DoC.) Here are the details: > At account opening, all SoFi Money accounts will earn interest at 0.20% APY. On the monthly anniversary date of account opening, your account activity for the preceding 30 days will be reviewed. Accounts which: (a) made deposits totaling $500 or more in the preceding 30 days, or (b) used their SoFi Money® World Debit Mastercard® Card for at least 10 transactions (excluding ATM transactions) in the preceding 30 days, will continue to earn interest at 0.20%. Accounts which did not meet either of these targets in the preceding 30 days, will earn interest at 0.01%. Interest rates are variable and subject to change at our discretion at any time. I should also mention that the email was primarily advertising what seems to be a targeted $50 sign-up bonus. The email was sent to my P2, who got the SoFi Money & Invest bonuses in October 2019, then subsequently closed their Money account but kept Invest open. Here are the details for that offer: > Also for a limited time you’ll get $50 from SoFi when you: 1 Open a SoFi Money® account 2 Fund your new account with $500 dollars > Terms and conditions apply. Only SoFi Invest members who are original recipients of this message without a SoFi Money cash management account are eligible. To receive the bonus offer, participants must first apply and successfully open a SoFi Money cash management account. To receive the promotional balance, deposit(s) of $500 or more must be made in the new account by the new SoFi Money member; additionally, the $500 minimum balance needs to stay in the new member’s account for 90 days in order for the new member to qualify for the $50 bonus. Within 10 business days of such a deposit, qualifying participants will receive a $50 deposit into their SoFi Money account. This offer is limited to one per person. The offer expires on 7/13/2020, at 5pm EDT; the deposit of $500 of more must be made into the new account by 7/13/2020. Participants must comply with the SoFi Money terms of use. Any fraudulent or returned funding will result in disqualification. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received by applicable law. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer, consult your tax advisor to determine applicable tax consequences.… Read more »
Surprised Marcus is still holding 1.7% APY. Expecting it to drop in couple of days
I got 5 CDs with Marcus but was considering the ally even though they are at 1.55%, however their CD is 11 mth while Marcus is 7 and if this rate cut lasts a while the 7 wont be enough
Maybe im wrong?
Union Bank & Trust has a 1.3% APY CD (6mo minimum, i think). granted, it’s a CD…
Waiting for them to start charging me interest to hold my money.
This is better than I thought. I thought it would drop to 0.01%
Surprisingly Ally and Marcus have so far not reduced rates (although they likely will)
I think some banks disingenuously keep their rates unchanged after a rate cut, but only temporarily. This way, people comparing which banks now have the highest interest rate will be deceived into thinking bank X is somehow still offering a high rate. But give it another 2 to 4 weeks and it’ll be a different story.
Not “likely,” but with 100% certainty. You only have to look back 5-10 years to know what rates at Ally are like in this environment. Rates will be below 1% everywhere for awhile. It’s a golden opportunity to juice your returns by putting any money not needed in the next few years into the stock market.
That Ally 1% bonus is looking pretty good right now.
Just locked in the 7 month Marcus No Penalty CD as they will most likely drop down rates for the savings account.
Ally already dropped to 1.5% though
Ouch! 10 days between 1.10% to 0.10%!
at least they are still doing ATM refunds and such but within six months they almost completely removed the initial reason I signed up!
Can’t decide if I’m mad or this is in line with everything else that’s going on.
I am mad that I am locked out of transferring my money out since I hit Sofi’s limit. Hope I can get ahold of their support to raise my limit this month.
How much did you transfer? Didn’t know there was a limit.
I’m not sure actually but I had some 5 figure transfers and got an error message yesterday. I want to say it was like 50k/month or something? Anyway, I emailed them and they said I have a 1 million transfer limit now and I’m not getting the error message, so that’s good.
veeRob, I don’t know anything about Sofi, but can’t you get money out by doing an “ACH pull” from another institution?
The feds dropped rates by 1% so yeah.. they matched it
I’m still at 2.25% with customer’s though
Dropped to 1.10%, just noticed it today.
1.60% as of 10/31/19.