SoFi's current savings account interest rate

SoFi's savings account interest rate changes based on Federal Reserve decisions and market conditions. As of early 2024, SoFi advertises rates around 4.60% to 4.75% APY (annual percentage yield) on their savings accounts, though the exact rate you receive depends on when you open the account and current market conditions. The rate is not fixed — it moves up or down as the Fed adjusts its benchmark rates.

The rate SoFi pays is competitive with other online banks because SoFi has no physical branches and lower overhead costs than traditional banks. However, you should check SoFi's website directly before opening an account, because rates shift frequently and the rate advertised today may not be the rate you lock in tomorrow.

SoFi's savings accounts are FDIC-insured up to $250,000 per depositor, the same protection that covers accounts at any bank. This means your money is protected even if SoFi fails, though that protection applies only to the savings account itself — not to other SoFi products like their brokerage or lending services.

Key Takeaways

  • SoFi's savings account rate fluctuates with Federal Reserve policy and is not locked in when you open the account.
  • The rate SoFi advertises on their website is the current rate, but you should verify it before depositing because rates change frequently.
  • SoFi pays the same rate to all customers on the same account type — there are no tiered rates based on balance size.
  • Your deposits are FDIC-insured up to $250,000, protecting your principal even if the bank fails.

How SoFi's rate compares to other online banks

SoFi's savings rate is typically in the middle to upper range of online banks, but not always the highest. Other online banks like Marcus, Ally, and American Express offer rates in the same ballpark — usually within 0.10% to 0.25% of SoFi's rate. The difference between a 4.60% rate and a 4.75% rate is small on small balances but adds up on larger ones: on $10,000, the difference is about $15 per year.

The rate you should choose depends on what else you use SoFi for. If you already have a SoFi checking account or use their lending products, keeping your savings there may be simpler than splitting accounts across multiple banks. If you are purely shopping for the highest savings rate, you may find a slightly better offer elsewhere — but the difference is usually not large enough to justify the hassle of moving money between institutions.

When SoFi changes its savings rate

SoFi adjusts its savings rate when the Federal Reserve changes its benchmark interest rate, which it does roughly every six to eight weeks during active policy cycles. When the Fed raises rates, SoFi typically raises its savings rate within days or weeks. When the Fed cuts rates, SoFi cuts its savings rate as well, though sometimes with a slight delay.

You do not have to do anything when the rate changes — the new rate applies automatically to your account. SoFi will notify you by email or in-app message when a rate change happens, but the change takes effect whether you see the notification or not. This is different from a CD (certificate of deposit), where your rate is locked in for a specific term.

How interest accrues and when you receive it

SoFi calculates interest daily based on your account balance and deposits it monthly. This means if you have $5,000 in the account on the first of the month, SoFi divides the annual rate by 365 and applies that daily rate to your balance each day. At the end of the month, all those daily interest amounts are added together and deposited into your account as a single payment.

The interest you earn is taxable income. SoFi will send you a 1099-INT form at the end of the year if you earned more than $10 in interest, which you will need to report on your tax return. The interest is reported to the IRS automatically, so the IRS knows about it whether you report it or not.

Minimum balance and account requirements

SoFi's savings account has no minimum balance requirement — you can open an account with $1 and earn the full advertised rate. There are no monthly fees, no maintenance charges, and no penalties for keeping a low balance. This makes SoFi's savings account accessible even if you are starting with a small amount.

You do need a SoFi checking account to open a SoFi savings account. If you do not already have a SoFi checking account, you will need to open one first. The checking account also has no monthly fees and no minimum balance, so this is not a financial barrier — but it is a requirement to know about.

Withdrawals and access to your money

SoFi allows unlimited transfers between your SoFi savings and checking accounts with no fees or waiting period. You can move money out when ready through their app or website. However, federal banking rules limit you to six withdrawals per month from a savings account (including transfers out). If you exceed six withdrawals in a month, SoFi may charge a fee or convert your account to a checking account.

This limit applies to transfers and withdrawals combined — it does not matter whether you move money to your SoFi checking account, to another bank, or to a third party. If you need to access your money more than six times per month, a SoFi checking account would be a better place to keep it, since checking accounts have no withdrawal limit.

How to open a SoFi savings account

You open a SoFi savings account through the SoFi app or website. The process takes about 10 minutes and requires your Social Security number, date of birth, address, and employment information. SoFi will verify your identity and run a soft credit check, which does not affect your credit score.

Once your account is open, you can fund it by linking a bank account and transferring money, or by having your employer deposit your paycheck directly. SoFi does not charge fees for incoming or outgoing transfers, and transfers from other banks typically arrive within one to three business days.

Frequently Asked Questions

Can I lock in SoFi's current rate so it does not go down?

No. SoFi's savings account rate is variable, meaning it changes when market conditions change. If you want a locked-in rate, you would need to open a SoFi CD (certificate of deposit) instead, which fixes your rate for a specific term — typically three months to five years. CDs usually pay slightly less than savings accounts because you agree not to withdraw the money early.

What happens to my interest if SoFi lowers its rate?

The interest you have already earned stays in your account. Only the rate on new deposits and future interest calculations changes. If SoFi's rate drops from 4.75% to 4.50%, the interest you earned at 4.75% is yours to keep — only the money you have in the account going forward earns the new 4.50% rate.

Is SoFi's savings account safe if the bank fails?

Yes. Your savings account is FDIC-insured up to $250,000, which means the federal government guarantees your deposits even if SoFi fails. This protection is the same at every FDIC-insured bank. If you have more than $250,000, only the first $250,000 is protected — the rest is not.

Do I have to have direct deposit to earn the full interest rate?

No. SoFi pays the same rate to all customers regardless of how you fund your account. You do not need direct deposit, and you do not need to maintain a minimum balance. The advertised rate applies to your entire balance from day one.

How does SoFi's rate compare to keeping money in a traditional bank?

Most traditional banks pay 0.01% to 0.05% on savings accounts, while SoFi pays around 4.60% to 4.75%. The difference is substantial: on $10,000, a traditional bank might pay $1 to $5 per year, while SoFi would pay around $460 to $475. Online banks like SoFi can pay higher rates because they have lower operating costs.