SoFi Bank is an online bank owned by Social Finance, Inc., a fintech company that started by refinancing student loans

SoFi Bank is a federal savings bank chartered and regulated by the Office of the Comptroller of the Currency (OCC). It operates entirely online—there are no physical branches. The bank offers checking and savings accounts, personal loans, student loan refinancing, investment accounts, and cryptocurrency services. Money you deposit is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account category, the same protection you get at any traditional bank.

SoFi started in 2011 as a peer-to-peer lending platform focused on student loan refinancing. In 2020, it became a bank holding company and received its federal charter in 2022. The shift to a bank means SoFi can take deposits directly and offer FDIC-insured accounts, rather than relying on third-party banks to hold customer money.

The bank makes money the way most banks do: by charging interest on loans, collecting fees on some services, and earning returns on the money you deposit. Unlike traditional banks, SoFi has no monthly maintenance fees on its checking or savings accounts, and it reimburses ATM fees nationwide.

Key Takeaways

  • SoFi Bank is a federally chartered online bank regulated by the OCC, with deposits insured by the FDIC up to $250,000 per account type.
  • The bank offers checking and savings accounts with no monthly fees and nationwide ATM reimbursement, plus personal loans and student loan refinancing.
  • Because SoFi operates online only, there are no branch locations; all banking is done through the mobile app or website.
  • Interest rates on savings accounts and loan terms vary based on your credit profile and current market conditions, so rates are not the same for every customer.

How SoFi's Checking and Savings Accounts Work

SoFi offers two main deposit products: a checking account and a savings account. Both are FDIC-insured and carry no monthly maintenance fees. The checking account comes with a debit card, online bill pay, and the ability to set up direct deposit. The savings account earns interest, though the rate changes based on Federal Reserve policy and SoFi's own decisions.

When you open an account, you link a bank account or debit card to fund it. Transfers typically take one to three business days. Once money is in your SoFi account, you can move it to other accounts, pay bills, or withdraw it at any ATM in the United States—SoFi reimburses the fee, even if the ATM is not part of its network.

SoFi also offers a Money Market Account, which functions like a savings account but may have different interest rates and withdrawal rules. The account terms are available on SoFi's website and change periodically.

Personal Loans and Student Loan Refinancing

SoFi's original business was refinancing student loans, and it remains a core product. When you refinance federal or private student loans through SoFi, you take out a new loan from SoFi to pay off your existing loans. The new loan has a single interest rate and payment, which may be lower than your current rate depending on your credit score and income.

Important: refinancing federal student loans means you lose federal protections like income-driven repayment plans, Public Service Loan Forgiveness may be able to access, and the ability to pause payments during hardship. SoFi offers its own hardship options, but they are not the same as federal programs.

SoFi also offers personal loans ranging from $5,000 to $100,000, used for debt consolidation, home improvement, or other purposes. Like all loans, the interest rate depends on your credit score, income, and debt-to-income ratio. Rates are quoted before you commit, and you can see the exact monthly payment before accepting the loan.

How SoFi Makes Money From You

SoFi charges no monthly account fees, no overdraft fees, and no ATM fees. However, the bank does earn money from you in several ways. When you borrow—whether a personal loan or refinanced student loan—you pay interest. The interest rate is determined by your creditworthiness and market conditions.

SoFi also offers investment accounts and cryptocurrency trading. These services generate revenue through spreads (the difference between buy and sell prices) and, in some cases, subscription fees for premium features. The bank also earns interest on the deposits you hold in checking and savings accounts, though it pays you a portion of that interest as your account's interest rate.

Unlike some online banks, SoFi does not charge for wire transfers, overdraft protection, or early loan payoff. This is a deliberate business choice: SoFi targets customers with good credit and stable income, who are less likely to overdraft or default, so the bank can afford to waive these fees.

FDIC Insurance and Account Protection

Money in your SoFi checking and savings accounts is insured by the FDIC up to $250,000 per account type. This means if SoFi fails, the FDIC will reimburse you up to that limit. The FDIC insurance applies separately to your checking account and your savings account, so you could have $250,000 in checking and $250,000 in savings, both fully protected.

If you hold a joint account with another person, the FDIC insurance limit is $250,000 per person, so a joint account with two owners is insured up to $500,000 total. Money Market Accounts are also FDIC-insured under the same rules.

FDIC insurance does not cover investment accounts or cryptocurrency holdings. If you use SoFi's brokerage or crypto platform, those assets are not protected by the FDIC. SoFi holds cryptocurrency in segregated accounts and has insurance through third parties, but this is different from FDIC protection.

How to Move Money In and Out of SoFi

You can fund your SoFi account by linking an external bank account and initiating an ACH transfer, which typically takes one to three business days. You can also set up direct deposit from your employer, which usually posts within one business day. Wire transfers are also available, though they are less common for personal accounts.

To withdraw money, you can transfer it back to your linked bank account (one to three business days), use your debit card at any ATM, or request a wire transfer. There are no limits on how often you transfer money out, though federal regulations cap certain types of withdrawals from savings accounts at six per month—SoFi enforces this rule.

If you close your SoFi account, any remaining balance is returned to the bank account you linked during signup. SoFi does not charge a fee to close an account.

What Happens If You Have a Problem With a Transaction

If a transaction on your SoFi debit card or account is unauthorized or incorrect, you can dispute it through the SoFi app or website. SoFi has 60 days from the date the transaction posted to investigate. During the investigation, SoFi may provisionally credit your account while it gathers evidence.

For ACH transfers (money moving between banks), you have 60 days to report an error. For wire transfers, the window is shorter—typically 24 hours—so report problems immediately. SoFi's customer service is available through the app, email, and phone.

If your debit card is lost or stolen, contact SoFi immediately through the app or phone. SoFi will cancel the card and issue a replacement, which typically arrives within five to seven business days. You are not liable for unauthorized charges if you report the card missing promptly.

Frequently Asked Questions

Is SoFi Bank FDIC insured?

Yes. SoFi Bank is a federally chartered bank, and deposits in checking and savings accounts are insured by the FDIC up to $250,000 per account type. Investment and cryptocurrency accounts are not FDIC-insured.

Can I use SoFi without a Social Security number?

No. SoFi requires a Social Security number to open an account because it is a regulated bank and must verify your identity under federal law. If you do not have a Social Security number, you cannot open a SoFi account.

What is the interest rate on SoFi savings accounts?

SoFi's savings account interest rate changes based on Federal Reserve policy and SoFi's own decisions. The current rate is displayed on SoFi's website. Rates for new customers may differ from rates for existing customers, and SoFi can change rates at any time with notice.

Can I refinance federal student loans with SoFi?

Yes, but you will lose federal protections like income-driven repayment and Public Service Loan Forgiveness. Refinance only if you have stable income and do not expect to need federal hardship options. SoFi offers forbearance and deferment, but these are not the same as federal programs.

What happens if SoFi goes out of business?

If SoFi fails, the FDIC takes over and reimburses depositors up to $250,000 per account type. You would not lose money, though access to your account might be temporarily disrupted while the FDIC processes the closure.