SoFi Checking & Savings coming soon

[ccquest]

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@Wavester64 wrote:

Curious - does anyone know if there is a downside to making this switch for currently members?

I was an early SoFi adopter and I am being offered this switch from having a money account to 
now switching to Checking & Savings and getting 1% APR (instead of the current 0.25%).

TBH, I have been too lazy to read into this to find out myself, so that is why I am asking here

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You lose the extra coverage if you've got over $250k invested. With Money it's routed through several partner banks so you get up to $250k with each of those banks, with Checking & Savings it's only through SoFi bank so you only get $250k FDIC insured.

I think with either option (for newcomers, not you since you're grandfathered in on the old requirements probably) you need direct deposit to get the higher rate (.25% for Money, 1% for C&S).

I finally got my invitation to switch this evening, accepted and it originally said it would be effective tomorrow night at midnight PT, now saying 6AM ET so I'll get an extra day I guess.

[Silver12]

For me the biggest downside is no ATM reimbursements (even if you were grandfathered in for the SoFi Money reimbursements).  Only free ATMs are Allpoint, but if you only use those ATMs, then this won't be a big deal.

[ccquest]

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@Silver12 wrote:

For me the biggest downside is no ATM reimbursements (even if you were grandfathered in for the SoFi Money reimbursements).  Only free ATMs are Allpoint, but if you only use those ATMs, then this won't be a big deal.

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And for that you'd have to weigh the ATM fees vs what you'd make with the 1% compared to .25%. If you use ATMs enough, the Money account definitely makes more sense.

My transfer went through this morning though, there was something else I wanted to make a note of on the bottom of the list of changes that gets mentioned in the app but I can't remember it right now.

[summerterrace]

I moved some of my Emergency and sinking funds to SoFi checking to get the 1% and will direct some my of direct deposit there.  Since I have an account at Navy and also a local bank I can always use their ATM card for fee rebates or free withdrawals (although I believe there is an Allpoint ATM in the gas station closest to me).  I think the 1% APY for just direct deposit is pretty competitive, especially with no minimum balances or other fees.  Even most credit unions don't pay that much or if they do they have a minimum balance or cap on how much they will pay interest on.