The popularity of online banking is increasing. Online banks do not have real estate and employee cost so they tend to pass on the savings to their customers. Banks like Sofi Money, Ally bank, Aspiration bank, Varo Money, and T-Mobile Money are getting a lot of attentions these days. You can do everything you’ve doing with traditional banks with online banks except you don’t have to stand in the line to see a face of an over-worked employee.
Online banks are helping their customers to reduce the cost of banking; on the other hand, Brick and Mortar banks like Bank of America and Wells Fargo are charging Monthly maintenance fees, over draft fees, check fees, and ATM fees. These could add up pretty quickly as you use your card on a regular basis. Click here to view an article to see how much ATM fees alone could cost you. I have had Bank of America checking account for about 15 years. Finally, I stopped using it. I don’t like the feeling of “getting charge for keeping my money in the bank.” Back when I opened the account, I didn’t have a choice than to go with brick and mortar banks, but now I do. So, why not go with online banking?
Get Whopping 2% interest on your debit card
Unlike many brick and mortar banks, SoFi gives you interests on your checking and saving account. The best of all is that it is 2% . In fact, SoFi calls it a hybrid money account (2 in one). This sets SoFi Money apart from competition. The benefit of this type of account is that you can take out your money whenever you want unlike some checking accounts and some / savings/CD/FD accounts where you feel stuck for months and sometimes for years.
Free ATM Worldwide and No Account Minimum or Requirements to Meet
Most banks want you to meet many requirements so that they can keep your money for longer in your account. For example, Bank of America wants you to direct deposit your paycheck so that they don’t charge you fees to keep your own money. Some banks have minimum balance requirements and some banks require you to keep the money for a minimum of some period. I think this is not right because banks take our money and invest to make more money. SoFi has no minimum balance requirements and all ATM Fees (even outside the US) are reimbursed back to you. Why aren’t you ditching your bank yet?
Get Free Stock Trading Under the Same Account the Same Account
I have managed to migrate all my stocks from Robinhood to SoFi simply because I would like to see all my financials in one place. SoFi offers no-fee trading options and a new way to invest called stock bits where you can own a small pie of a big stock if you cannot own a whole stock. This is usually good when you can’t afford to buy a stock like Amazon but wish the share price was lower.
Get $1M FDIC Insured Guarantee – Other Banks Insure up to 250k
SoFi puts your money into different banks to give you an insurance up-to $1M whereas traditional banks are only offering max protection up-to 250K. Not that I have that much money right now, but it good to know that a bank you like has a better coverage of your money.
Get any Loan in Minutes (personal loans, mortgage, student loans, car loan etc.)
Even though SoFi started as a company that gave low cost student loans, it now offers much more set of products within the same platform. Applying to any loan takes minutes, literally! You can apply for Low interest personal loan, car loan, home loan, and many more without leaving the platform. To be honest, it’s one stop shop for all your financial needs.
Speak With No-Cost Personal Advisor
When you join SoFi, you become a member of SoFi Finance just like a credit union. Which means you will get a lot of perks such as lower rate mortgage loan, free career services, and Unemployment protection plan in case if you lose your job. One of their best free perks is that they provide no cost financial adviser to meet your financial goals. You can schedule an appointment right from the app and speak to a financial advisor at no extra cost. Isn’t this amazing perk to have?
RSVP to Member Experience Parties and Get Together Events
As a member, you can also RSVP to their mega events, parties, and festivals. Their events are once in a lifetime experiences according to their website – all for no extra cost to you. I tried RSVP’ing to their experiences, but it looks like they get sold out pretty fast. Let us know if you’ve been to one of their experiences.
Do you use any of the online banking mentioned in this article? Please let us know in the comment below. Also, do not forget to follow us on social media and subscribe to our weekly newsletter to get posts like this straight to your inbox.
Click here sign up for Sofi Money today and you and I both get $50.