Is SoFi a Real Bank?

Is SoFi a Real Bank? Things You Need to Know

Is SoFi a real bank and safe to use? Read this before opening an account.

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SoFi offers members competitive interest rates and no monthly fees on its SoFi Checking and Savings account. Depositors are FDIC insured up to $250,000 and double that amount on SoFi joint accounts.

These benefits may have peaked your interest enough to consider SoFi as your next viable trustworthy banking option.

Yet, before you open a checking account you want to know whether SoFi is a real bank. It’s a legitimate question with a simple answer. 

Albeit, the details may surprise you.

Is SoFi a Real Bank?

Yes, SoFi is a real bank with a real checking and savings account. They received their national bank charter in 2022 and are registered under the official name, SoFi Bank, National Association.

Despite this, they are nothing like your traditional bank. You will not find a SoFi bank near you since they operate fully online, with no physical locations listed. 

This allows SoFi to save money on operational costs and pass along these savings to you in the form of no service fee accounts and attractive banking rates.

SoFi is leading the charge for the growing trend of consumers who say they prefer to bank digitally via an app or website versus banking in person.

Prior to becoming a chartered bank, SoFi was a fintech company offering banking products under the name SoFi Money.

SoFi is offering a promotional bonus of up to $275 to new SoFi banking members who fund their new accounts with at least $100 within 14 days, and completes a qualifying direct deposit. Use this promo link to sign up and learn more. See other SoFi Promotions.

Is SoFi Safe to Use as a Bank?

As a chartered bank, SoFi has become a safer banking option with federal regulatory oversight that is sure to provide more peace of mind to members. 

Still, this doesn’t make SoFi a risk free place to keep your deposits. 

Bank closures can happen without warning and put your deposits at risk. Just within the last 22 years there were 565 bank failures recorded by the FDIC.

One way to mitigate this risk is to spread your deposits across other banks and not keep all your cash reserves with SoFi bank. 

Yet, you can rest assured knowing that SoFi has safeguards in place to keep your money safe. 

In addition to SoFi qualified accounts being FDIC insured up to $250,000, high net worth members can also apply for additional coverage.

The SoFi $2 million FDIC program partners with 12 banks to bring more security to your account. 

The program enables SoFi to disperse your participating funds into deposit accounts at partnered banks, which are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.

Your SoFi Checking account is also protected with industry grade security practices, which include using two-factor authorization (2FA) and Plaid to connect external financial accounts. 

Is SoFi Checking Good?

SoFi Checking is a solid banking account for people who prefer to avoid bank branches and are looking for a streamlined digital banking app. 

The higher than average interest rates on banking accounts allow you to accrue more interest on your money compared to traditional banks. 

Annoying monthly fees are non-existent and payday comes early with qualifying direct deposits.

A SoFi Checking and Savings account is as good as it gets, which is one of the reasons I personally bank with SoFi. 

Read my full SoFi Review.

Is SoFi a Real Bank? Final Thoughts

Anyone wondering whether SoFi is a legit bank can rest assured knowing SoFi is a real bank offering extended $2 million FDIC coverage on eligible funds.

SoFi received its bank charter in 2022 and currently has over 6 million banking members. Members access financial products and services via the SoFi banking app, which is equipped with industry level security protocols and protection. 

As a highly satisfied SoFi banking member, I can further confirm that SoFi is a real bank with a real checking and savings account. 

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