SoFi Checking and Savings to Offer Access to Up to $2 Million in FDIC Insurance
SoFi members – we are thrilled to announce that we will be offering the opportunity to get FDIC insurance up to $2 million on all bank balances¹, through the new SoFi FDIC Insurance Network, increasing from the industry standard $250,000 per account, over the coming days. This increased coverage is provided by allowing SoFi to seamlessly place members deposits beyond the standard insurance coverage with specifically identified FDIC insured partner banks. As always, there are zero account fees for SoFi Checking and Savings², and no fees to increase FDIC insurance coverage. All SoFi Checking and Savings members will receive emails notifying them they are now able to sign up over the coming days.
We know that the last few weeks have been unnerving for many consumers. At SoFi, protecting our members’ money is our number one priority, and increasing FDIC insurance is the latest way we are providing extra peace of mind for our members.
We’ve included answers to all our members questions on FDIC insurance and what this means for members’ individual accounts here:
What is FDIC insurance?
FDIC is an abbreviation for the Federal Deposit Insurance Corporation. It is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits.
How much does FDIC insurance cost?
There is no cost for FDIC Insurance. Bank members don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank such as SoFi. SoFi Members are NOT charged for increasing their FDIC insurance.
Does increasing my FDIC insurance change the APY I earn on my cash?
No. You will continue to earn SoFi’s high APY whether you enroll in Enhanced Deposit Insurance or not. As of March 17th, that means direct deposit members earn 4.00% APY (Annual Percentage Yield)³ on all your savings balances and 1.20% APY on all your checking balances. Members without direct deposit earn 1.20% APY on all their balances.
How can you offer more FDIC insurance than most banks?
The SoFi FDIC Insurance Network partners with multiple banks to provide the best benefits to our members. By increasing your FDIC insurance through the SoFi FDIC Insurance Network, you can increase the standard $250k of FDIC coverage to up to $2M of coverage. This works the same way it would if you manually opened accounts with different banks. We just do it seamlessly and automatically and you can still access all your cash through SoFi. It is important that you maintain awareness of any deposits you might maintain at one of the other network banks as this may affect your coverage with that network bank.
What if I already have an account at one of SoFi’s partner banks?
For purposes of insurance coverage, the FDIC aggregates deposit balances of each customer held in the same insurable capacity at a particular bank (e.g., individual, joint, IRA, corporate). If you have an outside account with one of SoFi’s partner banks, the funds in that account will also count towards your total eligible FDIC coverage at that particular bank ($250K for individual accounts, $500K for joint accounts).
How do I opt into the program?
Please click on the email you received to opt into the program or log in to the SoFi app where you will see a card in your banking tab that you can click to enroll. You will receive a confirmation email within 48 hours indicating that you have been enrolled.
Are my SoFi Invest deposits covered by this FDIC coverage?
No, SoFi Invest assets are covered by Securities Investor Protection Corporation (SIPC) insurance rather than FDIC.
- SoFi Checking and Savings is offered through SoFi Bank, N.A. Advisory services are offered through SoFi Wealth, LLC an SEC-registered investment adviser. Brokerage products and SoFi Money® are offered through SoFi Securities LLC, member FINRA/SIPC.
- Funds participating in the SoFi FDIC Insurance Network are deposited into deposit accounts at participating banks which are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 for each category of legal ownership (individual and joint), including any other balances you may hold directly or through other intermediaries, including cash management accounts through broker-dealers. The total amount of FDIC insurance for your account under this programs is limited to $2 million. Review the Program Terms and Conditions carefully before enrolling in the program and for other important disclosures and information. To assure your FDIC coverage, regularly review banks in which your funds have been deposited and reduce your balance at other participating banks to retain full insurance coverage.
- SoFi members with direct deposit can earn up to 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.00% APY for savings. Members without direct deposit will earn 1.20% APY on all account balances in checking balances and savings balances without direct deposit (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 3/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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