SoFi is vying for your business with an update to its long-running direct deposit promotion. You can now earn up to $300 by adding direct deposits to a new or existing checking or savings account that hasn’t received electronic transfers before.
As bank account bonuses stack up, this one has minimal requirements and a quick turnaround. SoFi recently increased the largest bonus tier by $50 to make an already-generous bonus more attractive.
Here’s everything you need to know about SoFi’s direct deposit promotional offer, including how to get it and what you should consider before committing.
SoFi’s direct deposit promotion details
The expanded direct deposit promotion now runs until June 30, 2024. However, your promotional period will end 25 days after SoFi receives the first direct deposit. The promotion applies to new checking and savings accounts or accounts owned by existing members (SoFi account holders) as long as no direct deposit has ever been established.
SoFi has a two-tiered bonus structure:
- Receive $50 for qualifying direct deposits from $1,000 to $4,999.99.
- Receive $300 for qualifying direct deposits of $5,000 or more.
Qualifying direct deposits include payments from a paycheck, benefits provider or government agency via an ACH transfer. SoFi will credit your account within seven days following the conclusion of your promotional period.
Keep in mind that bank account bonuses are considered income by the IRS, so the amount of your bonus will be reported on a 1099-INT form.
Why SoFi’s checking and savings account stands out
As an online-only bank, SoFi regularly lands on our online bank and bank account bonus best lists because of its competitive APYs for deposit accounts, innovative tools and simple new account bonus.
SoFi’s checking and savings accounts are a package deal -- when you open one, you also get the other. The checking account earns a respectable 0.50% APY* with qualifying direct deposits, doesn’t charge monthly maintenance or overdraft fees and has no minimum deposit requirement. You also can earn up to 15% cash back on eligible purchases with your SoFi debit card. And, with direct deposit, you can receive your paychecks up to two days early.
SoFi’s high-yield savings account earns up to 4.60% APY, also with no fees or minimum balance requirements. To earn the top rate, you’ll need to establish a direct deposit or transfer $5,000 to the account every 30 days. Otherwise, the APY drops to 1.20%.
You can set savings goals using SoFi Vaults in the bank’s app. Roundups also allow you to automate and build your savings by rounding your purchases up to the nearest dollar and transferring the amount to your savings account.
*Rates as of Dec. 19, 2023.
What to consider before pursuing a bank bonus
While free cash from a bank account bonus is enticing, that shouldn’t be the main reason you open an account. Here are a few things to keep in mind before choosing a new account based on a bonus offer.
- Review the fine print. It’s important to understand the terms of the offer because failure to meet the requirements can disqualify you from the bonus.
- Confirm other account features and fees. Earning a sign-up bonus might not be worth saddling yourself with monthly maintenance fees or high minimum balance requirements you can’t meet.
- Read the account closure policy. Opening a new account with the intent to close it soon after receiving the bonus -- known as account churning -- may cost you. Familiarize yourself with early account closure fees and policies to avoid paying unnecessary penalties.
- Be prepared to pay any required taxes. The IRS considers bank account bonuses interest income, just like money you earn from a high-yield savings account or CD. You must report any bank account bonuses earned to the IRS on a 1099 tax form, which the bank may send to you.
Is SoFi’s bank account bonus worth it?
SoFi only has a checking and savings account. So, if you need a certificate of deposit or money market account, you’ll need to look elsewhere. However, if you’re comfortable using multiple bank accounts to manage your banking needs, SoFi offers competitive rates and innovative tools to help you accomplish your financial goals. You won’t pay monthly fees on either account, and there are no minimum deposit requirements.
As long as you can fulfill the direct deposit requirements to qualify for the initial bonus and earn the highest APY on your savings account, SoFi’s increased direct deposit promotion could be a good fit for you. This cash bonus can add to your bottom line quickly with minimal hoops to jump through.
