SoFi Blog

With the holidays coming up and inflation still hitting wallets hard, SoFi is continuing to raise our rates to ensure our members always get the most for their hard-earned money.

SoFi is raising our APY (yes, again!) to 3.25%¹, 13x the national average savings account rate², on all savings balances (including Vaults) for direct deposit members. Members with direct deposit will also continue to earn 2.50%, 62x the national average³, on checking balances. SoFi members without direct deposit will continue to earn 1.20% APY on all of their balances (across checking, savings and Vaults).

To help members put more money in their pocket, SoFi is offering even more ways to get your money right:

•  Earn up to $250 for adding qualifying direct deposits⁴: SoFi is offering up to $250 as a cash bonus for new members who sign up and set up qualifying direct deposits—or existing members who set up qualifying direct deposits before 1/31/23.

•  Earn up to 3% cashback on the SoFi Credit Card⁵: Members that open a new SoFi Credit Card and also have Checking and Savings account with a qualifying direct deposit or existing credit card members who set up a new direct deposit to SoFi Checking & Savings for the first time can start earning 3% cash back on all eligible credit card purchases for 365 days. Apply for a credit card here.6

Interested in earning more? Sign up for SoFi Checking & Savings. Already a member? Set up your SoFi direct deposit to make sure you get the most out of your money.

Disclosures:

1. SoFi members with direct deposit can earn up to 3.25% annual percentage yield (APY) on savings balances (including Vaults) and 2.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 3.25% APY for savings and 2.50% APY for checking balances. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 11/30/2022. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

2. 13x based on FDIC monthly savings account rate as of November 30, 2022.

3. 62x based on FDIC monthly interest checking rate as of November 30, 2022.

4. The following describes the terms that apply to participation in the SoFi Checking and Savings direct deposit program (“Program”) offered by SoFi Bank, N.A Member FDIC (“SoFi”).

Eligible Participants: All new and existing members without a history of direct deposit transactions into their SoFi Checking and Savings account are eligible for the Program. Members who previously enrolled in direct deposit into either SoFi Money or SoFi Checking and Savings do not qualify for this promotion.

Promotion Period: The Program will be available through 1/31/23 11:59PM ET.

Bonus Terms: In order to qualify for eligibility for a bonus, SoFi must receive at least one Qualifying Direct Deposit (as defined below) from an Eligible Participant before the end of the Promotion Period. Qualifying Direct Deposits are defined as deposits from an enrolled member’s employer, payroll, or benefits provider via ACH deposit. Deposits that are not from an employer (such as check deposits; P2P transfers such as from PayPal or Venmo, etc.; merchant transactions such as from PayPal, Stripe, Square, etc.; and bank ACH transfers not from employers) do not qualify for this promotion. The amount of the bonus, if any, is described below. No bonuses shall be paid for Qualifying Direct Deposits of less than $1,000 during the Evaluation Period (defined below).

Evaluation Period: The Evaluation Period begins when SoFi receives a Qualifying Direct Deposit (within the Promotion Period) and ends 25 days later (the “Evaluation Period”). The bonus amount will vary based on the total amount of Qualifying Direct Deposits received during the Evaluation Period. Once the Evaluation Period has elapsed, we will determine if you have met the offer requirements and will deposit any earned bonus into your checking account within 7 business days. For example, if SoFi receives between $1,000.00 and $4,999.99 in Qualifying Direct Deposits during the Evaluation Period, you will receive a cash bonus of $50. A member may only qualify for one bonus tier and will not be eligible for future bonus payments if inflows subsequently increase after the Evaluation Period.

Total Qualifying Direct Deposit amount in 25-day Evaluation Period

$1,000.00 – $4,999.99: $50 cash bonus
$5,000.00 or more: $250 cash bonus

Payment timeline: SoFi will credit members who meet qualification criteria within 7 business days of the end of the Evaluation Period.

Bonuses are considered miscellaneous income and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi reserves the right to exclude any Members from participating in the Program for any reason, including suspected fraud, misuse, or if suspicious activities are observed. SoFi also reserves the right to stop or change the Program at any time.

5. You will need to maintain a qualifying Direct Deposit every month with SoFi Checking and Savings in order to continue to receive this promotional cash back rate. Qualifying Direct Deposits are defined as deposits from enrolled member’s employer, payroll, or benefits provider via ACH deposit. Deposits that are not from an employer (such as check deposits; P2P transfers such as from PayPal or Venmo, etc.; merchant transactions such as from PayPal, Stripe, Square, etc.; and bank ACH transfers not from employers) do not qualify for this promotion. A maximum of 36,000 rewards points can be earned from this limited-time offer. After the promotional period ends or once you have earned the maximum points offered by this promotion, your cash back earning rate will revert back to 2%. 36,000 rewards points are worth $360 when redeemed into SoFi Checking and Savings, SoFi Money, SoFi Invest, Crypto, SoFi Personal Loan, SoFi Private Student Loan or Student Loan Refinance and are worth $180 when redeemed as a SoFi Credit Card statement credit.

Promotion Period: The Program will be available from 4/5/22 12:01AM ET to 12/31/22 11:59PM ET. SoFi reserves the right to exclude any Member from participating in the Program for any reason, including suspected fraud, misuse, or if suspicious activities are observed. SoFi also reserves the right to stop or make changes to the Program at any time.

Eligible Participants: All new members who apply and get approved for the SoFi Credit Card, open a SoFi Checking and Savings account, and set up Direct Deposit transactions (“Direct Deposit”) into their SoFi Checking and Savings account during the promotion period are eligible. All existing SoFi Credit Card members who set up Direct Deposit into a SoFi Checking & Savings account during the promotion period are eligible. All existing SoFi members who have already enrolled in Direct Deposit into a SoFi Checking & Savings account prior to the promotion period, and who apply and get approved for a SoFi Credit Card during the promotion period are eligible. Existing SoFi members who already have the SoFi Credit Card and previously set up Direct Deposit through SoFi Money or SoFi Checking & Savings are not eligible for this promotion.

6. Accounts subject to additional credit approval. To qualify for approval, you must meet SoFi’s pre-established underwriting requirements, including verification of sufficient income to support your ability to pay. We will not extend you credit if you do not meet our pre-established criteria. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. If approved for a SoFi Credit Card, your credit access line will be at least $1,000. Your eligibility for a SoFi Credit Card Account or a subsequently offered product or service is subject to the final determination by SoFi Bank, N.A, as issuer, pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Please allow up to 30 days from date of submission to process your application. The card offer referenced in this communication is only available to individuals who are at least 18 years of age (or of legal age in your state of residence), and who reside in the United States.

On Nov. 22, 2022, the U.S. Department of Education announced another extension of the pause on student loan repayment, interest, and collections. Payments may not resume until as late as 60 days after June 30, 2023.

The Administration is extending the pause on federal student loan repayments to allow for the Supreme Court to rule in the case on the one-time student debt forgiveness plan.

The pause was set to expire on Dec. 31, 2022, after President Joe Biden extended it in August at the same time he announced the forgiveness of up to $20,000 in student loans for qualifying loan holders. At the time, the White House called that extension “one final time.” (It was the second time they said “final” though.)

Biden said the latest extension to 2023 is meant to “alleviate uncertainty for borrowers” as his planned changes in federal student loan debt are buffeted by legal challenges that could end up being decided by the U.S. Supreme Court.

“Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set their family budgets or even plan for the holidays without a clear picture of their student debt obligations, and it’s just plain wrong,” said U.S. Secretary of Education Miguel Cardona.

The White House says, “Borrowers can use the additional time to ensure their contact information is up to date with their loan servicers and consider enrolling in electronic debit and income-driven repayment plans to support a smooth transition to repayment.”

How to Handle Student Federal Loan Debt?

More than 45 million people collectively owe $1.6 trillion in student loans, according to U.S. government data.

Ending months of speculation on whether he would cancel federal student loan debt, President Biden in August announced that each American who earns less than $125,000 per year ($250,000 for married couples) will be eligible for $10,000 in federal student loan cancellation.

He also announced that qualifying Pell Grant recipients can receive an additional $10,000 in debt cancellation (for a total of $20,000 in student debt relief). Federal Pell Grants
usually are awarded to undergraduate students who display exceptional financial need.

Other reforms to federal student loans were announced, ranging from expanding the Public Student Loan Forgiveness Program to opening up income-driven forgiveness policies so that people burdened with loans can get more relief.

Federal Student Aid created a web portal specifically for applications for debt cancellation, and about 26 million Americans paying off federal student loan debt applied for that loan relief. (Currently, the portal is not accepting new applications while the Biden administration seeks to overturn a Texas court order to stop.)

According to the White House, of that 26 million who applied, 16 million borrowers have been approved.

Challenges Mount to Biden Reforms

But several challenges to student loan reform sprang up, coming at the White House from different directions. It has been blasted for being unfair in how it chooses recipients, a potential contributor to inflation, and an overreach by the President.

Biden’s plan was contested by six states that argued it evaded congressional authority and threatened future state revenues. Some legal experts question whether using the Heroes Act is appropriate. They point to a clause in the act that says action on student financing can only be taken to ensure people “are not placed in a worse position financially” because of the emergency.

In October, the 8th U.S. Circuit Court of Appeals granted a temporary stay to delay delivery of debt relief until the court ruled on an expedited appeal. The following month the court issued an injunction to halt delivery of relief.

Meanwhile, a federal judge in Texas declared Biden’s student debt relief program illegal. The administration has filed an appeal to this decision in the 5th U.S. Circuit Court of Appeals.

In November, the Biden administration filed an application with the US Supreme Court to vacate an injunction preventing the federal student loan forgiveness plan from going into effect.The U.S. Justice Department in a filing said that the ruling leaves millions of economically vulnerable borrowers in limbo.

The department also suggested the Supreme Court could bypass the appeals court and hear the dispute itself on an expedited basis, with a decision by the end of June 2023.

While these legal challenges play out, the Department of Education has stopped taking applications for debt cancellation, as noted earlier. Its site says it is holding applications that have already been submitted.

The Takeaway

President Biden has extended the pause on federal student loans payments into 2023, although the exact date cannot yet be determined. This deadline was extended because of the legal challenges to Biden’s attempt to cancel up to $20,000 in federal student loan debt held by eligible borrowers. The additional time is supposed to give loan holders more time to deal with the resumption of paying.

Student loan refinancing is one way holders of debt can seek to make their student loan payments more manageable. If your federal debt is more than the amount of forgiveness you are eligible for and you are worried about rising interest rates, you can refinance just the amount that will not be canceled. Just know that the refinanced amount will lose access to federal protections and programs, including the payment pause that has been extended until 2023.

Learn More

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.