SoFi Money, Interest Rate Lowered to 1.60%
The Federal Reserve lowered its target interest rate by 25 basis points yesterday, which directly impacts the APY that banks pay out on deposits. SoFi announced last night that they will be lowering their rates for the SoFiMoney account.
Effective October 31, 2019, the annual percentage paid on your SoFi Money account will be changing from 1.80% APY to 1.60% APY. That means for every $1,000 in your account, a 0.20% APY decrease means you’ll earn $2.03 less in interest over the course of a year (with monthly compounding).
The account is still a great option (especially for international travel) with no ATM or foreign transaction fees, $50 signup bonus and $100 you can earn with every referral. But the lower rate means that it’s not a good idea to keep large balances in there. You can still earn about 2% or just a bit more at several other institutions.