SoFi vs. Captial One: SoFi’s Got the Higher APY

SoFi and Capital One both offer the benefits of an online bank: minimal fees and high APYs. SoFi is a relatively new bank with about a decade in the industry, and its hybrid checking and savings account is a top bank account. Capital One is among one of the largest banks in the US with a loaded suite of bank accounts and credit cards to choose from. Overall, they’re both affordable banking options, but the best bank will depend on what you need and prioritize.

SoFi vs. Capital One: A quick comparison

• SoFi terms and conditions

  New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
  SoFi members with Direct Deposit can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.20% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances(including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
  
  SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits.Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
  
  Our account fee policy is subject to change at any time.
  
  SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms
  See list of participating banks at SoFi.com/banking/fdic/receivingbanks
  
  We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
  
  Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

SoFi vs. Capital One: Product offerings

SoFi is one of the biggest names among exclusively online banks. It’s a fully insured, digital bank with various products and services, including a hybrid checking and savings account, various lending options, an investing platform and a credit card.

Capital One is considered a top 10 bank by asset size and is primarily an online bank. Capital One also announced in February 2024 that it will acquire Discover in a $35 billion all-stock transaction, as reported by Fortune.

Banking

Each bank’s account offerings are mostly free, have no opening deposit requirements and accept joint account owners. If this were a numbers game, Capital One would take a win since it has many more personal banking accounts, including kids’ accounts, certificates of deposit (CD) and business banking.

SoFi has a large ATM network of 55,000 with its partner Allpoint, and it can accept cash deposits at select Green Dot locations for a $4.95 deposit fee. Capital One has a network of over 70,000 Allpoint and MoneyPass ATMs and also accepts cash deposits at any Capital One ATM, branch, café location or select locations like CVS and Walgreens.

SoFi offers:

• SoFi Checking and Savings. This hybrid checking and savings account has no monthly fees or opening deposit requirements. Earn 0.50% APY on your checking balance with no requirements and up to 4.20% APY on savings by either setting up direct deposit or depositing at least $5,000 per month. If you don’t meet the requirements, your APY drops to 1.20% APY. The savings account also offers subaccounts called vaults to separate and sort your savings goals.

Capital One offers:

• 360 Checking. Capital One’s 360 checking account has no monthly fees, opening deposit or overdraft fees. You’ll earn 0.1% APY on all balances, and you can open up to three of these accounts that are all linked to a single debit card. There’s also a no-fee overdraft feature when you deposit at least $250 during two of the previous three calendar months.
• Teen Checking. Available to kids as young as eight, Capital One’s teen checking account has no monthly fees, opening deposit requirements or overdraft fees. Just like its 360 Checking, it also earns 0.1% APY on all balances, and parents need to open this account on their kids’ behalf.
• 360 Performance Savings. This is Capital One’s only savings account, which earns a competitive 4% APY with no monthly fees or opening deposit requirements. You’re allowed to open up to 25 accounts to organize your savings goals.
• Kids Savings Account. With no age requirements, this Capital One kids’ savings account offers 2.5% APY with no monthly fees or balance requirements. Parents can link this account to their own savings accounts for easy transfers, and adults can open the account on their kids’ behalf or be a co-owner.
• CDs. With no opening deposit requirements for any of Capital One’s CDs, it’s an accessible savings product with high rates. Top offerings include the 12-month CD with a 4.2% APY.
• Business banking. Offers three business checking accounts to choose from: Basic Checking, Enhanced Checking and a custom account.

Borrowing

SoFi offers more personal lending options, as Capital One doesn’t issue personal, student or home loans. But SoFi only offers one credit card, whereas Capital One offers about 30.

SoFi offers:

• Various lending options. SoFi has a full suite of lending options including personal loans, home loans, student loans, home equity loans and small business loans. It also offers auto, student and home refinancing.
• SoFi Credit Card. Earn unlimited 2% cash back on all purchases, up to 3% cash back on SoFi Travel purchases, all for no annual fee. Cashback points can be added to your SoFi Checking and Savings account, SoFi Active Invest, or even added to loan payments on various SoFi loans.

Capital One offers:

• Credit cards. Capital One is famous for its vast credit card offerings, with multiple personal and business cards. Some of its best and most well-known cards include the Venture series, Quicksilver Cash Rewards and the Platinum card.
• Auto loans. Offers used and new auto loans, as well as vehicle refinancing options.
• Business financing. Has many business and personal lending options, including commercial business services, lines of credit, real estate term loans, SBA loans and more.

Investing

In 2019, Capital One exited the investment banking space, but SoFi continues to offer investing opportunities through its online investing platform, SoFi Invest. With its investment account, you can invest in stocks, exchange-traded funds (ETFs), mutual funds and alternative asset funds. You can start with as little as $5 and even get personalized, complimentary investment advice.

Apps, features and more

Both banks are very similar in mobile app features and functionality. The features offered are nearly identical and rather standard, including the ability to view bank statements, see your transaction history, perform mobile check deposits, add virtual cards to your mobile wallets and monitor your credit score.

Capital One offers an additional feature that tracks your bills and subscription services. It also has an AI assistant called Eno that can help with various account issues.

SoFi offers the ability to create up to 20 savings subaccounts called “vaults” to organize goals, and you can set up a savings round-up feature that sends extra cash to your savings with each debit card purchase. Also, SoFi’s debit card has some limited cashback offers that you can search for and activate in the app.

How SoFi and Capital One’s fees compare

SoFi and Capital One have $0 monthly fees, with the main difference coming down to foreign transaction fees. Capital One doesn’t charge foreign transaction fees, whereas SoFi has a small 0.2% Mastercard foreign exchange convenience fee. Both banks can charge current exchange rates, though.

When it comes to withdrawing money from your savings account, SoFi might be a better option as it doesn’t have any transaction limits. Most banks, like Capital One, only allow up to six withdrawals or transfers out of your savings account per month.

What customers say about SoFi and Capital One

Both SoFi and Capital One earn an A+ rating with the Better Business Bureau (BBB), which is awarded based on how fast and well a company handles customer complaints.

Most complaints against Capital One have to do with its credit cards and are usually attempts to resolve fraudulent charges, trying to unfreeze their accounts after suspicious activity and disputes over late fees. SoFi’s complaints are also pretty common and include complaints of locked accounts, billing issues and slow deposit times. But overall, complaints about these two banks are rather typical.

SoFi does well in the eyes of Redditors. Most customers are pleased with their hybrid account, praising the high APYs, convenient app and referral bonuses they can earn. Redditors also like Capital One, commenting that it’s an affordable bank thanks to its lack of maintenance fees, calling out the free teen and kid bank accounts, decent cashback rewards on its credit cards and good APYs on its savings products.

Final verdict: Which bank is right for you?

SoFi and Capital One are great online banking options, and their accounts are mostly free to open and maintain.

SoFi’s hybrid Checking and Savings account gets you two accounts in one and has high APYs on its checking and savings account. You can redeem limited cashback offers in the SoFi app, and you can create up to 20 savings vaults with no withdrawal limitations.

On the other side, Capital One has a significantly larger suite of bank accounts and credit cards to choose from, and there are some branch locations, including cafés. Capital One has checking and savings accounts designed for everyday use, kids and teens — all of which earn interest with no balance requirements. It has over 30 credit cards, often featuring no annual fees and robust rewards, and it offers CDs with high rates and no deposit requirements.

SoFi at a glance

SoFi’s hybrid account is better for everyday checking and convenience.

Capital One at a glance

Capital One is best if you want more credit cards or savings options or a bank with some branch access.

Alternatives to SoFi and Capital One

If you prefer online banking and Capital One and SoFi don’t have what you want, consider these alternatives.

• Ally Bank. Another top online bank, Ally’s accounts lack monthly fees and opening deposit requirements and feature “buckets,” so you can organize your savings goals. Its APYs are high, and there’s 24/7 customer support, but it can’t accept cash deposits.
• Chime. A fintech company, Chime offers banking services with its partner banks. Chime is well-known for its overdraft service Chime SpotMe, which lets you overdraft up to $200 with no fees. Its checking also has no monthly fees, but it has fewer tools and perks than SoFi.
• Current. Another fintech, Current’s account is similar to SoFi’s in that it’s an all-in-one account. There are no monthly fees or cashback rewards to be earned, and you can use savings pods to separate savings goals, similar to SoFi’s vaults. It also has a credit-building card called Current Build with no annual fees or interest charges.

See how even more bank accounts stack up:

• Chime vs. SoFi
• SoFi vs Marcus
• Ally vs. Synchrony
• Ally vs. Chime