Table Of Content
When SoFi Money Wins?
SoFi has developed its banking product line since its initial launch. Today, you can access mortgages, loans, and investment products in addition to its hybrid checking and savings account.
SoFi even offers insurance products. The only obvious gap in the product line is no CDs or conventional savings accounts.
SoFi Money can be a better choice than Varo Bank if:
You want to access mortgage and home loan products
You are happy to have a hybrid savings and checking account
You want access to a regular credit card
When Varo Bank Wins?
On the other hand, Varo has a limited banking product line. Rather than trying to emulate a conventional high street bank, Varo’s aim is to help its customers rebuild or build credit. So, its products are tailored to this purpose.
There is one savings account, one basic checking account and a credit card. Some customers may also qualify for a fee free cash advance of up to $100 (Varo Advance). This makes Varo a good option for those who want to concentrate on credit building.
Varo bank can be a better choice than SoFi Money if:
You want a secured credit card
You like the idea of a checking account working seamlessly with your savings account
You want help to build or rebuild your credit
Money Market Account
SoFi has a hybrid Spend and Save account, which is part savings and part checking account. You can earn up to 4.50% on your full balance, but you can also set up savings vaults. These are separate funds within the account that allow you to allocate money towards different savings goals. This allows you to save for short or long term plans without needing to manage multiple saving accounts.
On the other hand, Varo has a more conventional savings account and it offers 3.00% – 5.00% rate. You can qualify for higher rates by maintaining a savings balance of $5,000+ or receiving $1,000 or more in direct deposits during the qualifying period.
You can also qualify for a higher rate if you can average a $0 balance when you add your checking and savings accounts together. However, you do need to have both a Varo savings and checking account to take full advantage of this product.
up to 4.50%
3.00% – 5.00%
As we touched on above, the SoFi hybrid account is part checking account with some nice features. This includes round up, so your debit card purchases are rounded up and the difference is placed into your specified savings vault.
There is also $50 of overdraft protection, so if you accidentally slip into the red, you won’t incur a fee. SoFi also offers new customers a $100 welcome bonus. Lastly, you can synchronize your account with the different options SoFi invest offers.
The Varo checking account is designed to work with the Varo savings account. This is a fee free checking account with no monthly fee or balance requirements. Varo checking also has round up and you can access your direct deposit paycheck up to two days early.
SoFi has a decent choice of home loans and mortgages including fixed rate mortgages, home equity loans and cash out refinancing with pre qualification. You can select the term and its associated rate which best suits your budget and circumstances.
You can put down as little as a 5% down payment and the home loans require a loan to value ratio of more than 80%. SoFi also offers its members a discount on refinancing and home loan fees of $500.
On the other hand, Varo does not currently offer mortgage or home loan products.
SoFi also has a variety of loan products including personal loans, credit consolidation loans and loans for home improvements. You can borrow as much as $100,000 while there are no origination fees, and you can also access bonus rewards. SoFi offers new customers a $10 bonus for viewing your specific rate, and if you complete your loan, you’ll get up to $1,000 in cash.
Varo does not currently offer a formal personal loan. The only form of lending you can obtain through this bank is the Varo Advance. This is a fee free cash advance of up to $100, which is only available for qualified customers.
Both SoFi and Varo only offer one credit card option. The SoFi card is designed with the intention to help customers save, invest or pay down debt. The cash back rewards are weighted towards this intention.
If you intend to save, invest or pay down your SoFi loan with your rewards, you’ll get 2% unlimited cash back. However, if you want your rewards as statement credit for your SoFi credit card, you’ll get 1% unlimited. SoFi also offers a rate reduction by 1% if you make 12 monthly minimum payments on time.
The Varo credit card aims to help you build your credit. This secured card has no annual fee, no minimum security deposit, and no APR. You just add money to your “Believe” secured account and then you can use your card for purchases.
Each time you pay your balance on time and in full, it will be reported to the credit bureaus. The Varo app even allows you to monitor your credit score, so you can watch for any changes resulting from using your card.
SoFi has a variety of customer service lines according to the banking product. While the credit card line is available 24/7, most of the other lines are only available from 5 am to 7pm.
Varo has a website help center with an extensive FAQ section. There is also a contact email and customer service phone number, but there are no details of when the phone lines are open to receive calls.
This level is supported by the bank’s Trustpilot scores. While SoFi has an average 3 out of 5 rating, Varo has an excellent 4.4 out of 5.
Both SoFi and Varo intuitive websites make it easy to explore the products and access help with various finance topics. This ensures a great user experience, particularly if you’re not sure exactly which banking services and products are the best option for you.
Both the banks also have highly rated apps. The SoFi app is rated 4.4 out of 5 on Google Play and 4.8 out of 5 on the Apple Store, while Varo’s app is rated 4.6/5 on the Apple Store and 4.5/5 on Google Play.
These apps allow you to not only transfer funds and manage your transactions, but you can access support and manage your card.
Which Bank is The Winner?
These banks offer similar products, but with different aims, so how do we decide which is the better bank? We’ll need to look a little closer to make that determination.
While SoFi has a hybrid savings and checking account, the Varo checking account and savings account are designed to work in concert. Both accounts aim to make it easier to manage your finances and work towards your financial goals.
Although neither bank has CDs, SoFi does have a more extensive product line, with mortgages and personal loans, while Varo has a core product line to help you boost your credit.
The answer is yes. As of September 2023, SoFi checking and savings promotion is one of highest in the market – you can get $50-$250, depending on your deposit and as long as meet SoFi requirements.
As of September 2023, Varo has no bonus or special promotion for opening a new account. There are many other banking promotions out there – but keep in mind that promotions is not the most important thing when choosing a checking account.
As a fully online platform, SoFi encourages you to use the website dashboard to manage all your account activity including closing your account. Once you log into your dashboard, you’ll find the “Close Account” button under the “more” tab.
This screen will take you through the checks before you can close your account including if you have any pending transactions or outstanding card disputes. After you’ve checked these items, you can then click to close your account. You’ll see a confirmation screen to verify the account closure.
SoFi appreciates that many couples want to integrate their finances, so the bank aims to make it easier to create a joint account. When you open a SoFi account, you have the option to add a co-owner. Of course, you will need to provide ID verification and personal details for both parties.
However, you can also add a second person to your existing SoFi account. You’ll find an “Add Joint Account Holder” link on your account dashboard. This will provide a prompt to send an email invitation to the other person.
Varo does not have an investment arm or investment products, so if you want to buy gold stocks or other gold products, this may not be the best primary bank for you. You may prefer to use another bank or broker for your savings and credit card needs while using Varo for your savings and credit card needs.
Varo is a completely online bank with no physical locations or branches. You can, however, manage your account through the AllPoint ATM network, which has over 55,000 machines across the country.
SoFi's online Spend and Save account, like the Chime online checking account, is fee-free, but it has some different checking account features. Chime, for example, offers a $200 fee-free overdraft facility subject to terms, whereas SoFi provides cash back if you have recurring direct deposits of $500 or more each month.
Read Full Comparison: SoFi vs Chime: Which Online Banking Wins?
Spend and Save is a SoFi savings and checking account hybrid. For the purposes of this comparison, we'll look at the savings features, of which there are a few. The most visible are the savings vaults. These enable you to set up separate funds to work toward different savings goals without the need for multiple accounts. This helps you organize your money, and you can even designate a vault for your round-up funds.
Bank of America offers a more traditional savings account, but it pays far less interest, ranging from 0.01 percent to 0.04 percent depending on your Preferred Rewards status, compared to SoFi's 0.25 percent. In addition, there is a $8 monthly maintenance fee that can be waived by keeping a balance of $500 or more in the account or linking your checking account. By linking your accounts, you can avoid going overdrawn with Balance Connect.
Read Full Comparison: SoFi Money vs Bank of America: Which Is Better For Your Needs?
Since the bank's inception, the SoFi product line has come a long way. You can now get access to investment products, mortgages, and loans, in addition to its hybrid checking and savings account. SoFi even offers insurance. The only thing missing from this bank are CDs and traditional savings accounts.
Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.
Read Full Comparison: SoFi Money vs Ally Bank: Compare Banking Options
Marcus is a subsidiary of Goldman Sachs, which is reflected in its banking products. Marcus provides high-yielding savings and CDs, as well as investment options and a variety of loans. This does not, however, include a checking account.
SoFi's banking products are more akin to those of traditional banks. While there are no checking or savings accounts available, rather a hybrid account, you can access loans, mortgages, and investment products. SoFi also offers insurance. CDs and traditional savings accounts, on the other hand, are not available in the SoFi catalog.
Read Full Comparison: Marcus vs SoFi Money: Which Banking Service Is Better?
Axos is a large online bank that offers checking, savings, CDs, investing, and other services. Customers can earn interest or cash back on a variety of checking account options. The APY on Axos Bank's Rewards Checking account isn't the highest among online banks, but it's high enough to justify opening an account as part of a larger online banking strategy, and there aren't many fees.
Varo Bank is a web-based bank that offers a variety of deposit and loan products. It was founded in 2015 and is based in San Francisco. Varo offers high-yield savings accounts and cash-back checking accounts, as well as a fee-free ATM network (see below for more information from Varo) and automatic savings tools.
Read Full Comparison: Axos vs Varo: Compare Banking Products
Chime differs from many banks and other financial institutions in that it screens customers in an unusual way. If you don't have perfect credit or are still building your credit history, this may make it easier to open an account with Chime.
Varo, a mobile-only bank, was established in 2015. As a result, there are no bank branches. To use Varo's services, first download and sign into the bank's Apple and Android mobile apps. Varo offers a lot of functionality for on-the-go users, which may entice you to go online.
Read Full Comparison: Chime vs Varo Comparison: Which Online Bank Wins?