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SoFi vs. Discover® Bank: Which Bank Is Right for You?

Published April 29, 2024
Matt Frankel, CFP®
By: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Our Banking Expert

Ashley Maready
Check IconFact Checked Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Bottom line: SoFi is the best choice for people who want an all-in-one banking relationship, while Discover® Bank can be an excellent way to boost the yield from your savings.

SoFi vs. Discover: Account options

Savings accounts

SoFi offers a high-yield savings account, but it's important to mention that it can only be opened as a combination checking/savings account product called SoFi Checking and Savings. To be clear, they are two separate accounts with different account numbers, but you can't open one without the other.

SoFi's savings account offers a highly competitive APY if you're willing to set up direct deposit or meet certain deposit requirements.

The Discover® Online Savings account is also a solid product, but with a few important differences. For one thing, while its APY is slightly lower than SoFi's, it's still very competitive and there are no special requirements to get it. You can literally deposit $1, open the account, and earn Discover's advertised APY on your money.

Rates as of Jul 16, 2024
Offer
 
 
Account
SoFi Checking and Savings

On SoFi's Secure Website.

Rating
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
APY up to 4.60%² Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet. 4.25%
Min. to earn APY $0 $0
Next Steps
Open Account for SoFi Checking and Savings
Read Review

* SoFi Checking and Savings


SoFi Disclosures

  1. Bonus disclosure: 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.
  2. APY disclosure: SoFi members with Direct Deposit can earn 4.60% 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 4.60% 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 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
  3. Fee policy: Our account fee policy is subject to change at any time.
  4. Additional FDIC insurance: SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership,asdescribed 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.
  5. ATM access: We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You willnot 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.
  6. Early access to direct deposit funds: 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.
  7. Overdraft protection: Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.

Checking accounts

As mentioned above, the SoFi Checking and Savings is a two-in-one product, but the checking account is an impressive product. It offers a competitive APY (for a checking account), the ability to earn a welcome bonus after meeting deposit requirements, and has no fees. Account holders get access to more than 55,000 ATMs, and direct deposit customers can receive their paychecks up to two days early.

Discover has an interesting approach to checking accounts with its Discover® Cashback Debit account. It doesn't pay interest, but offers 1% back on qualifying debit card purchases of up to $3,000 per month -- a rare feature among checking accounts that can be worth far more than the small APYs many online checking accounts pay. Like SoFi, the Discover® Cashback Debit account offers early access to paychecks, access to over 60,000 ATMs, and several other important features.

Rates as of Jul 16, 2024
Offer
 
 
Account
SoFi Checking and Savings

On SoFi's Secure Website.

Discover® Cashback Debit

On Discover Bank's Secure Website.

Rating
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
APY 0.50% Rate info Circle with letter I in it. You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet. 0%
Min. to earn APY $0 N/A
Next Steps
Open Account for SoFi Checking and Savings
Open Account for Discover® Cashback Debit

Money market accounts

In addition to the fantastic Discover® Cashback Debit account, Discover offers the Discover® Money Market account that combines some of the features of checking and savings accounts. It has a $2,500 minimum opening deposit requirement, but offers checking and debit card access in an account with an APY comparable to most high-yield savings accounts. SoFi doesn't offer a money market account.

Discover® Money Market
Open Account for Discover® Money Market

On Discover Bank's Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Jul 16, 2024

Discover® Money Market

Open Account for Discover® Money Market

On Discover Bank's Secure Website.

Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for Discover® Money Market

On Discover Bank's Secure Website.

Monthly Fee
$0
Min. Balance
$2,500 to open, no min balance to maintain
APY
4.00%-4.05% Rate info Circle with letter I in it. 4.00% applies to balances under $100K, Need $100,000+ to earn 4.05%
Min. To Earn APY
$0.01-$100,000 for 4.00%; $100,000+ for 4.05%
  • Competitive APY
  • No minimum balance to maintain account
  • No monthly fee
  • Debit card and check availability
  • FDIC insured
  • Required balance to open is a little high
  • Best rate requires at least $100,000
  • No in-person banking/branches

This account offers a competitive APY, especially given there are no monthly service fees, while still giving access to ATMs and checks. The minimum balance to open the account may be a little high for some folks, but you don't need to maintain a high balance to earn a good rate.

Read Full Review

CDs

Discover is the clear winner here. SoFi doesn't offer CDs at all -- at least not yet. On the other hand, Discover offers one of the best varieties of CD terms in the industry, with 12 different maturity terms ranging from three months to 10 years. As we'll see below, Discover® Bank CD rates are highly competitive, especially for shorter-duration CDs like 1-year and 18-month accounts. However, the biggest drawback is that Discover has a $2,500 minimum balance requirement to open a CD.

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer image for Discover® Bank CD
Discover® Bank CD
Bottom Line

Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.

MINIMUM DEPOSIT $2,500
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

3 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 30 Mo. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY 7 Yr. APY 10 Yr. APY
2.00% 4.25% 4.25% 4.70% 4.40% 4.00% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%

SoFi vs. Discover: APYs

SoFi Bank offers competitive APYs for its checking and savings accounts, but doesn't offer any CDs at all. Discover has all-around competitive APYs, and with fewer restrictions than SoFi (recall that SoFi's top savings interest rate requires direct deposit). Having said that, here's a side-by-side comparison of the APYs offered by both banks. (Note: N/A means the product isn't offered by the bank.)

Product SoFi Discover
Savings account up to 4.60%² 4.25%
Checking account 0.50% 0%**
1-year CD N/A 4.70%
18-month CD N/A 4.40%
3-year CD N/A 3.75%
5-year CD N/A 3.75%
Data sources: SoFi and Discover. **Discover's Cashback Debit (checking) account doesn't pay interest, but gives 1% back on debit card purchases.

SoFi vs. Discover: Customer service

It's important to point out that both SoFi and Discover are online banks and don't have physical branches you can access for customer service. But if you're fine with managing your banking over the phone and through channels like live chat, each could still be a good fit.

In SoFi's case, there is phone support available from 5 a.m. to 7 p.m. PT Monday through Thursday and 5 a.m. to 5 p.m. Friday through Sunday. There's also chat support available, or support through X (formerly Twitter) by messaging @SoFiSupport.

Discover takes it a step further, offering 24/7 live phone support. In fact, Discover earned the second highest ranking in the J.D. Power 2023 Direct Banking Satisfaction Study, and holds an A+ rating from the Better Business Bureau.

SoFi vs. Discover: Mobile apps

Both banks have highly rated mobile apps. SoFi's app is designed to be an all-in-one financial management tool, offering checking and savings accounts, personal loans, mortgages, an investment platform, and financial planning features all in the same place. On the other hand, Discover's app is a user-friendly way to manage your bank accounts, and any Discover credit cards or loans you may have.

Here's how these apps rank in both the App Store and Google Play store.

Banking App Rating in App Store Rating in Google Play Store
SoFi Bank 4.8 4.0
Discover 4.9 4.5
Data source: App Store and Google Play. Ratings are out of five stars.

SoFi vs. Discover: Which is right for you?

Both of these banks offer excellent products and services. SoFi is likely the better choice if you're looking for an all-in-one banking replacement. It offers an investment platform, several types of loans (including mortgages), and more. Discover, on the other hand, could be the better option if your goal is to get the most yield from your savings, especially if you have money you won't need for a while and can take advantage of its CDs.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of July 16, 2024
Min. to earn: $1
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

4.50%
Min. to earn: $0.01
N/A
Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how The Motley Fool Ascent rates bank accounts.

FAQs

  • SoFi is designed to be a true banking replacement, meaning that it offers most of the banking products and services you would expect from more traditional banks. It offers checking and savings accounts, a brokerage platform, a robo-advisor, student loans, personal loans, mortgages, credit cards, and more. So, it coud be an ideal choice for people who want a no-fee, high-APY bank who want to keep all of their finances in one place.

  • Discover® Bank offers some excellent savings and checking products and a variety of CDs. It also offers credit cards and several types of loans. It can be a smart choice for people who want to minimize fees and maximize the APY from their savings, and who also want to be rewarded for their everyday debit card purchases.