Table Of Content
When Marcus Wins?
Marcus is part of the Goldman Sachs group, which is reflected in its line of banking products. Marcus offers high yield savings and CDs, investment options, and a variety of loans. However, this does not include a checking account.
So, the aim of the bank is obviously for newbie investors who want to start managing their money and taking the first steps into investing.
Marcus can be a better choice than SoFi Money if:
You want to access Marcus high rate CDs
You don’t need a checking account
- You have a large sum of money to deposit
When SoFi Money Wins?
SoFi’s banking product line is more similar to mainstream banks. While there isn’t a choice of checking and savings accounts, rather a hybrid account, you can access loans, mortgages and investment products. SoFi also has insurance products.
However, you will not find CDs or conventional savings accounts in the SoFi catalog.
SoFi Money can be a better choice than Marcus if:
You want to earn interest on your checking account
- You need a checking account
You want a welcome bonus
Marcus | SoFi Money | |
|---|---|---|
Savings Accounts | ||
Checking Accounts | ||
CDs | ||
Money Market Account | ||
Debit Card | ||
Credit Cards | ||
Personal Loans | ||
Mortgage | ||
Government Mortgage | ||
Business Loans | ||
Investing Capabilities |
Savings Account
Both Marcus and SoFi offer attractive savings rates compared to other banks. Marcus offers an impressive 4.40% on its savings account with no minimum deposit or fees. You can also enjoy same day transfers of up to $100k to and from other banks. This makes it a great option to park some funds while you decide if you want to invest in a long term strategy.
SoFi has a hybrid Spend and Save account, which offers both savings and checking facilities. You’ll up to 4.50% on your entire balance, but you can set up savings vaults. These are funds within the account to save for separate savings goals.
This makes it easier to save for short or long term goals without needing multiple accounts. This helps to keep your money organized without needing to keep track of different accounts.
Marcus | SoFi Money | |
|---|---|---|
APY | 4.40% | up to 4.50% |
Fees | $0 | $0 |
Minimum Deposit | $0 | $0 |
Checking Needed? | No | Yes |
Main Benefits |
|
|
Checking Account
There is no comparison here. The SoFi Spend and Save offers checking account facilities including round ups on your debit card payments and remote check deposits via your smartphone.
On the other hand, Marcus does not have a checking account option.
SoFi Money | |
|---|---|
APY | 0.50% |
Fees | $0 |
Minimum Deposit | $0 |
Main Benefits |
|
Compare CDs
This is another area where there is no comparison. While SoFi does not offer a CD, Marcus offers rates range of 3.90% – 4.80% with a minimum deposit of $500. The rates are weighted, so you’ll enjoy a higher rate if you commit to a longer term CD.
Here are Marcus CD rates as of October 2024:
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.75% | 90 days interest |
9 Months | 4.80% | 90 days interest |
12 Months | 4.70% | 180 days interest |
13 Months – No Penalty | 4.50% | / |
18 Months | 4.25% | 180 days interest |
24 Months | 4.00% | 180 days interest |
36 Months | 4.15% | 180 days interest |
48 Months | 4.00% | 180 days interest |
60 Months | 4.00% | 180 days interest |
72 Months | 3.90% | 270 days interest |
Mortgage Options
Again, there is no comparison in this area. SoFi has a variety of home loans and mortgage products including fixed rate mortgages, cash out refinancing and home equity loans with prequalification available.
SoFi also has an incentive for members to receive a $500 discount on refinancing and home loan fees. Additionally, you only need a down payment of 5% or more and a loan to value ratio of 80%+.
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Loan Options
Marcus Personal Loan | SoFi Personal Loan | |
|---|---|---|
APR Range | 6.99% – 24.99%
| 8.99% – 29.99% |
Term | 36-72 months
| 24-84 months
|
Loan Amount | $3,500 – $40,000
| $5,000 – $100,000
|
SoFi also has a selection of loans including credit consolidation loans and home improvement loans for up to $100,000. The rates are a little lower at 4.99% to 18.13% APR and there are no origination fees. SoFi also offers some cash bonuses with its loans. You’ll get $10 for viewing your loan rate and up to $1,000 if you proceed with your loan.
Marcus offers personal loans of up to $40,000 with no sign up fees, prepayment fees or late fees and if you sign up for auto pay you’ll receive a rate discount of 0.25%. Additionally, if you make your payment on time and in full each month consecutively for 12 months, you can skip a month with no additional interest charges or fees. Marcus also offers debt consolidation and home improvement loans.
Credit Cards
SoFi has one credit card option that offers unlimited cash back.
However, this is weighted to help you save, invest or pay down debt. If you redeem your cash back for saving, investing, or paying down your SoFi loan, you’ll get 2%, but if you want your rewards as statement credit for your SoFi card, you’ll get 1%.
Additionally, SoFi will lower your credit card rate by 1% if you make the minimum payment on time for 12 consecutive months.
Marcus has recently launched a selection of credit card options. There are three credit cards currently that offer rewards that you can redeem for eligible GM vehicles.
- GM Rewards: This is a great card if you enjoy GM vehicles and unlimited rewards.
- GM Extended Family: This card allows you to use your employee and supplier discounts.
- GM Business: As the name suggests, this card is open to business users who want to work towards a new GM vehicle.
Customer Service
Marcus has a number of toll free numbers, according to your query area, but none of them are 24/7. Most of the lines are open from 8 am or 9 am to 10 pm ET.
SoFi also 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.
Unfortunately, the consumer review ratings do not support that either bank offers great customer service. SoFi has a rather average 3 out of 5 rating on Trustpilot, while Marcus has a poor 2.6 out of 5 rating.
Online/Digital Experience
Both Marcus and SoFi have easy to use websites to look at the different 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 Marcus app is rated 4.9/5 on the Apple Store and 4 out of 5 on Google, while the SoFi app is rated 4.4 out of 5 on Google Play and 4.8 out of 5 on the Apple Store.
These apps allow you to not only transfer funds and manage your transactions, but you can access support and manage your card.
Top Offers From Our Partners
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Which Bank is The Winner?
These banks offer different products and services, but does this mean one is a better bank? We’ll need to look a little closer to understand which account is better for you.
Both Marcus and SoFi offer fee free savings to make money management easier. While Marcus’s savings rate is higher at 0.50%, this bank does not have a checking account. On the other hand, the SoFi hybrid account offers 0.25% on your entire savings/checking balance.
Marcus has obviously geared its services towards those interested in investments. So, it has CDs and other investment products. SoFi is obviously catering to those who want to streamline their finances. So, which is the better bank will depend on your financial goals.
FAQs
What promotion does SoFi offer?
Based on the sum of their first month's direct deposits, new members will receive a tiered direct deposit welcome bonus of up to $50-$300 paid straight to their SoFi Checking & Savings accounts.
Is it possible to open a Marcus checking account online?
Marcus does not provide a checking account, but you can open a savings account online. You'll be asked for some basic personal and financial information. The Marcus team will then review your application and contact you with the details of your approval.
Can I trust Marcus?
Marcus has only been around for about five years, so we don't have any data on how the bank handled previous recessions. This bank, however, is a subsidiary of the Goldman Sachs Group, which has a long history.
Goldman Sachs did receive a $10 billion government bailout during the 2007 financial crisis, but it was the first Wall Street bank to repay its loan.
How's SoFi physical coverage?
SoFi is a fully online bank, and as such it has no physical branch coverage. All your transactions and queries need to be performed online or by calling the appropriate helpline number
What SoFi products are inflation proof?
SoFi has a decent product line up that includes student loan refinancing, personal loans and home loans. These products allow you to lock in your rate, which will make them inflation proof.
For the duration of your loan, your monthly repayments will be fixed, so you can have the reassurance that even if the rate of inflation, and the base interest rates increase your monthly repayment will remain the same.
Marcus vs SoFi Bank: Comparison Methodology
In our detailed comparison, The Smart Investor team thoroughly looked at Marcus and SoFi Bank in five main areas:
Checking Accounts (30%): We checked things like direct deposit, debit card availability, monthly fees, ATM and branch access, check deposit, bill pay options, and account alerts. We also considered any special offers for customers.
Savings Accounts including CDs (20%): We focused on important stuff like how much interest you can earn (APY), the smallest amount you need to open an account, how flexible the accounts are, and if they're insured by FDIC. We also looked at special savings offers, different types of CDs, and any fees for taking money out early.
Credit Cards (15%): We looked at what rewards you get, how much the card costs each year, any bonuses you get for signing up, perks for traveling, how much interest you pay on balances, and if you can transfer balances from other cards.
Lending Options (15%): We checked out the different kinds of loans they offer, like personal loans, student loans, mortgages, and loans where you use your home as collateral.
Customer Experience And Bank Reputation (20%): We looked into how easy it is to use their online and mobile banking, how helpful their customer support is, what people say about them online, any awards they've won, and how stable they are financially. This gave us a good idea of what it's like to be a customer and how much people trust them.
Compare Marcus With Other Banks
Marcus, on the other hand, made Goldman Sachs banking more accessible to the general public when it debuted in 2016. Our in-depth Marcus review can help you decide if this online bank is right for you. Goldman Sachs is one of the world's largest investment banks, with offices in every major financial center and a client list that includes other banks as well as the state of New Jersey. With Marcus, however, you could be next on the list.
Axos online bank, which provides checking, savings, CDs, investing, and other services, has a lot to offer. A variety of checking account options allow customers to earn interest or cash back. The APY on Axos Bank's Rewards Checking account isn't the highest among online banks, but it's sufficient to justify opening an account as part of a larger online banking strategy, and there are almost no fees.
Read Full Comparison: Axos vs Marcus: Which Online Bank is Better?
CIT Bank provides a variety of savings account options. If you link your checking account and make qualifying deposits, you can earn a higher rate on the two-tiered Savings Connect. The other savings option is the Savings Builder, which offers 0.399 percent if you keep a balance of $25k or more, or make at least $100 in monthly deposits. There is a six-transaction limit per statement cycle, but there are no account maintenance fees.
Marcus provides an impressive 0.50 percent without the CIT hoops. There is no required minimum deposit or balance. You can also make same-day transfers to and from the account of up to $100,000.
Read Full Comparison: CIT Bank vs Marcus: Compare Banking Options
Marcus distinguishes itself through its investment options. With a variety of IRA options, you can experiment with different account types and portfolios. Marcus may appeal to you if you want the convenience of having your funds in a high yield savings account or if you are new to investing.
Synchrony focuses on accounts that help you save money. So there are high yield savings accounts, CDs, and money market accounts. You can also gain access to IRAs. Synchrony does, however, offer a variety of credit cards.
Read Full Comparison:: Marcus vs Synchrony Bank: Where to Save Your Money?
Marcus' banking product offering is more specialized. Marcus' product line reflects its investment pedigree as part of the Goldman Sachs Group. CDs, high-yield savings, investment options, and a variety of loans are available.
Ally has a banking product line that competes with traditional, high-street banks. A checking account, savings account, CDs, mortgages, auto loans, personal loans, retirement products, and investments are among the numerous products available.
Read Full Comparison: Ally vs Marcus: Which Online Bank Is Better?
Marcus, a Goldman Sachs Bank division, provides online savings accounts, CDs, and personal loans. Marcus has no physical locations, so you can only access your accounts through the Marcus website, mobile app, or phone-based customer service.
In addition to assisting you in avoiding typical bank fees, Chime includes useful new features such as early direct deposits and automatic saving. While Chime does not provide credit cards or loans, its savings options and competitive interest rates make it an excellent choice, especially for younger people.
Read Full Comparison: Chime vs Marcus: Which Online Bank Wins?
Both Barclays and Marcus bank offer great savings rates for depositors who are interested in CDs or savings accounts. How they compare? Barclays Bank vs. Marcus
Compare SoFi With Alternative Banks
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?
SoFi has developed a respectable banking product line. Aside from its hybrid savings and checking account, it also offers mortgages, loans, and investment products. The only thing missing from the offering is a traditional savings account and CDs.
Since its inception as a credit card provider, Discover has come a long way. Of course, credit cards are available, but you can also get home loans, personal loans, and a variety of checking and savings products such as retirement accounts, CDs, and money market accounts.
Read Full Comparison: SoFi Money vs Discover: Which Online Banking Suits You Best?
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
SoFi offers a Spend and Save account that is part savings account and part checking account. You can earn 0.25 percent on your entire balance, but you can also establish savings vaults. These are separate funds within the account that allow you to allocate funds to various savings goals. This allows you to save for both short and long-term goals without having to manage multiple savings accounts.
Varo, on the other hand, has a more traditional savings account that offers an impressive up to 3% interest rate. Higher rates are available if you keep a savings balance of $5,000 or more or receive $1,000 or more in direct deposits during the qualifying period.
Read Full Comparison: SoFi vs Varo Bank: Which Account Is Better For Your Money?
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?
Upgrade and SoFi Bank offer various online banking products, including checking, savings, and credit cards. Let's compare them side by side: Upgrade vs. SoFi Bank
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