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The rise of digital banking has given entrepreneurs and small business owners a lift. They can now manage their finances in an efficient and cost-effective way. One of the leading providers is SoFi, which offers a range of financial services. In this article, we will review SoFi’s accounts and features. Then. we'll compare it to alternatives like Wise Business.
Looking to save while managing your international business needs?
Trustpilot: 4.2/5 average rating - Great¹
No minimum balance required and no monthly fees
Unfortunately, SoFi does not offer business accounts. They only offer their standard personal and checking accounts¹. We’ll look more in-depth at those two options shortly. But it is important to note that a SoFi Bank Business Account does not exist.
|See Business Account Alterantives
There is no SoFi Small Business Checking Account. But SoFi does offer solutions for small businesses. With Lantern by SoFi, you can find the best option for getting a loan for your small business. Type in how much you want to borrow. Then you can compare service options that offer:
- term loans
- short terms loans
- lines of credit
They also let you know how long your term for paying back the loan would be to help you decide. There is no SoFi business line of credit or SoFi small business loans. But they do provide you with resources to find one from other sources⁹.
Since there is no business account to review, here are a few reviews of SoFi as a banking institution.
Consumer Affairs features 126 reviews and ratings of the bank that give it a score of 3.3 out of 5 stars. Customers enjoy its flexible loan terms and lack of fees. They also like the digital platform and free stock and ETF trading. Customers don’t like the high minimum amounts for personal loans. They also don't like the inability to check rates without an account².
Trustpilot reflects similarly positive reviews of SoFi from customers. Their 4.7 out of 5 star rating is based on 7,055 customer reviews, 82% of which are 5 stars. But most reviewers had only posted one or two reviews on the site. This means they may have been incentivized reviews by SoFi and are not truly genuine⁴.
To reiterate, there is no SoFi Business Checking Account or SoFi Business Checking. SoFi lists their checking and savings accounts separately on their site. But their checking and savings accounts are entwined. This is through the SoFi Checking and Savings Account. Here we will discuss what is listed and featured on their checking account page.
- Access to a mobile app and over 55,000 ATMs
- Roundups and up to 15% cash back with debit card purchases
- Receive your paycheck up to 2 days early⁵
There are no fees associated with SoFi’s Checking and Savings Account⁶.
To reiterate, there is no SoFi Business Savings Account. SoFi lists their checking and savings accounts separately on their site. But their checking and savings accounts are entwined. This is through the SoFi Checking and Savings Account. Here we will discuss what is listed and featured on their savings account page.
- FDIC insurance for up to $2 million in funds
- Roundup, AutoSave, and Vaults features to achieve your savings goals
- All functions available in the SoFi mobile app⁷
There are no fees associated with SoFi’s Checking and Savings Account⁶.
You could choose to go with a personal account from SoFi for your business needs. But even SoFi advises against this. They mention on their site that a business checking account:
- splits your personal and business funds. This protects you from courts going after your personal assets and simplifies taxation.
- improves your financial credibility
- expands your abilities for future growth through services like payroll, etc.¹
Here are some business alternatives to SoFi’s personal banking that you can consider.
Wise is a banking alternative that is great for businesses looking to increase their global reach. They offer an international business account that offers transparent low-fee account. Small businesses will find that it is an intuitive digital account with numerous features, such as accounting software integrations and batch payments, that make their daily tasks easier for their team.
No account opening fee
No minimum balance requirement or monthly fees
Receiving funds in 9+ currencies costs a one-time fee of 31 USD. Fees are charged per transfer with US fees starting as low as 0.43%
The Wise account offers the mid-market rate—the same exchange rates that banks use when trading currencies—resulting in reduced costs for businesses as they don't suffer from inflated exchange rates
Payoneer is another popular alternative for businesses looking to manage their finances. They offer fee-free payments to other Payoneer accounts. They also offer bank account transfers with a low, 1% fee. You can make international payments with currency conversion. Plus, Payoneer accounts are free to set up. But their accounts are not suited for large businesses. They also do not offer a payment gateway or POS system.
Payoneer has quite a few fees associated with their services. Getting paid is only free from fellow Payoneer customers. There is a 3% credit card fee plus a 1% ACH bank debit fee for when clients pay you. Getting paid by receiving accounts incurs a 0-1% fee for USD. And payment from networks and marketplaces depends on their personal fees.
Paying others can also incur costs. Paying fellow Payoneer customers is free. But paying non-Payoneer users results in a fee of up to 2% of the transaction sum. They may also charge a 1.50 fee in the currency of your payment if your payee doesn’t fit certain criteria.
Using funds in your account requires extra costs, too. Payoneer offers a Commercial Mastercard. It is free to register for and for them to deliver to you. But there is a $29 annual fee for the card. Transactions that involve a currency conversion can cost you up to a 3.5% fee. Transactions with a cross-border fee cost you up to a 1.8% additional fee. ATM withdrawals cost $3.15. And ATM balance inquiries cost $1. Withdrawals with a currency conversion have an up to 2% fee. And withdrawals in your own currency still cost $1.50.
While these costs may seem minor, they can add up over time. Learn more about Payoneer with this review¹⁰.
PayPal is one of the most popular digital payment services. They help businesses to manage their finances and make online payments. The main benefit of the PayPal Business account is their PayPal Business debit card. Like any debit card, you can use their card to withdraw cash at an ATM and make payments, but you can also earn points. But it’s important to note that PayPal charges fees for transactions overseas. They also have fees for over-the-counter withdrawals.
PayPal Business has quite a few fees associated with its services. There is no fee to open an account. But there is a 2.99% fee for sale transactions. There are additional fees added to this for international sale transactions. These can be 1.5% plus a fixed fee plus 3%. International payments can be pretty high, too. There is a 1.5% fee plus a 4% currency conversion fee if used. Check withdrawals cost $1.50 extra. Moving money to your bank account using a linked debit card costs $0.25-$15 per transfer, depending on the amount.
You can make personal payments with a PayPal business account. But they are going to cost you as well. International personal payments have a 4% fee for currency conversion. And US personal payments with a debit or credit card have a 2.99% fee. Receiving personal payments is free. But this only applies if they pay you with a PayPal balance or linked bank account.
While these costs may seem minor, they can add up over time. You can learn more here¹¹.
Revolut is a digital banking platform that specializes in international payments. Revolut Business is known for its digital platforms, like SoFi. They have a mobile app and software integration with QuickBooks, Xero, and more. They also give users access to up to 200 digital and 3 physical/plastic debit cards. But they don’t allow cash or check deposits into your account and charge a 2% withdrawal fee at ATMs.
As far as monthly fees go, Revolut has quite a few for companies and businesses. They do have a free version for $0/month. But they also have a grow option for $39.99/month and a scale option for $149.99/month. Their Trustpilot review is 4.3 out of 5 stars, which puts them well behind SoFi.
While these costs may seem minor, they can add up over time. You can learn more about Revolut Business with this review¹².
Even though SoFi does not offer business banking solutions, you can always use their personal banking. But it’s much easier to go with a business banking alternative. This helps you avoid legal trouble and the hassle that comes with combined business and personal assets. There are many options available on the market, including Payoneer, PayPal, Revolut, and Wise Business.
- SoFi Learn - “What to Know About Business Checking Accounts”
- Consumer Affairs
- Wise TrustPilot
- SoFi Trustpilot
- Lantern Credit
- Wise - “Payoneer review”
- Wise - PayPal Business Account
- Wise - Revolut Business review
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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