Banking Retirement

SoFi Checking and Savings vs Capital One vs American Express: Which Account to Open?

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SoFi Checking and Savings vs Capital One vs American Express: Which Account to Open?
Traditional banks have faced some competition in recent years from online-only financial institutions. As traditional banks began to offer mobile banking services via mobile applications, other financial institutions realized that it was no longer necessary for customers to conduct business at a physical branch location. Furthermore, where traditional banks might have been hesitant to offer savings and checking account services to those with poor credit histories, smaller online-only banks were more open. The introduction of these financial institutions allows those who had previously been hesitant to open checking and savings accounts to reconsider. For those looking to open a savings or checking account, whether they have never done so before or are young adults just starting out on their financial journey, it is critical to choose a financial institution that offers you what you require in a financial account. But should you go with SoFi vs Capital One or SoFi vs American Express? Let’s take a look at these three different banks, both traditional and newly formed online, to see which service is best for you.

SoFi Checking and Savings

SoFi Financial began as an investment firm that operated entirely online using only its mobile application, and has since evolved into a full-fledged financial institution that offers a variety of different types of accounts. The SoFi checking and savings accounts are one of the best among fully online financial institutions. The checking and savings accounts actually operate as one account, independent of the more popular brokerage accounts offered by SoFi, allowing the account holder to have the same savings and checking balances in the same account. It has no monthly fee, a high interest rate of 2.00% APY, and one of the best overdraft coverage programs on the market. This is the best option for those who want to earn high interest on their account balances but do not need to conduct business at a bank branch. SoFi provides access to over 55,000 Allpoint ATMs and up to two days of early direct deposit for paychecks. Depositing cash into these accounts, on the other hand, is somewhat complicated, requiring the account holder to use a third-party service such as Western Union, and there is often a fee of up to $5 to deposit cash. Account holders can use both a debit card and paper checks that are made out on the account. When we consider SoFi vs Capital One, we see that it is a simpler, perhaps less complicated approach to banking than a traditional financial account. Considering SoFi vs American Express, a SoFi account is easier to obtain.

Capital One

Capital One is a full-service financial institution with physical branch locations as well as a strong online presence. It is known for its longevity and is a well-known brand in financial circles. It offers a variety of accounts, including credit cards and standalone debit cards, as well as checking and savings accounts, college savings accounts, and retirement accounts. Its checking and savings accounts are separate accounts, though they are frequently bundled together. The APY on the savings account is 1.50%, with no minimum deposit and no maintenance fees. A checking account is not required to open a savings account, and it allows up to six transfers or withdrawals per month. The checking account has a 0.10% APY and no maintenance fees, but it requires a $50 minimum deposit. It also allows for up to two days earlier direct deposit paychecks, a next day grace period in case of overdraft, and both of these accounts work with the mobile application, which allows account holders to receive informational alerts, deposit funds, and, if necessary, freeze the debit card associated with them in case of theft or loss. You must have a savings account to qualify for a Capital One checking account.

American Express

American Express is well-known for its premium credit card accounts, but few are aware that they also provide checking and savings accounts, as well as other financial services. As one of the world’s most well-known credit card companies, it already offers online savings options and now offers banking solutions for those who don’t mind no access to in-person banking, which American Express does not provide. It, too, provides savings and checking accounts, as well as debit and credit cards issued on the accounts. While Capital One does not provide personal loans, American Express does. Its savings account pays 1.25% APY on balances and has no maintenance fees or minimum deposits. It allows for up to nine transfers or withdrawals per month. American Express requires account holders to hold an American Express personal credit card for at least three months before opening a checking account. The APY on checking accounts is 0.50%, but there are no maintenance fees or minimum deposits. Account holders can move rewards points from their credit cards to their checking accounts, deposit checks from their phones, and get protection on purchases. Looking at SoFi vs American Express, we see that AmEx is better for those with established financial histories, while SoFi is better for those just starting out.

Which One is the Winner?

Each of the accounts discussed here has advantages and disadvantages. Capital One is the only one of these three that provides in-person banking services. On the other hand, for those who are just getting started in their financial journey and do not qualify for an American Express card, which is required to open a checking account with AmEx, SoFi online banking is the best option. This is the service most suited to young adults with no established financial history. However, for older people who don’t care about physical branch locations and may already have a financial history with an American Express credit card, moving to an American Express checking and savings account would be the next logical step. If you are trying to decide between SoFi vs Capital One or SoFi vs American Express, consider all these features when making a decision.


1. What are the requirements for opening a checking account at any of these institutions?

Aside from the additional qualification that American Express requires of its account holders, which is to have one of its credit cards, all three of these institutions require to open a new account: two different forms of identification, a driver’s license, a Social Security card, proof of address, and some other form of establishment, such as a utility bill or mortgage statement. A paycheck stub may also be required in some cases. Looking at SoFi vs American Express, we see that SoFi has fewer requirements to see up an account.

2. Is SoFi a legitimate bank despite being the youngest financial institution with a less established history?

Yes, because it has received a bank charter from the United States and is FDIC insured. Several reviews of the company indicate an overall positive experience.

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