Online banks like Axos and SoFi are changing the way people bank. With convenient mobile apps, great interest rates, and low fees, these fintech newcomers are giving traditional banks a run for their money.
But how do you decide between these two popular options?
This comprehensive guide examines the key differences between Axos and SoFi to help you determine the better fit.
A Brief Comparison Table
| Feature | Axos Bank | SoFi |
| Savings APY | 0.61% | 0.25% |
| Checking APY | Up to 0.25% | No interest |
| ATM Access | 30,000+ free | 55,000+ free globally |
| Loan Offerings | Mortgages, personal loans, business loans | Student loan refinancing, personal loans, mortgages, credit cards |
| Account Eligibility | $50 minimum deposit, US residency | Income and education requirements |
| Mobile App | 4.8/5 rating | 4.6/5 rating |
| Customer Service | 24/7 support with high reviews | Mixed reviews on responsiveness |
| BBB Rating | A+ with 0 complaints | A+ with minimal complaints |
| Account Security | 256-bit SSL, optional multi-factor authentication | 256-bit SSL, optional two-factor authentication |
Overview Of Axos Bank
Axos Bank (formerly known as Bank of Internet USA) has been around since 2000. As one of the first fully online banks, Axos has become a major player in digital banking.
Some key features of Axos Bank include:
- Free checking and savings accounts
- Access to over 30,000 free ATMs nationwide
- Competitive interest rates on deposit accounts
- Mobile and online banking apps
- Variety of loan products including mortgages, personal loans, and business loans
Axos focuses on catering to consumers who want a full-service bank without the high fees and account minimums of traditional brick-and-mortar establishments. The bank offers banking, lending, and investment services.
Overview Of Sofi
SoFi started in 2011 as a peer-to-peer student loan platform. Since then, it has evolved into a full online financial services company.
Some highlights of SoFi include:
- No fee checking and savings accounts
- No ATM fees worldwide
- Loan products including personal, student, and home loans
- Investment and wealth management services
- Unemployment protection on loans
- Member rewards program
SoFi aims to be a one-stop shop for young professionals. It combines banking, borrowing, and investing into a single easy-to-use platform. The company emphasizes community and career guidance along with financial services.
Comparison of Features Between Axos And SoFi
Digital Experience
One of the main reasons people choose an online bank is convenience through technology. How do Axos and SoFi compare when it comes to digital experience?
Both banks offer user-friendly mobile apps for iPhone and Android. You can easily manage accounts, deposit checks, make payments, and more. Axos edges out SoFi a bit in app ratings and reviews.
The website experience is similarly convenient with both banks. You can apply for new accounts digitally in minutes with either option. SoFi does have a more visually sleek website interface.
For digital experience, it’s close but Axos gets a slight win for its highly rated app.
Interest Rates and Fees
Interest rates and fees are make-or-break factors when comparing banks. Even small percentage differences can add up over time.
On savings accounts, SoFi offers 0.25% APY as of writing. The Axos Rewards Savings account provides 0.61% APY – over double SoFi’s rate. For checking accounts, the two brands are neck and neck with no maintenance fees.
When it comes to lending rates, Axos offers slightly better mortgage rates while SoFi edges out on personal loan rates. For fees, both banks have no monthly account fees but SoFi has the benefit of no ATM fees worldwide.
For rates and fees, it’s largely a draw between the two banks. SoFi wins on no ATM fees while Axos offers better savings APY.
Product Offerings
The types of financial products a bank offers can determine how easily it can serve your needs.
Axos Bank provides the typical products you’d expect: checking, savings, money market, CDs, IRAs, mortgages, personal loans, and business services. One unique product is their Axos Invest managed portfolios combining automated investing with an FDIC-insured account.
SoFi excels when it comes to breadth of lending options. Along with student loan refinancing that made them famous, SoFi offers personal loans, mortgages, and more. They also provide investment management and recently expanded into credit cards. One unique product is SoFi Money premium cash management with 1.25% APY.
SoFi wins when it comes to product selection thanks to diverse loan offerings, investments, credit cards, andpremium cash management.
Also Read: Differences Between Wells Fargo And Regions Bank.
Accessibility
When evaluating online banks, accessibility is key since they don’t have local branches. This includes ATM access, account support, and who is eligible to join.
Axos provides fee-free access to over 30,000 ATMs through Allpoint. Their customer support includes live chat, email, and phone assistance 24/7. To open an account, you’ll need a minimum $50 deposit and US residency.
SoFi has no fee ATM access to 55,000+ machines globally through Allpoint. Their customer service also provides 24/7 phone, chat, and email support. Becoming a SoFi member has more requirements including US citizenship, income, and education history.
Axos pulls ahead in accessibility thanks to fewer account eligibility requirements and broader fee-free ATM access for customers.
Trustworthiness and Reviews
It’s essential to evaluate an online bank’s reputation for trustworthiness before entrusting them with your money. Important factors include BBB rating, online reviews, and financial stability.
Axos Bank receives an A+ rating from the Better Business Bureau with zero unresolved complaints. They demonstrate strong financials with over $14 billion in assets. Online reviews praise Axos for great interest rates, customer service, and digital experience.
SoFi also maintains an A+ BBB rating with minimal complaints. As a startup, they have raised over $2 billion in funding to fuel impressive growth. SoFi garners positive reviews for ease of use, loan options, and member perks. However, some reviewers complain about unreliable customer service.
Axos Bank wins for trust based on long-term stability, zero BBB complaints, and consistently sterling reviews. But SoFi still scores well as a relative newcomer.
Watch the review video of Sofi Bank!
Security
Security is paramount when selecting an online bank. You’ll be entrusting them with sensitive personal and financial information.
Axos Bank uses 256-bit SSL encryption along with secure login via username and password. They provide 24/7 fraud monitoring and will reimburse any unauthorized transactions. Axos also offers optional multi-factor authentication for enhanced security.
SoFi encrypts data and restricts employee access. They use 256-bit SSL, secure login credentials, and send account alerts. SoFi also provides optional two-factor authentication for maximum account security.
It’s a draw for security. Axos and SoFi take all the standard security precautions expected from a legitimate online bank these days.
Also Read: Comparison Between SoFi And Happy Money.
Frequently Asked Questions (FAQ)
Yes, Axos Bank is considered a very reliable online banking choice. They are FDIC insured for up to $250,000 per account. Axos has maintained a longstanding A+ rating with the Better Business Bureau since opening in 2000. They also demonstrate financial stability with over $14 billion in assets.
The main downsides of SoFi include lower interest rates on savings compared to competitors, strict eligibility requirements to open an account, and some negative reviews of customer service responsiveness. As a younger fintech company, they also lack the long track record of more established options.
SoFi is considered trustworthy for your banking needs. Your accounts have FDIC insurance protection up to $250,000. SoFi also takes all standard security precautions like encryption, secure logins, and fraud monitoring. Though a newer bank, SoFi has raised significant funding and maintains an A+ BBB rating.
Axos and Ally Bank both offer solid digital banking options. However, Axos has slightly higher savings rates and broader fee-free ATM access. Ally may have better name recognition. Overall, Axos ranks higher for attractive interest rates and fees compared to Ally. But it depends on your preferences.
Also Read: Comparison Between ezTaxReturn And TurboTax.
Final Verdict
Overall, Axos Bank edges out SoFi in critical categories like interest rates, fees, trustworthiness, and accessibility. But SoFi isn’t too far behind and wins for lending variety and digital user experience.
Here’s a quick recap of key differences:
- Axos has more than double the savings APY of SoFi
- SoFi offers more loan products including personal loans
- Axos has fee-free access to 30,000+ ATMs vs. 55,000+ for SoFi globally
- Axos has less strict requirements to open an account
- Axos scores higher for long-term reputation and financial stability
The right option ultimately depends on your priorities. If you want the highest interest savings and lowest fees, Axos Bank is likely the better choice.
But if you need varied loan options and luxurious digital experience, SoFi may be a great fit.
Both provide an accessible online banking option for those looking to switch from traditional banks. Consider which features and benefits align with your financial needs.
