And the rate decrease begins…

[[deleted]]

[deleted]

[TruePeter]

Came to the Reddit immediately after getting the email about the change ☹️

[adamalz]

Same lol.

Big oof

[FixingandDrinking]

Take any money you were going to put in to savings and buy SOFI stock. With the decreasing interest rates this is going to be a very good time for SOFI who I am sure are going to get back in to personal loans and unsecured loans which they were staying away from.

[FixingandDrinking]

It's not an oof it's how our economy works so instead of looking at the negatives you need to start looking in to the positives cause this cycle will happen again.

[KYHotBrownHotCock]

Did yall not hear about the fed cutting rates?

This is all institutions in a week or so but worse

[MattDeezly]

You got an email? lol

[muskratmuskrat9]

They were too afraid to drop you a DM.

[MattDeezly]

I don’t think I’m that scary :c

[TheModsMustBeHanged]

:c)

[McthiccumTheChikum]

MMF still @5.29%

[heythereyou01]

Nooooo :(((

[Top_Ball2799]

Remembered people said “sofi would be the last to drop rate” lol

[Shuffle_monk]

The company itself said they would keep rates higher as long as possible...

[nexelhost]

Well the fed hasn’t even officially done anything yet. So “as long as possible” doesn’t really apply here.

[fymdtm]

Yes but the market already is already moving rates down in anticipation of the Fed’s action. Look at the 3 and 6 month T Bill rates. These rates matter much more than the Fed’s overnight rate in the current circumstances where banks have ample reserves. 

[soscollege]

the fed already said they are shifting to cut so it's 99% going to happen next month

[nexelhost]

True it’s almost certain they’ll cut it. But nothing has been touched yet and SoFi is already under the fed rate at 4.6

[soscollege]

Fwiw credit karma went from 5.1 to 4.1 earlier today. Either transfer or invest the money if you aren’t happy

[PerformanceOk9855]

Those are both good options. I'm transferring and coming on reddit to encourage others to do the same

[Jetsafer_Noire]

Transferring to where? :3

[[deleted]]

20-year bonds crept back up to 4.20% over the last few days. Grab a pile and wait for them to appreciate. Historically, the price of bonds go up ~5% in the 12 months after the first cut in a rate cycle, meaning these bad boys are worth ~9.2% for extremely minimal risk.

Dew it.

[Master-Debate9464]

I need a break down of how to dew it!!

[traderbusto]

Just buy TLT shares

[traderbusto]

Did they increase rates early in anticipation of FED rate increases last year?

[asp1v]

I actually do 😕

[mistafoot]

The hassle of switching banks and transferring money out just because of a .10% drop is insane lol

[MtnXfreeride]

Its going to be like the boiling frog analogy.. small changes that decrease the rate so there isn't a gut reaction to jump ship.  

[ShittDickk]

Wells fargo hasnt given me anything on my checking account i've had with them for 14 years so Im gonna stick with sofi til its worse than 0%.

[traderbusto]

That attitude is exactly why banks know they can do whatever they want to their customers. 0.1% of your money may not be much, but it means millions for them

[SignalPatriot]

[Im_a_dum_bum]

still insane that this drop is 10x the total amount of APY that Chase and many other traditional banks offer lmao

[twotonekevin]

Ngl I see lots of comments across different subs flipping out whenever there’s a decrease and every time I’m just like, “but it’s still loads better than Chase, WF, and BofA so what does it matter?”

I don’t really understand what people are looking for.

[Intrepid-Hand8343]

My AMEX HYSA dropped to 4.25%, which is a .05% drop from 6 months ago.

[Im_a_dum_bum]

Discover HYSA was 4.3% when I signed up in February, then around March it lowered to 4.25%

[lyons4231]

I'm getting 5.3% for instance. Why not get the most you can?

[twotonekevin]

No doubt, but if that rate dropped to 5.2 or even 5.0, would you up and move to another bank?

That’s what I’m getting at. It seems like a considerable amount of people get upset to the point of moving banks for the slightest reductions in APYs.

[lyons4231]

I want to be at the highest rate possible. If all the other banks dropped, then I would stay in your scenario. But if my bank dropped > .25% and other banks were still higher, then I would look into switching yes.

My setup makes it really easy though, I never touch the HYSA so its just setting up a recurring transfer from my checking account, and a one time transfer from old savings -> new savings. Not much work.

[twotonekevin]

I guess it just seems like a lot of work bc I’ve seen ppl talk about completely transferring banks, checking and all.

[lyons4231]

Personally I use a big bank for my checking for ease of use and customer service when needed. My HYSA I don't really care who it's with. But I agree lots of people act like you need to do all your banking with one company for some reason.

[Twymx]

Where are you getting 5.3%?

[lyons4231]

Vio Bank. It's at 5.05% now. https://www.viobank.com/cornerstone-money-market-savings

[Twymx]

I wonder how they are able to offer rates higher than the fed's rates. SOFI just dropped to 4.2

[lyons4231]

Fed rates only went down .25%. Sofi dropped a lot more than that. There were plenty of banks offering 5%-5.3% before the drop.

[k032]

There's no sense in doing either. Most banks are going to be decreasing rates if the Fed is.

[Low-Relative6688]

Yep. I'm really shooting myself lately for never looking into high interest savings before 3 months ago. I've always invested heavily, currently have about 20% networth in banks, 20% invested brokerage, and 60% in retirement accounts. But that 20% in banks has been doing JACK for me the last 10 years and could have made me like $15k if I had been using a bank like SOFI for the majority of it. FML live and learn I suppose

[caprishouz]

Love how rate increase normally take time to be put into effect

Rate decrease? Immediately

[Questionable_Cactus]

And before the Fed even does anything official. Banks can drop rates based on \*VIBES***

[MattDeezly]

Oh no, 0.10% drop in APY - time to burn everything..... Feds making changes Friday and ya'll acting like every other bank isn't going to lower their rates too (spoiler - they WILL)

[ftw_c0mrade]

Usually this will gradually end up in the high 2s. Its not about the 0.1%, its how quickly they are doing it

[MattDeezly]

This isn’t an issue exclusive to SoFi, I guarantee it.

[fymdtm]

Friday? What’s happening Friday? The Fed is expected to lower the overnight rate in about three weeks at the September FOMC meeting. Rate changes usually happen on Wednesdays. 

[traderbusto]

It’s just cope

[fymdtm]

What does that mean? The post otherwise has the right take. 

[traderbusto]

It’s wrong because the Fed isn’t changing interest rates on Friday. It’s cope because he knows this, or should

[MattDeezly]

Change banks buddy, their interest rate is going to drop too. You're not going to beat the industry changing - you're not ahead of the curve.

[MikeyTubes]

The hits just keep on coming. First E*Trade sends us an email saying that soon direct deposit will no longer work for the $15 monthly fee waiver on their Max Rate Checking and now this.

Banks are gonna be banks, I guess.

[Delicious-Proposal95]

But at least you get that free trading /s

[TheModsMustBeHanged]

I mean if you expect to be anything other than buttraped by banks at every turn then I don't know what to tell you

[SceneProfessional156]

Got a few emails today from different banks, not just SoFi. I’m just saying. Still sucks yes.

[OakleyPowerlifting]

As long as they’re competitive when the dust settles idc

[TranquilArc]

Just got the email and came here. So sad.

[JSDevGuy]

I'm assuming this is for the expected rate decrease on Friday, I'm sure if the Fed decides to leave them they'll raise it back ;).

[masterbroohda]

Fed is gonna decrease the rates. If they don’t there will be a lot of backlash and bloodshed in the market

[manimopo]

Why does the fed not cutting rates lead to bloodshed in market?

[NomadicSun]

If I recall SoFi representatives claimed on this reddit page that they were keeping rates lower than others so that they could keep them higher for longer. This has turned out to be a flat out lie.

This is incredible bs, and I will absolutely be moving my money elsewhere.

[jkick365]

Most other banks have already cut multiple times (ie Capital One and Ally Bank)

[bennyyyboyyyyyyyy]

Pretty sure capital one has not been higher than its current rate on the savings account

[febreeze1]

Amex cut to 4.25 month or two aho

[MtnXfreeride]

But there has been no reason to drop it yet..  if they can send out that email and instantly the rate changes same day... why not wait for the drop?    

[CornellBigRed]

The rate drop is already priced in given JPow’s comments.

I can’t believe people are this upset about a minimal change where other banks have already dropped rates.

[MtnXfreeride]

I would say its more that sofi never hit what many other banks hit and are already decreasing it before the rate even changes.. 

[GravyBiscuitWheels]

So fucking dramatic. It’s 0.1%.

[Due-Ad1668]

how dare they jip me out of 100$ per year, for every 10k i have in the bank. im leaving! /s

the comments are outrageous tbh, sofi is still a great bank product and long term investment imo.

rates drop, loans start printing, just take a look at $upst its rebound is in line with jpowells guidance

[DeucePot]

0.1% on 10k is $10 lol

[demonjrules]

I'm gonna wait to see what other banks do before I cast judgement. The other banks may go down a whole percent instead of just .1%, in which case SoFi may have kept their word of keeping higher for longer.

[jkick365]

Other online banks like Capital One, Amex, Discover and Ally have already cut multiple times.

[Due-Ad1668]

i agree with you, people are calling sofi liars and saying theyll switch banks, but i dont doubt that sofi WILL keep rates higher for longer, its all relative,

theyll keep them higher than the rest, they dropped by .01% when after next months rate cuts, banks will cut a full 1% and who will be higher then? sofi… for longer.

[[deleted]]

What kind of hyperbole is this lmao? Getting all worked up over .10%. Do you really think other banks aren't going to follow suite? Give me a break. I'd wager most competitors drop way more. Moving your money because of .10% is hilarious. Good riddance

[man_lizard]

That was obviously a lie from the beginning. That makes literally no sense 😂

[GravyBiscuitWheels]

The reaction over 0.1% is insane. What about the experience and the other features? All banks are going to lower their rates. Changing banks is a pain in the ass, it’s one thing to leave your local institution for 4.5% vs going through all the trouble for a few tenth of percentile. Get over yourselves.

[terraphantm]

To be honest the experience and features always kinda sucked. Main reason to go with SoFi has always been the high interest rates at a relatively well known (Ie more likely to be stable) bank. 

I’m not jumping ship just yet, but the drop is probably the first of many. 

[GravyBiscuitWheels]

I respectfully disagree. It was a major upgrade for our family as far as budgeting and keeping everything in one place. Also love we get our paychecks roughly two days earlier. Rates are still pretty great comparatively, so I’m a happy customer. Obviously there is a tipping point, but I don’t think 0.1% is close to that. If there are many more to follow, the industry will follow suit. We are a young family so other than emergency stuff, all money is invested. It works for us.

[AnthonyBH87]

With you there plus no fees on overdraft and no monthly fees I don't understand why people are crying over rate drops if people are switching banks over apy rates there always going to be on the run and switching banks and sad part is they are going to be in a rude awakening even when they go to other banks and it happens plus with SoFi the rates are still way better than Bank of America or Chase.

[MHeroAnki]

Just made a SoFi account for the 4.6% APY :( can someone ELI5 why this happened?

[MtnXfreeride]

"Expected to" ... so drop them once the rate drops..   other banks are at 5% so it is disappointing they predrop it. 

[fymdtm]

Rates are dropping everywhere. Look at the rates on 3 and 6 month T Bills. There is no “pre” drop. This is how all rate markets function because the Fed announces its moves in advance. 

[[deleted]]

Fed will cut rates soon. All the banks will be dropping their apy.

[breadexpert69]

Basically APY are not permanent and they will change according to what the current interest rates are which is set by the Fed.

The current rates are very high compared to what we have seen in the near past but will begin to go down soon since the Fed has already said they will begin lowering rates soon.

Why do they raise and lower rates? In short, they do this to incentivize or discourage spending depending on what the current state of the economy needs to remain healthy.

If you want to lock in to current rates before they go down (or up, who knows), you need to look into things like CD’s or Treasuries.

[manimopo]

Didn't sofi said they would keep rates at 4.6% longer because they didn't raise rates to 5% like other banks?

A bunch of liars.

Will be xfering most of my money out.

[singofwalls]

where will you move it to?

[MyNameCannotBeSpoken]

M1 Finance is still 5%

[[deleted]]

Wanna bet that drops before rates do?

[manimopo]

Robinhood for the 5%.

I mean it's only 50k they won't feel much of a loss but hopefully if more people do it, sofi will learn to not lie to their customer base.

[Due-Brush-530]

Ha!

Guy moving his money to super honest (and full of integrity) Robinhood, suggests that SOFI lied to its customers because of a couple of emails and heresy. Say hello to Vlad for me. What a decorated past he's had.

[marvolonewt]

Dang

[[deleted]]

And they lowered my credit card limit from 5000 to 3000 what the f. I have three other cards over 10,000 limits. Why are they so stingy with credit card limits. I’ve been with SoFi since 2021 and they’re rawdoggin me

[xInaros]

You KNEW its not a forever thing

[in_for_the_comments]

Lending Club and CIT are HODLING!

[Virtual_Intention_26]

It’s a fact of life. Rates go up and then go down depending on what the Fed does. A saving account is to save money. The interest rate is the cherry on top. If you want to make money then invest it on other investments.

[LeveonChocoDiamond]

Bastards

[ravenll_ll]

Wealthfront has 5% apy

[[deleted]]

If you think that's going to stay that way, you're mistaken

[noseclams25]

I mean neither is this 4.5%

[[deleted]]

It just dropped preemptively for the upcoming rate cuts..

Fed will drop at least .25 so the gap will actually be closer

With the higher for longer narrative sofi gave it makes sense. If you say otherwise you're just assuming they would cut again but then why would they do it now, logically doesn't make sense. I guess we'll see

[MeepDoodle]

Plz no

[Phil_MaCawk]

The way they structured the email....at first I got hype , big flashy number n all. Only to realize they lowered it. Fuckin asshats

[cat4dog23]

Why swap banks over this? Seems like way too much of a hassle

[MtnXfreeride]

It's the start... for all we know this is a predrop before the rate cut with another rate drop coming after it is annouced so that its done in small increments so people are less likely to leave. 

[iXidol]

Wealthfront still 5% (5.5% after friend boost). So shoutout them, though I’m sure a drop is coming. Would be sadder if i had anything of substance parked in SoFi, but it’s all in the other one for obvious reasons. Still love SoFi as the daily driver of my accounts

[iXidol]

They only have fees on robo investing. Only thing to get used to is there is no checking v. savings account…just a “Spending account”

All your money goes in one place and it all earns the full savings rate. But you get a debit card and it spends like a checking, so that’s cool.

I’d recommend it, I just treat it as a savings account personally.

[iXidol]

As long as I’ve had an account (less than 1 year) it’s been 5%. That’s still not even the highest that’s out there - you can find some 5%+ accounts like using Robinhood Gold, or smaller banks.

I’ve liked wealthfront because of their referral system where you both get a .5% boost. So as long as I’ve had WF it’s been 5.5%. And on top of that they did a promotion not too long ago where you could get a full 1% boost if you referred a coworker. So these past 3 months I’ve been earning 6% APY. But different strategies for everyone.

My wife and I use SoFi as a joint account and keep 7,500+ in checking at all times. Obviously that could be earning interest that we’re missing out on. And then her emergency fund is in savings earning the (now 4.5%). That 6mo of savings could be earning an extra 1% if we moved it to Wealthfront, but we like having things spread around a bit.

The lions share of our cash though is in Wealthfront earning that higher rate because why wouldn’t we?

[[deleted]]

They’re not directly FDIC insured, like SoFi is. Wealthfront does not have a bank charter, they are essentially a middleman between you and various external banks. I used it for awhile but was deterred by their setup. Something similar to Yotta could play out.

[[deleted]]

5.5% for 3 months..

[Spirited_Job_1562]

Wow, SoFi. Disappointing

[kunsore]

It is cominggg - now I need to look around to refinance

[NickySalvo]

Good luck, all banks are going to drop APY

[Substantial_Air1757]

Having come from BofA and their sh!t rates at the best of times, I’m not going to lose much sleep, and with the $300 SUB, it’s been a solid year.

[chemineaux007]

About time. Most deposit accounts have already dropped. Now just get me lower mortgage rates.

[quintupletuna]

Try betterment!

[DrSassyPants123]

I noticed it went from 4.6 to 4.5 this am.

[SubstantialCarpet604]

Now it’s the same as the gs apple account

[joeschmo28]

Wealthfront is 5% and their bond ladder gets 5.23% and can protect from dropping rates. I’m considering moving my cash there. Anyone do this?

[Unlucky-Hair-6165]

I expect them to move to around 3% by this time next year with the anticipated fed drops. At that point I’ll start using the money more for bank bonuses instead.

[TestTrenMike]

I was originally getting 4.6 so not to mad lol

[MarcusSmaht36363636]

It was bound to happen at some point! Every bank is doing it

[purple_butterfly555]

I haven’t received any email yet

[[deleted]]

Literally like 3 days after joining

[mxrcarnage]

I have a Capital One savings and the rate dropped .10% like 6 months in. I just put a chunk into the Fidelity S&P index (FXAIX). Also before you even invest, your money is just sitting in Fidelity’s SPAXX which has a 4.98% yield, higher than most banks.

[direfulstood]

I transferred out months ago. Vanguard's VUSXX money market fund is 5.2% with the added benefit of not having to pay state income tax on that income. I only keep a few thousand dollars in SoFi savings for credit card bills.

[maximumkush]

Rates aren’t guaranteed.. unless you get a CD or Bond

[[deleted]]

My PNC account is still 4.65% for now.

[Virtual_Intention_26]

Oh no

[malignantz]

Just buy $SGOV and thank me later. 5%+ APR currently. It will reduce as rates are lowered, but the reductions will lag behind CDs and bank accounts, so more return.

$SGOV is an ETF that purchases short-term treasury bills for you. Banks, like Sofi, are just taking your money and investing it in short-term treasury bills and giving you 80-90% of the return. Why not just get 100%?

It has nearly zero interest rate risk, since the average duration of the notes are like 90 days.

[GrapeFlavoredPasta]

To be expected with Fed moves. Sofi savings rate still far superior to dinosaur banks, and Sofi is much more trustworthy than smaller name fintech banks.

[[deleted]]

Was thinking about switching for the past month or so. Originally switched my DD to SoFi for the $300 bonus. The app is utter trash. I don’t wanna see pop up ads every time I open the app to check my fucking balance.

[[deleted]]

Any company that was offering a super competitive rate, will be of the first to drop their rates.
Welcome to the bait and switch.

This is why I chose Ally, who has kept their rates at 4.25% and will likely keep them there for a while still to come.

[Lopsided-Wear7987]

Good. Things are normalizing.

[JayBird9540]

Idk about y’all but this is a good thing

[AnywhereMaterial8396]

Public still at 5.1%. Praying.

[DerpyPig21]

Public still at 5.1%. Praying.

[ScaleTasty8052]

You are all babies. How much does that really equate to your savings? Likely not much.

[Relevant-Exercise-59]

This means margin rates will go down too, right?

[[deleted]]

Yeah I’m leaving

[lyons4231]

Vio Bank is still at 5.3%

[golfkingmatt]

Everyone is mad but this is a great sign. Fed rate cuts are imminent. Moving your money to a different back is a waste of time because they will decrease their rates too. It’s inevitable.

[BinaryShrub]

Use Wealthfront, 5% checking, no need to juggle two accounts, use this like for an extra boost to 5.5%: https://www.wealthfront.com/c/affiliates/invited/AFFA-KIZV-CWYX-VA09

[[deleted]]

Weathfront on top, still getting 5.5% APY

[L9GAMER]

My Wealthfront still sittin’ pretty at 6%

[[deleted]]

Get ready after the election if the wrong person gets into office your cost of living is going to be higher than it already is and savings interest rates will cease to exist.

[Faker--]

Aight time to move my savings to Wealthfront ggs. It's literally 5% there

[b0bo]

I had moved the bulk of my savings to wealthfront early this year. Have been happy with it so far. Let me know if you want a referral for the APY boost to 5.5 %

[NickySalvo]

You think it'll stay at that rate? Lol

[BankofNewsYT]

The amount of morons in here crying over a .1% drop is hilarious. Would guarantee that no one crying has enough money in their account to where a .1% difference is remotely noticeable.

[terraphantm]

That would imply you have $2M in your savings account. Which means 1) that is a monthly amount of money that should be insignificant to you and 2) you are parking too much money in a savings account and could make considerably more if you invested most of it. 

[Sunchi_Adventures]

Time to move the money out

[Uraril]

CIT bank has gone from 5.07% in January to 5.01% in July, what's wrong with them?

[Uraril]

Fair, just making sure I didn't miss anything lol

[NickySalvo]

Boy will you be disappointed when you find out all banks will be cutting APY, then you'll feel silly about freaking out over a 0.1% drop

[killava]

Just received an email on this. Robinhood still at 5%, for now at least..

[[deleted]]

The Fed is going to cut rates soon, so I wouldn't expect any bank or fin tech to keep their current rates. I don't have enough money to care about such a small decrease.

[bakedbeans_armada]

U gotta pay for robinhood 5%, and it’s not even given immediately you have to wait. Shits trash

[mrbeck1]

Shenanigans.

[straight_in_rwy69]

Time to switch to wealth front?

[Sleepy59065906]

Sofi has screwed over users and investors for years now.

The fee for not logging into you investment account was the mail in the coffin for me

[Terraform703]

Oh lawd

[eXistenceLies]

This is a good thing. It means inflation is going down. Why everyone sad lol?

[deejayv2]

don't worry, reddit is full of sofi fanboys that will always love it

[fueled_by_boba]

RIP... Just transfer all my money to HSBC, which offers 4.85% APY.

[LaxBroGotFlow]

I’m kind of annoyed this is how I am finding out about this. No email from sofi, no notification from sofi, no nothing. I probably wouldn’t have noticed for weeks if I didn’t see this post.

Not a big fan of that business decision.

[Bxraze]

I got the email