With many banking options available, including online banks that pay high rates on savings, a key question is often: Do you need access to in-person service? If you don’t, signing up with an online bank can be a no-brainer. But for some consumers, having a bank branch nearby is essential, if not a nice benefit.
When comparing SoFi and TD Bank, branch locations will inevitably be a deciding factor. SoFi doesn’t have bank branches, while TD Bank has several across multiple states. Of course, other factors are also important, such as what each bank offers and their rates. We’ll compare the details of each bank and see how they stack up.
Social Finance Inc. (SoFi) is an online financial company founded in 2011 by Stanford Business School students. The group used an alumni-funded lending model to connect recent grads with alumni in their community. Initially, SoFi’s main product was student loan financing, but it began offering personal loans and mortgages in the mid-2010s. In 2019, it introduced SoFi Money, which became SoFi Checking and Savings.
Read our full review of SoFi here
TD Bank, a subsidiary of Toronto-Dominion Bank, is a national bank based in New Jersey. The company’s roots date to 1873, when Portland Savings Bank was founded. In 2008, TD Bank Group acquired Commerce Bank and rebranded it as TD Bank. Today, TD Bank has a network of 2,600 ATMs and branch locations throughout the East Coast. Although the company is based in New Jersey, its largest concentrations of branches are in Florida and New York, which both have over 300 branch locations.
Read our full TD Bank review here
SoFi’s Checking and Savings is a free checking account for customers who want a solid APY and minimal fees. When you sign up, you automatically get checking and savings accounts linked for easy transfers. No monthly fees apply, regardless of your daily average balance, and SoFi doesn’t charge overdraft fees. You can also access an extensive ATM network of more than 55,000 locations. However, SoFi doesn't have any physical branches.
TD Bank offers multiple checking accounts, but only one of them earns interest, albeit a minimal amount. The Beyond Checking account pays 0.01% APY and charges a $25 monthly maintenance fee. It offers a few ways to waive the fee, such as having a $2,500 daily average balance or $5,000 in monthly direct deposits. It also charges a $35 overdraft fee, though there is a grace period. TD Bank has a much smaller ATM network than SoFi, but it does have physical branches along the East Coast.
TD Bank is also offering a sign-up bonus to new checking customers worth up to $300.
Read more: New bank account promotions available now: Earn up to $3,000
At first glance, SoFi and TD Bank’s savings accounts are comparable, with a relatively small difference in APY. However, SoFi offers the same APY on all balances, provided you have direct deposit. Conversely, TD’s Signature Savings account uses tiered rates that require a balance of at least $100,000 to earn the highest rate.
SoFi has no monthly maintenance fee, while TD charges $15 unless you maintain a daily average balance of at least $15,000.
With its attractive yields and no monthly fees, SoFi made our list of the 10 best high-yield savings accounts. It's also offering a bonus of up to $300 for new customers who open its online bank account.
SoFi doesn't offer any CD accounts.
TD Bank offers several CDs with various terms. The bank’s CDs have a relationship APY and a standard APY, meaning you must have a TD personal checking account to earn the highest rate. Currently, the highest rate available is 4% APY with a nine-month CD and a deposit of at least $100,000.
SoFi’s checking and savings products are popular, but far from all it offers. It also has student loan refinancing, private student loans, mortgages, credit cards, and other products.
TD Bank is more traditional, so it has an extensive product and service lineup. It offers credit cards, personal loans, mortgages, and investing.
Both banks offer strong APYs on savings account balances under the right circumstances, but you can earn higher rates on checking account balances with SoFi.
Additionally, with SoFi, you can earn up to 3.80% APY on savings with direct deposit, but the rate drops to 1.00% APY without direct deposit. TD Bank doesn’t require direct deposit, and you can earn an APY higher than 1.00% with balances of $10,000 or more. This makes TD a better option if you don’t have direct deposit.
TD Bank also offers CDs with APYs as high as 4%, while SoFi doesn’t offer CDs. Neither bank offers consumer money market accounts.
TD Bank charges monthly maintenance fees on many of its accounts, but it does offer ways to have those fees waived. SoFi, on the other hand, doesn’t charge monthly maintenance fees, regardless of your average balance. SoFi also charges no overdraft fees.
Overall, SoFi makes it easier to avoid fees, taking the edge over TD Bank.
Read more: What is a monthly maintenance fee, and when do you have to pay it?
SoFi is a good option for consumers who want a simple online banking option with favorable rates and low fees. Its checking and savings accounts are automatically linked, making it easy to move money between them. Its savings account also has a competitive APY that doesn’t come with any caveats. It also gives you access to a sprawling national ATM network.
Consumers who live on the East Coast and prefer a more traditional banking experience may consider TD Bank. It has numerous branch locations along the Atlantic, allowing customers to get help in person. In addition, it offers many savings products, such as CDs, mortgages, and personal loans.
