{"id":24589,"date":"2024-01-23T22:33:29","date_gmt":"2024-01-23T22:33:29","guid":{"rendered":"https:\/\/www.tipwho.com\/?post_type=article&#038;p=24589"},"modified":"2024-01-23T22:34:52","modified_gmt":"2024-01-23T22:34:52","slug":"sofi-vs-cash-app-comparison","status":"publish","type":"article","link":"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/","title":{"rendered":"SoFi vs Cash App (2024 Comparison)"},"content":{"rendered":"<h1 data-pm-slice=\"1 1 []\"><span class=\"ez-toc-section\" id=\"SoFi_vs_Cash_App_2024_Comparison\"><\/span>SoFi vs Cash App (2024 Comparison)<span class=\"ez-toc-section-end\"><\/span><\/h1><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662665a834997\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #757575;color:#757575\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #757575;color:#757575\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662665a834997\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#SoFi_vs_Cash_App_2024_Comparison\" title=\"SoFi vs Cash App (2024 Comparison)\">SoFi vs Cash App (2024 Comparison)<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Comparing_the_Features_of_SoFi_vs_Cash_App\" title=\"Comparing the Features of SoFi vs Cash App\">Comparing the Features of SoFi vs Cash App<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#SoFi_Pros_and_Cons\" title=\"SoFi Pros and Cons\">SoFi Pros and Cons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Cash_App_Banking_Review\" title=\"Cash App Banking Review\">Cash App Banking Review<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#FDIC_Differences_Are_SoFi_and_Cash_App_FDIC_Insured\" title=\"FDIC Differences: Are SoFi and Cash App FDIC Insured?\">FDIC Differences: Are SoFi and Cash App FDIC Insured?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#What_is_Square_Cash_App\" title=\"What is Square Cash App?\">What is Square Cash App?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#What_is_SoFi\" title=\"What is SoFi?\">What is SoFi?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Is_SoFi_a_safe_place_to_put_my_money\" title=\"Is SoFi a safe place to put my money?\">Is SoFi a safe place to put my money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#What_is_so_great_about_SoFi\" title=\"What is so great about SoFi?\">What is so great about SoFi?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Can_you_buy_stocks_on_SoFi\" title=\"Can you buy stocks on SoFi?\">Can you buy stocks on SoFi?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Is_SoFi_good_for_investing\" title=\"Is SoFi good for investing?\">Is SoFi good for investing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Is_SoFi_financially_stable\" title=\"Is SoFi financially stable?\">Is SoFi financially stable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Is_Cash_App_better_than_a_bank\" title=\"Is Cash App better than a bank?\">Is Cash App better than a bank?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Can_I_link_SoFi_to_Cash_App\" title=\"Can I link SoFi to Cash App?\">Can I link SoFi to Cash App?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Can_you_mobile_deposit_a_check_on_Cash_App\" title=\"Can you mobile deposit a check on Cash App?\">Can you mobile deposit a check on Cash App?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#How_do_Cash_App_investments_work\" title=\"How do Cash App investments work?\">How do Cash App investments work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tipwho.com\/article\/sofi-vs-cash-app-comparison\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>Our SoFi vs Cash App article provides you with guidance to assist you in choosing between SoFi and Cash App. Rather than focusing solely on which one is superior, we provide the information to help you consider which one suits your needs better.<\/p>\n<p class=\"has-black-color has-text-color has-background\" style=\"background-color: #c9e8f0;\"><strong>SoFi and Cash App offer checking accounts and virtual investment options, making the process more convenient and faster. However, there is a significant difference between the two. SoFi not only offers investment options but also <a href=\"https:\/\/edition.cnn.com\/cnn-underscored\/money\/sofi-bank-review\">provides checking and savings accounts<\/a>. On the other hand, Cash App has investment account checking accounts but not savings accounts. Another difference is that SoFi ensures your investments earn interest, while Cash App does not guarantee returns. As a result, this article helps you decide between SoFi and Square&#8217;s Cash App by thoroughly comparing the two platforms. After reviewing our comparison, you will be able to know which platform best suits your requirements before opening an account.<\/strong><\/p>\n<p>There are many money management platforms, which makes it challenging to decide which one to opt for. When deciding which platform to use, remember that you can use more than one platform for different investments based on your personal preferences. Therefore, this article aims to assist you in choosing between SoFi and Square&#8217;s Cash App through a comprehensive comparison of both platforms. After reading this article, you will be able to determine which platform has the features you need before creating an account.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Comparing_the_Features_of_SoFi_vs_Cash_App\"><\/span>Comparing the Features of SoFi vs Cash App<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the ever-evolving world of mobile banking, consumers are presented with many digital platforms designed to streamline their financial lives. Among these innovative solutions are SoFi and <a href=\"https:\/\/cash.app\/\">Cash App<\/a>\u2014two heavyweight online banking contenders that offer unique features catering to the diverse needs of modern users. In this article, we compare SoFi, known for its extensive suite of financial services, including loans, investing, and insurance, versus Cash App, which has gained immense popularity as a user-friendly tool for peer-to-peer payments, banking services, and cryptocurrency trading. Whether you&#8217;re looking to optimize your personal finance management or seeking the most convenient way to handle transactions and investments, understanding the unique capabilities and advantages of both SoFi and Cash App is important before making an informed decision that aligns with your financial goals.<\/p>\n<p><u><strong>Account Types<br \/>\n<\/strong><\/u><\/p>\n<ul class=\"custom-disc\">\n<li>SoFi (Social Finance Inc.) and Cash App (developed by Square, Inc., now Block, Inc.) are both financial service platforms. However, they offer distinct account types tailored to different user needs. SoFi provides a comprehensive range of financial products, including SoFi Money\u2014a cash management account that earns interest and offers no account fees\u2014and <a href=\"https:\/\/support.sofi.com\/hc\/en-us\/categories\/360002615192-SoFi-Invest\">SoFi Invest<\/a>, which allows for active and automated investing in stocks, ETFs, and even cryptocurrencies. In contrast, Cash App is primarily known for its peer-to-peer payment service and the ability to invest directly in stocks and cryptocurrencies from the app. It also offers a Cash Card\u2014a debit card linked to the user&#8217;s account balance. While SoFi aims to provide a full-suite banking alternative with additional services such as loans, insurance, and credit cards, Cash App focuses on simplified money transactions with investment options as an added feature rather than a core offering.<\/li>\n<\/ul>\n<p><u><strong>Security Features<br \/>\n<\/strong><\/u><\/p>\n<ul class=\"custom-disc\">\n<li>SoFi and Cash App both incorporate various security features to protect their customers&#8217; funds and personal information. However, they employ different approaches reflective of their distinct financial services. SoFi is a personal finance company offering a suite of products, including loans, investments, and insurance. To protect your account, SoFi utilizes robust encryption, two-factor authentication (2FA), and monitors accounts for unusual activity to secure users&#8217; data and transactions. Additionally, SoFi&#8217;s investment products are SIPC insured. On the other hand, Cash App, a mobile payment service designed for peer-to-peer transactions and other banking services, also employs encryption and 2FA while providing the option to lock the app with a passcode. Cash App has added security measures, such as disabling automatic transfers by default to prevent unauthorized withdrawals. Both platforms encourage users to enable any optional security measures for increased protection, but they have different regulatory protections due to the nature of their offerings. While SoFi has SIPC insurance for investment products, Cash App balances are FDIC insured if you opt-in for the Cash Card or direct deposit, which then provides FDIC insurance through partner banks.<\/li>\n<\/ul>\n<p><u><strong>ATM Use<\/strong><\/u><\/p>\n<ul class=\"custom-disc\">\n<li>SoFi and Cash App both offer ATM perks with their respective debit cards, but with some differences in features and fees. SoFi Money account holders can access a network of ATMs that are part of the Allpoint network, allowing them to withdraw cash <a href=\"https:\/\/www.sofi.com\/banking\/fees\/\">without incurring any fees<\/a> at over 55,000+ ATMs. Additionally, SoFi reimburses ATM fees charged by other financial institutions worldwide, making it very convenient for users who travel or need to use out-of-network ATMs. On the other hand, Cash App provides a Cash Card\u2014a Visa debit card linked to the user&#8217;s Cash App balance\u2014which can be used for free withdrawals at network ATMs if at least $300 is deposited into the Cash App account each month; otherwise, a $2 fee applies per transaction. There is a $2.50 fee for using an ATM outside of the Cash App ATM network. Therefore, while both offer ATM access with their products, SoFi may appeal more to those seeking broader fee-free ATM access and frequent travelers looking for reimbursement on third-party charges globally.<\/li>\n<\/ul>\n<p><u><strong>Withdrawal Limit<br \/>\n<\/strong><\/u><\/p>\n<ul class=\"custom-disc\">\n<li>Cash App has a restriction that only allows users to\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/cash.app\/help\/us\/en-us\/3086-cash-card-atm-limits\" target=\"_blank\" rel=\"noopener noreferrer\">withdraw a maximum of 1000 dollars per day<\/a>. Additionally, Cash App permits a maximum withdrawal of 1000 dollars per week, so if you withdraw $1000 in a day, you won&#8217;t be able to withdraw any further funds for the rest of the week. On the other hand, SoFi has a more lenient policy, allowing users to withdraw a\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/d32ijn7u0aqfv4.cloudfront.net\/wp\/wp-content\/uploads\/raw\/Limits-and-Funds-Availability-August-30-2023.docx.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">maximum of 1000 dollars per day and 3000 dollars per month<\/a>.<\/li>\n<\/ul>\n<p><u><strong>Interest Rate<br \/>\n<\/strong><\/u><\/p>\n<ul class=\"custom-disc\">\n<li><a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/www.sofi.com\/learn\/content\/what-is-a-good-interest-rate-for-a-savings-account\/\" target=\"_blank\" rel=\"noopener noreferrer\">SoFi pays a 4.60% annual percentage yield (APY) interest<\/a>\u00a0on saving deposit balances (including Vaults) and 0.50% on checking balances, allowing you to accrue earnings. In contrast, Cash App accounts do not earn interest.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"SoFi_Pros_and_Cons\"><\/span>SoFi Pros and Cons<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SoFi, which is a virtual finance company, provides various financial services, including checking accounts, savings accounts, mortgages, personal loans, credit cards, investment products, and refinancing student loans. These options are accessible through SoFi&#8217;s mobile app and desktop interfaces. The pros and cons of SoFi are discussed below.<\/p>\n<h3>Advantages: Pros of SoFi<\/h3>\n<p>On the other hand, SoFi also possesses these benefits:<\/p>\n<ol class=\"custom-decimal\">\n<li>Easy-to-use Interface: SoFi Invest offers a user-friendly platform, ensuring that even beginners and individuals unfamiliar with online banking or investing can easily navigate and use it.<\/li>\n<li>Direct Deposit Bonus:\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/www.sofi.com\/banking\/direct-deposit\/\" target=\"_blank\" rel=\"noopener noreferrer\">SoFi offers a bonus of up to $300<\/a>\u00a0when you set up your first paycheck direct deposit.<\/li>\n<li>No Account Minimums: SoFi has\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/support.sofi.com\/hc\/en-us\/articles\/360039683552-Is-there-a-minimum-balance-requirement-\" target=\"_blank\" rel=\"noopener noreferrer\">no account minimums<\/a>.<\/li>\n<li>No Commission Fees: SoFi Invest allows frequent traders to trade stocks, ETFs, and cryptocurrency without paying any commission fees, offering a potentially more affordable option.<\/li>\n<li>Member FDIC: Checking and savings account balances at SoFi are FDIC insured up to $250,000.<\/li>\n<li>Fractional shares: Fractional shares are available through SoFi Invest, allowing investors to make smaller investments in expensive stocks and diversify their portfolios across various securities.<\/li>\n<li>Robo-Advisory: SoFi Invest provides robo-advisory services, which automatically manage portfolios according to investors&#8217; desired level of risk and investment objectives. This advisory option is ideal for investors who prefer a more passive approach to investing.<\/li>\n<li>Educational Materials: SoFi Invest offers various educational materials, such as articles, webinars, and financial planning tools, to assist investors in acquiring knowledge about investing and making well-informed choices.<\/li>\n<li>Retirement Accounts:\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/www.sofi.com\/invest\/retirement-accounts\/\" target=\"_blank\" rel=\"noopener noreferrer\">SoFi Invest now supports retirement accounts<\/a>, including IRAs and 401(k)s. For a limited time, you can receive a 2% IRA match on your SoFi IRA contributions.<\/li>\n<li>Margin: Margin is available on cash accounts with a balance greater than 2k.<\/li>\n<\/ol>\n<h3>Drawbacks: What are the Cons of SoFi?<\/h3>\n<p>SoFi has several drawbacks, including:<\/p>\n<ol class=\"custom-decimal\">\n<li>Restricted Investment Choices: SoFi Invest presents a variety of investment alternatives, such as stocks, ETFs, and cryptocurrencies, but compared to other brokerage platforms, the options may be more limited. As a result, investors seeking specific assets or niche markets may find their choices limited. Remember that investing involves risk, so consider seeking professional investment advice before making an investment decision.<\/li>\n<li>Limited Research Tools: The research tools provided by SoFi Invest may be less advanced than those of other brokerage platforms. Investors relying heavily on comprehensive market research and analysis might perceive the available tools as inadequate.<\/li>\n<li>Customer Support: There have been reports of users facing issues with customer support, including long wait times for responses and difficulty connecting with a representative. These issues can be frustrating, particularly if you need help urgently or have pressing questions.<\/li>\n<li>Interest Rates: If you don&#8217;t have a significant amount of equity supporting your loan, you might be required to pay a higher interest rate. This is because SoFi, as a lender, considers assets when determining underwriting decisions.<\/li>\n<\/ol>\n<p>Now that we have compared the advantages and drawbacks of SoFI, it&#8217;s time to examine Cash App.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cash_App_Banking_Review\"><\/span>Cash App Banking Review<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Square&#8217;s Cash App is a convenient mobile payment platform that enables individuals to easily send and receive money through the app on their smartphones. As of March 30, 2023,\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/www.reuters.com\/technology\/block-says-cash-apps-44-mln-monthly-users-out-51-mln-have-verified-accounts-2023-03-30\/\" target=\"_blank\" rel=\"noopener noreferrer\">44 million individuals are actively using Cash App&#8217;s services<\/a>. As discussed in the following sections of our banking review, Cash App has the following advantages and drawbacks:<\/p>\n<h3>Advantages: Pros of Square&#8217;s Cash App<\/h3>\n<ol class=\"custom-decimal\">\n<li>Send Money Quickly: Cash App is one of the easiest and fastest ways to send funds between individuals. First, launch the app and input the recipient&#8217;s name and the desired amount. Next, the app will ask you to verify the transaction. Once confirmed, the money will be promptly transferred, with the money sometimes available in the recipient&#8217;s account in a matter of seconds.<\/li>\n<li>Cash Card: Cash App&#8217;s Cash Card is a debit card with no monthly fees or minimum balance requirements. While waiting for their physical debit card to arrive in the mail, users can immediately pay with Google Pay or <a href=\"https:\/\/www.tipwho.com\/article-category\/apple-pay\/\">Apple Pay<\/a> for instant access.<\/li>\n<li>No Account Minimums: Cash App has\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/cash.app\/bank\" target=\"_blank\" rel=\"noopener noreferrer\">no account minimums<\/a>.<\/li>\n<li>Direct Deposits:\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/cash.app\/help\/fr\/en-gb\/3111-routing-and-account-direct-deposit\" target=\"_blank\" rel=\"noopener noreferrer\">Setting up direct deposits<\/a>\u00a0of paychecks is simple and free.<\/li>\n<li>No Credit Checks: Cash App requires no credit checks for their checking accounts, Cash Cards, or cash advances.<\/li>\n<li>Buy and Sell Bitcoin: Unlike other platforms, you can buy and sell Bitcoin on Cash App. According to the company&#8217;s website, the\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/cash.app\/help\/us\/en-us\/3103-bitcoin-fees\" target=\"_blank\" rel=\"noopener noreferrer\">fee for Bitcoin transactions is currently 0.75% to 3%<\/a>, depending on the total exchange amount. This low transaction fee makes Cash App attractive compared to Coinbase and other similar platforms for trading cryptocurrencies.<\/li>\n<li>Free 1-3 Day Transfers: You can send money at no charge using a standard transfer, which takes 1-3 days. Instant transfers\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/www.cnbc.com\/select\/what-is-cash-app\/\" target=\"_blank\" rel=\"noopener noreferrer\">incur a 0.50% to 1.75% fee<\/a>.<\/li>\n<li>Simplifies Reimbursements: Cash App makes it easier for friends to reimburse each other by providing a feature to split bills effortlessly. For instance, if you and three friends dine at a restaurant and choose to divide the bill, one person can cover the entire amount while the others can later repay them. Cash App conveniently keeps track of and displays the details of who has reimbursed you and the time at which they did so.<\/li>\n<li>Buy stocks without having to pay any extra fees for commissions: Cash App allows you to purchase and trade stocks without any fees, eliminating the need to use a separate application for your stock-related transactions. This convenient feature saves you the trouble of switching between apps and streamlines the process.<\/li>\n<\/ol>\n<h3>Drawbacks: What are the Cons of Cash App?<\/h3>\n<p>While Square&#8217;s Cash App has many advantages, there are also some drawbacks you should be aware of.<\/p>\n<p>1. Low early limit for the first 30 days<\/p>\n<p>Cash App&#8217;s primary drawback is its initial restriction on sending and receiving up to $1,000 within the first month. However, this limit can be\u00a0<a class=\"editor-rtfLink ck-widget\" href=\"https:\/\/cash.app\/help\/us\/en-us\/1015-account-settings\" target=\"_blank\" rel=\"noopener noreferrer\">increased later on once you have verified your identity<\/a>. To verify your identity, provide your full name, date of birth, and social security number. If you need to conduct significant transactions early on, you might need to choose a different application.<\/p>\n<p>2. FDIC coverage is only included with the Cash Card<\/p>\n<p>Cash App provides FDIC protection for accounts with a Cash Card. FDIC coverage ensures insurance for amounts up to $250,000. Hence, you should avoid storing large sums of money on the application.<\/p>\n<p>3. Cannot be used for international payments outside the US and UK<\/p>\n<p>Cash App is only available in the United States and the United Kingdom. If you intend to make payments outside these countries, you may need to use alternative mobile payment apps like PayPal or <a href=\"https:\/\/www.tipwho.com\/article\/how-to-transfer-money-from-chime-to-venmo-instantly\/\">Venmo<\/a>.<\/p>\n<p>Based on the information provided above, you can get a glimpse of the features that Square&#8217;s Cash App delivers. Therefore, if you find Cash App&#8217;s offerings more appealing than SoFi&#8217;s, you should join the Cash App platform.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"FDIC_Differences_Are_SoFi_and_Cash_App_FDIC_Insured\"><\/span>FDIC Differences: Are SoFi and Cash App FDIC Insured?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SoFi and Cash App both offer financial products that are FDIC insured to the legal maximum, typically through partner banks holding customer deposits. <a href=\"https:\/\/www.forbes.com\/advisor\/banking\/sofi-cash-management-account-review\/\">SoFi&#8217;s cash management accounts are FDIC insured up to $1.5 million<\/a> through its partner banks. For Cash App, funds held within the app tied to a Cash Card or checking account are FDIC insured up to a standard limit of $250,000 per depositor for each qualifying account category when placed in their partner banks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Square_Cash_App\"><\/span>What is Square Cash App?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: left;\">Square Cash App, often called Cash App, is a mobile payment service developed by Block, Inc. (formerly known as Square, Inc.) that lets users transfer money to one another using a mobile phone app. The service is <a href=\"https:\/\/www.tipwho.com\/article\/is-cash-app-international-list-of-countries-that-use-cash-app\/\">available in the United States and the UK<\/a> and enables individuals to send and receive money instantly, pay bills, invest in stocks or Bitcoin, and use a linked debit card called Cash Card for transactions or ATM withdrawals. It caters to those looking for quick peer-to-peer payments and simple financial services without the need for traditional banking accounts or in-person cash exchanges. With its user-friendly interface and versatile features, Cash App has become popular among younger demographics who value convenience and digital financial interactions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_SoFi\"><\/span>What is SoFi?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SoFi, short for Social Finance, Inc., is an American personal finance company that offers a range of financial products and services through a digital platform, including student loan refinancing, personal loans, home loans, brokerage accounts, investing and wealth management services, and insurance products. Initially founded in 2011 with a focus on student loan refinancing for graduates with high earning potential, SoFi has since expanded to become a one-stop shop for various financial needs. The company helps individuals achieve financial independence and realize their ambitions by providing innovative tools for borrowing, saving, spending, investing, and protecting their money.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_SoFi_a_safe_place_to_put_my_money\"><\/span>Is SoFi a safe place to put my money?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yes, SoFi is a safe place to put your money. When you deposit funds into a SoFi checking or savings account (including Vaults), your balance is protected by FDIC insurance up to $250,000 per individual account holder. This means your money is federally insured in the unlikely event of a bank failure. This insurance limit effectively doubles to $500,000 for joint accounts held with another person. Therefore, within these limits, your deposits with SoFi are secured against bank-specific risks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_so_great_about_SoFi\"><\/span>What is so great about SoFi?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SoFi, short for Social Finance Inc., stands out in the financial services sector by offering a comprehensive suite of products tailored to meet the needs of modern consumers, from student loan refinancing and personal loans to mortgage lending and wealth management. What makes SoFi particularly attractive is its approach to customer experience, with benefits that include competitive rates, no fee services, career counseling, and member events aimed at fostering networking and financial education. The platform&#8217;s user-friendly interface, combined with its focus on community-building and innovation\u2014such as early forays into cryptocurrency investing\u2014caters to a generation seeking a more holistic and interconnected financial service provider that aligns with their lifestyles and career trajectories.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_you_buy_stocks_on_SoFi\"><\/span>Can you buy stocks on SoFi?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yes, you can buy stocks on SoFi through its investment platform, SoFi Invest, which caters to both novice and experienced investors. The platform allows users to open investment accounts with no minimum balance requirements, facilitating the purchase of full shares or fractional shares of stocks and ETFs directly from their mobile app. This feature is particularly beneficial for those who may not have the capital to buy whole shares of high-priced stocks, enabling them to invest in companies they believe in with smaller amounts of money. While SoFi Invest provides a user-friendly interface and accessible investing options similar to what one might find at a full-service brokerage firm, it distinguishes itself with a more modern approach focused on ease of use and flexibility for the investor on the go.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_SoFi_good_for_investing\"><\/span>Is SoFi good for investing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SoFi is a good option for individuals looking to invest, particularly those new to the investment world or who prefer a streamlined online experience. It offers a range of products, including active and automated investing without charging management fees, which can be particularly attractive for cost-conscious investors. SoFi also provides educational resources to help beginners understand the market and make informed decisions. Furthermore, it allows users to invest in stocks, ETFs, and cryptocurrencies. However, like any financial service, potential investors must consider their financial goals, risk tolerance, and the platform&#8217;s available investment options and tools. While SoFi may be good for some investors due to its user-friendly interface and fee structure, others might find it lacks certain advanced features or investment choices offered by more specialized platforms.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_SoFi_financially_stable\"><\/span>Is SoFi financially stable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SoFi is financially stable with a growing customer base and an expanding suite of financial products, including personal loans, student loan refinancing, home loans, credit cards, and investment services. The company has been making strategic moves to diversify its revenue and reduce dependence on any single product line. SoFi also made significant strides by obtaining a national bank charter by acquiring Golden Pacific Bancorp, which will bolster its financial stability by allowing it to accept deposits and further expand its lending capabilities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_Cash_App_better_than_a_bank\"><\/span>Is Cash App better than a bank?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Whether Cash App is better than a traditional bank depends on an individual&#8217;s financial needs and preferences. Cash App is a mobile payment service that provides convenience with features like peer-to-peer money transfers, the ability to buy and sell Bitcoin, and the Cash Card debit card that can be used for transactions or at ATMs. Cash App may be a good option for users who prioritize quick digital transactions and minimal banking services. However, traditional banks offer a broader range of financial products such as mortgages, auto loans, higher levels of customer protection and security, and physical branches for in-person assistance. Those seeking comprehensive financial services might find traditional banks more suitable. The choice between Cash App and a bank ultimately hinges on the complexity of one&#8217;s financial activities and their need for various banking services.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_I_link_SoFi_to_Cash_App\"><\/span>Can I link SoFi to Cash App?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yes, you can link your SoFi account to Cash App to facilitate fund transfers between the two platforms. You&#8217;ll need to use your SoFi account and routing numbers, which can be found within your SoFi account details. In the Cash App, you would go to the &#8216;My Cash&#8217; tab, select &#8216;Add Bank&#8217;, and then enter your SoFi banking information. Once linked, you can transfer money directly from your SoFi account into Cash App or vice versa. This integration allows for greater flexibility in managing and moving your funds between these financial service providers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_you_mobile_deposit_a_check_on_Cash_App\"><\/span>Can you mobile deposit a check on Cash App?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yes, you can <a href=\"https:\/\/cash.app\/legal\/us\/en-us\/mcctos\">mobile deposit a check on Cash App<\/a> using a feature called &#8216;Mobile Check Capture.&#8217; Users simply need to take a picture of the check through the app and follow the prompts to deposit it into their Cash App account. The service is convenient, but there are some limitations in terms of check types and amounts that can be accepted, and it may take several days for the funds to become available after the deposit has been made.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_do_Cash_App_investments_work\"><\/span>How do Cash App investments work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/cash.app\/stocks\">Cash App Investments<\/a> allow users to buy stock or ETFs directly through the app, utilizing the funds available in their Cash App Balance. When a user decides to make a purchase, the required amount is first deducted from their Cash App Balance. If there are insufficient funds to cover the entire cost of the transaction, additional money is automatically pulled from a linked debit card and added to their Cash App Balance to complete the purchase. This seamless process integrates investment activities with the everyday financial transactions that users may already be conducting through Cash App, thus simplifying investing for beginners and casual investors alike.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To sum up, you now know the features provided by both platforms and can make a more informed choice regarding which one aligns better with your needs. Consequently, we trust that our SoFi vs Cash App article has been beneficial to you. The information in our article is for informational purposes. It is not investment or financial advice and should not be used as a basis for any investment decision.<\/p>\n","protected":false},"featured_media":24590,"template":"","article-category":[4845,17203,5485,7869,5467,1777,17204,1737],"article-tag":[3325,17199,6562,7822,4819,7017,7977,6686,17226,17228,17224,8608,5030,3420,6752,6387,2458,7834,7846,17221,12586,7114,17227,7819,17225,17230,12574,17222,8282,3926,17217,6592,17231,17229,17220,6608,17218,4498,12904,17219,6974,17216,17223,6724,3077,17207,6584],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SoFi vs Cash App (2024 Comparison)<\/title>\n<meta name=\"description\" content=\"Compare the pros and cons of SoFi vs Cash App to make the best choice for your mobile banking needs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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