SoFi Introduces 3% Back Credit Card Offer for Direct Deposit Customers
Oftentimes, when a credit card issuer wants to lure new cardholders, it will offer some sort of welcome bonus. Traditionally, these offers take the form of “Earn X points/dollars when you spend $X in your first three months.” However, in recent years, different companies have tried putting some new spins on this idea to varying success. Now, the FinTech bank SoFi is offering a welcome bonus that not only has some out of the ordinary requirements but also some longer-term benefits.
Currently, SoFi Checking & Savings customers with direct deposit set up and who are approved for the SoFi Credit Card can earn 3% cash back on all eligible purchases for their first year. This improves on the 2% flat-rate that the credit card already earns. More accurately, the SoFi Credit Card earns points that can then be redeemed into SoFi Checking and Savings, SoFi Money, SoFi Invest, Crypto, SoFi Personal Loan, SoFi Private Student Loan or Student Loan Refinance at full rate or for statement credits at half the rate. For example, with this offer, cardholders will earn 3 points per dollar spent on purchases, with those points being worth 1¢ each when redeemed for one of the above deposits or would be worth 0.5% each for statement credits.
In order to continue receiving this promotional 3% back rate, customers will need to maintain a qualifying direct deposit into their SoFi Checking & Savings Account. Also notable is that the 3% perk is capped at $12,000 in spending during the year. At the end of the promotional period (or once this cap is reached), cardholders will earn the regular 2 points per dollar spent on purchases. According to SoFi’s press release, this offer is set to remain available to new cardholders through May 31st, 2022.
Incidentally, while SoFi’s credit card welcome bonus may be a bit out of the norm, the FinTech is also currently offering a more traditional banking bonus. At this time, new or existing SoFi Checking & Savings customers who set up direct deposits can earn up to $300. The size of the bonus will depend on the total direct deposited amount during the 30-day evaluation period, with those depositing at least $1,000 in that time earning $50, those depositing more than $2,000 earning $100, and those with deposits totaling more than $5,000 earning the full $300. Recently, SoFi also raised its APY, allowing direct deposit customers to earn 1.25% APY on their savings.
Announcing this unique SoFi Credit Card offer, the company’s CEO Anthony Noto stated, “SoFi is a one stop shop for people’s financial needs. Our unique technology stack and broad suite of products enable us to build offerings that work better when you use them together. Our new 3% cashback offer paired with our recent announcement that we raised our APY to an industry-leading 1.25% for direct deposit members highlights how we’re continuously bringing more value to our members.”
Noto went on to note recent financial challenges such as inflation, saying “In the current rate environment, we’re leading the charge among financial institutions in putting money back in our member’s pockets and helping them get their money right.”
With the $12,000 spending cap of this offer, the total benefit of this welcome bonus comes to $120 (an extra 1% on up to $12,000 in spending). In that aspect, this intriguing welcome bonus isn’t nearly as attractive as it might seem — especially when you consider the other requirements entailed. That said, if you aren’t already a SoFi customer, the banking bonuses also currently offered may be a better bet while you wait to see if a more lucrative SoFi Credit Card bonus comes around.
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