If you're thinking SoFi vs Square Cash(also called Cash App) and you're probably having a hard time deciding, this article will make it easier as they are both great platforms. However, I believe it's time you stopped just thinking about which is better between the two. Start thinking about which is better for You.
Both SoFi vs Cash App offer virtual investments, which make it easier and faster. However, a major difference is that SoFi has a checking and savings account, and Square offers only a checking account. SoFi also gives interest to your investments while Square does not. Furthermore, SoFi is FDIC insured whereas Square is not.
Furthermore, there are a lot of platforms for money management which makes it much difficult to choose which one to use. However, you should note that you can use more than one platform for different investments as suits you. Consequently, this article should help you make your decision between SoFi and Square's Cash app by an analysis on both platforms. This will help you know which platform's features suit your purpose best.
|Social Finance||Square / Cash app|
|ACCOUNT TYPES||Checking and Savings accounts||Checking accounts|
|SECURITY||FDIC insured with fraud detection mechanisms.||Touch ID, Face ID, Passcode.|
|ATM USE||Any ATM worldwide for free||Limited use of ATMs but no additional fees.|
|WITHDRAWAL LIMIT||$610 daily maximum $4270 weekly maximum||$250 for 24 hours.$1000 per week$1250 per month.|
|INTEREST RATES||2.25% APY||0% ACCOUNT|
ANALYSIS ON THE BASIC FEATURES OF SoFi vs CASH APP
- SoFi offers both checking and savings accounts. In other words, you get to earn interest on your cash like a Savings account, and you can also access and spend your money with no account fees or restrictions like a checking account. While, Square Cash is a checking account which means you get to access and spend with no fees or restrictions too. Although, it does not have a Savings feature.
- Square Cash offers a safe and payment system with Face ID, Touch ID or passcode to be entered for access. Social Finance is, however, insured by FDIC, which ensures secure transactions and insurance.
- Funds from SoFi can be withdrawn from any ATM around the globe, and it remains free. Square Cash, on the contrary, has a limited number of ATMs that you can patronize. Although, the ones available also offer free withdrawal.
- Square has a 250 dollars maximum withdrawal limit within 24 hours. It also has a 1000 dollars maximum withdrawal limit per week and 1250 dollars per month. While SoFi has a higher allowance with 610 dollars daily maximum. It also offers a 4270 maximum withdrawal rate per week.
- SoFi has a 2.25% APY interest rate, which means you get to earn on your deposits. In comparison, Square does not offer you any interest.
Social Finance which is also known as SoFi, a virtual finance company. It provides a plethora of financial products that include student loan refinancing, mortgages, personal loans, credit card investing, and banking. All these through both their mobile app and desktop interfaces. Although it has a number of shortcomings like its;
SHORTCOMINGS OF SOCIAL FINANCE
- Unavailability of mutual funds.
- Relatively short track record
- Inability to transfer cryptocurrency to an external wallet and
- High requirements for securing loans.
ADVANTAGES OF SOCIAL FINANCE
However, it also has a great number of advantages such as;
- It’s free stock promotion for new users
- it's low stock ETFs
- it's lack of management fees.
- Large credit loan amount
- it's free financial advice, etc among many others.
Furthermore, Social Finance account holders have access to exclusive benefits like career coaching. Also, financial planning and much more at no added cost. Therefore, If you like the sound of the above, then you should consider leaning on the Social Finance team.
However, you should not get too relaxed.
Square Cash App
Square Cash which is currently known as Cash App is a mobile payment service that allows users to transfer money to one another using the mobile app.
As of March 21,2021, the service has recorded about 36 million active users.
Square Cash also has an outline of benefits such as;
ADVANTAGES OF SQUARE CASH
- 0% charge on transfers
- Its functional payment security mechanisms
- No charge of monthly fees.
- Low flat transaction rate; only to mention a few.
DISADVANTAGES OF SQUARE CASH APP
- Square Cash does not have an insurance. Therefore if the company went bankrupt, there'd be no guarantee for your cash with them.
- Cash app does not pay interest on your deposits.
From the above, you can see a bit of what Square Cash has to offer. Consequently, if you prefer the features to that of SoFi then you can hop on the Square train.
In conclusion, now you have evidently seen what the two platforms have to offer. I’m sure you can make a better decision as to which suits your purpose best. Hence, I really hope this article was useful to you.