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SoFi Technologies (NASDAQ:SOFI) will offer members with checking or savings accounts access up to $2M of Federal Deposit Insurance Corp. (FDIC) insurance, compared with the standard $250K per account, the company said Wednesday.
The increase in FDIC insurance is a result of the so-called SoFi FDIC Insurance Network, a newly created partnership with a number of banks that allows members the benefits of multiple accounts by offering enhanced insurance.
The benefit, implemented in the midst of a banking crisis, is now available for new SoFi Checking and Savings members, and existing members will be notified via email over the next week when they become eligible.
“We know the last few weeks have been unnerving for many consumers, and we hope this helps,” said SoFi CEO Anthony Noto.
SoFi Checking and Savings offers a competitive annual percentage yield of 4.00% for members with direct deposit. A slew of other lenders, though, have been slow to raise deposit rates in the rising interest-rate environment as that would negatively impact profitability.
SOFI perked up 3.6% in Wednesday morning trading.
Earlier, SA contributor Business Quant viewed SOFI as a Buy as the company’s latest results point to resilience against a backdrop of turmoil in the banking sector.
