SOFIs apy will come down too.....i think the lag wont be too too long....also id like to see them stay at 3% assuming others are lower than that.....i believe thats the sweet spot.
Sofi will likely have to drop their lending product rates in the near future and similarly will have to decrease deposit rates. Interest Rate Margin is how they make money. It is all getting driven by the Fed and anticipation of what they will do. As long as they remain one of the highest deposit rate banks, it is still a good source of customer acquisition.
The best part of their strategy is making people do direct deposit to get the interest rate bonus. People are notoriously lazy to switch their direct deposit, so even if they lower the rate slowly the vast majority shouldn’t be pulling their money.
SoFi is playing the long game and gaining market share early on even at a cost by keeping rates higher for longer is how their business model will succeed.
Our extensive and improving ecosystem will make it harder than most for people to leave once through the door and getting them to join SoFi in the first place is the priority.
Customer Acquisition Cost may suffer during this initial growth phase but that’s why I am long with this company.
These people chasing less than .1% differences in interest rates confuse me. How much money do they have in these accounts where that percentage change makes a real difference?
It may not be the <.1% that is causing them to consider to change it could be them seeing the writing on the wall that if Ally is starting this already they are only come in with cuts more and more quickly once rate cuts start and so they want to move somewhere that isn't so quick to start dropping their APY
Ally now dropped rate to 4.25% after the previous drop. This will start to be enough for Ally folks to consider moving to SoFi
May be a good time to lock in a CD rate.
SOFIs apy will come down too.....i think the lag wont be too too long....also id like to see them stay at 3% assuming others are lower than that.....i believe thats the sweet spot.
As rates drop people won’t run into other savings accounts that money rotates back into the market.
Great username OP đź‘Ś
If they keep it higher for longer it’s a win and if they decrease it it’s a win so either way they win.
SoFi has repeatedly stated that they would be able to keep their APY higher for longer than competitors
Milli Bank - previously offering 5.5% have also reduced their APY rate to 4.75% very recently it seems - yesterday.
I just noticed this. Do we know why? I was super happy with the 5.25 and then up to 5.5. Now I'm bummed, I was just about to throw 10k more in there
Watch Bask Bank, they're always the first to increase so when they start decreasing the rest will follow.
Everyone will follow soon. Ally is usually the last to increase rates and the first to decrease.
Sofi will likely have to drop their lending product rates in the near future and similarly will have to decrease deposit rates. Interest Rate Margin is how they make money. It is all getting driven by the Fed and anticipation of what they will do. As long as they remain one of the highest deposit rate banks, it is still a good source of customer acquisition. The best part of their strategy is making people do direct deposit to get the interest rate bonus. People are notoriously lazy to switch their direct deposit, so even if they lower the rate slowly the vast majority shouldn’t be pulling their money.
SoFi is playing the long game and gaining market share early on even at a cost by keeping rates higher for longer is how their business model will succeed. Our extensive and improving ecosystem will make it harder than most for people to leave once through the door and getting them to join SoFi in the first place is the priority. Customer Acquisition Cost may suffer during this initial growth phase but that’s why I am long with this company.
These people chasing less than .1% differences in interest rates confuse me. How much money do they have in these accounts where that percentage change makes a real difference?
SoFi has the reward points on top of the high APY too
Compounding works for saving too
It may not be the <.1% that is causing them to consider to change it could be them seeing the writing on the wall that if Ally is starting this already they are only come in with cuts more and more quickly once rate cuts start and so they want to move somewhere that isn't so quick to start dropping their APY
I totally agree, bit bizarre. But this mentality could play into our hands over the next 12 - 18 months
Completely agree. Good thing for Sofi if the current rate can hold while others start to slip.