Where you bank matters.

Let’s do the math of how a SoFi savings account compares to a typical savings account with a big bank like Chase.

Say you have $30,000 in a savings account with Chase. Here is what your money would grow to over the next 40 years:

(Principal of $30,000) x (0.01% APY) over 40 years = $30,120.23

Now let’s do the same with a SoFi savings account:

(Principal of $30,000) x (4.60% APY) over 40 years = $181,296.17

Starting to make sense? A 5 minute decision of where to keep your money is the difference of hundreds of thousands, if not millions of dollars over time.

Now imagine this same scenario but you are continuously adding to your savings account as time goes by (as most people do). The margin between the two accounts increases exponentially.

As for me, the majority of my money is held in my companies and equity positions in the stock market. These obviously offer more risk but higher returns.

For the sake of this article, we are focusing only on checking and savings accounts that are used for regular transactions and savings. With that being said, my money that isn’t in the stock market or companies is in these accounts.

Some of us will take advantage of these HYSA’s and competitive banks who are incentivized to innovate and offer the best products possible. Others will continue to use bloated banks like Wells Fargo and Bank of America because it is what their parents used and they are too lazy (or don’t care enough) to do any research... as you can see, a costly decision.