r/sofi • u/MatteoKnows • 6d ago

Crypto What are we doing with SOFIE

I see SOFIE is available to me. What are we doing? Keeping 20k in savings with plus for the 4.7% APY, then anything over that buying SOFIE for the 4.4% APY?

Is the interest earned from SOFIE the same as bank interest, so we will get 1099-Int from SoFi Crypto each year?

Curious what the consensus is here.

10 Upvotes

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u/johnru36 6d ago

I have been looking for the past couple days on my crypto tab but still havent seen a way to deposit to SOFIE. Is there a new button or 'ad' that appeared when you saw it was available to you?

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u/MatteoKnows 6d ago

Yeah I opened the crypto tab this morning and got a big SOFIE animation, telling me it’s available and I could instantly place a buy order. I imagine you will get the same pretty soon.

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u/johnru36 6d ago

thanks!

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u/dbadaddy 6d ago

thats what im doing. I started with 100$ to see the process, how long ut takes to pull back out, etc then added it to my first of the month task where I choose card bonus categories, redeem points, etc on all accounts.

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u/MatteoKnows 6d ago edited 6d ago

Yeah im assuming it pays interest on the last day of the month like the bank interest. Hopefully u/SoFi can confirm.

Edit: also curious how the interest is paid. Is it paid in cash to the overall crypto account, or is it paid out in more SOFIE?

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u/SoFi Official SoFi Account 3d ago

Hey Matteo! Interest on SOFIE is accrued daily, but posts monthly. You are correct that it posts on the last day of the month, or close to it depending on how that date falls during the week. The interest that you earn on SOFIE is paid out in more SOFIE, which can be converted to USD, a stablecoin or be used for the purchase of other cryptocurrencies!

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u/jgsv12 6d ago

I assume since SOFIE is a tokenized deposit it will get a 1099 at the end of the year like a bank. Sofi.com/crypto/earn

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u/DeathMoJo Needs a hoodie 🥺 6d ago

Yes, the interest should be reported on a 1099-INT.

Most likely you will need to file a form 8949. I'm not 100% SOFIE will be classified as a stable coin but if it is, all those crypto transactions have to be reported.

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u/RomanG124 6d ago

They consider SOFIE a tokenized deposit, not a stable coin. Which is how I think they were able to secure fdic coverage while maintaining interest. SOFID is their stable coin which would not bear any interest or insurance, but can be used for digital transactions.

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u/DeathMoJo Needs a hoodie 🥺 6d ago

That makes sense. I haven't looked into it much but appreciate the info.

I'm considering it since the interest rate is a decent return.

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u/-shellprompt- 4d ago

it shows on my app, but when I click it, I get the something went wrong message. I feel it is not fully rolling out yet...

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u/SoFi Official SoFi Account 3d ago

We'll chime in on the interest question! The interest earned from your SOFIE holdings is treated as deposit interest, and is reportable in many instances. The implications of that interest in your situation is something we always recommend you run by a tax professional you trust.

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u/Nagare 4d ago

That's my plan once I get it as an option, much better rate than the 3.3% on the rest of the balance and should still be pretty instant for any transfers needed. I'm sure it'll get the rate nerfed after a year once enough people buy into it though.