🪙 How “the Merge” Could Change Crypto

Saturday,
September 3, 2022

Hey SoFi members,

All major US stock exchanges will be closed on 9/5 for Labor Day. We will be taking a break on Monday, but will be back in your inbox on Tuesday 9/6 with more business news and stock market happenings. For more breaking news and how it affects your finances, visit the SoFi app.

—The SoFi Team

Top Story

The Week in Review

• Sentiment on Wall Street turned negative early in the week as central banks across the world strike an increasingly hawkish tone. Many in both the US and abroad are planning to raise rates to tackle inflation.

• Cleveland Fed President Loretta Mester sent hawkish signals. Mester said she sees the central bank’s target rate rising to 4% next year.

• Warren Buffett turned 92 this week. From 1965 through 2021, Berkshire Hathaway's stock has returned an annualized rate of 20.1%. For comparison, the S&P 500 has returned 10.5% on an annualized basis.

The Risks of Paper Checks

Unbanked households tend to rely upon check cashing services to liquidate their paper checks.

The latest data from the Federal Deposit Insurance Corporation (FDIC) show 5.4% of US households manage their money without a bank account. That represents more than 7 million households that may receive paper checks even as mobile banking services continue to rise.

Receiving a paper check at work can invite several risks, including the possibility of losing your paycheck or slowing your ability to make quick bill payments. Workers who lose their paycheck may have to wait several days to receive a replacement check in the mail. Employers may ultimately encourage their workers to sign up for direct deposit, which requires a checking or savings account.

Most unbanked households use fee-based services to cash checks, pay bills, or send money orders. A mobile banking app, meanwhile, may eliminate the need to use fee-based check cashing services and can help your money grow. Members who set up direct deposit with SoFi can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts.

This Week’s Top Stories

SpaceX and T-Mobile (TMUS) will partner to provide cell phone service by satellite. Musk asserts the initiative will put an end to dead-zones and extend connectivity to even the most remote locations.
The service could solve a problem that has vexed consumers and cell phone carriers alike: how to attain or provide cost-effective coverage to sparsely populated areas.
Read more >>

Amid the current economic slowdown, US firms are wondering if now is the time to resume paying dividends. Of the companies that put dividends on pause in 2020, 72 (or 38.5%) have yet to reinstate the payouts.
Some companies are choosing not to restart dividends while focusing instead on paying down debt or buying back shares. But dividends are important to shareholders and they send signals to the market. Here’s how several firms are evaluating the decision process.
Read more >>

What is “the Merge” and how will it impact cryptocurrencies? Proponents say it has the potential to transform the Ethereum (ETH) blockchain and the entire industry.
The change involves a shift from a proof-of-work model to one known as proof-of-stake. But how do each of those work, and why is one considered better for the environment?
Read more >>

Deep Dives from SoFi Learn

Check lost in the mail? Learn how to protect yourself and your account in the event of a stolen check.
While you may be writing fewer checks these days, it’s still important to track any checks you do write to be sure they were received and cashed.
Read more >>

It’s tempting to spend money when bored, either in person or online. But it can keep you in debt.
Overspending isn’t good for anyone’s budget or debt ratio. Learn 11 tips to stop shopping out of boredom and protect your hard-earned cash.
Read more >>

The end of a marriage does not have to mean an end to financial security. If you keep calm and make a careful post-divorce budget, you are more likely to stay fiscally fit.
Going through a divorce can be tough emotionally as well as financially. Learn tips for budgeting post-divorce from SoFi.
Read more >>

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

Diversification is not a guarantee of protection from loss. SoFi can’t guarantee future financial performance.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Important: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile and involve a high degree of risk.

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¹SoFi members with direct deposit can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.00% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rate of 2.00% APY is current as of 08/12/22. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet

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