Top Story
There are more millionaires than ever. And this trend ain’t changing
An acceleration of wealth building around the world led to a record number of millionaires last year. And there are more to come.
The S&P 500 and Nasdaq Composite hit records for the third-straight day this week
• The S&P 500 also surpassed 5,600 points for the first time ever.
• Fed Chair Jerome Powell concluded his two-day meeting on Capitol Hill, where he reiterated the fight against inflation wasn’t over, but added that the Fed will need to be more mindful of weakness in the labor market.
• The 30-year mortgage rate saw a slight decline last week, ticking down to 7%.
What to be on the lookout for today
• CPI inflation data for June. We’ll also get the weekly update to unemployment claims.
• In earnings, Delta Air Lines and Progressive will report.
What is a bank charter and why does it matter?
When you deposit your hard-earned cash in your bank account, you expect it to be kept safe for you.
The FDIC, or Federal Deposit Insurance Corporation, an independent government agency, protects up to $250,000 per account owner per account type. So even if your bank collapses, your money is guaranteed.
But there’s a catch. Not all financial companies are banks. Banks must apply for a “banking charter”, like the one SoFi Bank has, and insuring deposits through the FDIC is a must as part of that process.
The importance of this was highlighted earlier this year, when Synapse Technology, a middle man between certain online lenders and FDIC-backed banks, filed for bankruptcy. Because the online lenders weren’t chartered banks themselves, their clients were left in limbo.
“Customer accounts have been frozen, preventing people from cashing out their life savings,” wrote the New York Times on Tuesday.
Before opening an account with any financial services provider, it’s critically important to understand the terms and conditions, and whether your account is FDIC-insured.
Today’s top stories
Inflation is no longer economy enemy #1In his testimony on Capitol Hill, Federal Reserve Chair Jerome Powell talked about another looming risk, one the central bank has been anticipating for some time.
Read more >> How going electric could potentially save you money in the long runElectric vehicles are still on average more expensive than traditional gas-powered cars. But they could help your budget down the line.
Read more >> Stock market records and high valuations. What investors need to knowWhen the market is this high relative to history, how do we decide whether to initiate or add to a position, knowing that it may be too expensive? SoFi Head of Investment Strategy Liz Young Thomas dives in.
Read more >>Other news that caught our eye
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Conscious coffee drinker: Starbucks gave away reusable summer straws for customers who ordered a cold handcrafted drink.
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Target will stop accepting personal checks as payments starting next week.
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Walmart is boosting its online grocery business by opening five automated distribution centers for fresh food across the country.
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Bird flu fears have brought rules and restrictions to farms, but some Michigan dairy farmers are pushing back over money worries.
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BMW is recalling nearly 400,000 sedans and sports-wagons made between 2006 and 2012 due to a defect with the airbag inflator that could cause it to rupture on deployment.
Financial planner tip of the day
“When applying for new credit cards or loans, lenders will look at your credit utilization. If it’s too high — most look for a rate of under 30% — you may not be approved for the card or loan. That’s why it’s important to stay on top of how much of your total credit you’re using and pay down your debt so you don’t have a high credit utilization rate in addition to costly interest.”
Brian Walsh, CFP® at SoFi