SoFi Blog

When parts of Los Angeles were ravaged by wildfires last month, some unscrupulous landlords tried to take advantage of the desperate scramble for temporary housing, raising rents by 50% or more in some cases, according to authorities.

After Hurricanes Milton and Helene hit the southeast U.S. last fall, there were hundreds of complaints of overcharging for gas, water, groceries and hotel stays. And during COVID-19, the Department of Justice created an entire taskforce to prosecute those who were behind steep markups on face masks and other protective equipment.

All of these instances were labeled price gouging, a term you’ve probably heard or read about in the news. But in a period of persistent inflation, what exactly determines when it’s price gouging rather than just the expected byproduct of a supply and demand imbalance?

Context matters here. Price gouging refers to capitalizing on sudden needs by raising prices to unreasonably high levels. It usually happens during a natural disaster or other emergency, when a victim is desperate and feels they have no choice but to pay $99 for a case of water, $10 for a gallon of gas, or triple the normal rate for a hotel room.

In short, price gouging is localized and opportunistic. Inflation, on the other hand, reflects broad economic shifts over a longer period of time and typically affects everyone. (It’s worth noting, however, that some economists object to bans on price gouging, seeing them as disruptive to the free-market forces that limit shortages.)

There is no federal law explicitly prohibiting price gouging. But 39 states have specific laws against it, and in most states it’s considered a violation of laws against unfair or deceptive trade practices, according to the National Conference of State Legislatures. Some states define price gouging as an increase of 10%, 15% or 20% over the pre-crisis price, while others simply say it must be excessive.

So what? If there’s a hurricane, wildfire or other declared emergency in your area, beware of costs that suddenly spike. You can report price gouging to your state’s attorney general to investigate, and offenders may face fines or even imprisonment.

Related Reading

•   Los Angeles Landlords Jack Up Rent by as Much as 124% — Flouting Price Gouging Laws During Deadly Wildfires (USA Today)

•   N.Y. Attorney General Warns Businesses Against Price Gouging Amid Rising Egg Costs (Associated Press via Spectrum News)

•   How to Identify and Report Price Gouging (U.S. PIRG Education Fund)

Image credit: Bernie Pesko/SoFi Source: iStock/CentralITAlliance

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.

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.

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.

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New product offering creates America’s most rewarding financial membership, all in one app;
‘Power of Plus’ sweepstakes offers chance to achieve one of America’s top financial ambitions

SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest and protect their money, announced more than eight new benefits to SoFi Plus, offering its members $1,000+ in annual value. SoFi Plus, the company’s premium financial membership, now offers exclusive access to preferred pricing on products and services, complimentary financial planning, rewards, and special events. SoFi members can unlock SoFi Plus for $10 a month or at no cost with direct deposit, no minimum balance required. To celebrate the launch, SoFi has launched the ‘Power of Plus’ sweepstakes, where both new and existing SoFi Plus members can enter for a chance to win one of six of America’s top financial ambitions.

“With the new offerings from SoFi Plus, SoFi has created America’s most rewarding financial membership—one that’s more than just about products and services. It’s about empowering our members to realize their ambitions,” said Anthony Noto, CEO of SoFi. “SoFi Plus now delivers the strongest suite of premium benefits designed to meet our members where they are and help them get their money right. We’re giving our members unmatched access to the resources they need to confidently shape their financial futures.”

New benefits and preferred pricing for SoFi Plus members:

• Unlimited 1% Invest rewards match: Members with a recurring SoFi Invest deposit enjoy an unlimited 1% match paid in rewards points.
• Unlimited 1:1 financial planning: Members can schedule unlimited appointments with financial planners at no cost, valued at $250 per session.
• $1K discount on home loan closing: When approved for a SoFi home loan mortgage, members can enjoy a $1,000 discount at the closing of their eligible home loan on top of the already competitive rates they receive from SoFi.
• Student loan refinance exclusive rate: Members receive an exclusive discounted rate on new student loan refinances.
• 3% cash back on hotels with SoFi Travel powered by Expedia: SoFi Plus Members can earn three times the rewards when using any card for hotel bookings through the SoFi Travel portal, powered by Expedia.
• SoFi Plus Experiences: Members receive exclusive access to VIP events in pro sports games, concerts, and live experiences at the SoFi Stadium, TGL, and more.
• Enhanced savings on Hello Privacy and Trust & Will: Members receive a 50% discount on HelloPrivacy’s tools to protect members’ data and remove their information from risky sites, as well as a $200 discount for a Trust, making it easier for members to plan for their future with confidence

SoFi Plus members will continue to benefit from these exclusive benefits:

• Preferred IPO allocations: Members with a SoFi Invest brokerage account can receive priority IPO allocations, providing members with access to IPOs before they’re traded on the public market, a perk that has historically been reserved for high net worth individuals.
• Our best APY: Earn 3.80% APY (annual percentage yield) on their SoFi Savings and Vault balances.
• Credit card cash back boost: A 10% boost on members’ SoFi Credit Card cash back rewards rate—that’s up to 3.3% cash back rewards.
• Double The Rewards: Earn double rewards points on qualifying activities.
• Personal Loan Discount: A 0.25% rate discount on new personal loans

To sign up for SoFi Plus and to learn more, visit www.sofi.com/sofi-plus/.

‘Power of Plus’ Sweepstakes will fund six of America’s most desired ambitions:

To celebrate the launch of SoFi Plus’ new premium benefits, six lucky members will win one of America’s top financial ambitions. In a recent survey, SoFi asked people across the country about their biggest financial ambitions. The Top 2025 financial goals included saving for a major purchase such as a house (44%), reducing debt (49%), as well as planning for retirement (35%). These findings helped shape SoFi Plus’ new premium benefits and the ‘Power of Plus’ ambitions sweepstakes, which runs from February 11 to May 14, 2025. See Official Rules.

SoFi Plus members can enter to win:

• A new home: $400,000 toward purchasing a home.
• Education: $70,000 to pay down student debt.
• Early retirement: Receive the maximum IRA contribution of $7000 per year for five years.
• Dream vacation: $35,000 to fund a well-deserved vacation.
• Wedding: $35,000 to plan or pay down a dream wedding.
• An all-expense-paid trip to an epic sporting event: $25,000 to put towards watching the best athletes on the court.

Enter the ‘Power of Plus’ sweepstakes by signing up here and selecting a financial ambition for a chance to win. Existing members can boost their chances with additional entries by referring family or friends and sharing the sweeps on their social media. No purchase necessary, mail-in entries available. See Official Rules.*

To learn more about SoFi and SoFi Plus visit https://www.sofi.com/sofi-plus/ and follow SoFi on Instagram and X for all SoFi educational content, news and product updates.

About SoFi

SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps its over 10.1 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.

SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit https://www.sofi.com or download our iOS and Android apps.

Disclosures:

*NO PURCHASE NECESSARY. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Open only to legal residents of the 50 US/DC, 18+. Void where prohibited by law. Sweepstakes ends at 11:59 pm ET on 5/14/25. Subject to Official Rules, including alternate and free methods of entry, prizes, limits, and odds, click here. Sponsor: Social Finance LLC (“SoFi”) 234 First Street, San Francisco, CA 94105

Your bank accounts are the hub of your financial life, where much of your money comes in and goes out. So of course, you want enough in there to feed all of your obligations. But, according to financial experts, you can have too much cash sitting in your checking and savings accounts.

For some, seeing extra dollars in their checking accounts can be a great source of comfort. Others may simply find it impossible not to draw down their account by month’s end.

There isn’t a magic number that defines “too much” cash. That’s determined by your unique financial situation. One rule of thumb suggests maintaining enough to cover three months’ worth of living expenses. But if you have significant expenses on the horizon, you may have good reason to keep your account more flush.

That noted, if you consistently have more than that in your checking account, or hold much of your savings in a low-yield savings account, there may be more productive ways to use your money – and achieve your financial goals.

What to Do With Excess Cash

There are many ways to use a little extra cash, from investing to saving up for a dream vacation. The following list of priorities may help you decide while keeping your financial wellness front and center. And the order is meaningful: Financial experts commonly recommend you take care of more pressing needs, such as repaying debt, before turning to investing. So here we go:

1.   Boost or establish your emergency fund: Financial planners recommend holding three to six months’ worth of living expenses in an easily accessible but separate account.

2.   Pay off high-interest debts: Not all debt is created equal, and focusing on paying down high-interest obligations can leave you better off in the long-term. (A high interest rate is commonly considered 7% or higher.)

3.   Contribute to your retirement savings: An individual retirement account (IRA) can help you work towards your retirement goals, plus contributions may reduce your taxable income for the year and your investments can grow tax-deferred. If you already have an IRA and haven’t funded it for 2024 yet, there’s good news: You still have until tax day (April 15, 2025). If you’re all set for 2024, you could make your contribution for this year too. And note that if you’re 55 or older, additional catch up contributions can help you get to your savings goal. Plus, SoFi is offering members a 1% match on any contributions to a SoFi IRA.

4.   Boost your personal investment account: If points 1-3 are taken care of, you may consider transferring any excess cash into your personal investment account. What you do with it next is a question of your individual goals and risk tolerance, but we’ve got some pointers.

The Interest Rate Environment and Your Investments

Interest rates can play a major role in determining where you put your extra cash to work. Over the past few years, the Federal Reserve’s interest rate policy has affected everything from the rate you may get on a savings account to how attractive certain investments are.

In 2022 and 2023, the Fed raised rates to combat high inflation, boosting the appeal of certain investment options such as high-yield savings accounts. But inflation has cooled and last year the Fed cut rates three times and said more cuts may be coming.

Lower interest rates typically reduce the returns on savings accounts and other lower-risk investments, potentially making them less attractive compared with other investment options. Understanding these changes is essential for making informed decisions about how to manage and grow your excess funds effectively.

(Note: A high-yield savings account may still be an appropriate place to keep an emergency fund. Learn more about the SoFi high-yield account here.)

Investing Your Excess Cash

Though the broader investing environment may be complex, investing your money doesn’t have to be complicated. You can use a robo-advisor to make specific investment decisions, or work with a financial advisor if you want more personalized guidance.

Investing is inherently riskier than holding all your money in cash because investments can lose value. But diversifying your portfolio – rather than putting all your eggs in one basket – is a proven way to reduce risk and, potentially, improve returns. You may spread picks across different sectors and asset classes, such as stocks, bonds, and alternative investments, for example.

Always do your research and assess the risk profile of any investments you’re considering, but know that there are relatively lower-risk and lower-cost strategies that still offer attractive yields. Examples include exchange-traded funds (ETFs) focusing on Treasury securities (Treasury yields rose at the end of 2024) and tracking the performance of the broader stock market.

If you’re looking to move extra cash from your checking account into your investing account and level up how your money can work for you, check out SoFi’s investing content collection to learn more about your options.

Image: Bernie Pesko/SoFi Source iStock

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.

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.

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.