SoFi Blog

Vanguard Group has been tracking 401(k) “hardship distributions” since 2004. They hit their all-time highest level in October.

Gas prices are cheaper than they were last year. Just how low will they go?

You’ve asked, and we’re answering: SoFi is launching options trading! Over the coming weeks, we’ll be rolling out the ability for SoFi Invest members to buy puts and calls (and sell to close the positions), making it simpler than ever to do all your trading in the same app where you manage all of your money.

At SoFi, options trading will be without commission, or contract fees. We’ve worked hard to simplify your experience to make trading options a seamless, easy-to-use experience, whether via our app or on our website, and provide investors of every experience level the tools and resources they need to trade with confidence and achieve their financial goals.

What are options?

Options are contracts giving the purchaser the right to buy or sell a security, like a stock or exchange-traded fund (ETF), at a fixed price within a specific period of time. Options trading strategies can be used to potentially generate higher returns or limit losses.

Eligible SoFi Invest members will be able to buy options calls or puts once approved to trade.

What are calls and puts?

A call option gives the holder the right to buy an underlying asset, like a stock, for a specific price, also called the strike price.

A put option gives the holder the right to sell an underlying asset at the strike price.

In general, if you think the underlying asset price will go up, you would buy a call option. But if you believe the underlying asset price will go down, you would buy a put option. 

How do I get started trading options?

We’ll be rolling out options over the coming weeks to all SoFi Invest members, so keep an eye out on your SoFi Invest tab for access. Before trading, you’ll need to go through a quick questionnaire to determine if this is the right trading strategy for your needs to reach your overall investing goals and to ensure you understand the corresponding risks. 

If you are not approved after, you are able to continue to try again as you get more trading and investing experience. SoFi has created several educational articles to help you prepare to trade options, including our Options Trading 101 guide, to ensure you understand these trading strategies fully. Additionally, if you’re not sure if trading options makes sense for you, SoFi members are always able to meet with a credentialed financial planner to determine the best financial strategy for your specific needs.

I’m interested in trading other options strategies – does SoFi offer those?

For now, SoFi is only offering the ability to buy calls and puts, as we know that suits the needs of most of our members and fits within our goal of helping our members get their money right. As always, we strongly consider member feedback when expanding our product offerings, so make sure to check back for future updates!

Still have questions about SoFi’s options trading offerings? Find more here.

Interested in studying up on options trading? See our catalog of educational options trading articles here.

Disclosures: 

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.

INVESTMENTS ARE NOT FDIC INSURED – ARE NOT BANK GUARANTEED – MAY LOSE VALUE

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options. Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.

Advisory services are offered through SoFi Wealth LLC, an SEC-registered investment adviser.
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With the holidays coming up and inflation still hitting wallets hard, SoFi is continuing to raise our rates to ensure our members always get the most for their hard-earned money.

SoFi is raising our APY (yes, again!) to 3.25%¹, 13x the national average savings account rate², on all savings balances (including Vaults) for direct deposit members. Members with direct deposit will also continue to earn 2.50%, 62x the national average³, on checking balances. SoFi members without direct deposit will continue to earn 1.20% APY on all of their balances (across checking, savings and Vaults).

To help members put more money in their pocket, SoFi is offering even more ways to get your money right:

•  Earn up to $250 for adding qualifying direct deposits⁴: SoFi is offering up to $250 as a cash bonus for new members who sign up and set up qualifying direct deposits—or existing members who set up qualifying direct deposits before 1/31/23.

•  Earn up to 3% cashback on the SoFi Credit Card⁵: Members that open a new SoFi Credit Card and also have Checking and Savings account with a qualifying direct deposit or existing credit card members who set up a new direct deposit to SoFi Checking & Savings for the first time can start earning 3% cash back on all eligible credit card purchases for 365 days. Apply for a credit card here.6

Interested in earning more? Sign up for SoFi Checking & Savings. Already a member? Set up your SoFi direct deposit to make sure you get the most out of your money.

Disclosures:

1. SoFi members with direct deposit can earn up to 3.25% annual percentage yield (APY) on savings balances (including Vaults) and 2.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 3.25% APY for savings and 2.50% APY for checking balances. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 11/30/2022. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

2. 13x based on FDIC monthly savings account rate as of November 30, 2022.

3. 62x based on FDIC monthly interest checking rate as of November 30, 2022.

4. The following describes the terms that apply to participation in the SoFi Checking and Savings direct deposit program (“Program”) offered by SoFi Bank, N.A Member FDIC (“SoFi”).

Eligible Participants: All new and existing members without a history of direct deposit transactions into their SoFi Checking and Savings account are eligible for the Program. Members who previously enrolled in direct deposit into either SoFi Money or SoFi Checking and Savings do not qualify for this promotion.

Promotion Period: The Program will be available through 1/31/23 11:59PM ET.

Bonus Terms: In order to qualify for eligibility for a bonus, SoFi must receive at least one Qualifying Direct Deposit (as defined below) from an Eligible Participant before the end of the Promotion Period. Qualifying Direct Deposits are defined as deposits from an enrolled member’s employer, payroll, or benefits provider via ACH deposit. Deposits that are not from an employer (such as check deposits; P2P transfers such as from PayPal or Venmo, etc.; merchant transactions such as from PayPal, Stripe, Square, etc.; and bank ACH transfers not from employers) do not qualify for this promotion. The amount of the bonus, if any, is described below. No bonuses shall be paid for Qualifying Direct Deposits of less than $1,000 during the Evaluation Period (defined below).

Evaluation Period: The Evaluation Period begins when SoFi receives a Qualifying Direct Deposit (within the Promotion Period) and ends 25 days later (the “Evaluation Period”). The bonus amount will vary based on the total amount of Qualifying Direct Deposits received during the Evaluation Period. Once the Evaluation Period has elapsed, we will determine if you have met the offer requirements and will deposit any earned bonus into your checking account within 7 business days. For example, if SoFi receives between $1,000.00 and $4,999.99 in Qualifying Direct Deposits during the Evaluation Period, you will receive a cash bonus of $50. A member may only qualify for one bonus tier and will not be eligible for future bonus payments if inflows subsequently increase after the Evaluation Period.

Total Qualifying Direct Deposit amount in 25-day Evaluation Period

$1,000.00 – $4,999.99: $50 cash bonus
$5,000.00 or more: $250 cash bonus

Payment timeline: SoFi will credit members who meet qualification criteria within 7 business days of the end of the Evaluation Period.

Bonuses are considered miscellaneous income and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi reserves the right to exclude any Members from participating in the Program for any reason, including suspected fraud, misuse, or if suspicious activities are observed. SoFi also reserves the right to stop or change the Program at any time.

5. You will need to maintain a qualifying Direct Deposit every month with SoFi Checking and Savings in order to continue to receive this promotional cash back rate. Qualifying Direct Deposits are defined as deposits from enrolled member’s employer, payroll, or benefits provider via ACH deposit. Deposits that are not from an employer (such as check deposits; P2P transfers such as from PayPal or Venmo, etc.; merchant transactions such as from PayPal, Stripe, Square, etc.; and bank ACH transfers not from employers) do not qualify for this promotion. A maximum of 36,000 rewards points can be earned from this limited-time offer. After the promotional period ends or once you have earned the maximum points offered by this promotion, your cash back earning rate will revert back to 2%. 36,000 rewards points are worth $360 when redeemed into SoFi Checking and Savings, SoFi Money, SoFi Invest, Crypto, SoFi Personal Loan, SoFi Private Student Loan or Student Loan Refinance and are worth $180 when redeemed as a SoFi Credit Card statement credit.

Promotion Period: The Program will be available from 4/5/22 12:01AM ET to 12/31/22 11:59PM ET. SoFi reserves the right to exclude any Member from participating in the Program for any reason, including suspected fraud, misuse, or if suspicious activities are observed. SoFi also reserves the right to stop or make changes to the Program at any time.

Eligible Participants: All new members who apply and get approved for the SoFi Credit Card, open a SoFi Checking and Savings account, and set up Direct Deposit transactions (“Direct Deposit”) into their SoFi Checking and Savings account during the promotion period are eligible. All existing SoFi Credit Card members who set up Direct Deposit into a SoFi Checking & Savings account during the promotion period are eligible. All existing SoFi members who have already enrolled in Direct Deposit into a SoFi Checking & Savings account prior to the promotion period, and who apply and get approved for a SoFi Credit Card during the promotion period are eligible. Existing SoFi members who already have the SoFi Credit Card and previously set up Direct Deposit through SoFi Money or SoFi Checking & Savings are not eligible for this promotion.

6. Accounts subject to additional credit approval. To qualify for approval, you must meet SoFi’s pre-established underwriting requirements, including verification of sufficient income to support your ability to pay. We will not extend you credit if you do not meet our pre-established criteria. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS PROSPECTIVELY BASED ON MARKET CONDITIONS AND BORROWER ELIGIBILITY. If approved for a SoFi Credit Card, your credit access line will be at least $1,000. Your eligibility for a SoFi Credit Card Account or a subsequently offered product or service is subject to the final determination by SoFi Bank, N.A, as issuer, pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Please allow up to 30 days from date of submission to process your application. The card offer referenced in this communication is only available to individuals who are at least 18 years of age (or of legal age in your state of residence), and who reside in the United States.

It’s a question that has been on people’s minds practically as soon as the CARES Act rescue package was passed by Congress on March 27: Will there be an opportunity for extension?