SoFi

Despite progress, women, especially mothers, are still fighting hard to achieve equality in the workforce. According to a 2022 Financial Health Network study, 70% of women with children under the age of 18 say they have made significant career changes due to parenting responsibilities, compared to just 55% of men. Those changes include reducing hours, taking a leave of absence, switching to a less demanding job, and quitting a job.

This career instability can have a significant impact on women’s short-term financial wellness, as well as their long-term net worth and future security. At the same time, women leaving the workforce because of work/life balance issues has been a contributing factor in the persistent labor shortage.

One way employers can help women regain ground —- and help solve hiring and retention issues — is to tailor benefits to better fit their needs, priorities, and concerns. Companies that offer benefits packages that help address the gender gaps in financial wellness not only help women stay and advance in the workplace, but also promote a more equitable and productive workforce.

The Great “She-Cession”

Women were struggling with work/life balance and workplace inequities well before the COVID-19 pandemic. But the crisis brought these issues into stark relief. According to a report by the National Women’s Law Center, more than 2.3 million women left work during the 12 months ending in February 2021 compared with 1.8 million men.

Indeed, the pandemic-generated recession was quickly dubbed a “she-cession,” as more women than men left or lost their jobs compared to previous recessions.

Why were women so disproportionately affected? One reason is that many women work in hospitality, education, healthcare, retail, and other industries that were severely impacted by the pandemic. Another is that, as schools shut down, women were often the ones who pulled back from working in order to focus on the care and “Zoom schooling” of their children.

While many women have since returned to the workforce, the recovery has been uneven. Issues like resume gaps, the fact that women typically earn less than men, coupled with the persistent lack of affordable childcare continue to take a toll on the financial well-being of female workers.

What Employers Can Do

HR pros have been working on evening gender disparity for decades, and much progress has been made. But the pandemic shed new light on the stubborn underlying inequities that continue to burden employers and female employees alike.

Employers may find that making adjustments and additions to their benefits packages can help promote more gender equity at work while also allowing them to attract and retain top female talent. Here are some strategies you may want to consider.

Recommended: Measuring the Financial Well-Being of Your Workforce

Rethink Maternity Leave

paid parental leave your firm can offer, generally the better. Some companies are expanding leave for birthing parents beyond 12 weeks, offering as much as 26 weeks. Others are providing additional weeks of paid leave to parents of newborns who spend time in the neonatal intensive care unit.

A generous paid parental leave program not only helps attract female workers but also increases the likelihood that your existing women employees will return to their jobs after having or adopting a child, as opposed to dropping out of the workforce —- and leaving you with a new opening to fill.

Another question to consider is whether your parental leave policies apply to all types of families and parents, such as non-birth mothers, foster parents, and parents who use surrogates. Parental benefits provide an opportunity for building your inclusive benefits strategy.

Create Real Opportunities for Advancement

For every 100 entry-level men promoted to management, only 87 women are promoted, according to McKinsey & Company’s Women in the Workforce 2022 report. With little room for advancement and undervalued work, many women are leaving their employers for better opportunities elsewhere.

One way to counter this trend is to offer female employees a path to advancement through education and up-skilling/re-skilling opportunities. You might do this by offering tuition assistance programs and/or access to free (or discounted) training and certification programs. This can help female employees get ahead in their careers, earn more and, in turn, achieve greater financial stability. It can also propel women into the roles of the future where they are currently underrepresented, like data science, software development, and engineering.

Other initiatives that can improve female career mobility include: formal mentorships, sponsorships, women’s employee resource groups (ERGs), leadership circles, and career coaching workshops. If your company offers these programs, you’ll want to make sure women employees know about and have easy access to them.

Address the Childcare Crisis

When child-care centers shut down during the pandemic, nearly one-third of workers left the industry. Despite the post-pandemic reopening of offices, schools, and other businesses, employment in the childcare sector has not fully bounced back. That translates into many parents, especially moms at lower income levels, staying out of or exiting the workforce simply because they cannot find affordable childcare.

Employers can help fill the gap in several ways. On-site childcare is the most accommodating benefit. But on-site care is a big investment of infrastructure and resources that realistically only a small group of major employers can provide.

One alternative is to offer some type of emergency or backup child care support. Some companies do this by partnering with local daycare facilities and providing access to free or discounted childcare when a regular provider falls through. Other firms are offering employees stipends for online services, such as Care.com and SeekingSitters.com, that provide access to sitters at short notice.

Being open to and evaluating childcare support as you encourage your employees to come back to the office can be just the prompt reluctant employees need to embrace reentry.

Consider Returnships

Many employers are dealing with labor shortages. At the same time, there is a large pool of untapped talent among women who have fully or partially left the workforce. Many of those women want to return to work but find the gaps in their resumes and lack of current skills are holding them back.

To address both problems at once, some companies are offering “returnships.” Pioneered by finance leaders Goldman Sachs and Morgan Stanley, these are internship programs that give returning caregivers the opportunity to brush up their skills or learn new ones. Returnships typically run for a few months, offering training, experience, and networking opportunities to workers – often mothers – who’ve been out of the workforce for an extended period of time.

Returnship programs not only give women who dropped out of the workforce a viable onramp, they also give employers a way to vet talent before making an official hire.

​​

Address Student Debt

Student loan debt impacts nearly 43 million Americans and a disproportionate number are female. According to EducationData.org, women hold nearly 60% of all outstanding student debt and, despite making higher payments than men, take an average of two years longer to pay off their student loans. Female borrowers are also more likely than their male peers to have student loan debt from graduate school.

Student debt can have a negative impact on any employee’s financial (and overall) well-being. And right now, borrowers are feeling particularly uneasy, thanks to unknowns surrounding the return to repayment for federal loans and potential loan forgiveness. What is certain, though, is that student loan repayment benefits continue to grow in popularity and effectiveness. And, they may be particularly beneficial to female employees.

HR leaders will also want to keep in mind that employers can offer up to $5,250 in tax-exempt student loan repayment benefits through 2025, thanks to the CAREs Act of 2020. What’s more, the recent passage of the SECURE Act 2.0 allows companies to provide employees with a match on their retirement plans for making student loan payments starting in 2024. This can be a stand-alone offering, or part of a broader employee benefits program.

Offer Flexible, Women-Friendly Financial Wellness Benefits

Only one in five working-aged women are considered financially healthy versus nearly one in three working-aged men, according to the Financial Health Network’s 2022 report. The study also showed that women lag behind men in emergency and retirement savings. Only 42% of working-age women said they were confident they will have enough money to live off of in retirement, versus more than half of working-age men (53%).

High levels of debt, trouble making ends meet, worries about saving enough for the future (particularly with gaps in employment), all add a disproportionate amount of stress on women. Financial stress can impact every aspect of women’s lives, including productivity and happiness at work.

HR pros can make a huge impact on women employees by offering personalized, adaptive wellness benefits, such as debt management, emergency savings, tuition savings, retirement planning programs, and financial education. These benefits can help female employees plan and save for the future, feel less stressed about their finances, increase their focus and productivity on the job, and, importantly, change their financial lives for the better.

Recommended: The Future of Financial Well-Being in the Workplace

The Takeaway

Women are a vital part of any employer’s workforce. Benefits packages designed to address women’s specific needs can help employers attract and retain talented female employees. They can also help guarantee women, especially moms, have access to an equal playing field and a secure financial future.

SoFi at Work offers employers the benefits platform, education resources, and financial counseling that can help you assemble packages that help you increase employee productivity, loyalty, and overall well-being.

---

Photo credit: iStock/jacoblund

Products available from SoFi on the Dashboard may vary depending on your employer preferences.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery, or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.

SoFi Student Loan Refinance Loans, Personal Loans, Private Student Loans, and Mortgage Loans are originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org ). The Student Debt Navigator Tool and 529 Savings and Selection Tool are provided by SoFi Wealth LLC, an SEC-registered investment adviser. For additional product-specific legal and licensing information, see SoFi.com/legal. 2750 E. Cottonwood Parkway #300 Cottonwood Heights, UT 84121. ©2024 Social Finance, LLC. All rights reserved. Information as of April 2024 and is subject to change.


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBD0423002

Read more

The role of the Federal Deposit Insurance Corporation (FDIC) in protecting depositors’ bank accounts is important for everyone to understand.

Most banks are insured by the FDIC, but not all. Moreover, there are usually limits on how much can be covered in an individual person’s accounts and what kind of financial products are eligible for this insurance at all.

Read on to learn the policies and practices of the FDIC and how you can find out the status of your bank.

What FDIC Insurance Means

In 1933, in the wake of the Great Depression, the Federal Deposit Insurance Corporation , an independent agency, was created to protect consumers if the worst happens and a financial institution fails. The agency has shown lasting power. Reports from 4,706 commercial banks and savings institutions insured by the FDIC reflected aggregate net income of $68.4 billion in fourth quarter 2022.

So what exactly does FDIC insurance cover? Typically, all deposit accounts at insured banks up to the limit, currently $250,000 per depositor, per bank, per ownership category, including principal and any accrued interest through the date of an insured bank’s closing. (With the closures of Silicon Valley Bank and Signature Bank, the FDIC has removed the limit for deposits at the shuttered banks.)

Generally, this insurance covers your deposit up to that limit of $250,000 if a bank fails, but it does not cover losses due to fraud and theft.

What FDIC Insurance Does and Does Not Cover

These deposit accounts are covered by the insurance up to the $250,000 limit:

•   Checking accounts

•   Savings accounts

•   Money market accounts

•   Certificates of deposit (CDs)

Important to note: The FDIC does not insure the money you invest in the following products, even if they were purchased from an FDIC-insured bank:

•   Stocks

•   Bonds

•   Mutual fund shares

•   Life insurance policies

•   Annuities

•   Municipal securities

•   Safe deposit boxes or their contents

•   U.S. Treasury bills, bonds, or notes (these are backed by U.S. government)

💡 Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

How to Learn if Your Bank Is FDIC-Insured

To find out if your bank is insured by the FDIC, go to the BankFind Suite on the FDIC website. The “Name & Location Search” allows you to find FDIC-insured banks and branches from today, to last year, and all the way back to 1934.

The FDIC offers another level of scrutiny for all who are interested. Through its Institutional Financial
Reports , you can find these details on all FDIC-insured banks: locations, comprehensive financial reports, demographic reports, current data, and historical data going back to 1992.

Recovering the Money if Your Bank Is FDIC-Insured

Federal law requires the FDIC to pay deposit insurance “as soon as possible.” For insured deposits — those within the deposit insurance limits — the FDIC almost always pays insured depositors within a “few business days of a closing, usually the next business day.”

The FDIC says, “Payment is made either by providing each depositor a new account at another insured institution or by issuing a check to each depositor.” Note: the FDIC does not guarantee that if the funds move to a new bank they will earn the same interest rate.

The limited exceptions that may take longer to process “primarily are deposits that both exceed $250,000 and are linked to trust documents, and accounts established by a third-party broker on behalf of other individuals,” says the FDIC.

False rumors were spread in the past that people could be forced to wait up to 99 years to get their money back. The agency says, “The FDIC occasionally receives calls from depositors about this myth; it often comes from consumers who attended a financial seminar and heard that the FDIC can and will take up to 99 years to pay the depositor’s insured deposits after a bank is closed. This claim is false and entirely without merit.”

Recommended: How to Keep Your Bank Account Safe Online

Understanding How the FDIC Works

You may wonder where the FDIC gets the money to cover lost accounts after a bank fails.

The FDIC says it receives no Congressional appropriations. It is “funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts — deposits in virtually every bank and savings association in the country.”

The FDIC directly supervises and examines about 5,000 banks and savings associations for “safety and soundness.” Banks can be chartered by the states or by the Office of the Comptroller of the Currency. Banks chartered by states also have the choice of whether to join the Federal Reserve System. The FDIC is the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System.

The FDIC also examines banks for compliance with consumer protection laws, including the Fair Credit Billing Act, the Fair Credit Reporting Act, the Truth in Lending Act, and the Fair Debt Collection Practices Act.

Recommended: How Are Financial Institutions Governed?

The Takeaway

The Federal Deposit Insurance Corporation (FDIC) was created by Congress in 1933 to maintain confidence in the American banking system and protect consumers if a financial institution fails. Most U.S. banks are covered by FDIC insurance, but the coverage typically only applies to accounts of $250,000 or less. Checking accounts, savings accounts, money market accounts, and certificates of deposit are covered. Should an insured bank fail, the FDIC will restore those funds up to the limit within a short time.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.

FAQ

What is the FDIC?

The Federal Deposit Insurance Corporation is an independent agency, created 90 years ago, with a mission to maintain confidence in the nation’s financial system. To keep that system stable, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; and manages receiverships.

Is there a limit on how much the FDIC will insure?

Typically, the FDIC insures up to $250,000 per depositor, per institution and per ownership category.

Am I supposed to take out FDIC insurance on my bank account?

No, depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. “If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank,” the FDIC says.

---

Photo credit: iStock/ilbusca

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., 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.

SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SOBK0323040

Read more