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If you’re newly married — or about to tie the knot — you may be debating whether to combine your finances in a joint account or keep them separate. Both approaches have their benefits: Sharing an account can make it easier to pay bills and save for the things you’re working toward together. Keeping separate accounts, on the other hand, gives each of you more independence and privacy, and could help avoid arguments if your spending styles don’t match. So what’s the best setup?

The answer depends on your relationship, financial habits, and future goals. Here’s a closer look at the pros and cons of joint vs separate accounts to help you figure out what makes the most sense for you both.

What Is a Joint Bank Account?

A joint bank account is a checking or savings account owned by two or more people. Each owner can view balances, deposit money, withdraw funds, write checks, or use a debit card linked to the account.

Joint accounts are often used to simplify shared financial responsibilities. For example, couples might deposit their paychecks into one checking account and use it to pay rent, utilities, groceries, and other bills. Since both partners can see account activity, it also provides full transparency into how money is being managed.

While joint accounts can symbolize partnership and trust, they also require open communication and mutual agreement about spending habits. Without that, combining bank accounts may lead to conflict rather than convenience.

Curious about how many couples have joint bank accounts? According to the U.S. Census Bureau’s most recent data, almost a quarter of couples don’t have joint accounts vs. 15% not having them in 1996.

The Case for a Joint Bank Account

For many couples, opening a joint account feels like a natural step, especially after marriage. In SoFi’s 2024 Love & Money survey (which included 600 adults who have been married less than one year), a full 62% of newlyweds said they share a joint bank account.

When used effectively, joint accounts can streamline budgeting, improve accountability, and reduce stress about dividing bills. Pooling resources also reinforces the idea of working as a team toward shared financial goals. But like any financial tool, joint bank accounts aren’t without risks.

Pros and Cons of Joint Accounts

Here’s a look at the upsides and downsides of shared accounts.

Pros:
First, the benefits of joint accounts:

•   Simplified bill paying: Instead of juggling multiple transfers or splitting costs manually, a joint account allows both partners to contribute to household expenses from one central place. A 2024 SoFi survey of couples who live together (and plan to wed in the next three years) found that 28% share a joint bank account before marriage.

•   Transparency and trust: Since both partners are able to see deposits and withdrawals, joint accounts offer transparency in a couple’s shared financial life. This openness can strengthen trust.

•   Team-oriented money management: If you open and both contribute to an interest-earning joint savings account, you can work towards shared goals — like buying a home, starting a family, or saving for vacations — as a team. You can also track progress together.

•   Emergency flexibility: If one partner becomes ill, incapacitated, or passes away, the other has immediate access to the funds.

Cons:
Next, the potential disadvantages of joint accounts:

•   Loss of independence: Some people may feel less autonomy when every transaction is visible to their partner, especially for personal purchases.

•   Potential for conflict: Transparency in spending and saving could lead to conflict if both partners don’t agree on budgeting and spending priorities. If one person is a saver and the other is a spender, tension may rise.

•   Liability issues: If one partner mismanages money, the other suffers the consequences. For example, if one account owner overdraws the account or writes a bad check, both owners are equally responsible for the fees and resolving any overdrafts.

•   Complexity in breakups: If the relationship ends, dividing money in a joint account can become emotionally and legally complicated.

The Case for Separate Bank Accounts

Some couples prefer financial independence and autonomy, choosing to keep their money separate even while sharing household expenses. In this setup, each partner maintains their own checking and savings accounts, with no joint ownership. In SoFi’s newlywed survey, 35% of couples said they only maintain separate bank accounts and choose not to pool any funds.

This approach can be especially appealing to couples with very different incomes, spending habits, or debt histories. By separating finances, each partner retains control over their money and avoids potential resentment over differences in how it’s managed.

Pros and Cons of Separate Accounts

Keeping accounts separate could be an option for couples. Here are the upsides and downsides of doing so.

Pros:
These are the benefits of separate accounts:

•   Financial independence: Each partner can make purchases without oversight or judgment, giving them a sense of autonomy.

•   Protection from debt: If you live in a community property state and one spouse has debt, a creditor can go after joint funds. Keeping accounts separate can shield the other spouse from liability.

•   Reduced conflict over spending: Since each person manages their own money, having separate accounts can minimize disagreements about discretionary purchases.

•   Flexibility in contributions: Couples can contribute proportionally to shared expenses based on income rather than splitting everything 50/50.

Cons:
Here are the disadvantages of separate accounts for couples:

•   Less transparency: With separate accounts, it can be harder to track how money is being managed. There is also potential for secrecy and mistrust.

•   More work to manage shared expenses: Couples need a system for splitting monthly bills, whether through regular transfers, payment apps, or rotating responsibility.

•   Missed opportunities for unity: Keeping money entirely separate may feel at odds with building a shared financial life, especially for couples working toward joint goals.

•   Challenges in emergencies: If one partner becomes incapacitated, the other may struggle to access needed funds.

The Hybrid Option: A “Yours, Mine, and Ours” Approach

For many couples, the best solution is a hybrid system that includes both joint and separate accounts. In SoFi’s newlywed survey, 42% of married couples reported having a mix of joint and individual accounts.

This “yours, mine, and ours” method involves maintaining a joint account for shared expenses while also keeping individual accounts for personal spending. For example, both partners might deposit a set amount or percentage of their income into the joint account each month to cover housing, utilities, groceries, and savings goals. The rest of their income remains in separate accounts for discretionary purchases, hobbies, or personal financial goals.

This approach provides the transparency and teamwork benefits of a joint account while also allowing for financial independence. It can also reduce arguments over personal spending since each person retains their own discretionary funds.

Source: SoFi’s 2024 Love & Money newlywed survey

How to Decide What’s Right for Your Relationship

Deciding between joint, separate, or hybrid accounts isn’t about following a one-size-fits-all rule. The “right” choice depends on your financial history, habits, values, and long-term goals. Here are some key conversations to have before making a decision:

Discuss Your Financial Habits, History, & Current Debt

Start by sharing your financial background openly. Do you have student loans, credit card debt, or a history of overdrafts? Are you a natural saver, or do you prefer to spend on experiences? Ask your partner to answer the same questions. Honest discussions about past mistakes, strengths, and weaknesses can help set realistic expectations.

If one partner carries significant debt, a joint account might create tension or unfair responsibility. In such cases, separate or hybrid accounts may work better until debts are under control.

Align on Your Short and Long-Term Goals

Next, talk about what you’re working toward together. Are you saving for a house or family? Do you want to retire early or prioritize travel? Your financial goals will influence whether pooling money makes sense.

Couples with highly aligned goals often find joint accounts useful, while those with divergent goals may prefer more independence. Even in a hybrid setup, it’s important to agree on how much money goes toward shared versus personal objectives.

Decide How to Handle Bills and Shared Expenses

Finally, you’ll want to discuss the practical side of managing day-to-day expenses. Options include:

•   Full joint account: Both paychecks go into a joint account, and all bills come out of it.

•   Separate accounts: Each partner pays specific bills from their own accounts.

•   Hybrid approach with a 50/50 split: Each partner keeps their own account and contributes an equal amount to a joint fund for shared expenses.

•   Hybrid approach with proportional contributions: Partners maintain separate accounts and contribute to a joint account based on income percentage. For instance, if one earns 60% of the household income and the other earns 40%, contributions can be split accordingly.

Agreeing on a fair system can prevent resentment and help ensure both partners feel invested in household responsibilities.

The Takeaway

There’s no universal answer to whether couples should choose joint or separate bank accounts or take a hybrid approach. What matters most is that your financial arrangement reflects your relationship values, encourages transparency, and minimizes stress.

If you and your partner choose to pool at least some of your funds in a joint account, see what SoFi has to offer.

When you sign up for a joint SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What percentage of married couples have separate bank accounts?

According to SoFi’s 2024 Love & Money Survey (which included 600 adults who have been married less than one year), 82% of newlyweds maintain separate bank accounts, either exclusively or alongside a joint account. Many couples choose to maintain separate accounts to avoid conflicts over spending and/or maintain autonomy while still contributing to shared goals. However, others prefer joint accounts for ease of bill payments and household expenses, and will often blend the two approaches for balance and flexibility.

How do you split bills with separate accounts?

Couples with separate accounts typically split bills in a way that feels fair and manageable. Common methods include dividing expenses 50/50, assigning specific bills to each partner, or splitting costs based on income percentage (e.g., one pays 60% and the other 40%). Many use apps or spreadsheets to track shared spending and transfers.

Another option is to maintain a joint account for household expenses, while keeping personal accounts for individual purchases. This provides transparency as well as some financial independence.

What happens to a joint account if one person passes away?

In most cases, joint bank accounts are set up with rights of survivorship. This means the money bypasses probate and the surviving account holder automatically becomes the sole owner of the funds.

When a joint account holder passes away, the surviving account holder typically needs to present a death certificate to the bank. They may then have the opportunity to remove the deceased account owner from the account or close the joint account and open a new individual account.

Can a joint account impact my credit score?

A joint bank account itself does not directly affect your credit score, since checking and savings accounts aren’t reported to credit bureaus. However, lenders will often use information about your checking, savings, and assets to determine whether you have the capacity to take on more debt.

In addition, bounced checks, involuntary account closures, and other problems with bank accounts are reported to ChexSystems, a consumer reporting agency for banking. If you end up with negative information on your ChexSystems report due to a problem with a joint account, you may have difficulty opening new accounts.

Can we open a joint account before we get married?

Yes, you can open a joint account before marriage, as banks generally don’t require couples to be legally married. Both account holders must provide valid identification and agree to equal access to the funds. This option is popular for engaged or cohabiting couples who want to manage shared expenses like rent, utilities, or travel. However, since both parties have full access to the funds in a joint account, trust and clear communication are crucial. It’s wise for partners to discuss expectations before opening an account together.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q425-015

Shrinkflation is the practice of reducing the size or amount of a product in a given package while maintaining the same sticker price. It is a hidden form of inflation that allows companies to boost or protect their profit margins, particularly when facing rising production costs. For consumers, it means they are effectively paying more for less. According to a LendingTree analysis of nearly 100 household products from 2019 to 2024, a third have shrunk in size.

Shrinkflation relies on the fact that shoppers are more likely to pick up on a direct price increase than a subtle reduction in a product’s size. However, shrinkflation contributes to overall inflation. To keep your grocery bills from escalating, it’s important to understand how to spot and avoid being deceived by shrinkflation.

Why Does Shrinkflation Happen?

First, let’s take a step backwards. Why is it called “shrinkflation” anyway?

When companies shrink their products and thereby inflate the price, that’s shrinkflation. For instance, perhaps you notice that the 14-ounce bag of pretzels you used to buy is now 12 ounces…while the price has stayed the same.

Once you understand how it works, it’s pretty easy to understand why companies shrinkflate their products, as sneaky a tactic as it is. By offering less of their product at the same (or even a higher price), companies can protect their profit margins.

This, in turn, can help them battle rising production costs, competition from other companies, or simply drive more profits — which, in the end, is generally the main goal of every for-profit company.

💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

Examples of Shrinkflation

To avoid implicating any specific brand, let’s use an imaginary example to demonstrate how shrinkflation works and how you might notice it as a consumer.

•   Say you’re at the grocery store, and you’re about to buy your favorite bottle of pomegranate juice. It’s a little pricey, but you love the taste — and besides, it’s good for you.

•   You pick up the bottle, expecting to pay $8 for your typical 16 ounces. The bottle looks the same and costs the same, but it feels different in your hand. Still, you go ahead and purchase it.

•   When you get home, you notice that the almost-empty bottle in your fridge is just a little bit bigger than the new bottle. When you look closely, you notice the new bottle actually has 14.5 ounces, not 16.

You’ve just been shrinkflated.

Is Shrinkflation Temporary?

Shrinkflation isn’t new. According to research by the U.S. Government Accountability Office, product downsizing has been happening for over a decade. It spiked in 2015, was at its lowest during the pandemic years, and started trending up again in early 2022, amidst increasing inflation.

However, because shrinkflation usually occurs gradually, many consumers don’t even recognize it’s happening. Instead, they just slowly see their grocery bills and household expenses increase. If companies were transparent and sold the same amount of product at a higher price, you’d likely notice — and perhaps balk — while you were putting the item in your shopping cart.

With shrinkflation, companies can get a financial boost without (hopefully) triggering any consumer pushback. But careful, observant shoppers may still pick up on this sneaky business tactic.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

Is Shrinkflation Illegal?

Shrinkflation is generally legal. However, more than a dozen U.S. states and territories have recently instituted laws requiring the unit price be disclosed on products. This is helpful to consumers because when a product’s size decreases but its price stays the same, the unit price increases. The unit price label makes this increase more visible, allowing consumers to identify hidden price hikes and make informed choices.

Even without widespread labelling, customers appear to be catching on. According to an April 2025 survey by CivicScience, 81% of grocery shoppers say they’ve noticed shrinkflation recently.

Recommended: 7 Tips to Managing Your Money Better

Tips for Noticing Shrinkflation

Here are some tips and tricks that can help you detect and stay ahead of shrinkflation.

1. Pay Attention to Your Receipts

Although plenty of us forego paper receipts entirely, keeping them can actually be very instructive, particularly when it comes to avoiding shrinkflation. Keeping and comparing receipts, especially for products you buy often, may help tip you off to shrinkflation more quickly than you’d otherwise notice on your own. (Plus, you may get a better picture of how much you actually spend on groceries, as opposed to how much you expect to.)

2. Make a Price-Inclusive Grocery List

If you’re really serious about beating the shrinkflation machine, grab that receipt you kept and make your next grocery list — with the approximate price you paid next to each item. That way, you’ll notice shrinkflation before it even happens as you’re about to put the item in your cart.

You can update this on a monthly basis or so to stay abreast of any shrinkflation moves, should companies roll out new, smaller-sized products for the same or a higher price.

3. Pay Attention to Price-Per-Unit When Shopping

One of the most effective ways to beat shrinkflation is to ignore the overall price of a product and focus on its unit price — the cost per ounce, pound, or item. While it may not be listed on the label, this information is typically printed on the shelf tag at the grocery store. Alternatively, you can quickly do the math yourself: Use your phone’s calculator to divide the product’s price by its quantity (for example, $3.60 /12 ounces = $0.30 per ounce). Choosing larger sizes, opting for store brands, or buying in bulk can result in a lower price per unit, which can help you spend less on food.

Should You Buy Shrinkflated Products?

Generally speaking, nobody likes to feel like they’re being deceived. But only you can decide whether or not the juice is worth the squeeze, so to speak, when it comes to buying from a company that employs this tactic.

•  If you really, really love that brand of pomegranate juice (or any other product), you may just put up with it… and adjust your budget accordingly.

•  If you strongly feel that this tactic is deceptive and it’s taking a substantial chunk out of your checking account, it may be time to find brands that don’t engage in this practice.

•  You might decide to buy generic brands, or to shop at a warehouse or wholesale club store. There, you may benefit from economies of scale — and stock up on your favorite items before their prices potentially go up.

Recommended: Passive Income Ideas to Help You Earn Money

The Takeaway

Shrinkflation is the practice of consumer goods being sold in smaller packages than in the past for the same or a higher price. In other words, your money doesn’t stretch as far. While frustrating, shrinkflation doesn’t have to significantly impact your finances. By being a vigilant shopper and adjusting your budget, you can continue to enjoy your favorite products. You can also make your money work harder by choosing a banking partner with favorable terms.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Why is shrinkflation allowed?

Shrinkflation is allowed because it isn’t inherently illegal. There isn’t a law saying companies must disclose packaging changes, nor are manufacturers or marketers claiming they are selling the same size as before. Therefore, as long as a package of “14 oz” truly contains “14 oz,” the practice is legal, even if the consumer is getting less for their money.

What is a real life example of shrinkflation?

One real example of shrinkflation in recent years is paper towels. On average, this product went from offering 165 sheets per package to offering 147 sheets, while maintaining a price of $3.99. As a result, the cost of each sheet increased from 24 cents to 27 cents.

How do you beat shrinkflation?

You can fight shrinkflation by becoming a more vigilant shopper: focus on unit prices and net weights on labels, compare prices between different brands (especially store brands), and shop smart by buying in bulk or stocking up during sales. Other strategies include cooking from scratch and using online resources like coupon apps.

Photo credit: iStock/AlexSecret

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

SOBNK-Q425-024

When you think about your basic living expenses, your mortgage or rent may be top of mind, but utilities are a considerable component for most people. Doling out money for electricity, water, maybe natural gas, garbage/sewer/recycling, cable television, and internet access can really add up. The average American household can spend anywhere from $300 to $450 a month or more on utilities.

Here, you can learn smart ways to save money on your utility bills. Some are simple ways to cut costs by tweaking your daily habits, and others may require investment, such as buying an energy-efficient appliance that will cost less over the coming years.

Read on to see which money-saving tips work best for you.

5 Ways to Save Money on Your Electricity Bill

The average electric bill in the US is currently $149.37 per month, with an average cost of 17.47 cents per kilowatt hour (kWh). Here’s advice on saving money on electricity.

1. Unplug!

It may be possible to save $100 or more each year by unplugging your appliances and devices when they’re not in use. Bonus: When you unplug, you’re also protecting them from damage that could occur during power surges.

What’s known as standby power can add up to 5% to 10% of your monthly electricity bill, according to the US Department of Energy. Electronics can draw power when not in use: Your laptop’s sleep mode, for instance, is different from being turned off, and it can still use energy.

Your home entertainment system can use electricity to keep some indicator lights on, including the ones, ironically enough, that tell you the system is off. And if you are the type who has one or two mobile phone chargers always plugged in, ready to revive your low-battery phone, know that those too are raising your bill.

Granted, it may be too much of a hassle to unplug your washer/dryer when not in use, but you can work on not letting your phone charger, coffee maker, and computer eat up electricity when not in use.

2. Replace Old Appliances

Is your dishwasher, refrigerator, or clothes dryer reaching the end of its lifespan? Do yourself and your budget a favor and opt for an energy-efficient model.

Although this strategy means you need to spend money up front, ENERGY STAR®-certified appliances can save significant dollars in the long run. In general, a home appliance lasts for 10 to 20 years, on average, with ENERGY STAR-designated ones can save you up to $450 a year on your utility bills, according to the US EPA (Environmental Protection Agency).

Plus, you can sometimes get federal, state, or local rebates when you purchase energy-efficient appliances, so it might be wise to research this before you buy. You could wind up with even lower costs this way.

3. Wash Clothes in Cold Water

When you wash your clothes in cold water, you save significantly on energy usage, while also being kinder to your clothes. ColdWaterSaves.org shares that 90% of the energy used while washing clothes goes towards heating the water.

To put a dollar figure on this, the site calculates that the average household could save $200 per year by switching from washing laundry in warm or hot water to using cold instead. And guess what? Today’s detergent technology uses enzymes that actually work more effectively in cold water.

Also make sure your loads are full to save even more money; you’ll do your laundry less frequently that way.

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4. Dial Down Your Hot Water Heater

Here’s an especially easy hack—heck to see where your hot water heater’s thermostat is set. If it’s above 120 degrees Fahrenheit, consider lowering it! For every ten degrees that you dial it down, you could save 3% to 5% on your energy bills. Plus, you’ll make it less likely that someone in your family gets burned by hot water.

5. Dry Clothes More Efficiently

According to Energy.gov, in a standard household, the appliance that uses the most energy is the dryer. To calculate your costs, try the calculator they provide, and follow the following tips. They’re ideas for how to save on utilities.

•  Right-size your loads. Too full, and it takes too long for your clothes to dry. Too small? You’ll be spending too much energy per item as you dry them.

•  Air-dry on a rack when you can.

•  Add wool or rubber dryer balls to cut down drying time.

•  Regularly clean your dryer’s lint filter.

•  Use the lower heat settings to use less energy.

•  If your dryer has a cool-down cycle, use it.

•  If your dryer has a moisture sensor option, use that as well.

2 Ways to Save Money on Your Water Bill

The national median water bill is about $30 or $35 a month, though some people may pay two or three times that amount. Follow this advice to take your costs down a notch and put the funds into, say, a high-yield savings account.

1. Invest in Efficient Appliances

Is it time for a new washer? If so, note that energy-efficient washers typically use 40% to 50% less energy and use 55% less water than conventional models. This switch can save you up to $60 a year on utility and water bills.

2. Shower Smarter

By going with a lower-flow showerhead, you can significantly reduce water usage, to the tune of $70 a year. Want to save even more? Become a fan of the five-minute shower, and quit sending money (quite literally) down the drain.

Recommended: Savings Account Calculator

3 Ways to Save Money on Your Gas Bill

The average gas bill in the US is about $63 but could be even lower if you follow these tips.

1. Save on Heating and Cooling Costs

By resetting your thermostat, you may be able to save a significant amount.

You might be able to save about 1% of your energy costs for each degree that you adjust for an eight-hour period, and the Department of Energy recommends that you adjust your thermostat by seven to ten degrees (up in summer, down in winter) for an eight-hour period each day to annualize savings of as much as 10%.

If you have a smart thermostat, you could set it to be higher or lower when you’re out at work. You might also reset it overnight, when you’re sleeping.

For example, the Department of Energy recommends keeping your thermostat at 68 degrees when you’re up and about in winter, and at 58 when you’re away from home or sleeping. When the season is warm, their recommendation is to keep your thermostat at 78 degrees when you’re home, and at 85 when you’re not.

Recommended: How to Automate Your Finances

2. Go Solar

If you really want to invest in your energy efficiency, you could also consider solar panels to create clean electricity and minimize your gas usage. You can potentially receive tax credits for going green this way. Living sustainably can really pay off in multiple ways!

Yes, installing solar panels requires a big investment; one that will take years to amortize. But by starting on the path to passive energy, you’ll be on your way to saving for decades to come.

3. Seal Up Your Home

Ready for another idea for how to save on utilities? In cold weather, warm air can escape through drafty windows and doors; in hot weather, the cool air your air conditioning is pumping out can vanish the same way. By weather sealing your home, you can save up to 10% of your energy bill. That means weather stripping and adding insulation (important ways to help maintain your home’s value) can really pay off.

The Takeaway

There are many ways you may be able to save money on your electricity, gas, and water bills. No matter the strategy you choose, stashing your money in a bank with minimal fees and a solid interest rate is an important move.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What’s a good way to save on electricity costs?

One good way to save on electricity costs is to unplug electronics and other devices (your laptop, phone chargers, coffee maker) when not in use. Keeping them plugged in costs money.

What runs up your electrical bill the most?

Heating and cooling are the single biggest portion of your energy bill, accounting for up to 45% of your costs.

How can I save on my gas bill?

Calibrating your thermostat can be a big money saver, as can weather sealing your home.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOBNK-Q425-007

You may think of your income as being your paycheck or your freelance earnings, but there are actually many different types of income. If you have stocks that are generating dividends, that’s income, as is interest you earn on any savings accounts. Do you own a rental property that has rent payments flowing your way? That’s income, too.

Here, you’ll learn about seven common types of income and how they may affect your financial life.

What Is Income?

Simply put, income is money that a person or business earns in return for labor, providing a product or service, or returns on investments. Individuals also often receive income from a pension, a government benefit, or a gift. Most income is taxable, but some is exempt from federal or state taxes.

Another way to think about income types is whether it is active (or earned) or passive (or unearned).

•  Active or earned income is just what it sounds like: money that you work for, whether you are providing goods or a service.

•  Passive or unearned income is money you receive even though you are not actively doing anything to get it. For instance, if you have a high-yield savings account that earns you interest, that is passive income. Government benefits, capital gains, rental income, royalties, and more are also considered passive income. (We’ll go through these variations in more detail in a minute.)

People who are paid a salary may tend to think that their annual paycheck earnings are their income, but in truth, it’s common for people to have multiple income streams. Granted, your salary may be by far the largest stream of income, but when considering your overall financial picture, don’t forget to think about the other ways that money comes to you.

Different Types of Income

Here’s a look at seven common types of income.

1. Earned Income

Earned income is the money you earn for work you do, either in a job or self-employed. Earned income includes wages, salaries, tips, and bonuses.

Earnings are taxed at varying rates by the federal and state governments. Taxes may be withheld by your employer. Self-employed workers often pay quarterly and annual taxes directly to the government. Lower-income workers may be eligible for the earned income tax credit.

2. Business Income

Business income is a term often used in tax reporting; you may sometimes also hear it referred to as profit income. It basically means income received for any products or services your business provides. It is usually considered ordinary income for tax purposes.

Expenses and losses associated with the business can be used to offset business income. Business income can be taxed under different rules, depending on what type of business structure is used, such as sole proprietorship, partnership, corporation, etc.

3. Interest Income

When you put money into various types of interest-bearing financial vehicles, the return is considered interest income. Retirees often rely on interest income to help fund their retirement. You can earn interest from a variety of sources including:

•  Certificates of deposit (CDs)

•  Government bonds

•  Treasury bonds and notes

•  Treasury bills (T-bills)

•  Corporate bonds

•  Interest-bearing checking accounts

•  Savings accounts

Interest income is typically taxed as ordinary income, though some types of interest are tax-exempt.

4. Dividend Income

Some companies pay stockholders dividends as a way of sharing profits. These are usually regular cash payments that investors can take as income or reinvest in the stock. Dividends from stocks held in a taxable brokerage account are considered taxable income. These funds may be taxed at your regular income-tax rate or at a lower long-term capital gains rate, depending on whether they are classified as “ordinary” or “qualified”.

5. Rental Income

Just as it sounds, rental income is income earned from rental payments on property you own. This could be as straightforward as renting a room in your house or as complicated as owning a multi-unit building with several tenants.

Rental income can provide a steady stream of passive vs. active income. It may enhance your livelihood or even be your main income. When your rental property increases in value, you may also gain from that appreciation and increase in equity. In addition, rental income qualifies for several tax advantages, including taking depreciation and some expense write-offs.

But there are downsides. Owning a rental property isn’t for the faint of heart. Unreliable tenants, decreasing property values, the cost of maintaining and repairing properties, as well as fees for rental property managers can all take a bite out of your rental income stream.

6. Capital Gains

Another important income stream can come from capital gains. You incur a capital gain when you sell an asset for more than what you originally paid for it. For the purposes of capital gains, an asset usually means an investment security such as a stock or bond. But it can also encompass possessions such as real estate, vehicles, or boats. You calculate a capital gain by subtracting the price you paid from the sale price.

There are two types of capital gains — short-term and long-term.

•  Short-term capital gains are realized on assets you’ve held for one year or less.

•  Long-term capital gains are earned on assets held for more than a year.

The tax consequences are different for each type of capital gain. Short-term gains are taxed as ordinary income, while long-term capital gains may be taxed at a lower rate.

Keep in mind, however, that capital losses can happen too. That’s when a capital asset is sold for less than its original purchase price. While it’s never pleasant to experience losses, there can be a small silver lining in this case. You may be able to claim a capital loss deduction from your annual capital gains.

7. Royalty Income

Royalty income comes from an agreement allowing someone to use your property. These payments can come from the use of patents, copyrighted work, franchises, and more.

Some examples: Inventors who license their creations to a third party may receive royalties on the revenue their inventions generate. Celebrities often allow their name to be used to promote a product for royalty payments. Oil and gas companies may pay landowners royalties to extract natural resources from their property. Musicians may earn royalties from music streaming services.

Royalty payments are often a percentage of the revenues earned from the other party using the property. Many things impact how much royalty is paid, including exclusivity, the competition, and market demand. How royalty payments are taxed can also vary, depending on the type of agreement.

Recommended: 10 Personal Finance Basics

The Takeaway

Understanding the seven general income streams (such as earned, dividend, and rental income) can help you make the most of your financial planning. Earning income from any of these sources can provide stability and help you achieve long-term goals, such as saving for retirement. Because some types of income have unique tax implications, it can be important to check with your tax advisor about any tax consequences that may exist.

Aside from earned income, interest is a type of income many people receive. And seeking out the best possible interest rate can be a solid way to enhance your earnings; looking for a high-yield bank account may be a good place to start.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What are the seven common types of income?

The seven common types of income are: earned income (money earned for work); business income (money received for products or services sold); interest income (returns from interest-bearing financial accounts); dividend income (payments from companies to stockholders as a share of profits); rental income (income earned from rental payments on property owned); capital gains (profit incurred when selling an asset for more than its purchase price); and royalty income (payments from licensing property like patents or copyrighted work).

What are the three main types of income?

The three main types of income include: active income (earned from performing a service like a job), passive income (generated from ventures like rental properties where you are not actively involved) and portfolio income (derived from investments such as stocks and bonds). These categories are distinguished by how the money is generated and how the income is taxed.

What are the four main income categories?

From a personal finance perspective, the four main income categories are: active income (money earned directly from a job or services rendered), passive income (recurring income from ventures in which you are not actively involved), portfolio income (earnings from investments like stocks, bonds, and mutual funds), and government income assistance (financial aid from the government for those who qualify).

Photo credit: iStock/Selcuk1

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. 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.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible 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 (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, 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 Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q425-028

Scammers are constantly looking for new ways to make money, and the rapid rise of cryptocurrency in recent years has opened the door to new opportunities for fraud. Crypto scams often involve tricking people into buying or sending digital currency through deceptive tactics like fake investment platforms, phishing, and false promises of high returns. In 2024, crypto scams led to $9.3 billion in losses — a 66% increase from the previous year.^[1]

Falling victim to a crypto scam can be devastating, leaving you feeling helpless, angry, and betrayed. While recovering funds is challenging due to the decentralized and irreversible nature of crypto transactions, you’re not necessarily out of options. Below, we outline key steps to consider in order to report the crime, help limit further losses, and support investigations that could potentially lead to restitution.

The Reality of Crypto Scam Recovery

Crypto scam recovery refers to the process of reporting fraudulent activity, protecting your remaining assets, and assisting law enforcement in tracking stolen funds. However, recovery doesn’t usually mean getting your money back immediately — or sometimes, at all.

Cryptocurrency transactions do not come with the same legal protections provided to credit or debit card payments and are typically irreversible. While crypto transactions are permanently recorded on publicly available ledgers called blockchains, U.S. law enforcement can run into difficulty tracing payments to overseas exchanges, especially in countries with lax anti-money laundering laws and regulations.

That said, recovery isn’t impossible. There have been cases where funds have been traced, frozen, and returned to victims of crypto scams. While these outcomes are rare, reporting a crypto scam is generally worth the effort, especially since it can help prevent others from being victimized.

Steps to Take After a Crypto Scam

If you believe you’ve been scammed, it’s important to take quick action. This may help to limit further damage and support a stronger case when making a report. Here are key steps involved in crypto scam recovery:

1. Stop All Transactions Immediately

If you suspect a scam, do not send additional funds. While this might sound obvious, fraudsters often tell victims they must pay “fees” or “taxes” to access their principal or profits. This is part of the scheme, however. Legitimate brokers, crypto exchanges, or other crypto service providers should never demand extra payments to release your funds.

2. Protect Your Accounts

Change passwords on your crypto exchange, email, and any financial accounts connected to your crypto wallet. Enable two-factor authentication (2FA) to help reduce the risk of further compromise. If you provided personal information such as your Social Security number, contact the major credit bureaus (Equifax®, Experian®, and TransUnion®) to place a fraud alert or security freeze on your credit file. This helps prevent scammers from opening new accounts in your name.

3. Collect All Relevant Information and Documents

Write down everything you remember about the scam while it’s still fresh in your mind. Also gather as much documentation you can related to the incident, including:

•   Names and titles used by the scammers

•   Phone numbers, emails, and messaging accounts used to contact you

•   Screenshots of conversations or websites

•   Exchange account details, wallet addresses, and transaction IDs

•   Dates, times, and amounts of cryptocurrency sent

•   Any payment receipts or confirmation statements

4. Report the Scam to Relevant Authorities

File reports with federal and local agencies as soon as possible. Each report helps build larger cases against fraudulent operations and improves tracking (see below for details on which agencies to contact and how). It’s also a good idea to report the scam to the crypto exchange you used to send the money. The company may be able to place more security on your account and freeze or ban the scammer’s account, potentially protecting others.^[2]

5. Explore Options for Financial Recovery

Review your homeowner’s insurance policy to see if there is any coverage for fraud-related losses or identity theft. You might also consult a tax professional to see if your losses qualify for a deduction. If the loss has caused major financial hardship or significant debt, consider contacting a reputable financial planner or a nonprofit credit-counseling agency for help rebuilding your finances.

Where and How to Report a Crypto Scam

Below are the main U.S. agencies and authorities that accept reports of cryptocurrency fraud and related crimes.

Federal Trade Commission (FTC)

The FTC handles reports of consumer fraud, deceptive advertising, and investment scams, including those involving cryptocurrencies. You can report a scam at ReportFraud.ftc.gov. The FTC uses these reports to spot patterns, build cases, and issue consumer alerts.

Securities and Exchange Commission (SEC)

The SEC oversees securities-related investments and can investigate crypto projects that illegally sell unregistered securities or mislead investors. You can file a complaint using the SEC’s online form or call the SEC’s Office of Investor Education and Advocacy at 1-800-732-0330 for guidance.^[3]

Commodity Futures Trading Commission (CFTC)

The CFTC regulates the country’s derivatives markets, including futures, options, swaps, and some digital assets. You can report a crypto scam at CFTC.gov or by calling 866-FON-CFTC (866-366-2382).^[4]

FBI Internet Crime Complaint Center (IC3)

The FBI’s Internet Crime Complaint Center (IC3) is a key federal hub for reporting cyber-related crimes, including crypto scams, hacking, and online extortion. You can report a cryptocurrency at ic3.gov. But do not inform the suspected scammers, as this could compromise the investigation.

Local Law Enforcement

Even if the scam took place online or involved international parties, it’s still a good idea to report it to your local police department.

While local police may not be able to trace international wallets, your report will become part of an official database. When a scam receives multiple reports, the police may escalate the case, either by launching a more thorough inquiry or by passing it to a different agency. You may also need to have a copy of a police report if you plan to file an insurance claim for fraud losses.

Beware of Crypto Scam Recovery Services

After losing crypto, victims are often targeted again by fake “recovery experts,” effectively adding insult to injury. These scammers often claim they can retrieve lost funds in exchange for upfront fees or “processing costs.” They may operate legitimate-looking websites complete with glowing testimonials and impressive recovery rates.

Unfortunately, these operations are almost always scams. No private individual or company can guarantee the recovery of lost crypto. Even if a recovery company is legitimate, it does not have the same authority as law enforcement agencies to compel the freezing or seizure of cryptocurrency assets. Generally, the safest path is to work only with official regulators or law enforcement, not private firms promising immediate results.

How to Spot a Crypto Scammer

Recognizing scam patterns can help prevent losses before they occur. Many crypto schemes share common warning signs:

•   Guaranteed returns: Crypto scammers often lure victims by offering sky-high and risk-free profits. But there are no guarantees in the world of buying and selling digital assets.

•   Lack of transparency: Vague statements and secrecy about a crypto opportunity may be a sign of a scam. A legitimate crypto project will provide detailed information about their team, technology, and plan.

•   Upfront crypto payment: A real company will not ask you to make an advance crypto payment to purchase something or protect your funds.

•   High-pressure tactics: Scammers will often create a sense of urgency by claiming an exclusive opportunity or limited availability. A reputable project will let you make educated decisions without feeling rushed.

•   Celebrity endorsements: Scammers often use fake endorsements or AI-generated deepfakes of celebrities to lure people into fraudulent schemes. While not every crypto endorsement is a scam, consumers should be highly skeptical.

•   Romantic involvement: If someone you meet online wants to show you how to invest in crypto or asks you to send them coins, it may be a scam.

What Evidence Do You Need Before Reporting a Scam?

Accurate and detailed evidence strengthens your report and may help increase the chance that authorities can investigate. Before filing a complaint, you typically need to gather the following evidence:

•   Copies of communications with the scammer (e.g., emails, text, DMs)

•   All identifying information you have, such as names, e-mail addresses, and phone numbers

•   Domain names, website addresses, or apps the scammer instructed you to use

•   Any two-factor authentication or “one time passcode” information

•   Which cryptocurrency exchanges you used to send or receive funds

•   Transaction details (including wallet addresses, amount and type of crypto, date and time, and transaction ID)

•   The timeline of the scam

The Takeaway

Becoming a victim of a crypto scam can be painful, but it doesn’t mean you’re powerless. The key is to respond quickly. Important steps to recovery may include securing your accounts, documenting every detail, and reporting the incident to trusted authorities. Acting fast not only may help protect you, but may also help others avoid similar traps.

As crypto continues to evolve in 2025, scammers are getting smarter, but so are the tools and agencies working to stop them. By staying cautious, informed, and proactive, you can help protect your assets and contribute to a safer digital financial future for everyone.

SoFi Crypto is back. SoFi members can now buy, sell, and hold cryptocurrencies on a platform with the safeguards of a bank. Access 25+ cryptocurrencies, such as Bitcoin, Ethereum, and Solana, with the first national chartered bank to offer crypto trading. Now you can manage your banking, investing, borrowing, and crypto all in one place, giving you more control over your money.

FAQ

Where is the best place to report a crypto scam?

The best place to report a crypto scam depends on the type of fraud. You may want to start with the Federal Trade Commission (FTC) at reportfraud.ftc.gov. If the scam involved buying, selling, or moving crypto, also report it to the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the FBI’s Internet Crime Complaint Center (IC3). It may also be a good idea to contact your crypto exchange to alert them of suspicious activity.

Can the police help with a crypto scam?

Yes, the police can help, especially if you’ve lost money or personal data. While local law enforcement may not be able to recover your funds, they can document your case, provide an official report, and forward it to state or federal cybercrime units.

How do I report a scam to the FBI’s Internet Crime Complaint Center (IC3)?

To report a crypto scam to the FBI’s Internet Crime Complaint Center (IC3), visit ic3.gov. Fill out the online complaint form with detailed information about the scam, including transaction records, wallet addresses, emails, and communication logs. Be as specific as possible — the FBI uses this data to identify patterns and link related cases. After submission, you’ll receive a complaint ID for tracking. While IC3 may not contact you directly, your report helps ongoing investigations and public protection efforts.

Are crypto recovery services real or just another scam?

Most so-called “crypto recovery services” are unfortunately scams themselves. Fraudsters often pose as recovery specialists or investigators who promise to retrieve stolen funds — for a hefty upfront fee or by stealing more information. It’s generally safer to report your loss to the government agencies, local law enforcement, and your crypto platform, rather than using third-party recovery firms.

What evidence do I need to gather before reporting a scam?

Before reporting a crypto scam, gather all possible evidence to support your claim. This includes transaction IDs, wallet addresses, screenshots of messages or emails, payment confirmations, and links to the scam website or social media profiles. Save any identifiable information about the scammer, such as usernames or email addresses. Organizing these details will help authorities conduct a more effective investigation.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

Photo credit: iStock/Andrii Yalanskyi

SOCRYP-Q325-111