1. What is a High Yield Savings Account?

A High Yield Savings Account (HYSA) earns interest at a rate much higher than traditional savings accounts. SoFi's HYSA offers competitive APY (Annual Percentage Yield) with no account fees and FDIC insurance up to $2 million.

2. How Does the Calculator Work?

The calculator uses compound interest formula:

Where:

• \( P \) — Initial deposit amount
• \( r \) — Annual interest rate (APY)
• \( n \) — Number of compounding periods per year
• \( t \) — Time in years

For monthly contributions: Additional calculations account for regular deposits and their compounded growth.

3. Benefits of SoFi Savings

Details: SoFi offers 4.60% APY (as of 2024), no minimum balance requirements, no account fees, and easy access to funds. Your money grows faster while remaining liquid.

4. Using the Calculator

Tips: Enter your initial deposit, current APY (default is 4.60%), term length in years, optional monthly contributions, and compounding frequency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often does SoFi compound interest?
A: SoFi compounds interest daily and credits it monthly, providing optimal growth.

Q2: Is my money safe in a SoFi HYSA?
A: Yes, funds are FDIC insured up to $2 million through SoFi's partner banks.

Q3: Can I withdraw money anytime?
A: Yes, HYSA allows up to 6 withdrawals per month with no penalties (federal regulation).

Q4: How does APY differ from APR?
A: APY includes compound interest effects, showing actual annual earnings, while APR doesn't account for compounding.

Q5: Are there tax implications?
A: Yes, interest earned is taxable income. You'll receive a 1099-INT form for tax reporting.