1. What is the SoFi High Yield Savings Calculator?

This calculator estimates the growth of your savings in a SoFi High Yield Savings Account using daily compounding interest at the current APY (Annual Percentage Yield) of 4.60% (as of 2023).

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.046 for 4.6%)
• \( t \) — Time in years

Explanation: The formula calculates daily compounding (365 times per year) which gives slightly better returns than simple annual compounding.

3. Benefits of High Yield Savings

Details: SoFi's high yield savings accounts offer significantly higher interest than traditional savings accounts, helping your money grow faster while remaining FDIC-insured up to $250,000.

4. Using the Calculator

Tips: Enter your initial deposit, the current APY (defaults to 4.60%), and the number of years you plan to save. The calculator will show your projected balance and interest earned.

5. Frequently Asked Questions (FAQ)

Q1: Is the SoFi APY guaranteed?
A: No, APY can change based on market conditions, though SoFi has consistently offered competitive rates.

Q2: How often is interest compounded and paid?
A: Interest is compounded daily and credited to your account monthly.

Q3: Are there fees or minimum balances?
A: SoFi has no account fees and no minimum balance requirements.

Q4: How does this compare to CDs?
A: Savings accounts offer more liquidity than CDs, though CDs may offer slightly higher rates for locked-in terms.

Q5: Is my money safe in a SoFi account?
A: Yes, funds are FDIC-insured up to $250,000 through SoFi's partner banks.