1. What is the SoFi High Yield Savings Calculator?

This calculator helps you estimate the growth of your savings in a SoFi High Yield Savings Account, which currently offers 4.60% APY (as of 2023). It shows how your money can grow with daily compounding interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount
• \( P \) — Principal amount (initial deposit)
• \( r \) — Annual interest rate (in decimal)
• \( t \) — Time in years
• 365 — Number of compounding periods per year (daily)

Explanation: The formula calculates how your money grows when interest is compounded daily, which is how SoFi's high-yield savings account works.

3. Understanding Compound Interest

Details: Compound interest means you earn interest on both your initial deposit and the accumulated interest from previous periods. Daily compounding means interest is calculated and added to your account balance every day.

4. Using the Calculator

Tips: Enter your initial deposit amount, the annual interest rate (4.60% for SoFi), and the number of years you plan to keep the money in the account. The calculator will show your projected balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is SoFi's current APY?
A: As of 2023, SoFi offers 4.60% APY on their high-yield savings accounts (rates may change).

Q2: How often is interest compounded?
A: SoFi compounds interest daily and credits it to your account monthly.

Q3: Are there any fees?
A: SoFi doesn't charge monthly maintenance fees on their savings accounts.

Q4: Is my money FDIC insured?
A: Yes, SoFi savings accounts are FDIC insured up to $250,000 per depositor.

Q5: How does this compare to regular savings accounts?
A: High-yield savings accounts typically offer 10-20 times higher interest than traditional savings accounts.