1. What is the SoFi Savings Account Calculator?

This calculator estimates the growth of your savings in a SoFi High Yield Savings Account using daily compounding interest. SoFi currently offers 4.60% APY (as of 2023) with no minimum balance requirements.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time in years

Explanation: The formula calculates daily compounding (365 times per year) which is how SoFi's high-yield savings accounts accrue interest.

3. Importance of Compound Interest

Details: Compound interest allows your money to grow exponentially over time as you earn interest on both your principal and accumulated interest.

4. Using the Calculator

Tips: Enter your initial deposit, the annual interest rate (default is 4.60% for SoFi), and the number of years you plan to save. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the SoFi 4.60% APY guaranteed?
A: No, APY rates can change based on market conditions, though SoFi has maintained competitive rates.

Q2: Are there any fees with SoFi savings accounts?
A: SoFi has no account fees, no minimum balance requirements, and no overdraft fees.

Q3: How often is interest paid?
A: SoFi pays interest monthly, though it compounds daily.

Q4: Is my money FDIC insured?
A: Yes, SoFi offers FDIC insurance up to $250,000 per depositor through partner banks.

Q5: How does this compare to regular savings accounts?
A: Traditional bank savings accounts typically offer 0.01%-0.05% APY, while high-yield accounts like SoFi offer 4-5% APY.