SoFi High Yield Savings Account Calculator vs Amex

Compound Interest Formula:

\[ A = P \times (1 + \frac{r}{365})^{(365 \times t)} \]

Initial Deposit (P):

Investment Period (t):

years

SoFi APY (r):

Amex APY (r):

SoFi Final Amount (A):

Amex Final Amount (A):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Compound Interest Formula?

The compound interest formula calculates how much your savings will grow over time when interest is compounded daily. The formula accounts for the initial deposit, annual percentage yield (APY), and time period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + \frac{r}{365})^{(365 \times t)} \]

Where:

$ A $ — Final amount ($)
$ P $ — Principal/initial deposit ($)
$ r $ — Annual interest rate (APY as decimal)
$ t $ — Time in years

Explanation: The formula calculates daily compounding (365 times per year) to show how small APY differences significantly impact long-term growth.

3. Importance of APY Comparison

Details: Even small APY differences (like 4.60% vs 4.25%) can result in substantial differences over several years due to compounding effects.

4. Using the Calculator

Tips: Enter your initial deposit, investment period in years, and current APY rates for SoFi and Amex. Default values show current typical rates.

5. Frequently Asked Questions (FAQ)

Q1: Why compare SoFi and Amex savings accounts?
A: Both offer competitive high-yield savings, but APY differences affect earnings. This calculator shows the actual dollar difference.

Q2: Are the rates guaranteed?
A: No, APYs can change. Check current rates before opening an account.

Q3: How often is interest compounded?
A: Most high-yield savings accounts compound interest daily and credit it monthly.

Q4: Are there fees or minimums?
A: Both typically have no monthly fees, but check current terms as minimums may apply.

Q5: Is my money FDIC insured?
A: Yes, both SoFi and Amex savings accounts are FDIC insured up to $250,000 per depositor.