SoFi High Yield Savings Calculator Monthly

Monthly Compounding Formula:

\[ A = P \times \left(1 + \frac{r}{12}\right)^{12 \times t} \]

Principal Amount (P):

Time Period (t):

years

Annual Interest Rate (r):

decimal (e.g., 0.038 for 3.8%)

Final Amount (A):

Interest Earned:

1. What is the SoFi Savings Calculator?

This calculator helps you project the growth of your money in a SoFi High Yield Savings Account with monthly compounding at the current APY (Annual Percentage Yield) of 3.80%.

2. How Does Monthly Compounding Work?

The calculator uses the compound interest formula:

\[ A = P \times \left(1 + \frac{r}{12}\right)^{12 \times t} \]

Where:

$ A $ — Final amount ($)
$ P $ — Principal investment ($)
$ r $ — Annual interest rate (decimal, e.g., 0.038 for 3.8%)
$ t $ — Time in years

Explanation: Interest is calculated monthly and added to your balance, so each month you earn interest on both your principal and previously earned interest.

3. Benefits of High Yield Savings

Details: SoFi's High Yield Savings Account offers significantly higher returns 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 amount, number of years you plan to save, and the interest rate (default is 0.038 for 3.8% APY). The calculator will show your projected balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: How often does SoFi compound interest?
A: SoFi compounds interest daily and pays it out monthly.

Q2: Is the interest rate guaranteed?
A: APY can change, but the rate is typically competitive with other high-yield savings accounts.

Q3: Are there any fees?
A: SoFi High Yield Savings has no account fees and no minimum balance requirements.

Q4: How does this compare to regular savings accounts?
A: Traditional savings accounts average 0.46% APY (as of 2023), while SoFi offers 3.80% APY - about 8x higher.

Q5: When will I see interest in my account?
A: Interest is credited to your account at the end of each monthly statement cycle.