1. What is the SoFi Savings Interest Calculator?

The SoFi Savings Interest Calculator helps you estimate how much interest your money will earn in a SoFi savings account with daily compounding. SoFi currently offers a competitive 4.60% APY (as of 2023).

2. How Does the Calculator Work?

The calculator uses the daily compounding interest formula:

Where:

• \( P \) — Principal amount (initial deposit)
• \( r \) — Annual interest rate in decimal (e.g., 4.60% = 0.046)
• \( t \) — Time in years
• 365 — Number of compounding periods per year (daily)

Explanation: The formula calculates how much your money grows with daily compounding interest over time.

3. Importance of Interest Calculation

Details: Understanding how your savings grow helps with financial planning and comparing different savings options. Even small differences in APY can significantly impact long-term growth.

4. Using the Calculator

Tips: Enter your principal amount, the current APY (default is 4.60%), and the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is SoFi's APY fixed or variable?
A: SoFi's APY is variable and can change based on market conditions.

Q2: How often is interest paid?
A: SoFi pays interest monthly, but it compounds daily for more accurate growth.

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

Q4: How does this compare to regular savings accounts?
A: SoFi's 4.60% APY is significantly higher than the national average of 0.42% for traditional savings accounts.

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