1. What is the SoFi Savings Interest Calculator?

The SoFi Savings Interest Calculator estimates how much interest you'll earn on your savings with SoFi's high-yield savings account, which compounds interest daily. It helps you project your earnings based on your principal, APY, and time period.

2. How Does the Calculator Work?

The calculator uses the daily compounding interest formula:

Where:

• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.046 for 4.6%)
• \( t \) — Time in years
• 365 — Number of compounding periods per year (daily)

Explanation: The formula accounts for daily compounding, which means interest is calculated on your principal plus previously earned interest every day.

3. Importance of Interest Calculation

Details: Understanding how much interest your savings can earn helps with financial planning and comparing different savings options. SoFi's high-yield savings accounts typically offer much better returns than traditional savings accounts.

4. Using the Calculator

Tips: Enter your principal amount in dollars, the annual interest rate as a decimal (e.g., 0.046 for 4.6%), and the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the current SoFi savings APY?
A: As of 2023, SoFi offers 4.60% APY (Annual Percentage Yield) on savings accounts, but this rate may change.

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

Q3: Is there a minimum balance required?
A: SoFi doesn't require a minimum balance to earn the APY, but you need at least $0.01 to open an account.

Q4: Are there any fees?
A: SoFi doesn't charge monthly maintenance fees or require minimum balances.

Q5: How accurate is this calculator?
A: This provides an estimate based on the inputs. Actual earnings may vary slightly due to rounding and potential rate changes.