How is APY calculated?

The formula for calculating APY is: Any investment is ultimately judged by its rate of return, whether it's a certificate of deposit (CD), a share of stock, or a government bond. The rate of return is simply the percentage of growth in an investment over a specific period of time, usually one year.

What is the difference between compound interest and APY?

Compound interest is the interest earned on the money you put into the account along with the interest that money receives over time. APY includes compound interest. And interest can be compounded daily, monthly or annually, depending on the account. Simple interest has not been compounded.

Who offers Sofi checking & savings?

SoFi Checking and Savings is offered through SoFi Bank, N.A. The SoFi® Bank Debit Mastercard® is issued by The Bancorp Bank pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted.

Is APY variable or fixed?

Savings or checking accounts may have either a variable APY or fixed APY. A variable APY is one that fluctuates and changes with macroeconomic conditions, while a fixed APY does not change (or changes much less frequently). One type of APY isn't necessarily better than the other.