SoFi Bank employs the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. The daily periodic rate is equal to 1/365 (or, in a leap year, we may use 1/366) times the interest rate for your Account.
Annual Percentage Yield (APY) is calculated using the following formula:
APY = 100[(1+ Interest/Principal)(365/Days in Term)-1]
For additional information about how APY is calculated, click here.