What are tiered margin rates and how are they structured?

Tiered margin is a pricing structure where the interest rate used to calculate your daily accrued margin interest depends on the size of your settled debit balance, with larger balances corresponding to lower margin interest rates.

At the end of each day, the settled debit balance falls into its respective tier, and the margin interest for that day is calculated as the upper bound of the Target Federal Funds Rate range plus an additional amount. As the Federal Reserve changes its rates, the margin rate changes accordingly.

Settled Debit Balance	Interest Rate
Up to $50,000	Target Fed Funds + 5.75%
$50,000 up to $100,000	Target Fed Funds + 5%
$100,000 up to $200,000	Target Fed Funds + 4.50%
$200,000 up to $500,000	Target Fed Funds + 3.50%
$500,000 up to $1 million	Target Fed Funds + 3%
$1 million up to $10 million	Target Fed Funds + 2%
$10+ million	Target Fed Funds + 1%

SoFi offers tiered margin interest rates determined by the settled debit balance in your self-directed brokerage account. For additional details on these tiers and applicable interest rates, please refer to the SoFi Invest Fee Schedule.

Note: To view the current Target Federal Funds Rate range published by the Federal Reserve, please visit the following page.