What's the interest rate?
Elevault's current interest rate is 5.00%, which comes out to an APY of 5.13%.
💡 Why are these different?
The APY (Annual Percentage Yield) is higher than the interest rate (often referred to as the nominal rate) because the APY includes the extra money you earn from interest compounding throughout the year, whereas the current interest rate doesn't.
This means with APY, you're earning interest on your interest, not just your original amount. 🥳
How is the interest rate calculated?
Elevault’s interest rate is calculated as prime minus 3.50%.
The prime rate is a base interest rate used often by banks to set their own, and it's influenced by the US Federal Reserve.
As of July 27, 2023, the prime rate is 8.50%.
So, prime (8.50%) minus 3.50% = Elevault's 5.00% interest rate.
From there, the APY is slightly higher (5.13%) to account for the effect of interest compounding over the year.
How often is interest paid?
Elevault pays you interest daily, so you earn a little bit more every day!
This means each day's interest is based on a slightly bigger amount than the day before, boosting your earnings over time.
This daily boost helps increase your total interest for the year, making the APY higher than just the basic interest rate.
Where do I see my interest?
You'll see an Interest Paid deposit from us in your Main Vault's transaction history, every day.
Tap the top block in your Elevault dashboard to view the total dollar amount you've earned in interest so far this year (Interest YTD) as well as the current interest rate.
The fine print
Elevault's interest rate is variable and is subject to change at any time.
Elevault pays you daily interest based on the total balance you have across your Vaults.
For more information about our rate changes/calculations, please see our Terms & Conditions or feel free to contact us.