Savings Interest Rates
Understand ClapPay savings interest rates.
Current Interest Rate
4.50% APY
*Rate as of January 2026. Subject to change.*
What Is APY?
APY = Annual Percentage Yield
It's the total interest you'd earn in one year, including compounding.
APY vs. Interest Rate
| Term | Meaning |
|------|---------|
| Interest Rate | Base rate without compounding |
| APY | Effective rate with compounding |
APY is always equal to or higher than the interest rate.
How Interest Is Calculated
Daily Accrual
Interest accrues every day:
- Daily rate = APY ÷ 365
- Applied to your balance
- Compounds daily
Monthly Payment
Interest is paid monthly:
- Accrued interest totaled
- Added to your balance
- Usually on the 1st
Example
$10,000 balance at 4.5% APY:
| Period | Calculation | Earnings |
|--------|-------------|----------|
| Daily | $10,000 × (4.5% ÷ 365) | ~$1.23 |
| Monthly | ~$1.23 × 30 | ~$37 |
| Yearly | Full year | ~$450 |
Rate Tiers
Our rate doesn't have tiers - you earn the same rate on any balance.
| Balance | APY |
|---------|-----|
| $1 - $250,000 | 4.50% |
Rate Changes
Interest rates can change:
- Based on Federal Reserve rates
- Economic conditions
- Business decisions
We'll notify you before rate changes.
Comparing Rates
| Account Type | Typical APY |
|--------------|-------------|
| Big bank savings | 0.01% - 0.05% |
| Online savings | 3.5% - 4.5% |
| ClapPay Savings | 4.50% |
Viewing Your Earnings
See interest earned:
- Open any vault
- View Interest Earned
- See daily, monthly, total
Or go to Savings → Interest History.
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