Interest is accrued daily based on your balance, and paid out on the first day of each month. This means that the more you keep in your account over the month, the more interest you’ll earn. You will forfeit any interest earned by closing your account before the first of next month.
Example of earning interest over time
This would be the interest that’s earned over a 3 month period if you start with $2,000 in your account and have a 4.00% APY. To simplify things, let’s say interest is accrued and paid out monthly. The interest rate would be 1/12th of 4.00%, or about 0.333%. This is good, because the 0.333% is calculated based on your current month’s balance, so as long as you don’t withdraw money, it’ll give you more interest every month.
You earn the accrued interest on the 1st of the following month. Let’s say you decide to have a $150 recurring deposit to your account as well.
With the additional $150 a month you’re putting aside, your interest is calculated on a higher balance. With Dave, since interest is accrued daily, changes in your account balance day-to-day will affect how much more or less interest you’ll earn on the first of the following month.
If you need some extra help, please contact our Member Success team by navigating to your settings in the Dave app, then scroll down and Chat with us.