High Yield Savings pays a tiered interest rate set by your Average Daily Balance for the month. This article explains how your Average Daily Balance is calculated, how interest accrues and is paid, and where to see your interest in the Branch App. It applies to workers with a Premier Wallet who have opened High Yield Savings.
Your High Yield Savings interest rate is variable and can change based on market conditions. Your rate is shown in the Branch App.
How your Average Daily Balance determines your High Yield Savings rate
Your Average Daily Balance is the average of your High Yield Savings balance across every day of the month. Your rate for the month is set by that average rather than by your balance on any single day. A higher Average Daily Balance qualifies you for a higher interest rate, and a lower Average Daily Balance qualifies you for a lower interest rate.
High Yield Savings uses an Average Daily Balance rather than a single-day balance so that one day's activity doesn't set your rate for the whole month. A temporary decrease in your balance doesn't by itself determine your rate for the month, and a deposit made near the end of the month doesn't change the Average Daily Balance for the days before that deposit.
Example: If you keep $5,000 in High Yield Savings for the first 29 days of a 30-day month and withdraw all of it on day 30, your Average Daily Balance for that month is $4,833.33, not $0. The withdrawal on the final day doesn't erase the balance you held for the previous 29 days.
How interest accrues on High Yield Savings
Interest on High Yield Savings accrues daily, based on your High Yield Savings balance and the interest rate that applies to it. The interest earned across the month is paid into your High Yield Savings as a single credit on the third of the following month. If the third falls on a weekend or holiday, it's paid on the next business day.
Interest accrues in the background rather than being added to your balance each day, so your High Yield Savings balance doesn't increase day to day. The full month's interest arrives as one credit.
If your interest rate changes partway through the month, interest is calculated separately for each period at the rate that was in effect during that period, then added together for the monthly payment.
Your monthly interest total appears in your statement once the interest is paid. Daily accrual totals aren't shown in the Branch App. Interest isn't paid for the month in which High Yield Savings closes.
Example: If your High Yield Savings rate changes on the 15th of a 30-day month, interest for days 1 through 14 is calculated at the earlier rate and interest for days 15 through 30 is calculated at the new rate. Both amounts are added together and paid as one credit.
Where to view your High Yield Savings interest
To see your most recent High Yield Savings interest payment and the date it was paid, tap Save Funds from your Wallet in the Branch App.
In addition to your Branch statement, you receive a High Yield Savings statement each month listing your deposits, withdrawals, interest earned, and ending balance for that month.