Understanding Shopify Balance Annual Percentage Yield (APY) Rewards
With Shopify Balance, you can earn rewards based on the funds held in your Shopify Balance account through an Annual Percentage Yield (APY).
Eligibility
All Shopify Balance accounts that are open and in good standing are eligible to receive APY rewards. For more information, refer to the Shopify Balance terms of service and Shopify Balance Yield Reward terms of service.
Earning APY rewards
The APY reward amount for your Shopify Balance account is calculated daily based on your closing balance and the current APY rate. This reward is then paid out monthly into your Shopify Balance account. The APY rate is variable and is subject to change without notice.
APY rewards are accured in all of your Shopify Balance accounts. If you have multiple Shopify Balance accounts, then the APY reward is accrued and paid on each account individually, not just the main Shopify Balance account.
APY reward deposits
APY rewards are deposited into the Shopify Balance account on the 5th of the following month. If the 5th is on a weekend or holiday, then the APY reward is deposited the next business day. The reward is paid only in whole cents with a minimum of $0.01.
After credited to your Shopify Balance account, the APY reward is compounded monthly, provided that the APY reward payment isn't withdrawn. The payout date can change at Shopify’s discretion.
Find the current APY rate
You can find the latest APY rate at https://www.shopify.com/balance or through your Shopify admin.
Steps:
- From your Shopify admin, go to Finances > Balance.
- The current APY rate can be found on the Cashflow insights card.
Opting out of receiving APY rewards
At present, opting out of receiving APY rewards through Shopify Balance isn't available. If you prefer not to accept APY rewards due to personal or religious reasons, then you need to close your Shopify Balance account.
APY reward calculation examples
Review the following examples to understand how APY rewards are calculated and how different scenarios impact them. These calculations assume no additional deposits or withdrawals during the specified periods. The APY reward is compounded monthly if not withdrawn, and the total reward amount includes all earnings during the specified periods.
The APY rate is an annual rate, and each day represents a small portion of that rate. This small portion is referred to as the prorated APY rate.
| Scenario | APY rate | Reward calculation (days in the month x daily closing balance x prorated APY rate) | Reward amount | Total balance |
|---|---|---|---|---|
| New account opened on June 1 with $10,000 deposit | 5% | 30 days x $10,000.00 x 0.000134 | $40.20 | $10,040.20 |
| APY rate increases to 5.5% on July 5 | 5.5% | (4 days x $10,000.00 x 0.000134) + (27 days x $10,040.20 x 0.000147) | $45.21 | $10,085.41 |
| New $20,000 deposit on August 1 | 5.5% | (4 days x $30,040.20 x 0.000147) + (27 days x $30,085.41 x 0.000147) | $137.07 | $30,085.41 |
From June 1 to August 31, the Shopify Balance account has received $222.48 in APY rewards.