# Shopify Balance rewards

## Shopify Balance Annual Percentage Yield (APY) reward

Based on the amount of money you hold in your Shopify Balance account, you earn monthly rewards based off of an annual percentage yield (APY).

The APY reward amount for your Shopify Balance account accrues daily using your closing balance and the current APY rate. The reward is paid out on a monthly basis into your Shopify Balance account. The APY rate is variable and is subject to change without notice. You can find the current APY rate in your Shopify admin.

The APY reward is deposited into your 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Shopify Balance account, the APY reward is compounded on a monthly basis provided that the APY reward payment isn't withdrawn. The payout date can change at Shopify’s discretion.

### Examples of APY calculations

Review the following examples to understand how APY is calculated, and how different situations affect it.

Calculating the APY reward amount

For example, a new Shopify Balance account is opened on June 1 and \$10,000.00 is deposited. That deposit stays in the Shopify Balance account throughout the month of June, without any additional deposits or withdrawals.

Additionally, in June, Shopify’s APY rate stays at 5%.

On July 5, the Shopify Balance account will receive an APY reward for the money held during the month of June, based on the prorated APY rate. 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.

• Reward = days in the month (30) x daily closing balance (\$10,000.00) x prorated APY rate (0.0134%)
• Reward = 30 x 10,000.00 x 0.000134
• Reward = \$40.20

After the APY reward is deposited into the Shopify Balance account on July 5, the account will hold \$10,040.20.

APY reward compounding and APY rate change

In the example above, the Shopify Balance account earned \$40.20 during the month of June from their initial balance of \$10,000.00 because of the 5% APY reward. Continuing this example, starting July 5, Shopify's APY rate increases to 5.5%. There are no new deposits or withdrawals.

Considering the above, the Shopify Balance account will receive an APY on August 5 as follows:

From July 1 until July 4, the Shopify Balance account still held \$10,000.00 (because the APY reward is deposited on the 5th of the following month), and the APY rate was still 5%.

• Reward = days (4) x daily closing balance (10,000.00) x prorated APY rate (0.0134%)
• Reward = \$5.36

From July 5 until July 31, the Shopify Balance account’s balance had increased to \$10,040.20 because of the APY reward. Also, the APY rate increased from 5% to 5.5%.

• Reward = days (31 - 4) x daily closing balance (10,040.20) x prorated APY rate (0.0147%)
• Reward = 27 x 10,040.20 x 0.000147
• Reward = \$39.85

The total APY reward amount for July is \$45.21 (\$5.36 + \$39.85)

Calculating the APY Reward amount after a deposit

Continuing the example above, the Shopify Balance account receives a new deposit of \$20,000.00 on August 1. No additional deposits or withdrawals happen in August. Shopify’s APY rate stays at 5.5%.

This means that, starting August 1, the Shopify Balance account holds \$30,040.20 (\$10,040.20 + \$20,000.00).

Similar to the scenario above:

From August 1 to August 4, the Shopify Balance account held \$30,040.20 and the APY rate was 5.5%.

• Reward = days (4) x daily closing balance (30,040.20) x prorated APY rate (0.0147%)
• Reward = \$17.66

From August 5 until August 31, the Shopify Balance account balance had increased to \$30,085.41 because of the APY reward from July (\$30,040.20 + \$45.21). The APY rate was 5.5%.

• Reward = days (31 - 4) x daily closing balance (30,085.41) x prorated APY rate (0.0147%)
• Reward = 27 x 30,085.41 x 0.000147
• Reward = \$119.41

The total APY reward amount for August is \$137.07 (\$17.66 + \$119.41)

From June 1 until August 31, the Shopify Balance account has received \$222.48 in APY rewards.

### Find the current APY rate

2. The current APY rate can be found on the Cashflow insights card.

## Shopify Balance Cashback

The Shopify Balance account offers a number of rewards on eligible purchases made using your Shopify Balance card. All current rewards are listed on the Shopify Balance rewards page in your Shopify admin.

When you make eligible purchases from Shopify using your Shopify Balance card, a percentage of the purchase price is deposited into your Shopify Balance account up to a maximum of 2000 USD a year. The deposit doesn't include cashback from Shopify partners. Cashback is deposited into your Shopify Balance account on a monthly basis. This 2000 USD annual limit resets on January 1, regardless of the amount of cashback that you earned in the previous year. The limit does not carry over to the new year.

In order to receive cashback rewards, you must have your Shopify Balance card set as your primary payment method.

Eligible transactions include the following:

Shopify Balance eligible cashback transactions.
Transaction typePercentage of cashback
Shopify Shipping purchases2%
Shopify Email2%
Apps from the Shopify App store2%
Themes from theme store2%
Custom domains purchased through Shopify2%