Everything You Need to Know About Saving with Cadana

Introducing Cadana's New Savings Feature

Welcome to Cadana’s new Savings feature, designed to help you grow your funds effortlessly. With this feature, you can make daily deposits, earn interest, and even set up auto-save to make saving easier and more consistent. Here’s a quick overview of how it works and how to make the most of it.

How it Works

Flexible Deposits: You can deposit funds into your savings account at any time to start earning interest. Interest is calculated daily based on your account balance, ensuring you maximize your earnings regardless of when you deposit.

Withdrawal Flexibility: You have the freedom to withdraw your savings at any time. While withdrawals affect the amount eligible for daily interest, your remaining balance will continue to accrue interest without interruption.

Auto-Save Option: To make saving even easier, you can activate auto-save. With auto-save enabled, a fixed amount will be transferred to your savings account at the specified cadence, helping you build your balance consistently.

Interest Calculation: Interest accrues daily on the balance in your savings account and is summed up at the end of the 30-day cycle. This ensures consistent earnings throughout the 30-day cycle. Withdrawals will stop interest accrual on the withdrawn amount from the day it is removed, but the remaining balance will continue to earn interest daily. Interest accrued will be deposit in your account on the 1st of every month

Earn up to 4.03% APY: Maximize your savings with a competitive Annual Percentage Yield (APY). Interest is calculated daily, providing consistent growth on your balance.

NB: Annual Percentage Yield (APY) rate of return can change at any time. Check the savings app for the latest rates.

Daily Interest computation

Imagine you deposit $1,000 into your savings account with an Annual Percentage Yield (APY) of 4.03%.

Daily Interest Rate = APY ÷ number of days in a year.

Daily Interest = Savings Balance × Daily Interest Rate.

• Daily Interest Rate: 4.03% ÷ 365 = 0.0001104
• Daily Interest: $1,000 × 0.0001104 = $0.11

At the end of 30 days, if you don’t make any withdrawals or additional deposits:

• Total Interest Earned: $0.11 × 30 days = $3.30
• Total Balance: $1,000 + $3.30 = $1,003.30

Quarterly Savings Example

If you save $1,000 at an Annual Percentage Yield (APY) of 4.03% for 90 days (a quarter):

Daily Interest Rate:

APY ÷ 365 = 0.0001104 (0.01104%)

Interest Earned in 90 Days:

$1,000 × 0.0001104 × 90 = $9.94

Total Balance After the Quarter:

$1,000 + $9.94 = $1,009.94

Yearly Savings Example

If you save $1,000 for a full year (365 days) at the same APY of 4.03%:

Daily Interest Rate:

APY ÷ 365 = 0.0001104

Interest Earned in 1 Year:

$1,000 × 0.0001104 × 365 = $40.30

Total Balance After 1 Year:

$1,000 + $40.30 = $1,040.30

Enjoy the ease and benefits of daily interest on your savings!