Article URL: https://docs.carolinacloud.io/organizations/prepaid-interest/ Comments URL: https://news.ycombinator.com/item?id=49107713 Points: 32 # Comments: 19

Your organization’s prepaid credits earn interest. We pay a SOFR-referenced rate, compounded daily, on the real-money balance an admin has purchased — the same way a bank pays interest on a deposit. Idle prepaid credit isn’t dead money: it grows until you spend it. Interest is paid only on prepaid credits — the balance you bought (see Prepaid Credits). Free trial/promo credits never earn interest, which is one of the reasons the two buckets are tracked separately. This interest is paid in Carolina Cloud credits, added to your prepaid balance to spend on compute and storage. It is not cash interest, not a cash deposit, and not redeemable for cash. Carolina Cloud is not a bank, and your prepaid balance is not a bank deposit or money-market account — “like a bank” describes the math, not a banking relationship. The rate tracks SOFR (the Secured Overnight Financing Rate), the benchmark overnight interest rate published every business day by the Federal Reserve Bank of New York. By default we pay the full SOFR rate — no spread skimmed off — which typically beats what a bank pays on a comparable deposit, since banks usually pay SOFR minus a margin. We follow the standard bank/market convention so the numbers are auditable and reproducible: Illustrative example. With SOFR at 4.31% and a $10,000 prepaid balance, you’d earn roughly $10,000 × 4.31% × (1 ÷ 360) ≈ $1.20 on the first day, then a hair more each following day as it compounds — about $440 over a year (≈4.40% APY) if the rate held steady. The actual figure moves with SOFR. Every organization with a prepaid balance above zero earns interest automatically. There’s no opt-in, no minimum term, and no minimum balance beyond having prepaid credit on the books. Spend the balance down and accrual simply scales with whatever is left; top it up and the larger balance earns more the very next day. Interest figures appear on the My Organization page (sidebar → Usage & Billing → My Organization), alongside your trial/prepaid balance breakdown: