● Covered by 1 source · 1 reportLow impact1 neutral
Carolina Cloud now pays SOFR-referenced interest on unused prepaid credits
Key points
- Interest is paid on real-money prepaid credits, not promotional credits.
- The interest rate tracks SOFR, compounded daily.
- Interest earned is added to the prepaid balance and is fully spendable.
- There is no minimum balance or opt-in required for earning interest.
Interest on Prepaid Balances
Carolina Cloud now pays interest on customers' prepaid credits. This interest is calculated daily and compounded, using the Secured Overnight Financing Rate (SOFR) as a benchmark. The earned interest is added directly to the customer's prepaid balance, making it available for use on cloud services like compute and storage.
SOFR-Referenced Rate
The interest rate paid by Carolina Cloud tracks the full SOFR rate, which is published daily by the Federal Reserve Bank of New York. This approach aims to provide a competitive return on idle funds compared to traditional bank deposits, which often apply a margin below SOFR. The rate is never negative; if SOFR falls below zero, interest accrual stops at zero.
Calculation and Compounding
Interest accrues daily on an ACT/360 day-count basis, consistent with standard banking conventions. Daily compounding means that each day's interest is calculated on the slightly increased balance from the previous day, leading to a higher effective annual yield. The system also accounts for weekends and holidays by using the most recently published SOFR rate.
Eligibility and Usage
All organizations with a prepaid balance above zero automatically earn interest; no opt-in or minimum term is required. However, only real-money prepaid credits are eligible for interest; free trial or promotional credits do not accrue interest. The interest earned is fully spendable on Carolina Cloud services.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Primary sources
GitHub withastro/starlightReporting from
Carolina Cloud has implemented a system to pay interest on customers' unused prepaid credits, calculated daily based on the Secured Overnight Financing Rate (SOFR). This change means that prepaid balances will accrue interest, which can then be spent on compute and storage services.