Circle Yield APY Calculator

Your Deposit

Choose your no cost term
Earned interest with Circle Yield

*Rates are purely indicative and are subject to change pending availability, approval and market conditions.

$

1 Month Fixed Term

0.5% Fixed Rate

Rates are purely indicative and are subject to change pending availability, approval and market conditions. Terms are based on a 30 day calendar month.

Get started with Circle Yield

Schedule a meeting with a product specialist to learn how your company can start earning higher yield on idle cash.

How to Calculate APY with Circle Yield

In low-interest rate environments, corporate treasurers looking to optimize their cash positions may take on higher credit risks or longer-duration strategies to earn higher returns.

 

With the recent increase in popularity of digital assets, there are new short-term fixed-income strategies corporate treasurers can use to earn superior returns on their cash.

 

Using one of the fastest-growing fiat-backed dollar digital currencies, USD Coin (USDC), corporate treasurers can generate yield with less complexity than what is typically associated with crypto investments.

 

We’ll cover how Circle Yield’s interest rates compare to traditional, financial markets, explore how alternative short-term yield products using USDC can produce superior yields and demonstrate how to calculate USDC yields.

Current Circle Yield Interest Rates

Circle Yield, an institutional product built on USDC, offers short fixed-income terms ranging from from one to twelve months, with current interest rates of:

Fixed Short Term**

Retain flexibility by allocating over a shorter duration.

0.5 % 1 month fixed rate
0.5 % 3 month fixed rate
Fixed Long Term**

Earn higher rates by locking in funds for longer.

0.5 % 6 month fixed rate
0.5 % 12 month fixed rate

Rates are purely indicative and are subject to change pending availability, approval and market conditions.

How is Circle Yield’s interest generated?

The USDC yield from short-term cash investments in Circle Yield is generated from interest payments paid by USDC borrowers through Circle’s lending partners.

 

Because there is an increasing demand for dollar digital currencies like USDC in the crypto lending markets, companies seeking higher yields on short-term cash assets may consider segmenting some of their strategic capital into institutional USDC yield products.

 

Yield is generated through lending USDC out to centralized (CeFi) blockchain-based lending markets, which offer the ability to earn a higher fixed-term yield than what is currently available in the traditional financial markets. Circle Yield is offered in the form of a private placement by Circle International Bermuda Limited (“Circle Bermuda”) and subject to oversight by the Bermuda Monetary Authority under Circle Bermuda’s Class F Digital Asset Business license. Advances are overcollateralized by BTC collateral held with a qualified custodian on behalf of Circle Yield customers.

How are Circle Yield’s interest rates determined and how frequently do they change for new deposits?

Rates for new deposits are updated on a weekly basis and are primarily determined by the market demand for borrowing USDC from institutional investors, hedge funds, and trading firms that borrow from Circle’s borrowers.

What’s the difference between simple interest and compounding interest?

Simple interest is calculated on an annualized basis whereas compounding interest adds the amount accrued for each compounding interval to the principal investment.  

 

Circle Yield and the Circle Yield Calculator use a simple interest model, with payments made to Circle Yield customers monthly and the principle returned at the end of the term. Read on to learn how the simple interest calculation works.

How to Calculate APY with Circle Yield

To calculate APY generated from Circle Yield, you need four pieces of information and the simple interest formula:

  • A = accrued amount, or the principal investment plus the interest earned
  • P = principal investment amount (P)
  • r = interest rate percentage (as a decimal)
  • t = duration of the investment (in years as a decimal)

Once you have the simple interest formula variables, plug them into the following equation to calculate APY.

A = P(1 + rt)

Circle Yield APY Calculation Example

If Alice deposits the minimum amount of USDC ($100,000) into a 12-month term that offers 5.00% simple interest, she would calculate her accrued amount as follows:

 

Accrued Amount = 100,000 * (1 + (0.05*1))

 

Their total accrued amount would equal $105,000.

 

If her term was 1 month* and her interest rate was 2.50%, the equation would look like this:

 

Accrued Amount = 100,000 * (1 + (0.025*0.08333)

 

Their total accrued amount would equal $100,208.33.

 

If your math does not look right, make sure your variable (t) is years:

 

  • 1 month: t = 1/12 = 0.08333
  • 3 months: t = 1/4 = 0.25
  • 6 month: t = 1/2 = 0.50
  • 12 months: t = 1

 

*Terms are based on a 30 day calendar month

If you’re looking to segment cash out of traditional fixed-income cash investments like CDs into a superior yielding short-term cash product, this Circle Yield APY calculation can help you determine how much interest you could generate based on your liquidity requirements (i.e. how long you can lock up cash), and your risk profile (i.e. how much cash to deposit).

How do Circle Yield interest rates compare to traditional fixed-income investments?

Circle Yield’s interest rates offer superior returns compared to traditional fixed-income investments.

FIXED INCOME INSTRUMENT

PROVIDER

INTEREST RATE

Overnight bank funding rate***

New York Fed [4]

1.57%

4-week Treasury Bill**

Daily Treasury Bill Rates [1]

1.18%

1-month CD*

FDIC National Rate Cap [2]

1.63%

8-week Treasury Bill**

Daily Treasury Bill Rates [1]

1.57%

90-day AA Nonfinancial Commercial paper

U.S. Government [3]

1.07%

90-day A2/P2 Nonfinancial Commercial paper

U.S. Government [3]

2.71%

3-month CD*

FDIC National Rate Cap [2]

2.14%

13-week Treasury Bill**

Daily Treasury Bill Rates [1]

1.66%

3-month USDC Yield****

Circle Yield [6]

3mo rate

6-month CD*

FDIC National Rate Cap [2]

2.72%

26-week Treasury Bill**

Daily Treasury Bill Rates [1]

2.43%

6-month USDC Yield****

Circle Yield [6]

6mo rate

12-month CD*

FDIC National Rate Cap [2]

3.25%

52-week Treasury Bill**

Daily Treasury Bill Rates [1]

2.73%

12-month USDC Yield****

Circle Yield [6]

12mo rate

Ultra short term bond fund (12-month yield)

PIMCO short-term instl [5]

.73%

In comparison to traditional fixed-income investments, products like Circle Yield can offer superior returns.

How to start earning with Circle Yield

To start earning higher yields on your short-term cash holdings, connect with a member of our team by completing this form.


Then, once you sign up for a Circle Account, qualified accredited investors can deposit USDC, allocate into Circle Yield and receive your interest payment each month. Businesses can renew loans at maturity for continued growth over time.

 

 

Conclusion

Circle Yield is an innovative way for qualified accredited investors to gain exposure to crypto market activity within a clear regulatory framework.

 

With a fully secured offering, Circle Yield gives you an opportunity to generate yield on strategic cash assets.

Get started with Circle Yield

Circle Yield is an innovative way for qualified accredited investors to gain exposure to crypto market activity within a clear regulatory framework.

With a fully secured offering and exceptional partnership, Circle Yield offers an opportunity to preserve capital and generate yield on strategic cash assets.

Disclosures

*Offering subject to business approval, geographical availability**, and regulatory authorization, and there is no guarantee that the product will become available in a specific timeframe or to a specific customer or geography. Circle Yield product offered through Circle International Bermuda Limited (“Circle Bermuda”). Circle Bermuda has entered into lending arrangements with one or more institutional borrowers.  These borrowers pledge and transfer Bitcoin into custody with a third party custodian as collateral for their USDC borrowings and Circle Yield investors benefit from a security interest in Circle Bermuda’s security interest in the pledged Bitcoin.
Circle Account and money transmission services are provided by Circle Internet Financial, LLC or, for customers using Circle Account services located in the United Kingdom, Circle UK Trading Company Limited. Circle Internet Financial, LLC, NMLS # 1201441, is a licensed provider of money transmission services. Circle Payments, LLC, DFPI Money Transmitter License # 2549, is registered under the California Department of Financial Protection & Innovation. A full list of Circle’s licenses can be found here.
Circle is not a bank; your Circle Account is not a bank account, and any funds are not insured by the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation or by any US or foreign government agency, insurance fund, person or entity. For investors in the United States, investments described in this communication are offered by Circle Bermuda to “accredited investors” only in accordance with Regulation D, Rule 506(c) of the Securities Action of 1933, as amended. While Circle Bermuda is regulated by the Bermuda Monetary Authority for digital asset business, Circle Bermuda is not engaged in banking and deposit taking activities and is not regulated for these purposes. You should carefully conduct your own investigations and analyses in connection with any participation in this product, including its objectives, risk factors, fees and expenses and the information set forth in these materials. All prospective participants in the products described herein are advised to consult with their legal, accounting and tax advisers regarding any potential participation. Please read the offering documents carefully before you invest. Additional information is available upon request.
**Rates are purely indicative and are subject to change pending availability, approval and market conditions. Withdrawal requests for fixed term accounts could take up to 72 hours in high withdrawal periods and will be subject to an early withdrawal penalty.
*** Not currently available in the following U.S. states: Alaska, Minnesota, New York and Hawaii.