Why did the Mighty Oak Emergency Fund APY change?

There has been an important update regarding the Annual Percentage Yield (APY) for our Acorns Mighty Oak Emergency Fund. 

On 9/19/24, the APY for the Mighty Oak Emergency Fund changed from 5.00% to 4.85%.

Additionally, on 9/23/24, the Mighty Oak Emergency Fund APY changed again to 4.52%.

Please note that the Mighty Oak Card (MOC) Checking account APY remains unchanged at 3.00%.

Why did the APY change?

APYs are subject to regular fluctuations. APY changes can happen when the Federal Reserve (the USA's central bank) adjusts national interest rates. When national interest rates decrease, banks offer lower APYs. When national interest rates increase, banks typically follow suit.

Check out this YouTube short for more info. 

Why did the Mighty Oak Emergency Fund APY change twice?
Good question! The first change, to 4.85% APY, was based on economists’ and analysts’ rate cut predictions. When the Federal Reserve announced the actual cut on 9/18/24, it was bigger than expected, so your APY changed again on 9/23/24.

Remember — it’s normal for APYs to go up and down over time. We’ll continue to keep you up to date so you understand what’s happening and why.

To learn more about APY, check out Learn in your Acorns app by tapping the links below. 
Understanding APY
What happens when interest rates go up or down?