Carolina Cloud pays SOFR on unused prepaid credits
Carolina Cloud has introduced a feature where prepaid customer credits earn interest based on the Secured Overnight Financing Rate (SOFR). This interest is paid in service credits rather than cash and is designed to provide value on idle account balances.
Why it matters
It represents a novel financial model for cloud service providers, effectively turning prepaid accounts into interest-bearing assets for customers.
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.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in