Earned Interest for User Accounts

Interest Accrual

Interest is accrued and disbursed monthly to accounts that provide interest. This is done automatically (on the 1st of the month) and not initiated by the platform. Synapse will also track fractional interest to distribute when the fractional interest reaches an integer amount.

The interest transaction’s from node is an EXTERNAL-US node. You can distinguish these transactions by looking in the meta field for type: INTEREST. For transactions hitting subaccounts you want to check the meta field for type: REWARD. Please note that the legal name and notes of the incoming transaction may change, so we do not recommend building your logic to rely on those fields.

1099-INT Tax Forms

For IB-DEPOSIT-US, and IC-DEPOSIT-US nodes, Synapse will generate users' 1099-INT tax forms at the end of the year. This can be accessed via an API call.

For IB-SUBACCOUNT-US nodes, 1099-INT tax forms are not applicable because the end-users are receiving rewards, rather than interest. In this case, Synapse only generates a platform's 1099-INT tax forms for their fiduciary account.