The Supercharger Notice Period — The Extra Interest Adds Up Quickly!

The Supercharger notice period is an important aspect of the entire Freeway platform.

It gives us the chance to earn up to 10% more interest every year on our Supercharger holdings.

If you prefer to HODL your crypto rather than trade it, as I do, that extra interest can really add up, since it will continue to compound for as long as you maintain a notice period.

If you go for the 30-day notice period, in five years, an extra 10% interest on a $10,000 initial investment will earn you an additional $6,100 on top of the 20% base rate. Just for giving Freeway 30 days’ notice on any withdrawal (sale) of Supercharger funds.

How the Supercharger Notice Period Works

When you set the notice period, it applies to the assets you have in every Supercharger. You can’t have a 30-day notice for one and a 15-day notice for another.

You can change the notice period at any time. If you do, it applies to all the Superchargers.

If you go from a short notice period to a longer one, Freeway applies the longer one immediately. And you begin earning the higher interest rate immediately.

If you go from a long period to a shorter one, Freeway applies the shorter one after the difference between the two periods. For example, if you switch from a 30-day period to a 7-day period, Freeway shortens the period on the 23^rd day.

The 23^rd day is also when you’ll begin earning the 5% interest rate for the 7-day period.

Here’s an infographic from Freeway that shows how the Supercharger notice period works for three different circumstances.

This infographic illustrates how the Supercharger notice period works for three different circumstances. Courtesy of Freeway

Why Shorten the Notice Period?

I can only think of one reason to shorten the Supercharger notice period. If you know you’ll have an ongoing financial need for funds every 3, 7 or 15 days, then you’ll want to set the notice period to that length of time.

Once the initial period has expired, the shorter period will kick in and you’ll be able to withdraw funds every few days.

If you don’t need funds, and don’t think you’ll ever need them in less than 30 days, I recommend going for the full 30-day notice period. This will let you earn the full 10% extra interest every year.

Then, if you ever do need cash, request to sell some Supercharger funds. That amount will immediately stop earning interest. And 30 days later, Freeway will release the funds so you can complete the sale and receive your funds.

You could do that every month. If you sold some of your Supercharger equal to the previous month’s interest, you’d be able to withdraw the funds 30 days later, and never touch the principal.

How to Change the Supercharger Notice Period

The Freeway dashboard tells you which notice period is active.

Click on the gear icon or on Manage Notice Period to open an overlay.

If you want to change it, click on Manage Notice Period or on the gear icon on the far right. An overlay will appear.

Hover over one of the notice period options. It will turn green. Click on it to select that period.

The active notice period has a blue background. As you move your mouse over the other notice periods, they will turn green.

Click on the one you want to activate.

Keep Compounding in Mind When Considering a Change

Changing the Supercharger notice period from 30 days to 15 days will cost you $500 on a $10,000 investment. And that’s just for the first year.

The next year it will cost you $525, and the year after that $551.25. After 10 years, you’ll have lost over $500 in extra interest, assuming no withdrawals during that time.

The 7-day, 3-day and 0-day notice periods will cost you even more year after year.

So, for your financial wellbeing, go for the longest Supercharger notice period. Then plan your finances so that you can sell part of your Supercharger 30 days before you need it.

Falling Behind the Inflation Rate?

If rising prices are eating up your savings, Freeway may be just what you need to help you flourish during retirement.

Click the button below to join Freeway. By the end of the day, you could be earning 20% or more annual interest on the assets you deposit there.

Disclosure: If you join using the button, you’ll receive a bonus of 2% of the interest you earn, for the next two years. Freeway will also pay me for referring you.