Originally Posted by lgame
trying to calculate how much i would have at the end of cd term but dont know if im doing the math correctly..(ex...)-if the deposit amount to open the cd account was $5000 for a 5 month term and we didnt deposit any extra money after and the apy was 2.55%...how much money would we have total after the 5 month term?
I note that you use APY instead of APR. Is there a reason for this? Let's assume monthly compounding using a 30/360 daycount convention:
Monthly interest rate= (1+2.55/100)^(1/12)-1=0.210463%
Interest rate for five months=1.00210463^5=1.056755%
Total amount in your account after five months, with 2.55% interest, assuming monthly compounding:
Are you locked into this CD? There's several FDIC insured banks out there that have savings
accounts with yields over 3% (USD deposits). On a site like this, I'm going to encourage due-diligence, so I would recommend googling the following financial institutions:
HSBC Direct (3.25%)
Also, WaMu is offering a 5% 12 month CD. You shouldn't have to put up with 2.55% interest anywhere
right now. Shoot for 4% or better- just make sure it's FDIC-insured.