Space Coast Credit Union Cd Rates Calculator

Initial Deposit ($)

APY (%)

Term (Months)

function calculateCDInterest() { var principal = parseFloat(document.getElementById("principalAmount").value); var apy = parseFloat(document.getElementById("annualPercentageYield").value); var termMonths = parseInt(document.getElementById("termInMonths").value); var resultElement = document.getElementById("result"); resultElement.innerHTML = ""; // Clear previous results if (isNaN(principal) || isNaN(apy) || isNaN(termMonths) || principal <= 0 || apy < 0 || termMonths <= 0) { resultElement.innerHTML = "Please enter valid positive numbers for all fields."; return; } // APY is an annualized rate. To find the interest earned over the term, // we need to convert APY to a periodic rate (monthly in this case) // and then compound it over the term. // Formula to convert APY to daily rate, then compounded monthly: // (1 + APY/100)^(1/365) – 1 = Daily Rate // Monthly Rate = (1 + Daily Rate)^30 – 1 (approximating 30 days/month) // A more accurate way is to use the APY to find the equivalent monthly rate directly. // var r_m be the monthly rate and r_a be the annual rate (APY/100). // (1 + r_m)^12 = 1 + r_a // 1 + r_m = (1 + r_a)^(1/12) // r_m = (1 + r_a)^(1/12) – 1 var annualRateDecimal = apy / 100; var monthlyRate = Math.pow(1 + annualRateDecimal, 1/12) – 1; // Calculate the future value using compound interest formula // FV = P * (1 + r_m)^n var maturityValue = principal * Math.pow(1 + monthlyRate, termMonths); var totalInterestEarned = maturityValue – principal; resultElement.innerHTML = "Maturity Value: $" + maturityValue.toFixed(2) + "" + "Total Interest Earned: $" + totalInterestEarned.toFixed(2) + ""; }

Understanding Certificates of Deposit (CDs) and Calculating Your Returns

Certificates of Deposit (CDs) are a popular savings product offered by financial institutions like Space Coast Credit Union. They allow you to deposit a sum of money for a fixed period (the term) at a predetermined interest rate, often expressed as Annual Percentage Yield (APY). In return for committing your funds, CDs typically offer higher interest rates than traditional savings accounts.

When considering a CD, it's crucial to understand how your money will grow over time. The Annual Percentage Yield (APY) represents the total amount of interest you will earn on a deposit account over a year, including compound interest. It's important to note that APY assumes interest is reinvested for the full year. For CD terms shorter or longer than a year, the actual interest earned will be based on the stated APY and the exact term length.

Our Space Coast Credit Union CD Rates Calculator helps you estimate the potential earnings from your CD investment. By inputting your initial deposit, the CD's APY, and the term in months, you can quickly see the projected maturity value and the total interest you can expect to earn.

How the Calculation Works

The calculator uses the Annual Percentage Yield (APY) to determine the equivalent monthly interest rate. Since APY is an annualized figure, we convert it to a monthly rate using the formula: Monthly Rate = (1 + APY/100)^(1/12) – 1

Once the monthly rate is calculated, the calculator applies the compound interest formula to find the future value (FV) of your CD at the end of its term: Maturity Value (FV) = Principal * (1 + Monthly Rate)^Term (in Months)

The total interest earned is then simply the Maturity Value minus your Initial Deposit.

Example Calculation

Let's say you are considering a 24-month CD from Space Coast Credit Union with an APY of 4.75%. You plan to deposit $5,000.

Initial Deposit (Principal): $5,000
APY: 4.75%
Term: 24 Months

Using the calculator:

The monthly interest rate would be calculated based on the 4.75% APY.
The calculator would then compound this monthly rate over 24 months on your $5,000 deposit.

The projected result would show your total balance at maturity and the total interest earned over the two-year term, helping you make an informed decision about your savings.