Use this calculator to estimate your potential earnings on a Certificate of Deposit (CD) with Alliant Credit Union, based on their current rates.
Understanding Alliant Credit Union CD Rates
Certificates of Deposit (CDs) are a popular savings tool offered by financial institutions like Alliant Credit Union. They allow you to deposit a sum of money for a fixed period (the term) in exchange for a guaranteed interest rate, known as the Annual Percentage Yield (APY). This means your money grows predictably over time, and you typically cannot access it without penalty until the CD matures.
Alliant Credit Union is known for offering competitive rates on its savings products, including CDs. When choosing a CD, it's crucial to consider the following:
Initial Deposit: This is the amount of money you will initially invest in the CD.
Annual Percentage Yield (APY): This reflects the total amount of interest you will earn in a year, including compounding. A higher APY means your money grows faster. Alliant's CD rates can vary significantly based on the term length and current market conditions.
Term Length: This is the duration for which you agree to keep your money deposited. Common terms range from a few months to several years. Longer terms often come with higher APYs, but they also mean your money is locked up for a longer period.
Our calculator helps you estimate how much interest you could potentially earn on your Alliant CD. Simply input your desired initial deposit, the current APY offered by Alliant for a specific term, and the length of that term in months. The calculator will then provide an estimate of your total earnings at the end of the term. Remember that this is an estimate, and actual earnings may vary slightly due to compounding frequency and any potential fees or early withdrawal penalties.
Example Scenario: Let's say you have $5,000 to deposit and find an Alliant CD offering a 4.75% APY for a 12-month term. By entering these values into the calculator, you can see how much interest you'd earn on that $5,000 over the year.
function calculateCdEarnings() {
var initialDeposit = parseFloat(document.getElementById("initialDeposit").value);
var annualPercentageYield = parseFloat(document.getElementById("annualPercentageYield").value);
var termInMonths = parseInt(document.getElementById("termInMonths").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(initialDeposit) || initialDeposit <= 0) {
resultDiv.innerHTML = "Please enter a valid initial deposit amount.";
return;
}
if (isNaN(annualPercentageYield) || annualPercentageYield < 0) {
resultDiv.innerHTML = "Please enter a valid APY (e.g., 4.75).";
return;
}
if (isNaN(termInMonths) || termInMonths <= 0) {
resultDiv.innerHTML = "Please enter a valid term length in months.";
return;
}
// Convert APY to a decimal for calculation
var interestRateDecimal = annualPercentageYield / 100;
// Calculate total earnings. A common simplification for APY is to assume it represents the total growth over the year.
// For a precise calculation considering compounding frequency within the year, more complex formulas would be needed.
// However, for a user-friendly calculator based on APY, a straightforward annual growth calculation is typical.
// We'll calculate the total value at the end of the term and then subtract the initial deposit to get earnings.
// Using the formula for compound interest: A = P(1 + r/n)^(nt)
// Where:
// A = the future value of the investment/loan, including interest
// P = the principal investment amount (the initial deposit)
// r = the annual interest rate (as a decimal)
// n = the number of times that interest is compounded per year
// t = the number of years the money is invested or borrowed for
// For simplicity and direct use of APY, we can approximate the total value.
// If APY is given, it already accounts for compounding within a year.
// So, for a term 't' in years, Total Value = P * (1 + APY)^t
var termInYears = termInMonths / 12;
var totalValue = initialDeposit * Math.pow((1 + interestRateDecimal), termInYears);
var totalEarnings = totalValue – initialDeposit;
resultDiv.innerHTML = "Estimated Total Earnings: $" + totalEarnings.toFixed(2);
}