Empower Federal Credit Union offers "Share Certificates," which are the credit union equivalent of Certificates of Deposit (CDs) found at traditional banks. This calculator helps members estimate the growth of their savings based on current APY (Annual Percentage Yield) rates and term lengths.
When you invest in a Share Certificate, you agree to lock your funds away for a specific period, known as the term. In exchange, the credit union typically pays a higher dividend rate compared to standard savings accounts. The interest usually compounds monthly, allowing your money to grow faster over time.
How to Use This Calculator
To get an accurate projection of your investment return, follow these steps:
Deposit Amount: Enter the total amount of money you plan to invest in the certificate initially. Empower FCU typically has minimum deposit requirements (often $500) for their certificates.
Term Length: Input the duration of the certificate in months. Common terms include 6, 12, 24, 36, 48, or 60 months. Promotional terms (like 13 or 15 months) are also common.
APY %: Enter the current Annual Percentage Yield offered for the specific term you are interested in. You can find these rates on the official Empower FCU website or at a local branch.
Maximizing Returns with a CD Ladder
One popular strategy for Share Certificate investors is "laddering." Instead of putting all your funds into a single 5-year certificate, you split the money into different terms (e.g., 1 year, 2 years, 3 years, 4 years, and 5 years).
As each certificate matures, you reinvest the funds into a new long-term certificate. This strategy provides regular access to a portion of your cash (liquidity) while still taking advantage of the generally higher rates associated with longer terms.
Why Choose Credit Union Certificates?
As a not-for-profit cooperative, Empower FCU often returns profits to members in the form of higher savings rates and lower loan rates. Share certificates are insured by the NCUA (National Credit Union Administration) up to $250,000, making them a low-risk investment option for conservative savers looking to beat inflation.
function calculateEmpowerCD() {
// Get input values
var principal = parseFloat(document.getElementById('depositAmount').value);
var months = parseFloat(document.getElementById('termMonths').value);
var rate = parseFloat(document.getElementById('apyRate').value);
// Validation
if (isNaN(principal) || principal < 0) {
alert("Please enter a valid positive deposit amount.");
return;
}
if (isNaN(months) || months <= 0) {
alert("Please enter a valid term length in months.");
return;
}
if (isNaN(rate) || rate < 0) {
alert("Please enter a valid APY percentage.");
return;
}
// Calculation Logic
// Formula: A = P(1 + r/n)^(nt)
// P = Principal
// r = Annual Rate (decimal)
// n = Compounds per year (Assuming 12 for monthly compounding standard in FCUs)
// t = Time in years
var r = rate / 100;
var n = 12; // Monthly compounding
var t = months / 12; // Convert months to years
// Calculate total amount
var amount = principal * Math.pow((1 + (r / n)), (n * t));
// Calculate interest earned
var interest = amount – principal;
// Display Results
document.getElementById('displayDeposit').innerHTML = formatMoney(principal);
document.getElementById('displayInterest').innerHTML = formatMoney(interest);
document.getElementById('displayTotal').innerHTML = formatMoney(amount);
// Show result section
document.getElementById('results').style.display = 'block';
}
function formatMoney(number) {
return '$' + number.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}