Ridgewood Savings Bank CD Calculator
How to Use the Ridgewood Savings Bank CD Calculator
Planning your savings strategy with Ridgewood Savings Bank requires understanding how time and yields work together. This calculator helps you project the future value of your Certificate of Deposit (CD) based on the specific terms offered by the bank.
Step 1: Enter your Opening Deposit. This is the lump sum you intend to lock into the CD for the duration of the term. Ridgewood often has specific minimums for "Value" or "Premier" CD accounts.
Step 2: Input the Annual Percentage Yield (APY). Unlike a simple interest rate, the APY accounts for the effect of compounding within a 365-day period, giving you a more accurate look at your actual return.
Step 3: Define the Duration in months. Ridgewood Savings Bank frequently offers "special" terms, such as 7-month, 13-month, or 21-month CDs, which often carry higher yields than standard 1-year or 2-year terms.
Example Calculation
If you deposit $10,000 into a Ridgewood 13-month Special CD with an APY of 4.25%, and the interest compounds Daily, your results would look like this:
- Opening Amount: $10,000
- Duration: 13 Months
- Maturity Value: ~$10,469.74
- Total Yield: ~$469.74
Understanding Compounding at Ridgewood
Most Ridgewood Savings Bank CD products utilize daily or monthly compounding. Compounding frequency is vital because it determines how often your earned interest is added back to your principal to earn even more interest. The more frequent the compounding (e.g., daily), the higher your effective return over long periods.
Why Choose a Ridgewood CD?
Ridgewood Savings Bank is a mutual savings bank, which means it is owned by its depositors rather than stockholders. This often allows them to offer competitive APY rates on CDs compared to large national commercial banks. CDs are also FDIC-insured, making them a low-risk vehicle for growing your New York-based savings or retirement funds.