Schwab Cd Rates Calculator

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Schwab CD Rates Calculator

Estimate your certificate of deposit earnings

Total Interest Earned: $0.00
Final Balance: $0.00

How to Use the Schwab CD Calculator

This calculator helps investors determine the potential growth of their funds when purchasing Certificates of Deposit (CDs) through Charles Schwab. Because Schwab acts as a brokerage, they offer "brokered CDs" which may have different yield structures than traditional bank CDs.

Key Factors for Schwab CDs:

  • Principal: The initial amount you intend to lock away. Most Schwab brokered CDs have a $1,000 minimum.
  • APY: The Annual Percentage Yield reflects the total amount of interest paid on an account, based on the rate and the frequency of compounding for a 365-day period.
  • Term Duration: This is the length of time you agree to keep your money in the CD. Schwab offers terms ranging from 1 month to over 10 years.

Example Calculation

If you invest $25,000 in a 24-month Schwab CD with an APY of 5.00%:

Year 1 Interest: $25,000 * 0.05 = $1,250
Year 2 Interest: ($25,000 + $1,250) * 0.05 = $1,312.50
Total at Maturity: $27,562.50

Benefits of Brokered CDs

Unlike traditional bank CDs, Schwab's brokered CDs are often "liquid" in the secondary market. This means you may be able to sell them before maturity without a standard early withdrawal penalty, though you may receive more or less than your original principal depending on current market interest rates.

function calculateSchwabCD() { var principal = parseFloat(document.getElementById('schwab_principal').value); var yieldApy = parseFloat(document.getElementById('schwab_yield').value) / 100; var months = parseFloat(document.getElementById('schwab_duration').value); if (isNaN(principal) || isNaN(yieldApy) || isNaN(months) || principal <= 0 || months <= 0) { alert("Please enter valid positive numbers for all fields."); return; } // Standard APY formula for total return over t years: A = P * (1 + r)^t // Convert months to fractional years var years = months / 12; // Calculation: Final Amount = Principal * (1 + APY)^Years var finalAmount = principal * Math.pow((1 + yieldApy), years); var totalInterest = finalAmount – principal; // Display results document.getElementById('total_interest').innerText = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('final_balance').innerText = "$" + finalAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('schwab_result_box').style.display = 'block'; }

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