Certificates of Deposit (CDs) offered by institutions like Univest Bank and Trust Co. are popular savings vehicles for individuals looking to grow their wealth with low risk. Unlike standard savings accounts, a CD locks your deposit for a specific term in exchange for a fixed interest rate. This Univest CD Rates Calculator helps you project exactly how much your money will grow over time, allowing for better financial planning.
How This Calculator Works
To accurately estimate your earnings, this tool uses the standard compound interest formula adapted for banking products. Here is a breakdown of the inputs required:
Initial Deposit Amount: The principal sum you intend to invest in the CD. Univest often has minimum deposit requirements for their special rate CDs.
Annual Interest Rate: The advertised rate for the specific CD term. Note that banks often advertise APY (Annual Percentage Yield), which takes compounding into account. If you enter the base interest rate, our calculator allows you to adjust the compounding frequency.
Term Length: The duration of the CD in months. Common terms range from 6 months to 60 months (5 years).
Compounding Frequency: How often the interest is calculated and added to your balance. Most consumer CDs compound interest daily or monthly.
Pro Tip: When comparing CD rates, always look at the APY rather than the simple interest rate. The APY includes the effect of compounding, giving you a truer picture of your actual return over a year.
Why Choose a Univest CD?
Univest typically offers competitive rates on their CDs compared to national averages. By locking in a rate today, you protect your earnings against potential future rate drops. This makes CDs an excellent hedge in a fluctuating economic environment.
Maximizing Returns with a CD Ladder
One strategy to utilize with this calculator is "CD Laddering." Instead of putting all your funds into a single 5-year CD, you might split the money into five separate CDs maturing in 1, 2, 3, 4, and 5 years. As each CD matures, you can reinvest the funds into a new 5-year term (usually offering higher rates). This strategy provides regular access to liquidity while taking advantage of longer-term rates.
Tax Considerations
It is important to remember that the interest earned on CDs is generally taxable as income in the year it is earned, even if you do not withdraw it. When using the result from the "Total Interest Earned" field above, consider your marginal tax bracket to estimate your net profit.
function calculateUnivestCD() {
// Get input values using var
var depositInput = document.getElementById('cdDepositAmount');
var rateInput = document.getElementById('cdRate');
var termInput = document.getElementById('cdTerm');
var compoundingInput = document.getElementById('cdCompounding');
var principal = parseFloat(depositInput.value);
var ratePercent = parseFloat(rateInput.value);
var months = parseFloat(termInput.value);
var compoundsPerYear = parseInt(compoundingInput.value);
// Validation to prevent NaN errors
if (isNaN(principal) || principal < 0) {
alert("Please enter a valid deposit amount.");
return;
}
if (isNaN(ratePercent) || ratePercent < 0) {
alert("Please enter a valid interest rate.");
return;
}
if (isNaN(months) || months <= 0) {
alert("Please enter a valid term in months.");
return;
}
// Logic for Compound Interest Calculation
// Formula: A = P * (1 + r/n)^(n*t)
// P = Principal
// r = annual rate (decimal)
// n = number of compounding periods per year
// t = time in years (months / 12)
var rateDecimal = ratePercent / 100;
var timeInYears = months / 12.0;
// Calculate Total Balance at Maturity
var base = 1 + (rateDecimal / compoundsPerYear);
var exponent = compoundsPerYear * timeInYears;
var totalAmount = principal * Math.pow(base, exponent);
// Calculate Interest Earned
var interestEarned = totalAmount – principal;
// Calculate Effective APY for display (Formula: (1 + r/n)^n – 1)
var apyDecimal = Math.pow((1 + (rateDecimal / compoundsPerYear)), compoundsPerYear) – 1;
var apyPercent = apyDecimal * 100;
// Display Results
var resultContainer = document.getElementById('univestResult');
resultContainer.style.display = 'block';
document.getElementById('displayDeposit').innerText = formatCurrency(principal);
document.getElementById('displayInterest').innerText = formatCurrency(interestEarned);
document.getElementById('displayTotal').innerText = formatCurrency(totalAmount);
document.getElementById('displayAPY').innerText = apyPercent.toFixed(2) + '%';
}
function resetUnivestCD() {
document.getElementById('cdDepositAmount').value = '';
document.getElementById('cdRate').value = '';
document.getElementById('cdTerm').value = '';
document.getElementById('cdCompounding').value = '12';
document.getElementById('univestResult').style.display = 'none';
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}