*Calculated based on standard compound interest formula.
function calculateVeridianCD() {
// 1. Get input values
var principal = parseFloat(document.getElementById("depositAmount").value);
var months = parseFloat(document.getElementById("cdTerm").value);
var rateInput = parseFloat(document.getElementById("interestRate").value);
var compoundsPerYear = parseFloat(document.getElementById("compounding").value);
// 2. Validate inputs
if (isNaN(principal) || principal <= 0) {
alert("Please enter a valid deposit amount.");
return;
}
if (isNaN(months) || months <= 0) {
alert("Please enter a valid term length in months.");
return;
}
if (isNaN(rateInput) || rateInput < 0) {
alert("Please enter a valid APY/Interest Rate.");
return;
}
// 3. Calculation Logic
// Formula: A = P(1 + r/n)^(nt)
// P = Principal
// r = annual interest rate (decimal)
// n = number of times compounded per year
// t = time in years
var rateDecimal = rateInput / 100;
var years = months / 12;
// Calculate Total Amount
// Note: If input is strictly APY, logic differs slightly, but standard CD calculators
// usually treat the input rate as the base for compounding in this context unless specified otherwise.
// Given Veridian compounds monthly, we apply the monthly compounding formula.
var base = 1 + (rateDecimal / compoundsPerYear);
var exponent = compoundsPerYear * years;
var finalAmount = principal * Math.pow(base, exponent);
var totalInterest = finalAmount – principal;
// 4. Format and Display Results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById("displayInterest").innerHTML = formatter.format(totalInterest);
document.getElementById("displayTotal").innerHTML = formatter.format(finalAmount);
// Show results div
document.getElementById("resultsArea").style.display = "block";
}
Maximizing Savings with Veridian CD Rates
Investing in a Certificate of Deposit (CD) through Veridian Credit Union is a secure strategy to grow your savings over a fixed period. Unlike standard savings accounts, CDs typically offer higher interest rates in exchange for locking your funds for a specific term. This Veridian CD Rates Calculator helps you estimate exactly how much interest you will earn based on your deposit amount, the term length, and the current Annual Percentage Yield (APY).
How the Calculator Works
Our calculator uses the standard compound interest formula to project your future savings. Here is a breakdown of the inputs required:
Deposit Amount: The initial lump sum you plan to invest in the CD. Veridian typically requires a minimum opening deposit (e.g., $1,000), though this can vary by product.
Term Length (Months): The duration you agree to leave your money in the account. Common terms range from 6 months to 60 months (5 years). Generally, longer terms yield higher rates.
APY (%): The Annual Percentage Yield is the effective rate of return, taking into account the effect of compounding interest. You can find current rates on the official Veridian website.
Compounding Frequency: Veridian Credit Union typically compounds dividends monthly. This frequency determines how often your earned interest is added back to your principal to earn more interest.
Understanding Veridian CD Options
Veridian Credit Union offers several types of certificates that may affect your calculation strategy:
Traditional CDs: Fixed rates with terms from a few months to several years. Great for predictable growth.
Bump-Up CDs: These allow you to increase your rate once during the term if Veridian's rates go up. This calculator estimates earnings based on the initial rate entered.
Jumbo CDs: Designed for larger deposits (often over $100,000), these certificates may offer premium interest rates.
Formula for CD Interest
To understand the math behind your returns, the calculator uses the following compound interest formula:
A = P (1 + r/n)nt
Where:
A is the future value of the CD (Total Balance).
P is the principal investment (Deposit Amount).
r is the annual interest rate (decimal).
n is the number of times that interest is compounded per year (12 for monthly).
t is the time the money is invested for, in years.
Frequently Asked Questions (FAQ)
Is there a penalty for early withdrawal?
Yes. Like most financial institutions, Veridian Credit Union charges a penalty if you withdraw funds before the CD maturity date. The penalty usually amounts to a specific number of days' worth of interest (e.g., 90 days or 180 days of dividends), depending on the term length.
How does monthly compounding affect my earnings?
Monthly compounding means your interest is calculated and added to your balance 12 times a year. This is generally more beneficial than annual compounding because you earn interest on your interest sooner, resulting in a higher effective yield (APY) compared to the base interest rate.
What happens when my Veridian CD matures?
At maturity, you generally have a grace period (often 10 days) to decide what to do with the funds. You can withdraw the cash, transfer it to another account, or renew the CD for another term at the current prevailing rate.