Beal Bank CD Rates Calculator
Understanding Your CD Yield
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that provides a fixed interest rate over a specified term. CDs are a popular choice for savers who want a predictable return on their investment and are willing to lock their funds for a set period. Beal Bank offers various CD terms with competitive Annual Percentage Yields (APYs).
This calculator helps you estimate the potential earnings on your Beal Bank CD. By inputting your initial deposit, the APY offered by Beal Bank, and the term of the CD in months, you can quickly see how much interest you can expect to earn by the end of the term.
How it Works:
The calculation uses the following formula to approximate the future value of your CD, assuming interest is compounded annually for simplicity:
Future Value = Principal * (1 + (APY / 100)) ^ (Term in Years)
Where:
- Principal is your initial deposit amount.
- APY is the Annual Percentage Yield, expressed as a percentage.
- Term in Years is the CD term converted from months to years (Term in Months / 12).
The calculator will then show you the total interest earned, which is the Future Value minus the Principal.
Example:
Let's say you deposit $10,000 into a Beal Bank CD with an APY of 4.5% for a term of 12 months.
- Initial Deposit: $10,000
- Annual Percentage Yield (APY): 4.5%
- Term: 12 months (which is 1 year)
Using the formula:
Future Value = $10,000 * (1 + (4.5 / 100)) ^ 1
Future Value = $10,000 * (1 + 0.045) ^ 1
Future Value = $10,000 * 1.045
Future Value = $10,450
Total Interest Earned = $10,450 – $10,000 = $450
This means that after 12 months, you would have earned $450 in interest on your initial $10,000 deposit.