Old National Bank Cd Rates Calculator

Initial Deposit Amount ($)

Annual Percentage Yield (APY) (%)

Term (in Months)

Your CD Maturity Value

Understanding CD Rates and Maturity Value

A Certificate of Deposit (CD) is a type of savings account that offers a fixed interest rate for a fixed period of time. CDs are often considered a low-risk investment because they are insured by the FDIC (up to certain limits) and provide a predictable return. When you open a CD, you agree to leave your money in the account for the entire term. In return, the bank typically offers a higher interest rate than a standard savings account.

Initial Deposit Amount: This is the principal amount of money you are initially investing in the CD.

Annual Percentage Yield (APY): APY is the total amount of interest you will earn on your deposit in one year, expressed as a percentage. It takes into account the effect of compounding interest. A higher APY means your investment will grow faster.

Term (in Months): This is the length of time you agree to keep your money deposited in the CD account. Common terms range from a few months to several years. Longer terms often come with higher APYs, but they also mean your money is less accessible.

Maturity Value: This is the total amount you will have at the end of the CD's term, including your initial deposit and all the accumulated interest.

How the Calculation Works:

The Old National Bank CD Rates Calculator uses the following formula to estimate the maturity value of your CD:

Maturity Value = Principal * (1 + (APY / 100) / 12) ^ (Term in Months)

This formula calculates the future value of your investment by considering your initial deposit, the annual interest rate (APY), and the duration of the term, with interest compounded monthly.

Example Calculation:

Let's say you deposit $10,000 into a CD with an APY of 4.75% for a term of 18 months.

Initial Deposit: $10,000
APY: 4.75%
Term: 18 months

Using the calculator, you would input these values. The formula would then estimate your maturity value. Maturity Value = $10,000 * (1 + (4.75 / 100) / 12) ^ 18 Maturity Value = $10,000 * (1 + 0.00395833) ^ 18 Maturity Value = $10,000 * (1.00395833) ^ 18 Maturity Value ≈ $10,000 * 1.07411 Maturity Value ≈ $10,741.10

This means that after 18 months, you would have approximately $10,741.10, including your initial $10,000 deposit and about $741.10 in earned interest.

function calculateCD() { var depositAmount = parseFloat(document.getElementById("depositAmount").value); var annualPercentageYield = parseFloat(document.getElementById("annualPercentageYield").value); var termMonths = parseInt(document.getElementById("termMonths").value); var resultDiv = document.getElementById("result"); if (isNaN(depositAmount) || isNaN(annualPercentageYield) || isNaN(termMonths) || depositAmount <= 0 || annualPercentageYield < 0 || termMonths <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } // Formula: Maturity Value = Principal * (1 + (APY / 100) / 12) ^ Term (in Months) var monthlyInterestRate = (annualPercentageYield / 100) / 12; var maturityValue = depositAmount * Math.pow((1 + monthlyInterestRate), termMonths); // Format to two decimal places for currency var formattedMaturityValue = maturityValue.toFixed(2); resultDiv.innerHTML = "$" + formattedMaturityValue; }