Trying to become more knowledgable with finances. If I put $400 into a CD for 6-months with a 4.35% APY...what exactly does that mean? I'm a little confused.
Thanks in advance.
2007-11-02 06:57:13 · 5 answers · asked by Full of Id 6 in Business & Finance ➔ Personal Finance
I know what APY is...I'm wondering if I will make 4.35% on the $400 or if I will only get 2.175% because it's a 6-month CD. Also, does the interest compound?
2007-11-02 07:13:42 · update #1
You will get 2.175% of the $400 at the end of six months. If that rolls over, you will get the new interest rate on the new balance.
2007-11-02 07:51:32 · answer #1 · answered by OPM 7 · 1⤊ 0⤋
Yes, you will receive 2.175% intererest on you CD for one half year because it is simple interest.
Capital One is paying 5% on a money market account. Money market accounts are liquid and can be withdrawn at anytime. If you are a Costco member, you will get a cash bonus when you open an account.
2007-11-02 16:30:13 · answer #2 · answered by William H 5 · 0⤊ 0⤋
You need to look at the APR of the CD. The yeild is the outcome. The rate will allow you to better calculate what you are getting. Statefarm.com has a good tool in the banking session that is labeled what will my cd be worth.
2007-11-02 15:13:20 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It means Annual Percentage a Year. That's what you are looking at for a kick back on percentage. You won't make a lot fast, but over time, it's a good savings plan.
2007-11-02 14:06:01 · answer #4 · answered by Anonymous · 0⤊ 1⤋
http://banking.about.com/od/cds/CDs_Certificates_of_Deposit.htm
I found some information for you online. I hope it answers your questions. Being that I had no idea, I will now go back and read it.
Great Plan!
2007-11-02 14:03:10 · answer #5 · answered by kayboff 7 · 1⤊ 0⤋