2007-12-12 09:00:09 · 5 answers · asked by Thursday 1 in Business & Finance ➔ Personal Finance
Depends upon the interest rate you receive, your tax bracket and whether you redeposite the earned interest.
2007-12-12 09:04:29 · answer #1 · answered by God is Good! 7 · 2⤊ 0⤋
howdy! The average CD rate right now is about 4.3% (according to Yahoo) This is near the lowest it gets, and over 15 years you may be able to get better rates as time goes by.
As far as tax bracket, you basically may have to pay 0%, 15% or about 25% for Federal taxes, and in a lot of states you'll have to pay 0% - 8% state tax.
Depending on your tax situation, then, here are 3 very approximate possibilities:
0% tax = about $24,750
15% Fed + 7% State = about $21,500
25% Fed + 7% State = about $20,150
On the bright side, you probably won't withdraw money from the account to actually pay your taxes, so in the end, the account will have the $24,750 or more! you would have just paid 4k in taxes in small pieces through the years.
2007-12-12 17:32:37 · answer #2 · answered by Joe K 3 · 0⤊ 2⤋
NO ONE can give you an AFTER TAX amount. Your tax rate depends on MANY factors not given. I promise you it will NOT be the same rate all 15 years. Something WILL change. If nothing else, the tax laws will change during that time.
Even ignoring taxes, you need to state the interest rate on you CD to get an answer.
2007-12-12 17:45:16 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
First of all why would you want your money locked up like that? It all depends on the interest CD's are paying and it varies from bank to bank.
2007-12-12 18:20:04 · answer #4 · answered by prodigychild_21 4 · 0⤊ 0⤋
As the first poster said, you haven't given enough information for anyone to answer that question.
2007-12-12 17:07:13 · answer #5 · answered by Stacia Z 3 · 0⤊ 0⤋