顯示具有 Calculate 標籤的文章。 顯示所有文章
顯示具有 Calculate 標籤的文章。 顯示所有文章

2012年8月31日 星期五

How Do I Calculate Certificate of Deposit Interest Rates?


Certificate of deposit interest rates are a source of great confusion for many people. Acronyms like APR and APY confuse people greatly. Luckily, there are many resources available to you online. It is also very easy to calculate on your own.

First, let's look at what a certificate of deposit is: One of the ways that a bank makes money is to invest. They can invest in a variety of financial instruments but regardless of what instrument they use, they all need one thing: money. Banks are required to keep a certain amount of uninvested money on hand at all times so they often go to other sources for money to invest.

One of those places is you and I. They use our money to make money for themselves but if they rely on the money we deposit in to our checking and savings accounts, there is no guarantee that we won't take it out tomorrow.

This is where a certificate of deposit enters in to the picture. When you agree to let the bank have your money for a predetermined amount of time, they can invest that money and make a profit. In exchange for the use of your money, they pay you interest. The interest rate is higher than a savings account. Certificate of deposit interest rates are almost always at least one point higher than a savings account.

The best way to think of these interest rates is in terms of one year. If the APR or Annual Percentage Rate is 2%, you are earning 2% on the money that you have in that CD. If you have a $10,000, 1 year Certificate of deposit with a 2% APR, you are making $200 for the year.

The best way to figure this out is to simply Google "CD APR Calculator." This will bring up entries for online calculators where you can enter the figures in to it and it will tell you how much money you will make.

Don't forget that your bank or credit union will also be happy to calculate this for you.




Before investing in a certificate of deposit, click here to see why you need to be careful.

elementary-finance.com is your source for online financial advice. Check us out today!





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 凌晨3:08 0 意見
標籤： , , , ,

2012年5月16日 星期三

How Do I Calculate Certificate of Deposit Interest Rates?


Certificate of deposit interest rates are a source of great confusion for many people. Acronyms like APR and APY confuse people greatly. Luckily, there are many resources available to you online. It is also very easy to calculate on your own.

First, let's look at what a certificate of deposit is: One of the ways that a bank makes money is to invest. They can invest in a variety of financial instruments but regardless of what instrument they use, they all need one thing: money. Banks are required to keep a certain amount of uninvested money on hand at all times so they often go to other sources for money to invest.

One of those places is you and I. They use our money to make money for themselves but if they rely on the money we deposit in to our checking and savings accounts, there is no guarantee that we won't take it out tomorrow.

This is where a certificate of deposit enters in to the picture. When you agree to let the bank have your money for a predetermined amount of time, they can invest that money and make a profit. In exchange for the use of your money, they pay you interest. The interest rate is higher than a savings account. Certificate of deposit interest rates are almost always at least one point higher than a savings account.

The best way to think of these interest rates is in terms of one year. If the APR or Annual Percentage Rate is 2%, you are earning 2% on the money that you have in that CD. If you have a $10,000, 1 year Certificate of deposit with a 2% APR, you are making $200 for the year.

The best way to figure this out is to simply Google "CD APR Calculator." This will bring up entries for online calculators where you can enter the figures in to it and it will tell you how much money you will make.

Don't forget that your bank or credit union will also be happy to calculate this for you.




Before investing in a certificate of deposit, click here to see why you need to be careful.

elementary-finance.com is your source for online financial advice. Check us out today!





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 清晨6:53 0 意見
標籤： , , , ,

2012年3月12日 星期一

Calculate CD Rates


When people invest in certificates of deposit (CD), one of the first things they want to find out is on how much they are going to earn from the investment. To help them find out, they need to arm themselves with knowledge on how to calculate for the earnings that they can expect using the tools that they would be provided with, which include the interest rates that would be offered on their CD investments. Among these rates, two of the most important are the Annual Percentage Yield (APY) and the Annual Percentage Rate. This is because these are the tools that can help investors to accurately calculate or compute for the earnings that they can expect to gain from the CD investments that they are about to make.

The APY

The APY is used to compute for the expected earnings from a CD investment wherein the investor decided to have the interest compounded until the CD reaches its maturity. However, investors do not necessarily have to invest in a bank that offers a higher APY. This is because the frequency by which a bank would compound the interest can determine the amount of earnings that an investor gets. Given this, it would be a good idea to invest in a CD that has an interest that is compounded daily, as these can provide very high returns.

The APR

The APR is used for calculating the expected earnings from CD investments wherein the investor opted to get monthly interest payments. However, in the same way that people should not always go for the CD provider that offers the higher APY, investors should also do the same thing with APR's. This is because the frequency by which a bank would compound the interest to determine how much an investor earns every month also determines the amount of earnings an investor gets.

One of the first questions that investors ask when they invest in a CD is how much earnings they can expect from a certain investment. Answering this question requires that investors learn how to compute for the earnings they can get using the tools that they would be provided with, which include the interest rates that are offered for various CD products. This is very important because the right information on these tools can help investors make the right decision with regard to investing in CD?s, which would not be solely based on the rate but also on other important factors as well.




CD Rates provides detailed information on Best CD Rates, CD Rate Calculators, CD Rate Comparisons, Certificate Of Deposit Maturation and more. CD Rates is affiliated with Cash For Future Payments.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 清晨5:08 0 意見
標籤： ,

2011年12月8日 星期四

How Do I Calculate Certificate of Deposit Interest Rates?


Certificate of deposit interest rates are a source of great confusion for many people. Acronyms like APR and APY confuse people greatly. Luckily, there are many resources available to you online. It is also very easy to calculate on your own.

First, let's look at what a certificate of deposit is: One of the ways that a bank makes money is to invest. They can invest in a variety of financial instruments but regardless of what instrument they use, they all need one thing: money. Banks are required to keep a certain amount of uninvested money on hand at all times so they often go to other sources for money to invest.

One of those places is you and I. They use our money to make money for themselves but if they rely on the money we deposit in to our checking and savings accounts, there is no guarantee that we won't take it out tomorrow.

This is where a certificate of deposit enters in to the picture. When you agree to let the bank have your money for a predetermined amount of time, they can invest that money and make a profit. In exchange for the use of your money, they pay you interest. The interest rate is higher than a savings account. Certificate of deposit interest rates are almost always at least one point higher than a savings account.

The best way to think of these interest rates is in terms of one year. If the APR or Annual Percentage Rate is 2%, you are earning 2% on the money that you have in that CD. If you have a $10,000, 1 year Certificate of deposit with a 2% APR, you are making $200 for the year.

The best way to figure this out is to simply Google "CD APR Calculator." This will bring up entries for online calculators where you can enter the figures in to it and it will tell you how much money you will make.

Don't forget that your bank or credit union will also be happy to calculate this for you.




Before investing in a certificate of deposit, click here to see why you need to be careful.

elementary-finance.com is your source for online financial advice. Check us out today!





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 凌晨4:51 0 意見
標籤： , , , ,
訂閱： 文章 (Atom)