Marquette Savings Bank CD Rates Calculator

CD Maturity Formula:

\[ A = P \times (1 + R / n)^{(n \times T)} \]

Principal Amount (P):

USD

Annual Interest Rate (R):

Decimal

Compounding Frequency (n):

per year

Time Period (T):

years

Maturity Amount (A):

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1. What is the Marquette Savings Bank CD Calculator?

The Marquette Savings Bank CD Calculator helps you estimate the maturity amount of your Certificate of Deposit investment using the standard compound interest formula. It provides accurate projections for your CD investment returns.

2. How Does the Calculator Work?

The calculator uses the CD maturity formula:

\[ A = P \times (1 + R / n)^{(n \times T)} \]

Where:

\( P \) — Principal amount (USD)
\( R \) — Annual interest rate (decimal)
\( n \) — Compounding frequency per year
\( T \) — Time period in years
\( A \) — Maturity amount (USD)

Explanation: The formula calculates how your initial investment grows with compound interest over time, accounting for how frequently interest is added to your principal.

3. Importance of CD Maturity Calculation

Details: Accurate maturity calculation helps investors plan their financial goals, compare different CD offerings, and make informed investment decisions for their savings.

4. Using the Calculator

Tips: Enter principal amount in USD, annual interest rate as a decimal (e.g., 0.05 for 5%), compounding frequency (typically 1, 2, 4, or 12), and time in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is compound interest?
A: Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, allowing your investment to grow faster over time.

Q2: How often do CDs typically compound?
A: CDs can compound daily, monthly, quarterly, or annually. The frequency affects your total return - more frequent compounding generally yields higher returns.

Q3: Are CD rates fixed or variable?
A: Most traditional CDs offer fixed rates for the entire term, though some special CDs may have variable rates. This calculator assumes a fixed rate.

Q4: What are early withdrawal penalties?
A: Most CDs charge penalties for early withdrawal, typically several months' interest. This calculator does not account for early withdrawal scenarios.

Q5: Are CD earnings taxable?
A: Yes, interest earned on CDs is generally taxable as ordinary income in the year it's credited to your account, unless held in a tax-advantaged account.