Thomaston Savings Bank CD Rates Calculator

CD Compound Interest 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 CD Compound Interest Formula?

The compound interest formula calculates the maturity amount for Certificates of Deposit (CDs) at Thomaston Savings Bank. It determines how much your investment will grow over time with compound interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

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

Where:

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

Explanation: The formula calculates how your initial investment grows with compound interest, where interest is added to the principal at regular intervals, earning more interest over time.

3. Importance of CD Investment Calculation

Details: Accurate CD maturity calculation helps investors plan their savings strategy, compare different CD options, and understand the power of compound interest for long-term wealth building.

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 12 for monthly, 4 for quarterly, 1 for annually), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for Thomaston Savings Bank CDs?
A: Minimum CD investment amounts vary by product. Please contact Thomaston Savings Bank for current minimum requirements.

Q2: Are CD interest rates fixed or variable?
A: Thomaston Savings Bank typically offers fixed-rate CDs, meaning the interest rate remains constant throughout the term.

Q3: How often is interest compounded?
A: Compounding frequency varies by CD product. Common frequencies include daily, monthly, quarterly, or annually.

Q4: Are there early withdrawal penalties?
A: Yes, early withdrawal from CDs before maturity typically incurs penalties. Check with Thomaston Savings Bank for specific terms.

Q5: Are CD investments FDIC insured?
A: Yes, Thomaston Savings Bank CDs are FDIC insured up to applicable limits, providing security for your investment.