|
 Is
the annual yield still a good indicator of the best return on a CD?
 Shopping
CDs by the posted annual percentage yields, or APY, allows you to
compare CDs with the same maturity date but with different ways
of paying interest.
The APY considers how often interest is paid
on your investment. More frequent interest payments allow the interest
to earn interest, raising the return on your investment. The table
below shows how the APYs change with changes in how interest is
paid.
The rates used for the comparisons
are NOT actual rates offered today. They are simply examples. For
today's rates, check
here.
|
Deposit:
|
$10,000
|
|
$10,000
|
| Term: |
1 year
|
|
7 months
|
| Nominal rate: |
3.500%
|
|
2.500%
|
|
|
| Yearly |
3.500%
|
$350.00
|
|
2.500%
|
$145.08
|
| Semiannually |
3.531%
|
$353.06
|
|
2.516%
|
$145.98
|
| Quarterly |
3.546%
|
$354.62
|
|
2.524%
|
$146.44
|
| Monthly |
3.557%
|
$355.67
|
|
2.529%
|
$146.75
|
| Weekly |
3.561%
|
$356.08
|
|
2.531%
|
$146.86
|
| Daily |
3.562%
|
$356.18
|
|
2.531%
|
$147.00
|
Use Bankrate's CD
calculator to find the APYs and interest paid on your CDs. You
can shop CDs using Bankrate's Best
Rates feature, and the APY is always provided.
While
APY doesn't reflect the actual interest paid on the account, it is a good way
to comparison shop between banks for CDs with the same maturity date. | 
