There is a bank in my town that is offering a 5 yr CD account at 4.4% interest and 4.49% annual precent yield.

A Suntrrust bank near me is offering a 17 month CD acct with 3.0% i believe the annual yield was 3 something % at $10,000 minimum required.

I will like to give an example: If I had $25,000 in this CD account after the 5 yrs how much would I have gained.
Are most or all CD accts gain interest monthly, quarterly, or annually?

Show me the math if you can, how you figured the answer to my equation. Thnx for all your help. Is this CD good and worth doing?

 

if compounded monthly...

25K after 5 yrs and 4.4% interest will yield $31,139.39. keep in mind that this does not adjust for inflation.

personally, i don't think CDs are a good deal at all...IF they are your only investment engine. take the 25K and invest in some higher growth mutual funds, ETFs. open up an IRA, max out your 401k...do all these things first and then decide to throw some cash into the CD. remember, you're locked in for 5 years. make sure you won't need to touch any of that $$$ during that time, and check to see what type of penalties are involved.

the only CDs i have are with ING Direct. with no minimum required, i set up a bunch of staggered CD ladders for $500 each, and the come to term in varying years. worse case scenario, i need to pull some cash out, all i forfeit is half the amount of interest that has been earned up to that date. flexibility...got to love it.

 

oh...and www.dinkytown.net. covers just about all the financial calculators you may ever need.

 

I also am not a big fan of CD's. I just hate having my money tied up like that with early-withdrawal penalties attached unless I am getting a better return than 4.5% over 5 years.