One advantage of a certificate of deposit (CD) is that you know your annual percentage yield (APY) before you even open your account. If you know what your savings goal is, you can determine what it will take to reach it. You can use a CD rate calculator to determine what term length and interest rate you need based on your opening deposit.

Calculating Your APY
You can locate online CD-rate calculators on various websites, including To begin, enter the amount of money you have for an opening deposit. When you choose a CD term length (6-month, 12-month, etc.), you will be shown the interest rate offered for that term length. Finally, select the number of times you would like to renew your CD.

You can enter various term lengths and renewal options to see which combination allows you to get to your goal fastest and even see the effect of renewing your CD once it matures. Of course, if your CD matures at a time when interest rates are higher, you can then take advantage of a higher rate with a new CD altogether.

More resources also features an online CD rate calculator. This one requires you to enter the initial deposit, desired term and interest rate to figure out possible earnings. You can compare different CD rates this way, but bear in mind that you'll want to account for the frequency of compounding interest in order to truly know your yield. For more information and CD options, Visit today or call live, 24/7 customer care at 877-247-ALLY (2559).

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