Fluther: If I put $130,000 in a CD at 5% paid quartly,what ...

If I put $130,000 in a CD at 5% paid quartly,what would the interest payment be?

Asked by Dutchess_III (46859

) 2 weeks ago
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Topics: cd, ZZ Top

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Answers

$1,625 per quarter

gorillapaws (30556

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Thanks you giant primate !

Dutchess_III (46859

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That’s an APY of 5.095% by the way

Blackwater_Park (8704

)“Great Answer” (1

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Thanks Black Water.

Dutchess_III (46859

)“Great Answer” (0

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In 5 years you’ll have $166,664.84

Blackwater_Park (8704

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^^ But that would only be if it were a five year term for the CD. Many of the CDs are selling for shorter terms if they have higher interest rates.

janbb (62915

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@Blackwater_Park…just in interest?

Dutchess_III (46859

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Gorilla paws is correct.

gondwanalon (22895

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@Dutchess_III No, that would include your investment.

janbb (62915

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$1625 X 4 is 19000 a year.

Dutchess_III (46859

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Teach me. It’s a 9 month CD. Do I have to close it or do I let it sit? And is 5% good?

Dutchess_III (46859

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Ditch. Redo your math; it’s not $19,000 a year. Is it renewing at 5 percent? That is a good rate.

janbb (62915

)“Great Answer” (1

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You’re right. It’s 6500

Dutchess_III (46859

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I haven’t checked anybody’s math, but I did google and find this CD calculator:

https://www.bankrate.com/banking/cds/cd-calculator/

jca2 (16318

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From the CD calculator that I linked, for 9 months at 5%, 130,000 will give you a total of 134,845.15.

jca2 (16318

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Quartly, quartly, quartly! Quartly.

Nevada83 (986

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If you are buying the CD at a bank they will tell you how much you will earn if you don’t feel comfortable calculating it yourself.

Most CD’s will automatically roll over if you don’t take action when it matures and it might roll over to a low interest rate and trap your money so that you can’t withdraw it without a penalty. You usually get a week to withdraw the money when it does mature. You sometimes can set it up so the money will automatically go to a savings account or some other account when it matures.

I hate having to worry about when it matures (what if I’m sick or on vacation or forget) so whenever I can I have a CD automatically cash out to a “savings” account. I think it’s a racket that they automatically are set to roll over and lock in again.

JLeslie (65465

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@JLeslie My bank used to let you know when a CD is coming due but now they don’t. I keep an eye on them in my online banking and decide depending on the renewal rate. I don’t think it’s a racket but it’s certainly not as convenient.

janbb (62915

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@Nevada83 “Quartly, rhymes with ‘shortly.’”

jca2 (16318

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@jca2 But quarterly rhymes with shorterly! lol

janbb (62915

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@janbb My bank let’s me know, they mail me a letter. Fidelity lets you set it up when you buy the CD to automatically put the money in your “cash” account.

Maybe racket is the wrong word, but some banks will not let you set it up to cash out to a savings account, and it basically is auto set for the bank to keep your money in their institution. I think that is on purpose hoping you forget, or forcing you into the bank so they can talk you into more products.

JLeslie (65465

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@jca2 Hahaha.

Nevada83 (986

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LEAVE ME ALONE! This new spell checker sucks! Meanies butts.

Dutchess_III (46859

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But @Dutchess_III there is no such word as “quartly” so it would be impossible for that to be created from spell check.