Not worth your time to be honest with you. Currently within this low interest rate economy that will be about 25cent for the year. Two cent for a month. You can get more money begging.
You do know that reward checking accounts pay more than CDs at some banks and credit unions
No serious investor waste their time with CDs because they do not keep up with inflation
0.05 is % per year.
$500 in a 1-year CD at that rate you would make about 25￠.
For a 1-month, divide that by 12.
You probably walked by a couple of pennies and didn't stop to bend down and pick them up, right?
For CD's, once you put in your money, you cannot withdraw it for the length of the term agreed on. (without penalty, which can include giving back your "gains" and possibly part of what you invested) For example, if you pick a 1 year term, you cannot withdraw/touch that money until that year is up. If you pick a 1 month term, you cannot touch that money until that 1 month is up.
APY is the percent you would earn PER YEAR. (The "A" stands for annual). So if they were to offer you 0.05 % a year, that means for $100 you have in the CD every YEAR, they will give you 5 cents. Since you will only have it in for 1 month, your APY of 0.05 will need to be divded by 12 to get the rate per month.
$500 x 0.05% = $0.25.
$0.25 / 12 months = 0.0208333 cents per month.
You have your money in for 1 month = 2 cents interest after 1 month.
$500 original investment + 0.02 interest = $500.02. Not a great investment if you ask me.
banks don't offer that great of a % apy either, but at least it won't be untouchable without penalty.
go to a place where you can get 1% APR - for a place to keep some emergency fund money. Another reason for a CD is to pledge it as security for a secured credit card (if you need one). #3 - By having $X in a given bank, you avoid the monthly fees - so that compensates for the low return.
You will have 2-cents after 1 month.
You would have about 27-cents after a year due to compounded interest.
