1. What is the CD Savings Formula?

The CD (Certificate of Deposit) savings formula calculates the future value of an investment based on compound interest. Riddell National Bank offers competitive CD rates with various compounding options.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( FV \) — Future value of the investment
• \( P \) — Principal investment amount
• \( r \) — Annual interest rate (decimal)
• \( n \) — Number of times interest is compounded per year
• \( t \) — Time the money is invested for (years)

Explanation: The formula accounts for compound interest, where interest is earned on both the principal and accumulated interest.

3. Importance of CD Savings Calculation

Details: Understanding potential growth helps in financial planning and comparing different CD options. Riddell National Bank offers terms from 3 months to 5 years.

4. Using the Calculator

Tips: Enter principal in dollars, annual rate as percentage (e.g., 2.5 for 2.5%), select compounding frequency, and term length in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for Riddell National Bank CDs?
A: Most Riddell National Bank CDs require a minimum deposit of $1,000, though some specials may have higher minimums.

Q2: Are CD interest rates fixed?
A: Yes, Riddell National Bank CDs have fixed rates for the term length you select.

Q3: Is there a penalty for early withdrawal?
A: Yes, Riddell National Bank typically charges a penalty of 3-12 months' interest for early CD withdrawal.

Q4: How often is interest paid out?
A: You can choose monthly, quarterly, semi-annual, or annual interest payments, or compound until maturity.

Q5: Are CD investments FDIC insured?
A: Yes, Riddell National Bank CDs are FDIC insured up to $250,000 per depositor.