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Compounded CD interest rates

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    Compounded CD interest rates

    Can someone guide me on how to determine how much, per month, I could expect under the following scenario:

    1: 100,000 Certificate of Deposit
    2: Inerest Rate 4% compounded daily
    3: Term is 1 year.

    I am withdrawing the monthly interest. I am trying to determine how much I should expect each month.

    Is there a calculator to help me deterine this?

    Thank You

    Well, $100,000 times 4% interest is $4000 per year or $10.95 per day, ($4000 divided by 365 days.) For a normal 30 day month, that would be, about $328 per month you can withdraw. ($10.85 x 30 days.)


      The daily interest rate is .04 / 365 = .000109589

      The first day you will earn $10.96. Since the interest is compounded daily that is fed back into the principal each day. By the 30th day of the month, you'll earn $10.99 per day.

      Total interest for a 30-day month will be $329.29.

      Note: Be sure it is the actual interest rate that is 4% and not the APY that is 4%. These are 2 different things.


        APY interest calculator:

        Interest compound calculator: