Comprehensive source of savings account and certificate of deposit (CD) ladder calculators
Advice Corner
Did You Get Your Economic Stimulus Payment or Tax Refund?
If you haven’t, the IRS is trying to track you down.
FDIC insures deposits at FDIC insured banks and savings associations. Learn more about FDIC Insurance including the recent change that insures accounts up to $250,000.
More banks are using the Internet to market and service their customers. These Tips for Safe Banking Over the Internet involve making smart choices that will help you avoid scams.
Because of the credit and financial crisis, bank failures in the U.S. have soared. Here we have compiled a list of Failed Banks, together with the institutions that have assumed their deposits.
Financial Crisis: How Did We Get Here? attempts to explain the causes of the financial crisis facing the U.S. economy.
SIMPLE STEPS TO FINANCIAL FREEDOM
Financial – Set Financial Goals
Setting clear and specific financial goals will help you plan for the future. Develop a spending plan to help you get on track to achieve your financial goals.
Debts – Pay Debts Wisely
First, you should enter into debt judiciously and cautiously. But, once you incur debt, set a goal to pay off debts in a way you feel is most manageable. Credit can be a useful tool if used wisely, but mismanaging credit can get you off financial track quickly.
Savings – Remember to Pay Yourself
Your financial plan should include savings as part of your short- and long-term goals. Whether for retirement, buying a new home or real estate, or just for a rainy day, saving is an important part of achieving financial freedom. Establish a savings account – whether it’s a Certificate of deposit or CD, 401k or mutual fund. Use this financial calculator to see what will it take to save one million dollars.
Financial Plan – Stick to your Financial Plan
Remember that you are not alone. If you are unable to follow your financial plan, seek professional help. There are professional financial planners or credit counselors who can guide you to achieve your financial goals. Happy savings
Certificate of Deposit (CD) Ladder Calculator
Certificate of Deposit (CD)
- Use this calculator to examine the benefits of investing in a series of Certificates of Deposits with different maturities, also called a
CD Laddering
. With a CD Ladder, you can benefit from higher interest rates for longer maturities, while achieving better liquidity and maintaining certificates of deposit that are within FDIC insurance limits.
Certificate of Deposit (CD) Ladder - Definitions
Maximize Earnings while balancing your Risk and Rewards – The advantage of Certificate of deposit ladder or CD Ladder is that you lower your risk and increase your return without losing access to at least some of your cash. If you have a large amount of cash you want to invest in Certificates of deposit or CDs, then CD laddering is a good option.
You start the CD ladder by buying several Certificates of deposit or CDs at the same time, each with a different maturity date. You may choose maturities of 3 months, 6 months, 9 months and 1 year, for example, if you want access to a portion of your cash every 3 months. Each Certificate of deposit or CD is like a rung on a ladder. As the Certificates of deposit or CDs mature, you renew each with a maturity of one year, locking in the new Certificate of deposit or CD for a longer term at a higher interest rate thereby protecting you from interest rate fluctuations. Since FDIC insurance limit is $100,000 (note, FDIC limit has been temporaily raised to $250,000, effective October 3, 2008 through December 31, 2009), you may want to consider using multiple banks (not branch) so that each Certificate of deposit or CD is within the FDIC limit.
Total to invest - This is the total amount to invest in your CD Ladder.
Frequency of Maturing Certificates of deposit or CDs - How often you would like to have a Certificate of deposit or CD maturing. For example, if you choose six months, one of your Certificate of deposits or CDs in your CD ladder will mature every six months.
Amount in each Certificate of deposit or CD - How much you wish to invest in each Certificate of deposit or CD in your ladder. We use this amount to calculate the number of Certificates of deposit or CDs in the ladder. If the amount that you enter isn't evenly divisible by the total you wish to put into your CD Ladder, we will automatically adjust it up to an evenly divisible amount.
Certificates of deposit in your CD Ladder -
The number of Certificates of deposit or CDs that will be in your CD ladder. Each Certificate of deposit or CD will have a different maturity, so that one of your Certificates of deposit or CDs will mature at the frequency you specify. This calculator assumes that you rollover all matured Certificates of deposit or CDs into new CDs that have a term of the longest maturity in your original CD ladder.
Interest is compounded - Interest earned on your Certificate of deposit or CD's accumulated interest. This CD Ladder calculator allows you to choose the frequency that your Certificate of deposit or CD's interest income is added to your account. The more frequently this occurs, the sooner your accumulated interest income will generate additional interest. You may wish to check with your local bank office to find out how often interest is being compounded on your particular Certificate of deposit or CD.