Calculate How Much More You Save With the CD Ladder Versus a Single CD
Interest rates on savings accounts are not very high, but a certificate of deposit (CD) allows you to earn even a small amount of interest on your hard-earned savings. And the CD ladder could earn even more over time. This calculator will tell you how much you will save by using both options, one CD and a ladder for CDs.
We’ve already told you where to store your savings , and CDs are a good option for short to medium term purposes. You agree to keep your money in the account for a certain period of time, and the longer this period, the higher your interest rate. And with the CD ladder, your savings are reinvested at a higher rate after each semester, potentially saving you even more. This Dinkytown calculator will show you exactly how much.
List the total savings, how much you want on each CD, how often the CD matures, and how often interest is charged. You will then see how much you will save over time, over a period of time, by placing your CD up a ladder versus using one.
Try it yourself by following the link below.
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