Corrupt Calculators!!

CoRoMo · #1 (**permalink**) 04-15-2008, 04:34 PM

So... I put $20,000 into a certificate of deposit account to make some good interest as opposed to the pathetic money market account my bank offered me.

Took the 20K to the credit union and opened a new 6-month CD with 3.85% APY (3.78% APR compounded monthly).

I had been using the CD interest calculator on bankrate.com's site, among others, to anticipate my monthly dividends, but all the calculators were way off from reality. All online calculators came up with the monthly dividend of approx. $63 but they were off by more than $20/month!!!
My first dividend is $41.42!!!!

What's up with that?!?!?!

Any ideas???

GarySpicuzza · #2 (**permalink**) 04-15-2008, 04:58 PM

CoRoMo,

Your first check probably was not for a full 30 day cycle.

If you opened the account on the 10th of the month and told the bank to payout the interest on the 1st of the month your first check would only be for about 20 days interest.

Also some bank systems are simply on a calendar month cycle regardless of when you opened your account.

Same thing would apply.

$63 in the correct monthly interest on $20,000 @ 3.78%

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