High-Yield CD?

Hi,

If I deposit $11,000 into a high-yield CD at Bank of America, do I get paid monthly or yearly?

Bank of America has an interest rate of 4.72% and an APY of 4.80%.

So if I opt for 4.72% interest, am I earning about $500/month on interest then? Am I calculating wrong? How much will I earn per month?

Thanks.

High-Yield CD?student loan

Your interest through BOA accrues daily and compunds monthly. The 4.72% is your annual rate; however, the 4.8% is your yield due to compounding. The math would be as follows:

11000 times 4.8% divided by 12 months times 4 months for the term

Overall you would be earning roughly $176 interest for your 4 month term. I agree with another response that this being a fixed term cd if you may need it...choose the risk free cd at 4.11% yield!

High-Yield CD?

loan

The $500 per month is wrong. That is is annual amount you will earn (divide by 12 for monthly amount). Generally you can only take your money out of a CD at the end of the contract term (i.e. 6 months, 1 year). You pay penalties to take it out sooner. Don%26#039;t put money in there if you have any reason to believe that you will need the money.|||It would be $519.20 for the whole year. The interest is paid annually.