They're doing that again? Crap. Yep, here it is-- Effective August 31, 2006 - September 27, 2006.d said:Pentagon Federal Credit Union is offering 6% APY on 3, 4 & 5 yr CDs ... any thoughts on whether to jump at this?
Good point. Three issues:retire53 said:Check out:
NavyFCU currently has an 18 mos. 6.25% CD and if longtime member (25 years or more) u can get an extra 1/4 point on it to 6.5%.
Nords said:Setting up the PenFed CD was pretty painless. $5 for a share savings account, $20 donated to the NMFA (the only way I'd qualify for membership), and requesting the CD with an EFT from our brokerage. All done online in about 30 minutes, and reading the fine print was the toughest part of it.
d said:Pentagon Federal Credit Union is offering 6% APY on 3, 4 & 5 yr CDs ... any thoughts on whether to jump at this?
It's 2 Sep on the east coast as I type this, and NFCU has rendered the 6.25% discussion irrelevant.retire53 said:NavyFCU currently has an 18 mos. 6.25% CD and if longtime member (25 years or more) u can get an extra 1/4 point on it to 6.5%.
Well, for 6% annual interest compounded daily, the number would beOld Army Guy said:Now that I mentioned this I will have go check......
i'd sure be surprised if is isn't down.Wish I knew where PFCU was going tomorrow
I didn't realize that some financial institutions actually do daily compounding. Out of curiousity, do any do continual compounding by approximating e? Although I don't think it would make much of a percentage difference over daily compounding.Old Army Guy said:Need to watch the compounding on these things. If you read the fine print (who does?) you may note that there may be such terms as "simple", "daily", "monthly", "semi-annual" compounding. Of course "daily" is the best. Have seen some ads where the APY and APR are the same which indicates "annual compounding" which is not good. Have note done the Excel to see exactly how much you lose with annual versus daily but is it significant over a multi-year CD. Now that I mentioned this I will have go check......
... i do recall that it was the gimmick du jour some (many) years ago. i think it fell out of favour when APY's were standardized.Out of curiousity, do any do continual compounding
I think you've got it right. The APY is simply a way to express the total annual yield, taking the compounding into consideration.magellan said:ok, at the risk of sounding dumb, I didn't think the compounding method really matters as long as the APY is higher.
For example, an annual compounding CD that pays an APY of 6.0% is better than a daily compounding CD that pays and APY of 5.99%.
If you're quoted the simple interest rate, then you need to do the math to figure out the effects of compounding, but if you're quoted an APY, the compounding isn't so important.
Am I confused?
Jim
If you're quoted the simple interest rate, then you need to do the math to figure out the effects of compounding, but if you're quoted an APY, the compounding isn't so important.
Banks are compelled to state the APY as a means to easily compare the real return against competing banks.
And yet there are those who don't want the government to get "involved" in businessash said:Banks are compelled to state the APY as a means to easily compare the real return against competing banks.
Because with a government education, we can't expect people to be able to calculate an APY themselves, right? Or even be sure of what one is?astromeria said:And yet there are those who don't want the government to get "involved" in business