How does cd Interest rate work?

Question

For example i deposited $500 to a 5 month multi add-on cert.

My rate will be 3.58%, and APY 3.65%.

How much would i be earning monthly/ yearly??

is it $500* 3.65=$18.25, $219= Annualy

I am confused please help me!! Thanks!

Answer 1

"Annual" means "yearly". If your annual percentage rate is 3.65, you would earn 3.65 percent per *year*, not per *month*.

Google "interest calculator" and you'll find numerous sites where you can plug in all kinds of principal and interest rates and see month by month exactly how your savings will add up.