What is a Share Certificate?
A share certificate is a fixed-rate savings product offered by credit unions, similar to a certificate of deposit (CD) from banks. It allows you to earn a guaranteed interest rate over a specific term while keeping your funds secure. Use this calculator to understand how much you can earn based on the principal, interest rate, term, and compounding frequency.
How to Use the Share Certificate Calculator
- Start by entering the Principal Amount you wish to invest. For example, $5,000.
- Enter the Annual Interest Rate in percentage form. For instance, 3.5%.
- Specify the Term in Years for the investment. For example, if you plan to save for 5 years, input “5”.
- Select the Compounding Frequency from the dropdown menu. Options include annually, quarterly, monthly, or daily.
- Click the “Calculate Earnings” button to see an estimate of your total balance and interest earned.
- Review the results displayed in the “Calculation Result” section. The explanation will also include how the calculation was performed based on the formula.