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Financial stuff - Queue
March 23rd, 2006
01:16 pm

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Financial stuff
I just bought a 10-month CD from my credit union, mostly because it was easy to do and I don't really feel like dealing with anything more complicated right now. So, the APY is listed as 4.75% and the dividend rate (whatever that means) is 4.65%. So, does that mean I will have P*(1+(.0475*(10/12))) at the end of the 10 months? And what's the deal with the dividend rate?

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From:pling
Date:March 23rd, 2006 06:43 pm (UTC)
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Now that makes surreal reading when the only expansion for CD that one know is Compact Disc ;)
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From:magid
Date:March 23rd, 2006 06:55 pm (UTC)
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It's a very extended play CD :-).
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From:magid
Date:March 23rd, 2006 07:23 pm (UTC)
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I've never seen a dividend rate listed with a CD. APY, annual percentage rate, sure, but not dividend.

Oh, and you're right about the APY formula, if it's compounded monthly.

Of possible interest for later: the Motley Fool's comparison of different short-term savings vehicles.
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From:mabfan
Date:March 23rd, 2006 07:30 pm (UTC)
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