1. What Is The Share Term Certificate Calculator?

The Share Term Certificate Calculator calculates the interest earned on SECU share term certificates using the simple interest formula. It helps members estimate their investment returns.

2. How Does The Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal amount (USD)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time period in years

Explanation: The formula calculates the interest earned by multiplying the principal amount by the interest rate and the time period.

3. Importance Of Interest Calculation

Details: Accurate interest calculation is essential for financial planning, investment decisions, and understanding the growth potential of share term certificates.

4. Using The Calculator

Tips: Enter the principal amount in USD, the annual interest rate as a decimal (e.g., 0.05 for 5%), and the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a share term certificate?
A: A share term certificate is a savings product offered by credit unions that pays a fixed interest rate for a specific term.

Q2: How is the interest rate converted to decimal?
A: Divide the percentage rate by 100 (e.g., 5% becomes 0.05).

Q3: Does this calculator account for compound interest?
A: No, this calculator uses simple interest. For compound interest, a different formula would be needed.

Q4: What is the minimum investment for SECU share term certificates?
A: Please consult SECU's current terms and conditions for minimum investment requirements.

Q5: Are there penalties for early withdrawal?
A: Most share term certificates have early withdrawal penalties. Check with SECU for specific terms.