This topic describes the processing of annual percentage yield earned in CDs.

Banks publishes APYE figures in the periodic statements generated for the customer.

For certificate of deposits, the Annual Percentage Yield (APYE) is calculated using the same formula as for a savings account.

Formula: 100 [(1 + (Dividends earned ¸Balance)) 365¸ days in period - 1 ] = Balance = the average daily balance in the account for the period

Dividends earned = the actual amount of dividends earned for the period

Days in period = the actual number of days over which the dividends disclosed on the statement were earned

Example: Calculate the APYE for a statement period of 31 days for an account with an average daily balance of $1,436.61 and dividends earned during the period of $3.36:

100 [(1 + (3.36 ¸1436.61))^(365¸31) - 1] = 2.78875%

Rounded from the 3rd position, APY Earned = 2.79%