Penfed Money Market Calculator
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Reviewed by Calculator Editorial Team
Calculate your PenFed Money Market account earnings with this free online calculator. Simply enter your initial deposit, interest rate, and time period to see how your balance grows with compound interest.
How to Use This Calculator
Using the PenFed Money Market Calculator is simple:
- Enter your initial deposit amount in the "Initial Deposit" field.
- Input the annual interest rate offered by PenFed in the "Annual Interest Rate" field.
- Select the compounding frequency from the dropdown menu.
- Enter the number of years you plan to keep the money in the account.
- Click the "Calculate" button to see your projected balance.
The calculator will display your future balance, total interest earned, and a chart showing your balance growth over time.
Formula Used
The PenFed Money Market Calculator uses the compound interest formula:
A = P × (1 + r/n)nt
Where:
- A = the future value of the investment/loan, including interest
- P = the principal investment amount (the initial deposit or loan amount)
- r = the annual interest rate (decimal)
- n = the number of times that interest is compounded per year
- t = the time the money is invested or borrowed for, in years
For the total interest earned, we use:
Interest = A - P
Worked Example
Let's calculate the future value of $5,000 invested at 2.5% annual interest rate, compounded quarterly, for 5 years.
Initial Deposit (P): $5,000
Annual Interest Rate (r): 2.5% or 0.025
Compounding Frequency (n): Quarterly (4 times per year)
Time (t): 5 years
Using the formula:
A = 5000 × (1 + 0.025/4)4×5
A = 5000 × (1.00625)20
A ≈ 5000 × 1.1329
A ≈ $5,664.50
The total interest earned would be $5,664.50 - $5,000 = $664.50.
FAQ
What is a PenFed Money Market account?
A PenFed Money Market account is a high-yield savings account offered by PenFed Credit Union that typically offers competitive interest rates and allows for easy access to your funds.
How often is interest compounded in a PenFed Money Market account?
Interest in PenFed Money Market accounts is typically compounded daily, but the exact compounding frequency may vary. Our calculator allows you to select different compounding periods to see how they affect your balance.
Is there a minimum balance requirement for a PenFed Money Market account?
Yes, PenFed Money Market accounts usually require a minimum balance to earn the advertised interest rate. Check with PenFed for their current requirements.
Can I withdraw money from a PenFed Money Market account without penalties?
Yes, PenFed Money Market accounts typically allow for unlimited withdrawals without penalties, though there may be a limited number of free transactions per month.