How Axos Bank calculates CD interests?

Axos Bank offers a CD interest calculator on its Website at https://www.citi.com/banking/current-interest-rates/cd.

This calculator allows to you enter APR or APY and converts it to APY or APR. The above example confirms that the interest is compounded daily for a 365-day year. See the calculation below:

$\mathrm{APR}=\mathrm{365}\times ({(1+\mathrm{5.0\%})}^{{\displaystyle \frac{1}{\mathrm{365}}}}-1)=\mathrm{0.048793425246426}=\mathrm{4.88\%}$

You can verify this calculation with our online APY to APR convertor by clicking the link: "What Is the APR for an APY of 5.0% if compounded daily".

This example also shows that the calculator uses the APR formula with deposit term in days on a 365-day year basis. The 12-month deposit term is considered as 365 days:

$\mathrm{Interest}=\mathrm{Deposit}\times ({(1+{\displaystyle \frac{\mathrm{APR}}{\mathrm{365}}})}^{\mathrm{Days}}-1)$
$\mathrm{Interest}=\mathrm{100,000}\times ({(1+{\displaystyle \frac{\mathrm{4.88\%}}{\mathrm{365}}})}^{365}-1)=\mathrm{5000.6902591171}=\mathrm{5000.69}$

You can verify this calculation with our online CD interest calculator by clicking the link: "What Is the 365-day interest of $100,000 deposit compounded daily for an APR of 4.88% on a 365-day year basis".

However, if we select a 5-month deposit term (152 days) with 3.92% APR, this calculator generates an interest of $1,646.54, which does not match the result, $1,645.75, of the APR formula. So we are not really sure how Axos Bank calculates the CD interest.

$\mathrm{Interest}=\mathrm{100,000}\times ({(1+{\displaystyle \frac{\mathrm{3.92\%}}{\mathrm{365}}})}^{152}-1)=\mathrm{1645.7463354637}=\mathrm{1645.75}$

You can verify this calculation with our online CD interest calculator by clicking the link: "What Is the 152-day interest of $100,000 deposit compounded daily for an APR of 3.92% on a 365-day year basis".

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