A 6 month CD where the interest will credited to the CD at maturity and the CD is set up for automatic renewal - would this mean the compounding is disclosed as "Interest will be compounded at maturity."

What is disclosed for compounding if the interest will be credited to a separate account or paid by check at maturity?

Thanks in advance.

You could say interest is compounded at maturity, interest is compounded semi-annually or interest is compounded every 6 months.


Crediting is not a factor when it comes to compounding or the APY calculation. Always disclose the compounding frequency the same, whether the interest is compounded or paid out (by check or deposited to another account).

Thank you very much for your help!!!