Certificate of Deposit

Question: Could someone explain Certificates of Deposits (CD) better for me?

On Bank Of America’s website it says 36 month CD 1.75% (btw is that 1.75% compounded every month or does that mean if I put in a 1000 after 3 years I’ll have $1750 -_- and why is the high yield a smaller percentage than the CD of 36 month) ..

http://www.bankofamerica.com/deposits/checksave/index.cfm?template=save_overview#2

I just turned 18 and I want to open a bank account and save money, any tips?

Answer: The 1.75% is an annual rate, which means if you deposit $1000, after year one you will have $1017.50
After year two you will have $1035.
Year 3 you’ll have $1052.50

“why is the high yield a smaller percentage than the CD of 36 month) ..”

Because it is a shorter term note – 1 year vs 3 years.

The web page does not specify if they compound interest on a monthly basis, but it is likely with these CD’s that they do not.